Thomson Reuters Launches Private Equity Index

New indices released by Thomson Reuters offer liquid access to and performance analysis of the U.S. private equity industry.

Thomson Reuters released two related indexes in the private equity space, one designed for research purposes and the other as an investable product. These are called the Thomson Reuters Private Equity Buyout Research Index and the Thomson Reuters Private Equity Buyout Index, respectively. Both will utilize the firm’s proprietary data to keep market participants informed about trends in the private equity universe by tracking transaction-level returns of private equity fund investments.

Returns tracked by the indices and underlying benchmarks are reported on a before-fee basis, the business intelligence and media firm says, giving a more accurate picture of investment performance.

The “Private Equity Buyout Research Index” is designed as a comprehensive indicator of the U.S. private equity industry and strives to provide actionable intelligence on private equity market trends. The “Private Equity Buyout Index,” on the other hand, is designed as an investable index replicating the performance of the research index using liquid, publically available assets. This investable index allows liquid access to the gross performance of the private equity industry through index-linked investment products, the firm says.

The Thomson Reuters Private Equity Buyout Index has been licensed to DSC Quantitative Group, LLC, for the purpose of creating and delivering index-linked products.

Stephan Flagel, head of indices at Thomson Reuters, says the products extend the existing coverage of index-based investment solutions for alternative asset classes provided by his firm. Flagel says Thomson Reuters has previously developed benchmark index families that cover other alternative and traditional asset categories, such as global equities, commodities and fixed-income markets.

More information is available at the Thomson Reuters Indices Web page.