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2. PECCS Indices & Benchmarks

  • PECCS Indices & Benchmarks offer a large breadth of indices allowing any portfolio or group of assets to be benchmarked easily.

  • Coverage includes over 100 countries & geographic regions, 12 activity classes, 3 lifecycle phases, 4 revenue models, 2 customer models, and 3 value chain types.

  • Combinations are a function of universe coverage of a minimum number of eligible assets.

  • Maintenance is carried out based on eligibility and data availability.

This product provides index series that combine 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.

Different from the flagship indices, i.e., the privateMetrics indices, the PECCS Indices offer more permutations and combinations of indices. While privateMetrics indices provide a succinct and representative summary of the performance of aggregate private markets, the PECCS Indices provide more customised and granular combinations of assets that are relevant to benchmarking any specific portfolio or funds. In other words, the PECCS Indices allow one to select a segment or group of companies that can be directly relevant to one’s portfolio.

Specifically, 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 eligible private companies that are tracked.

On this page, we provide details on how we arrive at the list of eligible companies that can be included in the index (universe determination) and the actual determination of the PECCS indices & benchmarks.

Note that in the PECCS Indices & Benchmarks, the number of constituents, entrants, and exits are not strictly monitored as for the flagship privateMetrics, and the past index series is also refreshed when coverage of our Universe expands.

Key specifications of the PECCS Indices & Benchmarks are provided below:

When is a PECCS Index or Benchmark created?

If the combination of filtering criteria including regions, countries, and PECCS classes and subclasses result in over 50 companies for at least a period of three years or more, then a PECCS Index or Benchmark is created. The distinction between Index & Benchmark is drawn by the number of segments included. Combinations of up to two segments (e.g., Country & PECCS Activity, or Region & PECCS sub activity, etc) is designated as a PECCS Index. Combinations of three or more segments fall under the PECCS Benchmark (e.g., Country, PECCS Activity, and PECCS Revenue Model).

How is a PECCS Index or Benchmark maintained?

Maintenance of these indices and benchmarks include: exclusion of companies whose financials become stale, lose eligibility to be classified under the segment of the index (for example, startup companies can evolve into mature at some time), and exclusion of bankrupt companies and those that are publicly listing. These are done on an ongoing basis, and the index is recomputed with the remaining constituents and any that newly qualify for the segments. There are no annual reconstitutions for PECCS Indices or Benchmarks, and no region or country or PECCS segment receives any pre-defined weights for index inclusion.

Other Kinds of Benchmarks

Benchmarks are not just constrained to combinations of three or more segments, but also can include combinations of PECCS and privateMetrics indices with different weights according to the needs and exposures of a user’s portfolio, to get a more bespoke reference point.

For illustration, consider an investor who is invested in the United States and the United Kingdom, with exposure to three industrial activities. Further, in the Information & Communication activity, the investor has selected investments based on the lifecycle phase in each of the two countries. This investor can combine the below indices and benchmarks as per the weights of their portfolio to produce a unique custom benchmark. The relevant indices/benchmarks and their weights in the custom benchmark for this investor are presented in the table.

PECCS Benchmark

Client can receive

Client’s Portfolio

Included Indices/Benchmarks

Self-computed Custom PECCS Strategy Benchmark

Historical valuation and analytics benchmark for the combination of assets shown in figure above.

Effective PECCS and geography weights

PECCS™ US Utilities: 12.0%

PECCS™ US Manufacturing: 42.0%

PECCS™ US Info. & Comm. Startup:  4.8%

PECCS™ US Info. & Comm. Mature:  1.2%

PECCS™ UK Utilities: 12.0%

PECCS™ UK Manufacturing: 16.0%

PECCS™ UK Info. & Comm. Growth:  6.0%

PECCS™ UK Info. & Comm. Mature:  6.0%

image-20240423-014633.png

Figure 5: A mix-and-match custom PECCS Benchmark

Each of the privateMetrics indices or benchmarks also comes with a wealth of Analytics allowing users to understand the drivers of risk and performance, extreme risk, concentration, key risk factors, etc. of the index or benchmark.  

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