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1. privateMetrics Index

  • privateMetrics indices cover 30 countries, that are most attractive to PE/VC investors

  • Each country & PECCS activity (sector) within a country, is represented in the privateMetrics indices according to its pro-rated economic importance in the global economy, adjusted for the investability in private assets.

  • From the eligible universe of private companies, the largest in each country-PECCS activity is included in the index.

  • Indices are regularly maintained for public listings, acquisitions, and liquidation events.

  • Annually, indices are also rebalanced in June to update for changes in country weights, PECCS activity weights, and market caps.

privateMetrics offers equity index series that combines the performance of a large number of private companies globally to reflect the overall, segment-wise, and regional performance of the private asset class in a precise, granular, and frequent manner while avoiding the usual biases of estimated, appraised, or self-reported data commonly part of other private market benchmarks.

The key indices include the namesake privateMetrics flagship equity indices and the PECCS indices. The privateMetrics Indices reflect the performance of key segments in the private markets including the large and middle markets and key geographies of interest to investors. The PECCS Indices are the result of several hundreds of combinations of the PECCS classification, geographic regions, and styles of private companies, built from the expanded coverage of all private companies that are tracked.

Here we explain our detailed methodology for arriving at the list of eligible companies that can be considered for index inclusion (universe determination) and determination of actual index constituents for the privateMetrics Indices, which include the private2000 and private3000 equity families and four other indices. The private2000 and private3000 are designed to capture the pricing dynamics of the largest 2,000 and middle market 3,000 companies in 52 countries that rank as the most attractive for private equity investors in the world. The companies that are part of these two indices for the broad private5000 broad market index, i.e., the 5,000 companies are also segmented into four key markets including the United States (privateUS), Europe (privateEurope), and Asia-Pacific  (privateAPAC).

Note that the PECCS indices are combinations of PECCS classes, subclasses, regions, countries, and styles. The number of constituents, entrants, and exits is not strictly monitored, and the past series is also refreshed when coverage of the privateMetrics universe expands, including the past.

In summary, the methodology includes:

The figure below presents a summary of the privateMetrics index methodology. Note that this is a static snapshot of the process, whereas the actual index construction is a dynamic process. This process also considers whether the considered companies were part of the index in the past or are new entrants, implementing different standards for the two types.

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privateMetrics Static Index Methodology at a Glance

The dynamic index maintenance features of privateMetrics indices are shown in the figure below, explaining the monthly and annual processes around index maintenance.

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privateMetrics Dynamic Index Maintenance Calendar at a Glance

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