Our services Fund performance analytics
 

Fund performance analytics

MJ Hudson fund performance analytics is a leading provider of quantitative analytics for the private equity industry.

We help investors achieve a better understanding of the value drivers behind private equity investments and, subsequently, to make better investment decisions. MJ Hudson offers specialised consulting services to institutional and other sophisticated investors by providing detailed insights into the key aspects of private equity investment performance.

Our mission is to enhance the efficiency of fundraising and fund due diligence processes and to help free up costly time for investor relations and due diligence teams.

To learn more about how our PERACS Calculator can improve your analytics, click here.

What we do
PERACS metrics analysis

Providing insights into performance, risk and strategy using smart data to enhance fundraising and fund selection effectiveness.

MJ Hudson Fund Performance Analytics helps managers and investors go beyond IRR. Through data analytics,
we deconstruct value creation, to identify the true drivers of GP's track record, including demonstrating:

SKILL-DRIVEN RETURNS
independent of other performance factors like sector or geographic focus, economic cycles, size, and allowing them to quantify the genuine alpha;

STRATEGIC DISTINCTIVENESS
by measuring the extent of specialist versus mainstream exposure, help determine what is “unique” with empirically validated data that can be tracked over time;

PEER DIFFERENTIATION
isolating the core characteristics that define a GP’s deal DNA to identify and score relative performance against a truly relevant competitor set; and

TRACK RECORD REPEATABILITY
providing an objective indicator of the likelihood that past performance really could be an indicator of future results.

To learn more about how our PERACS Calculator can improve your analytics, click here.

PERACS GP profiles and fund screening

Helping investors achieve a better understanding of the value drivers behind their private equity investments and, subsequently, to make better investment decisions.

Access to a library of c.500 Private Equity GP profiles where MJ Hudson using publicly available data runs the PERACS analysis, which are updated on a quarterly basis. The GP profiles help investors evaluate and better understand the risk and return profiles of their existing private equity portfolio and optimise their due diligence process with use of our quantitative analysis and ability to compare metrics and run competitive positioning analysis.

Alongside this MJ Hudson has developed a new tool for Limited Partners that can be used on their own internal systems, to calculate two key MJ Hudson PERACS metrics: performance measurement and the risk profile.
The key metrics included in the MJ Hudson PERACS Calculator for Limited Partners includes performance measurement and the risk profile:

  • performance (MJ Hudson PERACS Alpha and MJ Hudson PERACS rate of return)
    • Public-Market Equivalent (PME) benchmarking perspective
    • enhanced performance measurement, avoiding issues with IRR methodology
    • comparison to benchmarks
  • risk profile (MJ Hudson PERACS risk curve)
    • assessment of portfolio risk based on historical return distribution across the portfolio
    • graphical representation based on intuitive curve inspired by “Lorenz Curve”
    • comparison to benchmarks

To learn more about how our PERACS Calculator can improve your analytics, click here.

PERACS GP competition profiles

Helping GPs understand how they are being viewed in the market and the ability to run competitive analysis on quantitative performance and positioning metrics.

Access to a library of c.500 Private Equity GP profiles where MJ Hudson using publicly available data runs the PERACS analysis, which are updated on a quarterly basis. The GP profiles help GPs firstly understand how investors are viewing their performance based on available data, alongside letting them evaluate and better understand the risk and return profiles of their competition with use of our quantitative analysis and ability to compare metrics and run competitive positioning analysis.

Bespoke analytics

Leveraging 20 years of experience, we perform bespoke analytics in various areas involvimg risk and return of the PE asset class.

We have ample experience in various areas of research and analytics related to risk and return of the PE asset class and have the team to perform bespoke analysis for clients in an efficient way that leverages most recent insights from academic research. We look forward to your requests.

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Our thinking

This whitepaper from MJ Hudson’s Fund Performance Analytics team illustrates (with examples) how PERACS metrics can assist LPs on strategic portfolio allocation decisions, manager selection, risk management and performance optimisation.
White paper
MJ Hudson Whitepaper: Value creation at the LP level – August 2022
This report provides detailed analysis of MJ Hudson PERACS performance metrics by regions, fund type and vintages across all private equity funds as of Q4 2021.
Benchmarking reports
MJ Hudson Fund Performance Benchmarking Quarterly Report Q4 2021
service snapshot
PERACS | accurately measure alpha in PE fund performance
We help investors make better decisions with improved understanding of the value drivers behind private equity investments. Our specialized consulting provides detailed insights into the key aspects of private equity investment performance.
service snapshot
Fund performance analytics explained | Oliver Gottschalg
Oliver’s research focuses on the strategic logic and the performance determinants of private equity investments. A second stream of work looks at the implications of employee motivation for firm performance in different settings.
We interviewed Oliver Gottschalg, founder of MJ Hudson Fund performance analytics to discuss LPs, portfolios, credit lines and more.
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