A New Arrow in the Quiver: Investment-Level Benchmarks for Private Investment Performance Measurement

Over time, and as more investors allocate capital to private equity, the market has evolved to become increasingly sophisticated and competitive. As a result, there has been an expansion of investment scope and a profusion of specialized sub-strategies (for example, co-investing, direct investing, sector-focused strategies) and managers expanding into geographies, sectors, and/or asset classes that may be new to them and their investors. In this context, fund-level net to LP benchmarks, while still necessary, are not always sufficient to evaluate performance. Enter investment-level benchmarking—an analysis that offers investors new insights into performance because it is not constrained by fund-level factors like a fund’s vintage year or primary investment focus.