The PreQIn Infrastructure Index is the first of its kind to capture the returns earned by investors, on average, in their infrastructure portfolios, based on the actual amount of capital invested in infrastructure partnerships. Subsequently, with the development of this index, it is now possible to more effectively compare the performance of infrastructure funds with all other private equity strategies.
The PreQIn Infrastructure Index and the PreQIn All Private Equity Index are calculated on a quarterly basis using performance data from Preqin’s online services, Infrastructure Online and Performance Analyst. The infrastructure index is calculated using cash flow data based on 148 infrastructure funds, while the PreQIn All Private Equity Index has been calculated using cash flow data for over 2,300 private equity vehicles.
By rebasing both indices to 100 (as of 31 December 2007) it is possible to analyze the returns of the infrastructure asset class in comparison to all private equity strategies. As demonstrated in the graph above, infrastructure and private equity diverge away from each other during the first three quarters following Q4 2007, with infrastructure outperforming private equity by the largest proportion in December 2008. After the financial crisis, both indices gradually recovered, displaying a consistently positive trend. At the most recent quarter, 31 March 2014, both the Infrastructure Index and All Private Equity Index produced their highest index returns to date – 155.5 and 137.1 respectively.