ILPA Reveals Private Markets Benchmark Results
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ILPA Reveals Private Markets Benchmark Results

The Institutional Limited Partners Association (“ILPA”) has released the ILPA Private Markets Benchmark, a proprietary performance benchmark in partnership with Cambridge Associates.

In February 2012, the ILPA announced a partnership with Cambridge Associates, an institutional advisor, to jointly construct a branded private markets benchmark, which includes over 1,800 institutional funds. The goal of the benchmark is to accurately and consistently represent the global investible universe and asset class performance for institutional investors.

As of September 30, 2012, the most recent quarter available, the ILPA Private Markets Benchmark for U.S. Private Equity reported a 13.55% ten-year return. Performance for international funds, excluding U.S. private equity and venture capital funds, was 13.95% over the same ten year period.

“The need for improved benchmarks for institutional investors has been a priority for the ILPA, so I am pleased to announce the release of these results,” said Mike Mazzola, Chairman of the ILPA. “Working with Cambridge to continuously enhance the coverage of funds within the benchmark will serve to provide members with a reliable and robust industry performance measure.”

The benchmark will be issued to members on a quarterly basis and performance statistics will initially include internal rates of return (IRR) and investment multiples (DPI, RVPI & TVPI) for Vintage Years from 1981 to the present.

“The ILPA Benchmark is a representation of all contributing members’ portfolios and does not reflect the portfolio of any single member” said Mike Elio, Managing Director, Industry Affairs at the ILPA. “The difference between the new ILPA benchmark and other benchmarks currently in the market, is that it is applicable to the members of the ILPA.”

The Institutional Limited Partners Association is a member-driven organization dedicated to advancing the interests of private equity Limited Partners through education programs, independent research, best practices, networking opportunities and global collaborations. It is a not-for-profit association that has over 275 institutional member organizations that collectively have over $1 trillion of assets under management. The ILPA is based in Toronto (www.ilpa.org).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13

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