CepreX - Private Equity Indices

For the LPs and GPs: investment management, risk controlling …

CEPREX - CEPRES INDICES FOR PRIVATE EQUITY TRANSACTIONS

Based on extensive academic research, CEPRES has developed CepreX, a set of private equity transaction indices (Venture Capital, Growth Capital, Mezzanine, and the Private Equity market as a whole). A customized CepreX can be produced according to each individual's wishes (stage, sector, geography, etc.).

CepreX Index, along with the comprehensive CEPRES Database behind it, shows transaction based private equity return developments of the universe of institutionally funded private companies.

Following the S&P/Case-Schiller index methodology for real estate, the repeated sales process is also applied for calculating the CepreX indices for Private Equity. These new methodologies are applied to overcome problems of unrealistic and sudden deal book-value changes, but to mirror real private equity transactions.

The essence of the index methodology is straightforward: a single deal's overall performance at the valuation/exit date is subdivided (according to the occurrence of cash transactions during the holding period) over its entire holding period, and therefore, the company's growth is more realistically reported over the relevant development years. Finally, the performance-index is an aggregation of all portfolio company performances, where each deal contributes to the index during its specific investment period.

Since the return of a portfolio company over the entire investment period is only fixed when the full exit happened, the historical index values vary retroactively given the changing influence of still active portfolio company holdings in the dataset.