S&P Dow Jones Indices has announced plans to expand its work in the private markets sector with the launch of the S&P Private Equity 50 Indices in collaboration with NewVest, a private markets index manager.
As market participants continue to show increased interest in this growing segment, S&P DJI is drawing on its long history of making markets more accessible by developing new benchmarks tailored to private assets.
“Private markets are experiencing a transformative moment, and S&P DJI is excited about the growing demand for data and benchmarks as these markets continue to evolve. Our commitment is to lead the way in developing innovative indices that accurately measure and represent this emerging asset class.
“We’re thrilled to collaborate with NewVest to provide a broad, rules-based benchmark representative of institutional private equity portfolios through the S&P Private Equity 50 Indices,” says Cameron Drinkwater, Chief Product Officer at S&P Dow Jones Indices.
“Our expansion into private markets is consistent with our leadership in benchmarking across public markets, where we have set the global standard for transparent access through iconic indices such as the S&P 500. Similarly, our private markets benchmarks are designed to address market participants’ demand for clarity around performance and volatility, particularly for the world’s largest funds and private companies.”
Designed to measure the performance of 50 of the largest available private equity funds for a year, the S&P Private Equity 50 Indices aim to provide market participants with an efficient and accessible view into some of the top funds in North American and European private equity. S&P DJI believes the new benchmarks capture broad, high-quality and diversified exposure in an innovative way that is enhancing transparency and scalability. The indices include:
S&P Private Equity 50 2023 (Reserve – S&P 500) Index
S&P Private Equity 50 2024 (Reserve – S&P 500) Index
S&P Private Equity 50 2023 (Reserve – SOFR) Index
S&P Private Equity 50 2024 (Reserve – SOFR) Index
“Private markets are too important to remain opaque. We are privileged to partner with S&P DJI on this historic first: benchmarks that redefine private equity as being both transparent and accountable. I believe this breakthrough will help ensure that moves such as the U.S. initiative to democratize access for 401(k) investors are implemented responsibly, while also creating a framework relevant to investors worldwide. I’m excited to see how this new collaboration will fuel innovation in the industry and usher in a new era where public and private markets are more connected than ever,” says Edward Talmor-Gera, Founder & CEO at NewVest.
Looking ahead, S&P DJI expects private markets to continue to play an expanding role in portfolio construction and risk management. At the same time, S&P DJI is working proactively with market participants to address the unique challenges in the private markets space.
