PE.Analyzer, a new FinTech platform from CEPRES, now calculates the beta risk of private equity markets for the first time.
By measuring individual beta of Private Equity investments to public markets, the platform calculates risk-adjusted alpha for specific strategies and sectors – something never before available for Private Equity investors and fund managers.
“With current Global Markets at their most volatile in years, beta risk outweighs alpha generation as an influencer of final investment outcomes,” says Dr Daniel Schmidt, CEP CEPRES. “Previous analysis of alpha assumed a beta correlation of 1 for Private Equity, which research proves is incorrect. Without the beta analysis we introduced today, an investor could make false assumptions resulting in unexpected losses – as happened for many investors in private equity during the 2008 credit crisis.”
