Independent performance calculations

Using Pevara to calculate invested fund performance and returns provides an independent and consistent view of private equity performance, reducing your organization’s reliance on GP presentations and external advisors. read more...

China private equity still an attractive long-term strategy

Against the backdrop of the recent extreme volatility in China’s public equity markets, as well as its currency devaluation and a number of downward GDP revisions, it’s no wonder that investors’ confidence is shaken, with some wondering if it’s time to hang up and exit the market.

On the ground in China, many have formed the view that Chinese private equity returns have been lower and riskier than returns in their developed market counterparts.

Indeed, when comparing the quarterly and annual performance of global private equity with returns from Chinese private equity, the latter has been significantly more volatile over the same period. During the 18 months before the first quarter of 2015, this volatility translated into higher returns relative to the global industry while Chinese private equity underperformed during most of 2012 and early 2013.

Yet when these volatile short-term returns are assessed across the life of a fund, we see a smoothing effect to performance and a sharp reduction in volatility, challenging conventional wisdom and debunking the myth that China may be losing its attractiveness as a top private equity destination.

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