The Toronto-based Institutional Limited Partners Association (ILPA) Monday announces the release of the ILPA Private Markets Benchmark, its proprietary performance benchmark in partnership with Cambridge Associates.
In 2012, the ILPA announced a partnership with Cambridge Associates, a leading institutional advisor, to jointly construct a branded private markets benchmark, which includes over 1,800 institutional funds. The goal of the benchmark is to accurately and consistently represent the global investible universe and asset class performance for institutional investors.
“The need for improved benchmarks for institutional investors has been a priority for the ILPA, so I am pleased to announce the release of these results,” said Mike Mazzola, chairman of the ILPA. “Working with Cambridge to continuously enhance the coverage of funds within the benchmark will serve to provide members with a reliable and robust industry performance measure.”
As of Sept. 30, 2012, the most recent quarter available, the ILPA Private Markets Benchmark for U.S. Private Equity reported a 13.55% 10-year return. Performance for international funds, excluding U.S. private equity and venture capital funds, was 13.95% over the same 10-year period.
“The ILPA Benchmark is a representation of all contributing members’ portfolios and does not reflect the portfolio of any single member” said Mike Elio, managing director, Industry Affairs at the ILPA. “The difference between the new ILPA benchmark and other benchmarks currently in the market, is that it is applicable to the members of the ILPA.”
The benchmark will be issued to members on a quarterly basis and performance statistics will initially include internal rates of return (IRR) and investment multiples (DPI, RVPI & TVPI) for Vintage Years from 1981 to the present.
The ILPA’s membership totals more than 275 organizations globally, including public and corporate pension plans, endowments, foundations, insurance companies and other private equity institutional investors with over $1 trillion AUM.