PERACS | Accurately measure alpha in PE fund performance

In this video, we break down how our tools enable investors to 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 and fund performance.

The mission of our Fund performance analytics team 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.

1. Performance (PERACS Alpha and PERACS Rate of Return)

• Public-Market Equivalent (PME) benchmarking perspective;
• enhanced performance measurement, avoiding issues with IRR methodology;
• and comparison to benchmarks.

2. Risk profile (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”;
• and comparison to benchmarks.

Oliver Gottschalg and our team can help you get more detailed, data driven insights into your fund performance. If you would like to know more about how we can help, feel free to reach out to our Fund performance analytics team.