|By Marketwired .||
|December 10, 2012 08:45 AM EST||
BOSTON, MA -- (Marketwire) -- 12/10/12 -- Following solid gains in the first quarter, returns on private equity and venture capital funds that primarily invest in companies located in markets outside the U.S. slid into negative territory during the quarter ending June 30, 2012, according Cambridge Associates LLC (C|A). A relatively weaker Euro, as compared to the first quarter, contributed to the results, which were measured in U.S. dollar terms.
The Cambridge Associates LLC Global ex U.S. Developed Markets Private Equity and Venture Capital Index fell 1.5% during the period, which was the third time in the last four quarters that the index produced a negative return. The Cambridge Associates LLC Emerging Markets Private Equity and Venture Capital Index dropped 2.7% in the same period. The performance of the indices is derived from data compiled from more than 1,000 institutional quality funds raised between 1986 and 2012.
The table below provides performance data of the two C|A benchmarks versus comparable public market indices over a variety of time horizons ending on June 30, 2012.
Global ex U.S. Developed and Emerging Markets Private Equity and Venture Capital Indices Returns (%) in U.S. Dollars Periods ending June 30, 2012 ---------------------------------------------------------------------------- For the periods ending Year to 1 3 5 10 15 20 June 30, 2012 Qtr. Date Year Years Years Years Years Years ---------------------------------------------------------------------------- ex U.S. Developed Markets PE and VC -1.5 5.9 -3.4 13.7 1.8 13.7 13.4 13.2 ---------------------------------------------------------------------------- Emerging Markets PE and VC -2.7 3.4 -4.0 15.5 7.8 11.4 7.9 7.8 ---------------------------------------------------------------------------- Other Indices ---------------------------------------------------------------------------- MSCI EAFE -7.1 3.0 -13.8 6.0 -1.6 5.1 2.9 5.3 ---------------------------------------------------------------------------- MSCI Emerging Markets -8.8 4.1 -15.7 10.1 0.2 14.4 6.3 8.3 ----------------------------------------------------------------------------
Sources: Cambridge Associates LLC, MSCI Inc., Standard & Poor's, and Thomson Reuters Datastream. MSCI data provided "as is" without any express or implied warranties.
The developed markets index outperformed its respective public market counterpart, the MSCI EAFE index, in every period shown in the above table. The emerging markets index bested its counterpart, the MSCI Emerging Markets index, in five of the eight periods shown, including the second quarter and the year-to-date mark.
Three of the Five Largest Vintage Years in the Developed Markets Index had Positive Returns for the Quarter, but the Index Was Dragged Down by the Poor Performance of the 2006 Vintage
Although the developed markets index was down for the quarter, the majority of its largest vintage years generated slightly positive earnings in the second quarter. The 2005, 2007, and 2008 vintages' returns ranged from 0.4% to 0.7%; collectively, these three vintages comprised 48.1% of the index's value by weight. However, the largest vintage, the group of funds launched in 2006, accounted for 31.3% of the index's value and had the second largest loss of the top five vintages for the quarter, -3.1%. This fact played a key role in the index's overall quarterly performance. Losses in investments in the retail sector helped drive down results for the 2006 vintage funds.
In the C|A Emerging Markets Index, all four of the meaningfully sized vintages were negative. The largest vintage, 2007, comprised almost 38% of the index's value and fell 2.6% for the quarter, due to widespread write-downs. The best performing of the top four was the 2006 vintage, which almost broke even, dropping just 0.1% for the period. The worst performing of the group was the 2005 vintage, which fell 4.0%, primarily due to write-downs in financial services and manufacturing companies.
Capital Calls were Down and Distributions were Up for the Quarter in the Developed Markets Index; the Opposite was True in the Emerging Markets Index
Fund managers in the developed markets index called $6.1 billion from their investors in the second quarter, nearly one-third less than the prior quarter. Almost three-fourths of the total, $4.5 billion, came from funds raised from 2006 to 2008. The managers distributed $8.9 billion for the quarter, a 32.6% increase from the first quarter. About two-thirds of the distributions came from funds raised from 2005 to 2007.
In the emerging markets index the situation was reversed, with contributions increasing over the prior quarter and distributions falling. Private equity and venture capital fund managers in the index called $3.7 billion for the quarter, up 21% over the first quarter. They distributed just $1.1 billion, an almost 40% drop from the prior quarter.
