PE Performance Improves Outside the US But Still Below Public Markets


April 10, 2014

Private equity funds that invest primarily in developed and emerging markets beyond the US borders started the second half of 2013 with solid returns in the third period, according to Cambridge Associates latest research.Both alternative asset classes generated positive returns for the quarter ending September 30, 2013, with investments in developed markets outperforming those in emerging markets for the period.


Returns for funds in both asset classes were up from the prior quarter, and the “Cambridge Associates LLC Global ex U.S. Developed Markets Private Equity and Venture Capital Index” rose 6.7% in the third quarter, up from a return of 2.4% in the prior period. The index’s return was aided by a strengthening Euro during the July to September period.


Having said that, the Cambridge analysts noted that its PE index was outperformed by its public market counterpart, the MSCI EAFE, which earned 11.6% in the third quarter. The PE index improved from a negative 0.4% return in the second quarter to a 3.7% return in the third. Its public market counterpart, the MSCI Emerging Markets, earned 5.9%. Sources: Cambridge Associates LLC, MSCI Inc., Standard & Poor’s, and Thomson Reuters Datastream. MSCI data provided “as is” without any express or implied warranties.

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