FTSE Russell and StepStone Partner for Private Market Solutions

FTSE Russell and StepStone Union for Daily Private Market Indices

FTSE Russell and StepStone Group have joined forces to revolutionize the way private markets are analyzed and invested in with the launch of the FTSE StepStone Global Private Market Indices. This collaboration marries StepStone’s detailed fund-level data with FTSE Russell’s expertise in creating reliable indices, delivering a groundbreaking series that provides daily insights into private market performance.

Innovative Features of the New Index Series

The FTSE StepStone Global Private Market Indices represent the first truly global benchmark that offers investors a more nuanced and timely perspective on private market performance. By incorporating daily estimates on mark-to-market valuations, this index transforms how stakeholders assess investments in private equity, private debt, and other non-public asset classes.

Addressing Market Demands

With increasing demand for transparent and immediate benchmarks, these indices provide a solution to historical reporting delays and fragmented datasets. They allow investors to better track market trends and adjust their portfolios dynamically, surpassing the limitations of traditional benchmarks that are typically updated quarterly.

Methodological Prowess

The new indices are split into two primary methodologies:

• Daily Cash-Adjusted Indices – This method updates net asset values (NAVs) based on real-time contributions, distributions, and currency fluctuations, providing a daily reflection of asset value.
• Daily Market Indices – By leveraging relevant public market indices, this approach incorporates estimated valuations derived from comprehensive market analysis, enhancing the nuance of benchmarks available to investors.

Comments from Key Leaders

Gerald Toledano, the Global Head of Equity and Multi Assets at FTSE Russell, emphasized the significance of this launch by stating, “We are proud to introduce next-generation private market benchmarks that not only innovate but also meet the evolving needs of our clients. This collaborative effort with StepStone sets a new standard for consistency and reliability in private market indexing.”

Tyler Johnson, the Partner and Chief Technology Officer at StepStone, expressed that the integration between public and private markets is producing new demands for quicker data insights. “Our indices, which include daily mark-to-market estimates, represent a significant stride in benchmarking private markets. They allow fund managers to assess investments with greater accuracy, thereby shaping how investors incorporate these assets into their overall portfolios.”

About FTSE Russell and StepStone Group

FTSE Russell, a crucial player in global indices, drives investment strategies with its innovative portfolio of analytics and data solutions, benchmarking capital across various countries. Currently, around $18.1 trillion is benchmarked to its indices, making it a cornerstone for many institutional and retail investors.

StepStone Group Inc. (Nasdaq: STEP) offers tailored investment solutions and advisory services to both private and public sector clients. Managing approximately $723 billion in total capital, including $199 billion in assets under management, StepStone’s reputation among large pension funds, sovereign wealth funds, and insurance companies is well-established. Their services help clients craft private markets portfolios that align with their investment objectives.

Conclusion: The Future of Private Market Indices

With this partnership, the FTSE StepStone Global Private Market Indices not only provide new data-driven insights but also set the groundwork for future investments and trading strategies within private markets. Investors can now leverage these indices to better understand and navigate their investments in an increasingly complex financial landscape.

Frequently Asked Questions

What are the FTSE StepStone Global Private Market Indices?

The FTSE StepStone Global Private Market Indices are a series of innovative daily benchmarks that reflect the performance of private markets, providing timely data for investors.

What methodologies do these indices utilize?

These indices utilize Daily Cash-Adjusted and Daily Market methodologies to provide insights based on real-time market conditions and valuations.

How can investors benefit from these indices?

Investors can monitor and assess their private market portfolios more effectively, reacting to market changes swiftly with daily updates.

What is the significance of real-time data in private markets?

Real-time data helps address historical reporting delays, enabling quicker and more informed investment decisions in a sector traditionally characterized by slower valuation processes.

Who are the main players behind this initiative?

The initiative is a collaboration between FTSE Russell, a global leader in index provision, and StepStone Group, a renowned private markets investment firm.

About The Author

Hello Kelly Martin here, a financial and publicly traded company specialist committed to writing with clarity and sage advice. Having a wealth of experience and a thorough grasp of corporate dynamics and the financial environment, my main goal in writing blog posts and articles is to provide insightful analysis together with useful guidance. My objective is to arm readers with the information they need to comprehend the complexities of publicly traded companies and make wise financial decisions.

Writing for several financial blogs has let me interact with a wide range of readers, from novice investors to seasoned pros looking for fresh perspectives. My goal is to make corporate analysis and finance understandable and interesting so you may confidently negotiate the intricacies of the financial world. I appreciate you traveling with me toward success and financial literacy.

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