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PrEQIn Index: All Private Equity, Buyout and Venture Capital vs. S&P 500 – as at 31 March 2014

by Emma Underwood

  • 26 Sep 2014
  • PE
  • VC

The PrEQIn Private Equity Quarterly Index is the first index to cover the whole of the private equity industry, and provides industry professionals with an alternative tool when assessing the performance of private equity to other asset classes. Preqin also calculates indices for the various subsectors of the industry including buyout and venture capital funds. 

Rebasing the PrEQIn All Private Equity, Buyout and Venture Capital Indices to 31 December 2007, as shown in the chart below, is useful for analyzing how these strategies have performed in the aftermath of the 2008 financial crisis, and displays how each strategy has recovered. By also including the S&P 500, it is possible to gain an insight into how the private equity industry has performed during this period in comparison with listed markets.

 

The chart shows that all four indices reached their lowest points in Q1 2009. Following this, the private equity industry recovers at a steady rate, whereas the S&P 500 index is more variable. 

As of Q1 2014, all three private equity strategies, as well as the S&P 500, displayed increases on the previous quarter. The smallest increase was experienced by the S&P 500, while the largest quarterly increase was exhibited by PrEQIn Venture Capital. However, PrEQIn Buyout remains the top performing Index, a position it has held for 17 consecutive quarters. As it stands, the PrEQIn Venture Capital Index is just one index point behind the PrEQIn All Private Equity Index. The index has been converging on the PrEQIn All Strategies Index for several quarters, having spent 14 consecutive quarters underperforming the industry as a whole.

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