International Investments in Private Equity

Chapter 3. Global benchmarks

Chapter Outline

3.1. Benchmark characteristics50

3.1.1. Benchmarks for mature private equity markets50

3.1.2. Benchmarks for nontraditional private equity markets58

3.2. Benchmark performance59

3.2.1. Benchmarking returns in mature markets59

3.2.2. Benchmarking returns in nontraditional private equity markets65

3.3. Summary and conclusions66

Benchmarks serve important functions in investment decisions. They help investors determine their allocations to individual asset classes and different market segments within particular asset classes. In-house investment teams who are responsible for investment decisions are generally appraised against agreed benchmarks. To the extent that external fund managers are mandated, their ...