In private equity it can be difficult to compare and rank industry outperformers. Many of the available industry rankings are based on size, a metric that does not necessarily demonstrate a firm’s ability to deliver returns in a consistent and repeatable manner.
HEC, in collaboration with Dow Jones, lifts the veil and sheds light on which fund managers have been true outperformers. The annual HEC-Dow Jones Private Equity Performance Rankings identifies which firms generated the best performance for their investors. In a project sponsored by advisory firm PERACS Due Diligence Services, Prof. Oliver Gottschalg from HEC School of Management, has developed a proprietary methodology that makes it possible to assess comprehensively the aggregate performance of all funds managed by a private equity firm.
The 2014 Top 10 include:
1. Vista Equity Partners
2. Waterland Private Equity Investments B.V.
3. Platinum Equity
4. Odyssey Investment Partners
6. ABRY Partners LLC
7. Clayton Dubilier & Rice
8. Astorg Partners
9. Onex Partners
10. Sun Capital Partners Inc.
North American firms dominated the Top 10 ranking this year, which analyzes aggregate performance metrics for funds raised between 2001 and 2010. The basis for this assessment is the performance of each fund, measured in terms of three complementary performance measures: IRR, DPI (cash-only return multiple) and TVPI (a return multiple that considers accounting values of ongoing investments).
Watch this video to learn more how firms are evaluated for these rankings: