State Street Private Equity Index Ends 3Q 2017 with Continued Strong Performance
February 01 2018 - 10:32AM
Business Wire
Buyout Funds Lead Private Equity Strategies in Returns for
Seventh Consecutive Quarter
The State Street Global Exchange℠ Private Equity Index (GXPEI)
closed the third quarter of 2017 with a solid performance of 3.85
percent with Buyout Funds continuing to lead private equity
strategies in gains. The GXPEI is based on directly-sourced limited
partnership data and represents more than $2.7 trillion in private
equity investments, with more than 2,800 unique private equity
partnerships, as of September 30, 2017.
“Momentum is the name of the game in the third quarter of 2017,”
said Will Kinlaw, senior managing director and global head of State
Street Associates®, a division of State Street Global Exchange.
“Not only were the overall returns close to the previous quarter’s
strong returns, but the relative performances across market
segments, such as fund strategy, region and sector focus was
largely unchanged.”
Third Quarter Highlights Include:
- Buyout funds posted a 4.11% gain in Q3.
While slightly lower than Q2’s 4.73%, they still led the three main
strategies for the seventh consecutive quarter.
- Venture Capital return improved to
3.57% from 1.84% in Q2 and Private Debt funds inched lower to 2.84%
in Q3 from 3.08% in Q2.
- European-focused private equity funds
experienced a 6.07% quarterly gain in USD-denominated terms (2.32%
in EUR-denominated initial rate of return). US-focused funds
returned 3.20%, while funds focused on the rest of the world gained
4.29%.
- Among sectors, Industrial funds saw the
highest return rising to 5.87%, up from 4.73% in Q2; followed by
Information Technology funds with a return of 3.80%, up from 3.10%
in Q2; Energy funds’ performance improved to 2.59% this quarter up
from 0.26% in Q2.
- Average monthly paid-in-capital to
commitment (PICC) increased to 0.74 percent in 2017 up from 0.64
percent in 2016 while average monthly distribution to commitment
(DCC) increased to 1.04 percent in 2017 up from 0.88 percent in
2016.
“Following a minor slowdown in cash flow activities in 2016,
there has been a meaningful recovery in both capital calls and
distributions signaled by the higher cash flow ratios in 2017,”
said Anthony Catino, managing director, Alternative Investment
Solutions for State Street. “The gap between distribution and
contribution also widened in 2017 comparing to 2016, strengthening
a trend started in 2012.”
For additional insights, or to learn more about the GX Private
Equity Index please visit http://www.ssgx.com/peindex.
Index returns reflect capital gains and losses, income, and the
reinvestment of dividends.
It is not possible to invest directly in an index. Index
performance does not reflect charges and expenses associated with
the fund or brokerage commissions associated with buying and
selling a fund.
Index performance is not meant to represent that of any
particular fund.
About State Street CorporationState Street Corporation
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servicing, investment management and investment research and
trading. With $33.10 trillion in assets under custody and
administration and $2.80 trillion* in assets under management as of
December 31, 2017, State Street operates in more than 100
geographic markets worldwide, including the US, Canada, Europe, the
Middle East and Asia. For more information, visit State Street’s
website at www.statestreet.com.
* AUM reflects approx. $35 billion (as of December 31, 2017)
with respect to which State Street Global Markets, LLC (SSGM)
serves as marketing agent; SSGM and State Street Global Advisors
are affiliated.
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State Street CorporationJulie Kane, +1
617-664-3001JEKane@StateStreet.com@StateStreet
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