RED ROCKS CAPITAL GLOBAL LISTED PRIVATE EQUITY (GLPE) ADVANCES IN Q1 2015
GLPE INDEX UP 5.32% IN Q1 DESPITE CONTINUED CURRENCY HEADWINDS
April 15, 2015
Golden, CO - (PR Newswire) - Red Rocks Capital, an asset management firm specializing in listed private equity securities, announced today that its Global Listed Private Equity (GLPE) finished the first quarter of 2015 up 5.32%, compared to 2.47% for the MSCI World Index. Strong performance from many of the larger index constituents around the world overcame the negative currency impacts of the continued strengthening of the US Dollar.
“Listed Private Equity firms had a strong quarter, outperforming global indices despite a negative impact of almost 4% from the stronger dollar,” said Mike Trihy, GLPE Index Manager at Red Rocks Capital. “The dollar volume of U.S. buyout deals in Q1 was the highest level since Q3 2007** and PE firms benefitted from increased portfolio valuations around the globe, with positive developments for portfolio companies in Europe, North America and Asia.”
Bloomberg data from 03/31/2010 - 03/31/2015
Past performance does not guarantee future results
**Source: Preqin, 04/1/2015
The largest contributor to index performance YTD was Chinese investment company Fosun International. Fosun finished the quarter up 47.88% after announcing a net profit increase of 24% in 2014 and a new strategy of increased investment outside of China. Their largest deal of the quarter was the successful buyout of vacation operator Club Med in January for approximately $1.1 billion. Other major contributors to GLPE performance for the quarter included the Blackstone Group, Allied Minds PLC, and Ratos AB.
ABOUT THE RED ROCKS CAPITAL GLOBAL LISTED PRIVATE (GLPE) EQUITY INDEX
The GLPE Index is the largest, most widely followed private equity index, with approximately $460 million in ETF tracking assets, and was the first U.S.-based investable index to monitor global listed private equity companies. With its global scope, GLPE puts an emphasis on direct private equity investing. The GLPE Index is designed to track the performance of private equity firms which are publicly traded on any nationally recognized exchange worldwide. Index constituents are selected from a universe of over 250 firms with aggregate market capitalization of over $300 billion that invest in, lend capital to, or provide services to privately-held businesses and provide a meaningful subset of the $3.5 trillion AUM global private equity market. The Index is comprised of 40 to 75 public companies representing a means of diversified exposure to private equity firms. The securities of the Index are selected and rebalanced quarterly per modified market capitalization weights.
ABOUT RED ROCKS CAPITAL, LLC
Red Rocks Capital is an asset management firm specializing in listed private equity securities. The Red Rocks Listed Private Equity portfolio gives investors access to an asset class that has historically had high barriers to entry due to investor qualification, long lock-up periods, and high initial investment minimums. Established in 2003 by Founders and Co-Portfolio Managers, Adam Goldman and Mark Sunderhuse, Golden, CO-based Red Rocks Capital was one of the first companies to offer access to private equity through a liquid mutual fund structure. It is currently the largest asset management firm that is focused exclusively on listed private equity, with approximately $1.3 billion in assets for advisor-sold mutual funds and variable annuities for institutions and investors. For more information, visit the firm’s website, www.redrockscapital.com, or call 303.679.8252.
This information has been prepared by Red Rocks Capital from data believed to be reliable, but no representation is made as to accuracy or completeness. GLPE returns are based on a simulated index from October 1, 1995 to September 27, 2007 and an actual index from September 28, 2007 to Present. Red Rocks Capital calculated the hypothetical results by taking a snapshot of the index as of September 28, 2007 and back-testing performance to October 1, 1995. The hypothetical performance results are back-tested and are shown for illustrative purposes only and do not represent decisions made by the adviser during the period described. Such results were compiled after September 27, 2007 and do not reflect the impact that material economic and market factors might have had on the adviser’s decision-making if the adviser was actually maintaining the index during that time. Hypothetical back-tested performance has inherent limitations. It does not reflect actual market activity and it is not indicative of future results. The performance of the index for the period from September 28, 2007 to present was actual. The results portrayed reflect the reinvestment of dividends and other earnings. The index included securities that track the performance of private equity firms that are publicly traded. Past performance is no guarantee of future results. Index returns shown are not reflective of actual investor performance or do they reflect fees and expenses applicable to investing.
One cannot invest directly in an index.
None of the information contained here constitutes a solicitation, offer, opinion, or recommendation by Red Rocks Capital LLC to buy or sell any security, or to provide legal, tax, accounting, or investment advice or services regarding the profitability or suitability of any security or investment.