A revolutionary breakthrough

Fund-level performance data has become a staple of the private equity industry over the past 20 years. For both LPs and GPs, it offers a valuable source of intelligence for research, benchmarking, and reporting.

But as the industry becomes more diverse, more competitive, and more data-driven, commingled fund-level performance is struggling to offer the level of insight that industry professionals need.

The advent of deal-level performance benchmarks has been a groundbreaking development for the industry. By examining performance on an individual investment level, industry professionals are now able to understand the market and analyze their own activities in greater detail than has ever been possible before.

Transformative intelligence

As digital transformation sweeps through the private equity industry, quantitative analysis and data-driven decision-making are becoming central tenets of the investment process. Deal-level performance benchmarks are revolutionizing this process.

Sector-specific deal performance benchmarks have applications at almost every stage of the private equity lifecycle. They can:

• increase the efficiency and efficacy of deal screening by making it easier to reject unattractive prospects and focus on potential winners
• augment due diligence by offering comparable context against which to measure projections and test investment theses
• take fundraising to the next level by showcasing where GPs are outperforming on a deal-by-deal basis.

The level of specificity that deal benchmarks give industry professionals, comparing transactions by region, subsector, investment year, and realization status, is a leap forward from commingled fund-level performance.

It means that GPs and LPs alike can see exactly where sources of return potential can be found, and how they can be best leveraged.

Accessible analysis

The private equity industry operates at its best when industry professionals are making the best possible decisions. And the best investment decisions require the best sources of information.

That is why DealEdge has launched its inaugural DealEdge Data Book: 2021 Private Equity Deal Performance Benchmarks report. It offers the industry a new level of transparency and context to inform and empower data-driven decision-making.

The complimentary resource comprises a selection of DealEdge’s benchmarks, covering IRR and MOIC performance across top-level industries like technology, healthcare, and industrials. It also includes breakdowns by geography and investment size, demonstrating the focus that deal-level analysis provides.

The benchmarks are instantly actionable, and can be easily incorporated into existing workflow processes to augment and contextualize qualitative analysis and proprietary data.

The report is a small selection of the thousands of benchmarks available on DealEdge. The full platform contains sector-specific benchmarks for more than 560 industry subsectors across more than 20 performance and value creation metrics including IRRs, MOICs, EBITDA margins, revenue CAGRs, and more. All of the benchmarks can be filtered by geography, investment year, deal size, and realization status.

Download your copy of the DealEdge Data Book: 2021 Private Equity Deal Performance Benchmarks today. If you would like to know more about the full DealEdge platform and how it can sharpen your investment edge, get in touch with us to request a demo.