FEG's Research Review brings you the monthly economic and market commentary, as well as an in-depth focus on a current topic of significance.
August 30, 2015
While there are some similarities of today’s market to 1999, we also recognize the growth and value cycle at play. Think of the last party you attended—was it an outdoor summer BBQ? A glamorous wedding reception? A kid’s birthday party? A family holiday? Or, perhaps the recent chill in the air has you daydreaming about football tailgates? Regardless of the crowd gathered or the drink in hand, they all have two things in common: Parties are fun and parties result in messes.
FEG's Capital Quarterly Review delves into alternative investments such as natural resources, private equity, and private real estate.
August 28, 2015
What a difference a few years make. The venture capital industry hit new highs in fundraising, investing, and recent performance. Thomson One reported a median venture fund return for the one-year period of 22%, 1000 basis points ahead of a relatively robust public equity market. Three short years ago, venture was considered dead. We wrote at the time: “The ability of venture funds to generate returns that exceed public market returns continues to be a topic of debate. A number of large investors, including CalPERS, have recently thrown in the towel....This is the stuff cycles are made of! We continued to advocate for careful selection of venture funds, and investors have been rewarded. As demonstrated in the chart below, venture funds have outperformed buyout, mezzanine and public market strategies over this three year period as well as over the very long term. Studies have shown that there is value in a well-executed private investment program, yet the ebbs and flows can be dramatic.