Nomura launches private equity index

The Nomura QES Modelled Private Equity Returns Index (PERI) will seek to match the returns of private equity funds by investing in publicly traded companies in sectors that are attracting attention from buyout groups.

The PERI does not invest in buyout funds directly or indirectly. Its approach is based on research that suggests a substantial portion of private equity buyout fund returns can be attained through investment in the public market equivalents of private investments made.

This so-called "replication" strategy, already employed by banks such as J.P. Morgan Chase and Credit Suisse, relies on the idea the most of the return generated by alternative asset managers come from broad market movements as opposed to the managers' skill in selecting investments.

"The PERI has been developed to address some of the limitations traditionally associated with private equity investing, including long term capital lock ups, high minimum investment sizes and infrequent reporting," said Matthew Peakman, managing director and head of fund derivatives trading at Nomura, in a statement. "With the PERI, we are capable of providing truly liquid products that target global buyout returns in a cost efficient way," 

Exposure to the PERI is obtained exclusively via Nomura, which offers a variety of structured products based on the index.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Investments
• Performance
• Japan
• Nomura Principal Finance