By looking at liquidity ratios and RVPI under the context of venture capital and growth equity, we’re able to leverage data from Cobalt LP to identify new opportunities in the private markets. Therefore, we’re able to continue to make informed decisions and provide meaningful insights to our clients. Scroll to see our key takeaways when comparing these two metrics across vintage years.

Key Takeaways:

• Looking at RVPI, we see there is substantial value remaining in funds going back over 15 vintage years
• When looking at liquidity ratios, we see that median liquidity remains relatively low during that same time period.
• When thinking about the market, we see that companies are remaining private for longer and the value of growth portfolios continues to build attractive opportunity to leverage insights and gain exposure to high quality growth assets.

Definitions:

• Liquidity Ratios – The rate of distributions over contributions, for the entire private markets on an annual basis. This allows clients to see how liquid the markets have historically been and can utilize this data to make better predictions and utilize this data to help make better predictions.
• RVPI – Residual value divided by since inception paid-in capital. RVPI is the metric used to measure what portion of a fund is unrealized.