The private equity industry is characterized by volatile returns. Only the higher end of the market offers attractive returns relative to other asset classes. The standard comparison of a general partner’s past performance at fund level to the average performance of comparable funds raised in the same year does not reveal underlying value drivers. Moreover, lack of transparency and standardized reporting make the quantitative analysis of track records labor intensive.

Peracs helps investors in private equity to overcome the above mentioned limitations in buyout fund due diligence. We provide a comprehensive set of advanced analyses and performance benchmarks on the deal, fund and general partner levels that is complementary to standard industry approaches. Our research tool PE Due Diligence Analytics™ allows performance comparison to similar private equity and public market investments.

We identify individual value drivers, such as a general partner’s specific ability to add value via:

• Increased growth or efficiency
• Financial engineering
• Multiple expansion
• Exogenous market trends

Read more about Peracs’ private equity fund selection criteria and their efficiency in Picking Winners as published in Private Equity International, Issue 55 (May 2007).