upticks

Assessing the PE Asset Class: Upticks and Downticks

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February 28, 2013

This week Privcap broadcast a good panel discussion on the latest industry performance numbers. According to Cambridge Associates, which publishes PE Indices and Benchmarks, the third quarter last year registered at 3.1 percent positive growth over the previous quarter.

 

This contributed to a good year-to-date number so far. The year-to-date number for 2012 is 8.6 percent. The 10-year number from Cambridge is 11.8%, including both private equity and venture, which compares favorably to the 10-year S&P, Standard & Poor 500, at 8 percent.

 

The outlook for PE, based on the view that it is cyclical, like most other industries, is for an uptick in year-over-year performance commitments to funds, and a downtick in the size capital overhang (dry powder, or uninvested capital). (Image source: Cambridge Associates)

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