State Street’s GX Private Equity Index Ends Second Quarter with Gains, Despite Weakening Economic Growth and Political Turm...
November 21 2016 - 11:08AM
Business Wire
State Street Corporation (NYSE:STT) today announced the results
of its GX Private Equity Index (PEI), a benchmark for comparative
analysis of private equity performance, which includes a
comprehensive data set dating back to 1980. In the second quarter
of 2016, the index saw an overall return of 2.7 percent, with
Buyout, Private Debt and Venture Capital each posting positive
returns.
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GX PEI
“The last eight quarters have been difficult for all private
equity funds. Rolling one-year returns have been in decline since
the second quarter of 2014, down from a nearly 30 percent return to
single digits, mainly due to continued slow growth, economic and
political uncertainty, and a lackluster IPO market,” said Will
Kinlaw, senior managing director and global head of State Street
Associates®, a division of State Street Global ExchangeSM.
“Nonetheless, we do see recent gains in buyout funds, which can in
large part be tied to the strong performance we’ve been seeing in
energy-focused funds.”
The PEI is based on directly sourced limited partnership data
and represents more than $2.4 trillion in private equity
investments, with more than 2,600 unique private equity
partnerships, as of June 30, 2016.
Second Quarter Highlights Include:
- Improving quarter over quarter for the
last four quarters, Buyout gained 3.41% in Q2 (up from 1.25% in Q1)
while Private Debt funds gained 2.61% (up from 0.75 in Q1) during
the second quarter of 2016. Venture Capital posted a 0.28% return
in Q2 (up from -1.49% in Q1).
- Among all three main strategies,
Venture Capital posted a 0.84% return for one year, as of Q2 2016;
while Buyout and Private Debt recorded 4.98% and 1.77% returns
respectively, for the same period.
- Recent volatility of the Euro foreign
exchange rate has brought some headwinds to European focused funds.
The quarterly return dropped from 3.51% in Q1 to 0.67% in Q2 2016.
One year returns also declined from 14.95% at the end of March 2016
to 7.27% as of June 30, 2016.
“In the second quarter we saw movement to European-based funds
among a significant amount of investors looking to capitalize on
the Brexit, as the declining Euro and British Pound created
opportunities for investors looking to make new commitments to the
region,” said Anthony Catino, managing director, Alternative
Investment Solutions for State Street. “It will be interesting to
see how these Euro funds perform throughout the remainder of
2016.”
For additional insights, or to learn more about the GX Private
Equity Index please visit http://www.ssgx.com/peindex.
About State StreetState Street Corporation (NYSE: STT) is
one of the world's leading providers of financial services to
institutional investors, including investment servicing, investment
management and investment research and trading. With $29 trillion
in assets under custody and administration and $2 trillion* in
assets under management as of September 30, 2016, State Street
operates in more than 100 geographic markets worldwide, including
the US, Canada, Europe, the Middle East and Asia. For more
information, visit State Street’s website at
www.statestreet.com
* Assets under management were $2.4 trillion as of September 30,
2016. AUM reflects approx. $40 billion (as of September 30, 2016)
with respect to which State Street Global Markets, LLC (SSGM)
serves as marketing agent; SSGM and State Street Global Advisors
are affiliated.
Important Risk Information
Investing involves risk including the risk of loss of
principal.
Past performance is no guarantee of future results.
Performance of an index is not illustrative of any particular
investment. It is not possible to invest directly in an index.
This press release is provided for informational purposes only
and should not be considered investment advice. Any such views are
subject to change at any time based upon market or other conditions
and State Street disclaims any responsibility to update such views.
Neither State Street nor its affiliates can be held responsible for
any direct or incidental loss incurred by applying any of the
information offered. Please consult your tax or financial advisor
for additional information concerning your specific situation.
State Street Corporation One Lincoln Street, Boston, MA
02111-2900.
© 2016 State Street Corporation - All Rights Reserved
CORP-2390
Exp. Date: 11/30/17
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version on businesswire.com: http://www.businesswire.com/news/home/20161121005843/en/
State Street CorporationJulie Kane,
1-617-664-3001jekane@statestreet.com@StateStreet
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