1.4 Company Selection

Company selection for privateMetrics® indices is a multi-step process:

1. First, we need to determine the list of eligible companies. Adequate care should be exercised in arriving at a population of private companies similar to what private equity investors typically consider, i.e., PE investable.

2. Second, we need to identify the number of companies required for each country-activity combination.

3. Finally, we need to identify the actual companies that qualify for each country-activity. Also, when data is not available in a country-sector, how are the weights redistributed? All these processes are described in the following sections.