|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.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Jul. 28, 2016 11:45 PM EDT Reads: 1,205
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Jul. 28, 2016 10:15 PM EDT Reads: 1,214
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Jul. 28, 2016 10:15 PM EDT Reads: 2,217
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 10:15 PM EDT Reads: 1,436
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 10:00 PM EDT Reads: 1,443
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jul. 28, 2016 10:00 PM EDT Reads: 2,096
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Jul. 28, 2016 10:00 PM EDT Reads: 1,719
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.
Jul. 28, 2016 09:00 PM EDT Reads: 2,706
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Jul. 28, 2016 07:15 PM EDT Reads: 383
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Jul. 28, 2016 07:15 PM EDT Reads: 1,230
"We view the cloud not really as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 06:45 PM EDT Reads: 1,640
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Jul. 28, 2016 06:30 PM EDT Reads: 1,663
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Jul. 28, 2016 06:00 PM EDT Reads: 966
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Jul. 28, 2016 05:30 PM EDT Reads: 1,873
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 05:30 PM EDT Reads: 2,217