The consequences of misjudging the performance of private market funds are high. Inaccurate fund benchmarks can lead limited partners to miss investment opportunities or make poor allocation decisions—and they can make fundraising significantly more difficult for general partners.
However, most third-party venture capital benchmarks and private equity benchmarks lack the transparency needed to accurately decipher how well individual funds and investment strategies have performed. They don’t expose the underlying fund data they consist of, the investments those funds have made or even the performance of the component funds—meaning critical details that can be used to better evaluate performance are lost.
