State Street rolls out Liquid Private Equity Investable Index

By Wendy Van Sickle

Columbus, Ohio, Sept. 23 – State Street Corp. launched the State Street Liquid Private Equity Investable Index, which provides public access to private equity sector exposures, according to a Wednesday press release.

The model, developed from research by State Street’s academic partnership State Street Associates, is intended to be used as a liquid proxy for direct private equity investment and is the first in a series of investable indexes, the release said.

The research suggests private equity managers collectively outperform public equity markets in part by anticipating the relative performance of economic sectors.

The model identifies private equity sector exposures using the State Street GX Private Equity Index, which consists of more than 2,400 private equity funds representing more than $2.2 trillion in capital commitments, State Street said.

“While the index can’t replicate the deal-specific alpha that a top private equity manger can deliver, it can provide a liquid, alternative to investors who can’t immediately deploy capital into true private equity investments,” Will Kinlaw, senior managing director and head of State Street Associates, said in the release.

The index is available for licensing in the United States and Australia, with subsequent launches to follow in the United Kingdom, Singapore, Switzerland and Canada.

State Street is a Boston-based financial holding company.

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