The National Association of Investment Companies (NAIC) announced today the release of “Examining the Returns: The Financial Returns of Diverse Private Equity Firms,” a research report that provides the most detailed and comprehensive insights on the investment returns generated by diverse-owned private equity firms in the US.
Published with assistance from KPMG, an independent accounting firm that analyzed and compiled the performance data to ensure its integrity and accuracy, and AON Hewitt, who wrote the report, it will serve as a resource for institutional investors, industry professionals, and the media. A prior report, released in 2012, was instrumental in informing the industry, institutional investors and the public at large of the value diverse managers bring to portfolios.
The study continues to demonstrate that diverse managers are performing well and are worthy of consideration by institutional investors seeking alpha. “I hope this report causes institutional investors to have an epiphany regarding investing with diverse-owned private equity firms,” says Robert L. Greene, President & CEO of the NAIC. “The opportunity for outperformance is clear and the perceptions which have limited the flow of capital are invalid and unwarranted.”
Among the performance report’s revelations are the fact that diverse-owned private equity firms continue to demonstrate their skill and expertise and have once again outperformed the relevant benchmarks. On an aggregate basis, diverse-owned firms generated an impressive 16.5% internal rate of return for the 10-year reporting period ending in December 2015. This exceeds the Cambridge Buyout & Growth Equity index of 11.3% by more than 500 basis points.
The full report is available on the NAIC Website.
About the NAIC: The National Association of Investment Companies (www.naicpe.com) was founded in 1971 to serve as the industry association for diverse-owned and emerging managers, a number of which rank among the best performing private equity firms and hedge funds in the United States. With more than 40 member firms representing over $85 billion in assets managed, the NAIC is a recognized thought leader in the U.S. Emerging Domestic Market (EDM).