Systematic Ranking Index (ESRI) Top 30
Historical Performance †
EQUIAM believes there is a better way to invest in private markets.
In the 1970s and 1980s, the hedge and mutual fund industries were led by high-cost discretionary managers. Beginning in the 1990s, the process of systematization (using data-driven strategies and portfolio engineering concepts) modernized these industries, increasing access and returns, elevating investment approaches, and compressing fees.
We believe the same sea change is now needed in the private markets and want to partner with investors to deliver high-quality access to private firms. By systemizing our investment and implementation process, we can invest rapidly and opportunistically into rigorously-vetted, data-driven selections of exceptional private firms.
We look at over 10 million unique data points from 2005 to present, including venture capital deal data, financial and trading data on comparable public market companies, alternative data sources for company performance, hiring, and cash position, and coincident pricing and flows information, leading to dynamic company level scoring that allows us to simultaneously monitor over 10,000 firms.
- We limit our universe to companies that have had at least 3 Funding rounds and are large enough for us to get favorable liquidity in the secondary market
- Then we filter down to 100 - 150 top firms using proprietary metrics of enterprise valuation and health
- Finally, we use a collection of company level signals to select the 30 firms most likely to outperform, the EQUIAM Systematic Ranking Index (ESRI) Top 30, which is the basis for the core holdings of the EQUIAM Private Alpha Fund.
As shown above, an investment in January 2005 would have yielded net of fees annualized returns of 37%+ (net of all fees and expenses) through December 2019.