AARM Corp. Research Suggests New Paradigm in Measuring Private Equity Performance

Share Article

A new research study provides new insights for understanding and measuring private equity performance.

Alternative Asset Risk Management (AARM) Corp. today announced the release of a research study that provides new insights for understanding and measuring private equity (PE) investment performance. This new research reflects AARM’s continued commitment to deliver unbiased solutions that empower investors in private equity and other alternative assets to make, monitor and report investment decisions.

The research paper, “Setting the Benchmark: Spotlight on Private Equity,” appears in the inaugural issue of the Alternative Investment Analyst Review, published in February 2012. This groundbreaking research establishes a new set of criteria for PE benchmarking, where previously, there had been no true standard. The paper reviews existing private equity market measurement analyses and highlights the AARM-FOIA Global PE Benchmark, which is transparent, unambiguous, and representative of sophisticated global institutional portfolios. These properties set AARM-FOIA Global PE Benchmark apart from all other benchmarks. The authors of the paper are:

  •     Gitanjali M. Swamy, Ph.D., Chairman and CEO of AARM Corp.;
  •     Irina Zeltser, President and EVP, Marketing, AARM Corp.;
  •     Hossein B. Kasemi, Ph.D., Managing Director, Chartered Alternative Investment Analyst Association (CAIA) and Isenberg School of Management, University of Massachusetts at Amherst; and
  •     Edward Szado, Research Associate, Institute for Global Asset and Risk Management

“Over the last 10 years, private equity has become an increasingly mainstream asset class for institutional and high net worth investors. Yet measuring the effectiveness of PE investments has remained challenging, due to the complex and unique characteristics of such investments,” said Dr. Swamy. “The metrics commonly used to measure performance, such as internal rate of return (IRR), are significantly flawed and unreliable in presenting an unambiguous analysis of a private equity manager’s performance. At the same time, there have been no specific industry standards or index in private equity investments on which to benchmark. Our new benchmark takes the purity of the academic’s perfect framework – which require unbiased, transparent, frame-able and appropriate measures – and applies it with a very practical view that is easily understood and highly effective.

“The research we conduct and publish is one way AARM is demonstrating its commitment to creating better, transparent and more informed investment decisions that will benefit all private equity market participants.” Dr. Swamy concluded.

The full research paper can be found here: http://caia.org/knowledge-center/aiar

About AARM Corporation
AARM provides solutions that enable investors in private equity and other alternative assets to make, monitor and report investment decisions. The company’s SaaS-based, on-demand platform – the industry's first — delivers the kind of powerful, efficient and cost effective tools that have long been available to investors in traditional asset classes. AARM solutions are built on a framework that encompasses a comprehensive set of risks, including cash, diversification and performance risks, among others. AARM synthesizes essential information to empower investors with unbiased insight throughout the investment lifecycle, from creating the investment thesis and conducting market analysis to sourcing, diligence and portfolio management.

AARM's first two signature solutions are AARM AssetAnalytics™ and soon, AARM AssetStar™ Reports. AARM AssetAnalytics™ supports comprehensive, lifecycle investment review and allows for critical measurement and evaluation of a broad set of risks and performance measures. AARM AssetStar™ Reports offer investors an unbiased, comprehensive risk assessment and complete summaries of the investment strategy, relevant market segment trends, operating personnel and performance relative to relevant benchmarks and peer groups.

The company's products are marketed directly as well as through partnerships to family offices, private wealth managers and institutional investors.

For more information about AARM Corporation, please visit http://www.aarmcorp.com or call

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jeffrey Zack

Dan Scorpio
Visit website