"While developed markets capital distributions have maintained their recent trend of outpacing capital calls in now five of the last six quarters, a fact limited partners surely appreciate," said Andrea Auerbach, managing director and head of private investment research at Cambridge Associates. "Capital calls have lagged, likely impacted by broader macroeconomic factors, particularly in Europe. Conversely, distributions in the emerging markets index fell sharply, with the index's limited partners receiving the smallest distribution in three years."
Healthcare was the Best Performing Sector in the Developed Markets Index
Of the six significantly sized sectors in the developed markets index, half earned positive returns and half were negative. The sector turning in the best performance was healthcare, which earned 3.6%. Financial services and media also generated positive returns for the quarter. The worst performing sector was manufacturing, which dropped 3.7%. Consumer and IT also had losses for the quarter.
All Major Sectors in the Emerging Markets Index Posted Losses for the Second Quarter
The emerging markets index also had only six meaningfully sized sectors for the quarter, and all of them generated negative earnings for the period. The biggest loser was information technology, which dropped 8.4%. Consumer, the largest sector, was the best performer, dropping just 0.6%.
Companies in Europe Remain the Key Focus of Managers' Investments in the Developed Markets Index, while Asia Remains the Center of Focus in the Emerging Markets Index
About 70% of the capital invested in the developed markets private equity and venture capital index went to companies headquartered in Western Europe, which was about 8% less than the historical average. In the emerging markets index, 69% of all capital invested went to companies in Asia, with companies in Mainland China being by far the primary recipients.
About Cambridge Associates and the Indices
Founded in 1973, Cambridge Associates is a provider of independent investment advice and research to institutional investors and private clients worldwide. Today the firm serves over 900 global investors and delivers a range of services, including investment consulting, outsourced portfolio solutions, research services and tools (Research Navigator(sm) and Benchmark Calculator), and performance monitoring, across all asset classes. The firm compiles the performance results for more than 5,000 private partnerships and their more than 65,000 portfolio company investments to publish proprietary private investments. Cambridge Associates has more than 1,000 employees serving its client base globally and maintains offices in Arlington, VA; Boston; Dallas; Menlo Park, CA; London; Singapore; Sydney; and Beijing. Cambridge Associates consists of five global investment consulting affiliates that are all under common ownership and control. For more information about Cambridge Associates, please visit www.cambridgeassociates.com.
Cambridge Associates has been selected to provide data and to develop and maintain customized industry benchmarks for a number of prominent industry associations, including the Institutional Limited Partners Association (ILPA), Australian Private Equity & Venture Capital Association Limited (AVCAL); the African Venture Capital Association (AVCA); the Hong Kong Venture Capital and Private Equity Association (HKVCA); the Indian Private Equity and Venture Capital Association (IVCA); the New Zealand Private Equity & Venture Capital Association Inc. (NZVCA); the Asia Pacific Real Estate Association (APREA); and the National Venture Capital Association (NVCA). Cambridge also provides data and analysis to the Emerging Markets Private Equity Association (EMPEA). The pooled returns represent the net end-to-end rates of return calculated on the aggregate of all cash flows and market values as reported to Cambridge Associates by the funds' general partners in their quarterly and annual audited financial reports. These returns are net of management fees, expenses, and performance fees that take the form of a carried interest.
Inquiries about these indices should be addressed to: Frank Lentini at Sommerfield Communications, 156 Fifth Avenue Suite 1219, New York, NY 10010; (617) 939-9094; fax: (917) 591-4357; email: [email protected].
Sommerfield Communications, Inc.
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Sep. 29, 2016 06:00 AM EDT Reads: 2,664
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Sep. 29, 2016 06:00 AM EDT Reads: 516
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Sep. 29, 2016 06:00 AM EDT Reads: 2,747
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Sep. 29, 2016 05:45 AM EDT Reads: 1,046
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Sep. 29, 2016 05:45 AM EDT Reads: 1,500
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Sep. 29, 2016 05:30 AM EDT Reads: 2,946
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
Sep. 29, 2016 05:30 AM EDT Reads: 1,144
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
Sep. 29, 2016 05:15 AM EDT Reads: 1,242
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 29, 2016 05:00 AM EDT Reads: 1,634
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Sep. 29, 2016 04:45 AM EDT Reads: 1,797
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Sep. 29, 2016 04:30 AM EDT Reads: 4,678
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 29, 2016 04:00 AM EDT Reads: 1,813
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 29, 2016 04:00 AM EDT Reads: 1,211
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
Sep. 29, 2016 03:45 AM EDT Reads: 4,823
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Sep. 29, 2016 03:30 AM EDT Reads: 3,033