The private2000 index, a barometer of private company investments across 30 countries from Scientific Infra & Private Assets, posted a 0.72% return in September, bringing its year-to-date (YTD) gain to 4.45% and achieving an 8.85% annualised return over the past year.
This performance highlights continued resilience within private markets, with service-oriented sectors leading the growth.
A sector-by-sector analysis shows that while the private2000 index’s diverse portfolio yielded a broad return, the Manufacturing sector underperformed, delivering a 0.53% return in September and 3.10% YTD. These numbers reflect the challenges faced by manufacturing companies, which rely heavily on production-based revenue models. However, the sector’s five-year annualised return of 9.79% underscores its longer-term growth potential, particularly as automation and robotics become increasingly vital.
Service-oriented businesses, with stable revenue streams, contributed nearly 70% to the private2000’s monthly gains. This sector’s performance underscores private equity’s pivot towards companies with predictable and recurring revenues.
While manufacturing companies experienced modest growth relative to the overall index, they face sector-specific challenges. The sector is more sensitive to economic shifts due to its reliance on physical goods production, though the five-year return indicates potential for sustainable growth in long-term holdings.
The Manufacturing sector’s risk-adjusted returns are comparable to the broader index, with a Sharpe ratio of 0.52 versus the private2000’s 0.54. This suggests that investors in manufacturing who are well-positioned to capitalise on trends like automation may see strong returns over time, despite higher risk exposure.
The data, sourced from privateMetrics, provides granular insight into private market dynamics. Each month, Scientific Infra & Private Assets evaluates over 80,000 private assets to assess investment values and sector performance, using the latest private transactions to calibrate their asset pricing model.
