EDHEC Infra & Private Assets

📈Q3 2024 Index Release Announcement! We are pleased to announce the release of the Q3 2024 updates for three of our flagship indices: private2000®, infra300®, and infraGreen. These indices provide comprehensive insights into the performance of private equity and infrastructure companies globally. 🌐private2000® Index This index tracks the monthly performance of 2,000 private companies across 30 key markets and is designed to mirror a globally diversified private equity portfolio. The private2000® Index generated a robust 4.20% return for Q3 2024, marking a rebound from the previous quarter and bringing the year-to-date return to 4.45%. 🌉infra300® Equity Index The infra300® Index, widely recognized as the industry benchmark for infrastructure performance, tracks the monthly returns of 300 unlisted infrastructure companies worldwide. This index spans a diverse range of sectors, offering a comprehensive view of global infrastructure market trends and performance. The index saw a 5.59% total return in Q3, with the Transport and Renewable sectors being the primary drivers. 🌱infraGreen Equity Index As an ESMA-registered benchmark for private renewable infrastructure investments, the infraGreen accurately reflects the performance of unlisted companies in the renewable energy sector. The index recorded a 5.03% total return in Q3, driven by interest rate cuts and a lower equity risk premium, leading to higher valuations. For detailed analysis and insights into the performance drivers, valuation trends, and constituent changes of each index, please refer to the full reports available on our website. Discover more on our website and reach out to us by filling the demo request form: https://lnkd.in/egj_k-N7

We are proud to see Nishtha Manocha, PhD and Qinyu G. participating in #AlterCOP29 on November 13. It is inspiring to watch our team members sharing insights on quantifying climate risk and building resilience into infrastructure assets!

📢 Join us at "DCALTA - The Collective Voice on Alts in DC Plans" conference! DCALTA - Defined Contribution Alternatives Association presents "The Collective Voice on Alts in DC Plans"— a conference dedicated to exploring the latest developments and opportunities in alternative investments within Defined Contribution (DC) plans. At this event, our Associate Director and Head of Product, Abhishek Gupta, will lead a presentation on "Measuring Alpha in Private Market Funds," where he will explore a data-driven approach to measuring and tracking alpha in private market funds using privateMetrics®. Register for the event and join the session here: https://lnkd.in/gwuJEqUt

BUY, SELL OR HOLD? IS PRIVATE EQUITY CHEAPER NOW? Higher interest rates, a sluggish exit environment, reduced distributions, and extended fundraising periods have created a challenging backdrop for private equity valuations. These factors have contributed to putting downward pressure on valuations. Despite the headwinds facing private equity valuations, the current market presents compelling opportunities for discerning investors who can leverage granular data to identify undervalued assets. In a new report, ‘Buy, Sell or Hold?', we discuss trends and dispersion of the different valuation multiples and the opportunities that may exist for investors in private equity markets. Read the report for the key findings: https://lnkd.in/gg5Kzxnm To find out more about privateMetrics Comparables, refer to this product factsheet: https://lnkd.in/gh4wKjjq See how our data can work for you:  https://lnkd.in/gU--sDA8

🎧 New, must-listen podcast for private market investors and decision-makers! 🎧

Read our latest paper on a smart infrastructure approach to portfolio diversification, now published in the Journal of Alternative Investments and chosen as a Top Pick by Portfolio Management Research

Our Top Pick Article 'Achieving Diversification in Unlisted Infrastructure Investment: A Smart Infra Portfolio Construction' by Frederic Blanc-Brude, Abhishek Gupta & Moataz Farid, PhD is here: https://lnkd.in/eXbVs_9c Challenging conventional wisdom, the authors assert that simply increasing the number of assets, sectors, and geographies does not efficiently enhance diversification. Instead, it is possible to achieve a good level of diversification with fewer positions if diversification is based on risk factors. The authors assert that unlisted infrastructure equity should represent between 4.5% and 13% of multi-asset portfolios comprising traditional and alternative investments. Featured: The Journal of Alternative Investments Fall 2024, 27 ( 2) 8 - 36 #InfrastructureInvesting #PortfolioDiversification #UnlistedEquity #StrategicAssetAllocation #AlternativeInvestments #SmartInfra

🌎 Join us at EDHEC Private Assets Day 2024! 🌎 When: December 11 Where: New York In one of the key presentations, "Private Markets: Buy, Sell or Hold?", Frederic Blanc-Brude, Director, EDHEC Infra & Private Assets and Dan Murphy, Managing Director, Goldman Sachs Asset Management will discuss the dynamics of private asset market prices using twenty years of deal data and a multi-factor approach to better understand why and when private asset prices change and how it can be measured to create robust, high-frequency, time-weighted private market indices. Key topics include: • What makes private asset prices change? (systematic vs idiosyncratic risks)  • A robust asset pricing model  • Are private markets expensive? RSVP: https://lnkd.in/eUbvXSe4

📢 PRESS RELEASE: EDHEC supports ILPA transparency initiative, but benchmarking guidelines needed. 📄 In an open letter (https://lnkd.in/gqcVwNcs) in response to the Institutional Limited Partners Association (ILPA) consultation on its reporting and performance templates, the EDHEC Infrastructure & Private Assets Research Institute (EIPA) has expressed support for the ILPA's initiative to enhance transparency by improving performance and reporting disclosures in private markets, but believes that ILPA should recommend benchmarking guidelines that restrict the degrees of freedom in comparing performance, such as proposing standardised definitions of metrics, objective identification of peer groups, and increased information about comparisons. Moreover, ILPA could insist on using private market-specific indices as a reference for comparison. Some key takeaways from EIPA's open letter: 1️⃣ ILPA's introduction of disclosures about subscription lines in the performance template and the increased detail on fees in the reporting template are commendable. EIPA believes that these changes will enable LPs to make more informed decisions in private markets. Furthermore, these templates set a high standard, and their adoption by GPs can substantially improve private market investing. 2️⃣ EIPA believes that a standardised valuation approach that brings the focus back to asset-level information could provide strong foundations to improve benchmarking practices. 3️⃣ Transparent and objective factor-model-based valuations can reduce gaming of the valuation and also provide private-market-specific return proxies.

🌟 We were pleased to sponsor the 7th Private Equity San Francisco Forum, by Markets Group, where Adam Kramer, Head of Americas, led an insightful panel discussion on the LPs perspectives and managers selection on the West Coast. In this panel, LPs underlined the need for better data with some clear takeaways: 1️⃣ - Accurate Valuations Matter: LPs are gravitating toward managers who provide up-to-date, transparent valuations that reflect real market conditions, ensuring trust and confidence. 2️⃣ - Smart, Balanced Investment: In today’s slower fundraising landscape, LPs are looking for managers who can balance investment pace with smart risk and liquidity management, driven by solid data insights. 3️⃣ - Transparency & Compliance: With increased regulatory pressure, LPs want managers who lead with clear, transparent reporting, ensuring compliance and fostering long-term trust. #privateMetrics data brings transparency and robustness to the industry by offering solutions to the primary data challenges investors in #privatemarkets face: the endemic lack of risk and performance data that restricts best practices and obscures investment decisions. Download the privateMetrics presentation to learn more: https://lnkd.in/eVBAfN6K #MarketsGroupPE, #makeanimpact