State Street Corporation has released the third quarter results of the State Street Private Equity Index.
The Index is based on the latest quarterly statistics from State Street Investment Analytics’ Private Edge Group, which provides detailed analyses of customers’ private equity portfolios through a fully automated web-enabled environment.
Comprising of data including more than 1,300 private equity partnerships with a total fund size in excess of $1.1 trillion, the State Street Private Equity Index allows private equity investors to evaluate their performance against their peers across a broad and representative sample of investments. Unlike other 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, the Index provides an accurate representation of private equity holdings across all funds, without reporting bias.
The State Street Private Equity Index includes data derived from the diverse client base of The Private Edge Group covering public and private pensions, endowments and foundations, representing more than 4,000 commitments totaling over $150 billion. The Private Edge Group has one of the most expansive and comprehensive private equity data sets currently maintained, including partnership information down to the portfolio company level.
“The tightening of credit conditions, especially in the US, has constrained deal flow during the quarter as evidenced by cancellation and postponement of several buyout transactions and increased challenges in placing leveraged buyout debt for completed transactions. This decrease in buyout transactions has manifested itself in slightly lower overall valuations and thereby lower long-term returns on a quarter-over-quarter basis across the US private equity space. However, international private equity actually displayed slightly improved returns over the prior quarter due to the continued weakness of the US dollar,” says William Pryor, senior vice president, State Street.