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The State Street Global Exchange Private Equity Index Rose 4.8 Percent to End Q4 2017

Company Release - 6/15/2018 10:04 AM ET

All Three Categories of Private Equity See Continued Uptick in Returns

BOSTON--(BUSINESS WIRE)-- The State Street Global Exchange℠ Private Equity Index (GXPEI) ended the fourth quarter of 2017 with a continued strong performance by way of a 4.78 percent total gain. Buyout Funds lead private equity strategies in gains with 5.23 percent for the quarter.

The PEI is based on directly-sourced limited partnership data and represents more than $2.7 trillion in private equity investments, with more than 2,800 unique private equity partnerships, as of December 31 2017.

Fourth Quarter Highlights Include:

  • Buyout funds have now led in gains among the three main private equity strategies (Buyout, Venture Capital and Private Debt) for eight consecutive quarters.
  • Venture Capital returns improved to 4.21% from 3.57% in Q3 while Private Debt funds inched higher to 3.15% in returns, up from 2.84% in Q3.
  • Q4 2017 saw continued, yet slowing, depreciation of USD against the Euro of 1.6%, following a Q3 decline of 3.5% and Q2 decline of 6.2%.
    • European-focused private equity funds experienced a 5.42% quarterly gain in USD-denominated terms (3.78% in EUR-denominated IRR); US-focused funds returned 4.30%; and funds focused on the rest of the world gained 6.14%.
  • Among sectors, Industrial funds once again saw the highest return, rising to 6.68% from 5.87% in Q3, followed by Information Technology funds with a return of 5.91%, up from 3.80% in Q3; Energy funds’ performance continued to improve with a return of 4.05%, up from 2.59% in Q3.
  • Average monthly paid-in-capital to commitment (PICC) increased to 0.77% in 2017 up from 0.64% in 2016; Average monthly distribution to commitment (DCC) increased to 1.07% in 2017 up from 0.88% in 2016.

For additional insights, or to learn more about the GX Private Equity Index please visit http://www.ssgx.com/peindex.

Index returns reflect capital gains and losses, income, and the reinvestment of dividends.

It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund.

Index performance is not meant to represent that of any particular fund.

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $33.30 trillion in assets under custody and administration and $2.70 trillion* in assets under management as of March 31, 2018, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.

* Assets under management include the assets (approximately $36 billion as of March 31, 2018), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

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State Street Corporation
Julie Kane, +1 617-664-3001
JEKane@StateStreet.com
@StateStreet

Source: State Street Corporation