Blog

The Preqin Difference

by Preqin

  • 06 Feb 2019
  • PE
  • VC
  • HF
  • PD
  • RE
  • INF
  • NR

Preqin is the home of alternatives – the only data provider to cover the full spectrum of alternative assets, including private equity, hedge funds, real estate, private debt, infrastructure and natural resources.

Here, we provide an overview of our customer-centric approach to data coverage, including the definitions we use and how we group our data.

Investors in Funds: Tracking what Matters
We track investors based on their decision-making processes and look at where assets are managed from; subsidiaries are not tracked as separate investors if all investments are pooled and made via the same central investment team.

We only include active allocators to each asset class in our data coverage figures. Although they are still tracked, investors that are no longer investing, or those that invest in other asset classes, are not included. We do not count investment consultants, fund administrators or fund managers that commit capital to their own funds as investors.

All the data we hold on investors and other firms is regularly monitored and updated by our multilingual research team. Read our blog to find out more about our Research team and our data collection methods.

Fund Performance and Benchmarking: Superior Data
We only publicize performance coverage with actionable metrics such as a net IRR or multiple figure. While we also record vehicles reporting other metrics, such as RVPI or called and distributed figures, these are not included in our headline performance data figures.

With performance data for more than 10,100 private capital funds and over 20,500 hedge funds, we have more transparent return metrics than any other provider. In addition, we also track more performance metrics – including median, pooled and money-weighted market benchmarks, custom benchmarks, horizon IRRs, public market equivalent (PME) benchmarks, the PrEQIn Quarterly Index and transparent fund-level cash flow data – than other any other provider.

Preqin pioneered the use of the Freedom of Information Act (FOIA) to collect performance data, and while this remains an important source of data collection, we also receive voluntary contributions from more than 4,000 fund managers across more than 12,500 funds. Contributors are given clear guidelines for submitting information to ensure calculations are consistent, and this data is then reviewed by our performance team internally. It is also cross-referenced against a benchmark of similar funds and other sources reporting on the same fund.

Our Definition of Deals
Deals in alternatives are undoubtedly complex: firms buy and sell to other firms and there are diverse ways of tracking this. At Preqin, we believe the best and most representative approach is to view each deal as a single event so, where a firm is buying an asset and another is selling, this is recorded as one deal and not two.

In line with our customer-centric approach, we maintain separate and comprehensive databases for deals in other areas of alternatives. Private equity-style deals in real estate, private debt and infrastructure are tracked independently and do not count towards our private equity statistics. We do not track trade deals or mergers and acquisitions.

Alternatives Focused: Committed to Excellence
Preqin is solely focused on alternatives. Our mission is, and always will be, to be the absolute leader in comprehensive alternatives data. We collect data using highly skilled, local researchers in the US, Europe and Asia, operating out of seven strategically located offices.

The majority of our 390 global employees are involved in the research, support and development of our industry-leading products. Our dedicated client services team offers 24-hour customer service and bespoke data-request support.

We use both technology and direct, relationship-based research to ensure that our data is second to none, and that Preqin maintains its position as the leading provider of alternatives assets data, insights and tools.

A recent study by Probitas Partners shows that Preqin’s private equity performance benchmarks are the most utilized among institutional investors. Learn more today.

Find out for yourself: request a demo today and we’ll show you how our data can help you.

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