Measuring Risk and Performance

Limited Partners

As an analog for the venture community to commonly used public market benchmarks like the Dow Jones Total Stock Market Index (formerly the Wilshire 5000), or the S&P 500, the Dow Jones Index of Venture Capital exhibits the same characteristics as those indices and can be used for the same purposes. Combined with your partnership's returns, an analysis using the Dow Jones Index of Venture Capital can provide investors with betas, alphas, sigmas and correlation with the benchmark.

General Partners

To evaluate the performance of individual funds we match each investment by timing, stage, and industry to all other similar investments. We generate variance around the mean by bootstrapping--taking randomly selected subsets of the portfolio to indicate where the portfolio of interest lies with respect to similar portfolios. Because the VentureSource database captures nearly 100% of the venture universe and is based on company-level data, we have the ability to analyze performance across geographic regions, industry sectors, vintage years and by stage.

Learn more about our Custom Projects
and how our analytics and research may benefit your firm.

Banking Firms and Regulators

Using our volatility forecasts and our ability to model correlations that include private equity asset classes, we can help you determine appropriate capital allocation for your private equity portfolio or help you compute total balance sheet risk.



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