Market Benchmark searches can be made based on a fund's vintage, investment strategy, and geographic focus.
Within each benchmark group, performance metrics of called-up, distributed, unrealized value, multiples, and net IRRs are calculated for the following:
• Median – the middle value from an ordered set of a specific benchmark grouping (for each performance metric).
• Average – the mean net IRR is taken from a specific benchmark grouping to calculate the average fund performance metrics.
• Pooled – accounts for the timings of calls/ distributions; aggregates cash flows of constituent funds and calculates resultant net IRRs.
• Weighted – takes the performance ratios of each individual fund and calculates a weighted average using the size of each fund.
Within each benchmark, funds are assigned a Quartile Ranking – an easy indicator of how a fund is performing relative to other constituents in the benchmark group. The ranking applies to funds that are included in our ‘most up-to-date’ range, i.e., have reported data within the past 5 quarters.
Both the multiple and net IRR rankings of each constituent fund are used to determine the fund’s overall quartile rank with equal weighting. If one of the two metrics is unknown, its ranking is estimated based on the known metric’s ranking. In instances where the sample size is too small for a specific benchmark group, the fund will be compared to a broader category.
For more information download Preqin's Private Capital Performance Data Guide