The Red Rocks Capital Global Listed Private Equity Index (GLPE) returned 30.02 per cent per year, versus 21.14 per cent per year for the S&P 500 for the five years ending 31 March 2014.
The GLPE Index is the largest, most widely followed private equity index, with more than USD500 million in ETF tracking assets, and was the first US-based investable index to monitor global listed private equity companies.
Constituents of the Red Rocks Capital Global Listed Private Equity Index (GLPE) reported significant deal activity during the first quarter of 2014, driving continued Index growth and outperformance of major market and alternative asset indices.
Exits continued to be a major theme throughout the quarter, with the announcement of completion or of a number of large realisations by GLPE constituent firms. Onex, one of the largest weightings within the GLPE Index, was particularly active, announcing sales of The Warranty Group for USD1.5bn and Gates Global for USD5.5bn – one of the largest buyouts of the year.
Private equity activity in the first quarter increased vs. 2013, with buyout investment across North America up 50 per cent while fundraising reached a post-crisis high of USD95bn.
“The exit environment has been a consistent driver of recent private equity performance as strategic sales and IPOs in the US and Europe have resulted in significant distributions to investors,” says Mike Trihy, manager of the GLPE Index at Red Rocks Capital. “Recent successful deals have been a key reason that PE firms have been able to raise capital for new funds. We believe that as long as global markets remain relatively calm, the managers of GLPE constituents will continue to exit mature holdings within their portfolios and selectively deploy dry powder as they see opportunities in certain market segments.”