Nomura Launches Innovative Daily Investible Index Targeting Private Equity
NEW YORK, Dec. 18, 2012
NEW YORK, Dec. 18, 2012 /PRNewswire/ -- Nomura, Asia's global investment bank,
today announced the United States launch of the Nomura QES Modelled Private
Equity Returns Index (the 'PERI'), the first daily investible index for
institutional investors which targets returns similar to those which may be
achieved through a global broad-based investment in private equity buyout
funds on a committed capital basis.
The PERI has been developed in collaboration with sub-adviser and quantitative
think tank, Quantitative Equity Strategies, LLC ('QES') and uses data provided
by Preqin Ltd, ('Preqin'), the leading source of data and intelligence for the
alternative asset industry.
The PERI does not invest in buyout funds directly or indirectly but has been
developed on a foundation of private equity research which suggests that a
substantial portion of private equity buyout fund returns can be attained
through an investment in the 'public market equivalents' of the private
investments made by those funds. The PERI implements this theory through a QES
developed systematic model which uses financial algorithms, in large part
underpinned by private equity industry data from Preqin, to allocate on a
weekly basis to these 'public market equivalents'.
The PERI is a daily investible, long only index that targets global private
equity like returns but on a committed capital basis. The overall performance
is intended to target both the returns of capital actually invested in the
private equity buyout fund universe as well as a risk free rate of return on
the proportion of capital awaiting deployment.
Exposure to the PERI is obtained exclusively via Nomura, which is able to
offer a variety of structured products on the index. Samir Patel, Co-Head of
Equities Americas said: "The PERI addresses some of the traditional challenges
facing private equity investors such as long lock-ups and uncertainty around
cash flows. It can be especially useful in managing private equity
allocations in investment portfolios."
The PERI is the first liquid private equity returns index of its kind, and the
first investible index to use data from Preqin. Ben Warwick, CEO of QES,
said: "We are very excited to partner with Nomura in launching this innovative
index, the culmination of many years of buyout industry research, analysis and
quantitative modeling at QES."
The PERI is calculated daily by S&P Opco, LLCTM and published on Bloomberg
Nomura is a leading financial services group and the preeminent Asian-based
investment bank with worldwide reach. Nomura provides a broad range of
innovative solutions tailored to the specific requirements of individual,
institutional, corporate and government clients through an international
network in over 30 countries. Based in Tokyo and with regional headquarters in
Hong Kong, London, and New York, Nomura employs over 27,000 staff worldwide.
Nomura's unique understanding of Asia enables the company to make a difference
for clients through three business divisions: retail, asset management, and
wholesale (global markets and investment banking). Nomura's subsidiaries in
the US include Nomura Securities International, Inc. (a member of SIPC) and
Nomura Corporate Research and Asset Management Inc. For further information
about Nomura, please visit www.nomura.com.
Preqin is the leading source of information for the alternative assets
industry, providing data and analysis via online databases, publications and
bespoke data requests. Preqin has built a reputation in the industry for
providing the most comprehensive and extensive information possible. Leading
alternative assets professionals from around the world rely on Preqin's
services daily, and its data and statistics are regularly quoted by the
financial press. For more information, please visit: www.preqin.com
QES is a Denver, Colorado based quantitative investment firm that offers a
variety of alternative products that utilize exchange-traded futures and
equities and offers investors unprecedented liquidity, transparency, and daily
pricing. The firm's products include hedge fund replication (developed with
Hedge Fund Research and Nomura); managed futures; convertible bond arbitrage
replication; and long-short and long-only equity indices. For more
information, please contact email@example.com
Contact: Jonathan Hodgkinson, Nomura, +1-212-667-1484
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