In a recent article published by FundFire, Delegate Advisor’s managing partner, Robert Borden, comments on Preqin’s recently released private equity firm rankings list. The list looks at consistent top-performing fund managers with the highest percentage of funds in top quartiles- buyout, venture capital, mezzanine, real estate, infrastructure and natural resources sectors. In order to make the list, firms needed to have a minimum of three funds in any category.
The article delves into Perqin’s methodology behind their ranking and considers possible flaws in their system. “Private equity performance data are by their nature incomplete or dated, because current funds that have not liquidated their assets are still marking to market for valuations, and ones that have fully exited the market are usually 10 years old or more,” states Robert Borden. “It’s far from the holy grail for due diligence. Everything is largely an estimate of performance until the final dollar is out.”
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