State Street Corporation has launched the State Street Private Equity Index, based on the latest quarterly statistics from State Street Investment Analytics’ Private Edge Group, which prov
State Street Corporation has launched the State Street Private Equity Index, based on the latest quarterly statistics from State Street Investment Analytics’ Private Edge Group, which provides detailed analyses of customers’ private equity portfolios through an automated web-enabled environment.
Comprising data from more than 1,300 private equity partnerships with an aggregate fund size in excess of USD1.1trn, the index is designed to allow private equity investors to evaluate their performance against their peers across a broad and representative sample of investments.
Unlike other private equity indices, the State Street Private Equity Index does not rely on voluntary reporting of cash flows from general partners in order to calculate returns. As a result, State Street says, the index provides an accurate representation of private equity holdings across all funds, without any reporting bias.
‘The industry has been seeking a more robust source of comparative information for private equity performance and more importantly, peer group analysis,’ says senior vice-president William Pryor. ‘Private equity investors now have a benchmark as well as an additional layer of transparency to analyse their private equity holdings.’
The State Street Private Equity Index includes data derived from the client base of the Private Edge Group including public and private pensions, endowments and foundations, representing more than 4,000 commitments totalling more than USD150bn. According to State Street, the group has one of the broadest and comprehensive private equity data sets currently maintained, including partnership information down to the portfolio company level.
‘The industry has long awaited a third-party private equity index based on consistent and reliable data,’ says Chris Ailman, chief information officer of CalSTRS. ‘State Street’s index will be a tremendous asset in evaluating our holdings, which will provide us the information necessary to make strategic business decisions.’
State Street Investment Analytics, whose services are provided through offices in Alameda, Amsterdam, Boston, Dublin, Edinburgh, Frankfurt, Hong Kong, London, Luxemburg, New York, Paris, Sydney, Toronto and Zurich, calculates performance for more than 800 clients globally on asset volumes exceeding USD4.5trn, and has provided private equity performance and analytics services ranging from performance measurement to complex quantitative and qualitative portfolio analysis through the Private Edge Group since 1994.
At the end of June, the index universe comprised 1,309 buyout, venture capital and other private equity funds with commitments totalling USD1,135bn and with an aggregate long-term internal rate of return of 15.29 per cent. It consisted of 586 buyout funds with commitments of USD801bn and a long-term IRR of 15.79 per cent, 567 venture capital funds with commitments of USD199bn and a long-term IRR of 13.23 per cent, and 156 other funds with commitments of USD135bn and a long-term IRR of 14.55 per cent.
State Street Corporation is a provider of financial services to institutional investors including investment servicing, investment management, and investment research and trading, and had USD15.1trn in assets under custody and USD2trn in assets under management at the end of September.
