Red Rocks Capital’s Global Listed Private Equity (GLPE) index continues to provide long-term performance comparable with the Cambridge Associates Global Buyout & Growth Equity Index.
GLPE Index has approximately USD500 million in ETF tracking assets, and was the first US-based investable index to monitor global listed private equity companies.
The Cambridge Associates Global Buyout & Growth Equity Index is a widely followed private equity benchmark and is an end-to-end calculation based on data compiled from 1,753 global (US & ex US) buyout and growth equity funds including fully liquidated partnerships, formed between 1986 and 2014.
"Traditional illiquid private equity limited partnerships have historically outperformed the S&P 500 and other equity indices over longer investment cycles," says Mike Trihy, GLPE Index Manager at Red Rocks Capital. "Constituents in the GLPE trade daily on major exchanges throughout the world so the index may experience higher volatility than traditional private equity during shorter investment horizons. However, over longer investment perspectives, the GLPE provides performance comparable to traditional private equity while significantly outperforming the S&P 500."
With its global scope, GLPE puts an emphasis on direct private equity investing. The GLPE Index is designed to track the performance of private equity firms which are publicly traded on any nationally recognised exchange worldwide. Index constituents are selected from a universe of over 300 firms with aggregate market capitalisation of over USD300 billion that invest in, lend capital to, or provide services to privately-held businesses and provide a meaningful subset of the USD3.5 trillion AUM global private equity market. The Index is comprised of 40 to 75 public companies representing a means of diversified exposure to private equity firms. The securities of the Index are selected and rebalanced quarterly per modified market capitalisation weights.