Notice: The links and information provided below are intended for general/educational purposes only. Red Rocks Capital makes no claims or warranties regarding content or accuracy.
Helpful LinksAmerican Investment Council:
The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private equity industry. Here you will find white papers, case studies and additional information regarding private equity.LPEQ.com:
LPEQ is the industry association of listed private equity investment companies. Their website aims to be the most extensive source of information on private equity in general and listed private equity in particular. It includes basic information, proprietary research, performance indices, articles, analysis and studies.Preqin Blog:
Preqin's blog displays regular daily posts on everything private equity related.Why Some Private Equity Firms Do Better Than Others:
McKinsey & Company research reveals a strong correlation between steps a private equity firm can take to direct an investment to outperformance.
Examples of Listed Private Equity Companies:
Listed private equity companies generally fall into three structures, or a combination thereof; direct, indirect and asset managers. The links below provide examples of these structures and may, or may not, be a current holding in the Red Rocks Strategy and should not be considered as an endorsement.
KKR & CO. L.P. is a leading global investment firm with deep roots in private equity.Onex Corporation:
Onex Corporation is one of North America’s oldest private equity firms.Electra Private Equity:
Electra Private Equity PLC ("Electra") is a London Stock Exchange listed investment trust focused on private equity investments.HarbourVest Global Private Eqiuity:
HarbourVest Global Private Equity (HVPE LN) is a listed private equity fund of fund vehicle that seeks to provide public market investors with access to top-performing private equity managers.
Industry and Academic StudiesHarvard Business School - What Do Private Equity Firms Say They Do?:
In a groundbreaking study, the authors survey 79 private equity firms managing more than $750 billion in capital, and provide granular information on PE managers' practices in determining capital structure, valuing transactions, sourcing deals, governance, and operational engineering. Among the findings, very few investors use DCF or net present value techniques to evaluate investments, relying instead on internal rates of return and multiples of invested capital.LPEQ Listed Private Equity Review 2015:
LPEQ, the industry association of listed private equity companies, publishes an annual review of member profiles, their investment strategies, NAV (net asset value) and share price performance information.Bain and Company Global Private Equity Report 2015:
Bain and Company, one of the leading management consulting firms in the world, publishes an annual review and outlook for private equity. The report includes both insights and outlook for private equity globally.EY - Private Equity Equity Survey 2015:
Positioning to win – the EY 2015 global private equity survey in collaboration with Private Equity International.Commonfund Institute - Alternatives Reality: What to Expect From Future Allocations:
Commonfund Institute's study concludes that allocations to alternatives has created and should continue to create higher performance in comparison with allocations solely to traditional assets.McKinsey & Co. - The $64 Trillion Question: Convergence in Asset Management:
Alternative investment assets hit a record high of $7.2 trillion in 2013 and the category has doubled in size since 2005, with global assets under management (AUM) growing at an annualized pace of 10.7 percent—twice the rate of traditional investments. This article highlights four trends that are driving growth: 1) disillusionment with traditional asset classes and products; 2) evolution in state-of-the-art portfolio construction; 3) increased focus on specific investment outcomes; and 4) a hard-to-close gap of commitments to beneficiaries.Boston Consulting Group - The Advantage of Persistence in Private Equity Performance:
In this article, BCG consultants suggest that top private equity performers have developed a set of distinctive capabilities that have differentiated them from their rivals. Going forward, either the capabilities of the top performers will turn out to be the source of sustainable competitive advantages that drive the consolidation of the private equity sector or they will simply define a new and higher standard of performance that—as public companies and other private-equity firms learn how to copy those capabilities—will stimulate a new round in the global competition for capital.McKinsey and Co. - How Alternative Investments are Going Mainstream:
Globally, alternative assets under management more than doubled between year-end 2005 and year-end 2011, to $6.5 trillion. This pace represents a compounded annual growth rate of 14 percent over the period, far outstripping traditional asset classes. McKinsey's 2012 report, The Mainstreaming of Alternative Investments, is an informative look at the evolution and mainstreaming of alternative investments for both institutions and retail investors.Institutional Investment in Listed Private Equity:
This study from Douglas Cumming, Associate Professor and Ontario Research Chair, York University - Schulich School of Business looks at the institutional investor’s propensity to invest in listed private equity.Alternatives In Traditional Portfolios:
In this excerpt from Morningstar’s Alternative Investment Observer, Ibbotson Associates Senior Portfolio Manager Scott Wentsel discusses innovations in the mutual fund marketplace and how this evolution has opened the door to alternative strategies, including private equity, for the average investor. He then examines the potential benefits of adding alternatives to traditional portfolios.Another Block in Building a Portfolio:
Research from Ibbotson Associates shines light on the role private equity should play in portfolios.PE-Backed Companies Weathered the Great Recession Better Than Peers:
This paper addresses the important policy and business question of whether companies acquired through leveraged buyouts and similar transactions are more likely to default on their obligations than other non-investment grade firms.