In 2023, US private equity (PE) performed better than venture capital (VC), but returns for both asset classes trailed those of the public markets, which rebounded strongly from a tough 2022. For calendar year 2023, the Cambridge Associates LLC US Private Equity Index® returned 9.3% and the Cambridge Associates LLC US Venture Capital Index® returned […]
August 2024
Direct investments are often the first point of entry into private investments (PI) for wealthy families. In building out their direct portfolios, many families invest exclusively in a particular region, industry, or business sector. Similarly, entrepreneurial families with highly cash-generative operating businesses—or those who have recently sold a business—may have portfolios that are narrower in […]
July 2024
Yes. We believe co-investments are an attractive opportunity in the current market for three primary reasons. First, the challenging fundraising environment has increased the incentive for general partners (GPs) to offer co-investments. Second, in a slow-paced environment, the ability to control capital deployment is increasingly valuable for limited partners (LPs). Third, a co-investment offered today […]
June 2024
No, while the public market’s outperformance may seem like a total eclipse, this one, like all eclipses, will be temporary. At present, short-term private equity returns do not compare favorably to those of public benchmarks. For the nine months ended September 30, 2023, global private equity and global venture capital underperformed the MSCI ACWI on […]
April 2024
Over the past decade, executives overseeing corporate defined benefit (DB) pension plans have experienced significant regulatory reform and a full reversal of investment conditions. While rising liabilities once offset asset gains, the opposite is now true. Yet many organizations haven’t recalibrated their approach to plan management in response, leaving them exposed to unnecessary costs and […]
January 2024
We expect US venture capital down rounds will increase, even as artificial intelligence continues to serve as a major catalyst within the market. We believe flows to European turnaround and value strategies will increase and flows to China private investments will remain muted. We expect secondary transaction volume will increase to a record level. Down […]
December 2023
No. In recent years, many private investment fund managers (GPs) have painted themselves with a growth equity brush. Limited partners (LPs) need to be increasingly diligent to determine if they are accessing the truly differentiated and attractive investment profile offered by actual growth equity. Back in 2013, we shared our definition of growth equity as […]
December 2023
Yes, US-China geopolitical realities are already having an impact on trade and investment flows within Asia. China will remain an important destination for investor capital, but the shift in capital flows, alongside positive domestic structural developments in other parts of Asia, create investment opportunities beyond China that deserve a closer look. Trade and financial “decoupling” […]
November 2023