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The HEC - Dow Jones Private Equity Fitness Ranking 2010
Executive SummaryFrequently Asked QuestionsWhat is new/interesting about the “HEC - Dow Jones Private Equity Fitness Rankings
The Private Equity (PE) industry is notoriously opaque and access to any data is chronicallydifficult. In particular, little is known about the performance and competitive positioning of thekey PE firms. While rankings exists for many other areas (the best “business school”, the best“place to work”, the best “stock market analyst” etc), nothing comparable existed in PE until veryrecently. The only existing “rankings” were merely lists established by different trade journalsand based on some single measure of scale and thus had has relatively limited meaning.In November 2009, HEC School of Management and DowJones published the first-ever PrivateEquity Performance Ranking
of global PE firms in the
Wall Street Journal, Financial News
Private Equity News.
The Private Equity Performance Ranking
uses an innovativeaggregated measure of past performance to identify and rank the top 10 GPs worldwide. Now we are ready to present the second, complementary ranking that analyzes the world’sleading PE firms in terms of their “competitive fitness”.
Simply speaking, what does “competitive fitness” mean?
The HEC - Dow Jones Private Equity Fitness Ranking answers the question: Which firms are best positioned to generate strong long-term performance going forward? It evaluates each firm’scompetitive positioning based on 10 different empirically validated criteria and then derives anoverall future competitiveness score based on the historic link between firm performance andeach of these criteria. Collectively, these criteria capture some of the most relevant drivers of value creation, including scale, quality of deal flow, ability to time debt and equity markets, andstrategic positioning.