![]() Public markets were negatively impacted by strict COVID-19 measures in some countries and ongoing geopolitical tensions, which led to a broader market downturn that has continued into 2022 the impact was already visible on private market returns in early 2022 and is expected to continue to be felt for some time. The developed markets PE/VC index has handily outperformed its public market counterparts across time based on modified public market equivalent (mPME) returns.(Cambridge Associates’ mPME calculation is a private-to-public comparison that seeks to replicate private investment performance under public market conditions.) While the same is generally true for the emerging markets PE/VC index, the MSCI All Country World Index (MSCI ACWI) mPME has outperformed over more recent time periods. The Cambridge Associates LLC Emerging Markets Private Equity and Venture Capital Index earned 14.1% for the year, as strong first half performance was tempered by a negative second half. PE/VC in emerging markets performed less well in 2021 than they did in 2020. The US dollar gained significant value against the euro in the second half of 2021, strengthening performance as measured in euros, which reached 43.5% (Figure 1). Because the index’s return is measured in US dollars, the currency’s value vis-à-vis the euro impacts its performance. In 2021, the Cambridge Associates LLC Developed Markets (ex US) Private Equity and Venture Capital (PE/ VC) Index returned 33.4% in USD terms, equaling its strong performance in 2020.
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