Cambridge Associates U.S. Private Equity and Venture Capital Benchmark Commentary Quarter Ending June 30, 2012

Second Quarter 2012 Highlights:

  •  As of June 30, 2012, the private equity benchmark outperformed indices tracking large and small public companies in six of the nine time horizons listed in the table above with the exceptions being the year-to-date, one-year, and three-year periods ended June 30, 2012. For two of those time periods, the one-year and three year horizons, the results were mixed against the public markets. Similarly, the venture capital index beat out the public markets in six of the nine time periods, with shortfalls in the year-to-date, three-year, and ten-year time horizons. The recent mixed performance of the private equity and venture capital indices relative to the public markets is worth monitoring. Over the ten-year period, the venture index’s performance against public equities was mixed. It equaled the S&P 500 but trailed the small company index, the Russell 2000, and the technology heavy NASDAQ Composite.
  • The ten-year return for the venture capital index has improved as the poor performance from the technology bust starting in 2000 gets removed from the ten-year calculation. In the first quarter of 2012, the ten-year return hit its highest mark since September 30, 2009 when it was 6.7%. Since bottoming out at -4.6% during the third quarter of 2010, the ten-year return has risen 9.9%.
  • The spread between the private equity and venture capital ten-year returns stood at 7.5% as of the second quarter, down from 12.7% when the venture index hit its nadir in the third quarter 2010.
  • As of June 30, 2012, public companies accounted for about 20.7% of the private equity index, a decrease of nearly 2.0% from the first quarter. Public company representation in the venture capital index dropped to 17.0% from about 21.8% last quarter. Non-U.S. company exposures in the private equity and venture capital indices remained about the same as they were during the prior three quarters, 18.8% in the private equity benchmark and approximately 9.6% in the venture index

Second Quarter 2012 USPE and VC Benchmark Commentary


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