State Street Corporation, the provider of financial services to institutional investors, announced today the results of the State Street Private Equity Indexsm as of 30 June 2008. The index is based on the latest quarterly statistics from State Street Investment Analytics Private Edge Group and includes more than 1,400 private equity partnerships with a total fund size of $1.3 trillion.
The Private Edge Group provides detailed analyses of private equity investments for a diverse client base including public and private pensions, endowments and foundations, representing more than 4,000 commitments totaling more than $200 billion. The Private Edge Group has one of the most extensive and comprehensive private equity data sets currently maintained in the marketplace, including partnership information down to the portfolio company level.
“Overall, private equity is feeling some of the same economic pressures as the public markets,” says Gerard J. Labonte, vice president, State Street Corporation. “Private company valuations may not necessarily exhibit the volatility of the public markets, but the ability to finance deal flow and achieve exits has been severely constrained by the recent market shakeup. The past two quarters mark the first series of consecutive negative quarterly returns for the Index since the downturn from October 2000 through March 2003, which resulted in an ultimate Index drawdown of 31.5% and took 7 quarters to reverse, which is not a relatively weak performance if compared to the S&P 500 downturn of 44.7% from September 2000 through September 2002 which took approximately 4 years to reverse.
“Over the past year we saw launches of numerous distressed debt funds. This segment has shown the ability to be opportunistic within a very short time frame, and actually achieved positive results for the quarter.”
Tables and figures are available at the www.statestreet.com.
D.C.