Will the Technology Sector Always be a Winner?

NEW YORK, Aug. 26, 2019 /PRNewswire/ -- CEPRES today released their latest investment analysis based on transactional private markets data of 72,772 investments across 7,189 funds valued at $26.5 trillion.

The analysis shows that Technology driven investments by Buyout, Growth and Venture funds have delivered substantial returns over the last decade. Overall Tech deals have achieved 29% gross pooled internal rate of return (IRR) based on a transaction level analysis of the CEPRES Analysis platform.

Comparing the average Compound Annual Growth Rate (CAGR) of Revenue in PE across different industries, we can observe a clear outperformance of the technology deals against other industries. Taking Industrials as a comparison, PE-backed technology firms outperformed industrials in general, and the outperformance has been getting stronger since 2007 - the spread widened from 8% in 2007 to 22% in 2016. (CEPRES PE.Analyzer)                       

The full analysis is available to CEPRES members from: https://www.cepres.com/latest-intelligence-for-lps

Commentary:
"The pricing of Tech deals is vindicated by this analysis of private company growth and returns. With current market volatility and renewed concerns over pricing and leverage, it is critical investors focus on such fundamentals. This type of analysis provides the empirical evidence to back up deeper investment theses. Through the transactional engagements we have with LPs, GPs and Consultants, we are uniquely positioned to uncover key investment drivers that underwrite investment strategies or single investments."
Christopher Godfrey, President CEPRES Corp.

About CEPRES

CEPRES is the leading digital platform for investment analytics & data solutions for private capital markets. CEPRES began in 2001 as the Center of Private Equity Research and was the first to 'look-through' private market funds to underlying deal and asset performance. Today, our award winning online platform securely connects thousands of professionals in the largest private investment network in the world. CEPRES combines the most secure digital data exchange with sophisticated SaaS solutions and expert analysis frameworks to empower LPs, GPs and related professionals. Through CEPRES decision makers can secure their investment data to gain true insights on their portfolio of funds down to single operating assets within a confidential yet fully flexible framework.

The CEPRES platform includes a network connecting buy- & sell-side market participants. Institutional Investors (LPs), Fund Managers (GPs), Advisors, Administrators, Fund of Funds and other investment professionals interact on one platform: GPs confidentially benchmark their track record, attract fitting capital sources and demonstrate their alpha to investors. LPs forecast their portfolio outcomes, optimize asset allocations and enhance due diligence.

To date over 2,300 GPs & LPs have securely exchanged investment data of over 7,200 funds and 73,000 deals worth over $26tr in Enterprise Value.

For further information visit www.cepres.com.

For more information about this release or to schedule an interview:
Contact: Birgit Wiggert
Tel: + 49 (0) 89 232 495 628
Email: [email protected]

SOURCE CEPRES Corp

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