Launched in April of 2022, the HEC Paris – DowJones Small-Cap Buyout Performance Ranking analyses the firms which generated the best performance for investors participating in the small-cap market segment. The companies which topped this first edition of the ranking are CAI Capital Partners, Falfurrias Capital Partners, Renovus Capital Partners, GMT Communications Partners, and Gauge Capital.
The new HEC Paris – DowJones Small-Cap Buyout Performance Ranking is a follow – up study to the already established and informative HEC – DowJones Private Equity Performance Ranking which lists the world’s Top Private Equity (PE) firms in terms of aggregate performance.
In this new ranking, HEC Paris Professor Oliver Gottschalg, the study’s main author, wanted to address the lack of attention given to companies and investors targeting small-cap firms, businesses whose total market value, or market capitalization, is about $30 million to $300 million.
According to Gottschalg, this market segment is especially interesting because “top Small-Cap buyout firms are much more diverse in terms of geographic origin than large buyout and mid-market firms, where US firms were much more dominant at the top of the rankings.”
The ranking lists Private Equity firms that cumulatively raised between 100M and 1B USD over a decade in terms of aggregate performance based on all buyout funds raised between 2008 and 2017.
To obtain a most accurate picture of PE and their investments, the author drew from a variety of available databases and performed a number of cross-checks of the information using Preqin PE fund performance database as the primary database for fund performance information, and information directly provided by PE Firms to HEC Paris for the purpose of these rankings.
Sponsored by advisory firm PERACS GmbH (now part of MJHudson), Prof. Oliver Gottschalg has developed a proprietary methodology that makes it possible to comprehensively assess the aggregate performance of all funds managed by a Private Equity Firm. The basis for this assessment is the performance of each fund, measured in terms of three complementary performance measures: IRR, DPI (cash-only return multiple) and TVPI (a return multiple that considers accounting values of ongoing investments). Prof. Gottschalg assesses performance in each measure both as absolute values and measured against the corresponding performance benchmark, leading to 2*3=6 performance indicators.
In total, HEC Paris Professor Oliver Gottschlalg analyzed performance data from 517 PE firms and 991 funds with an aggregate equity volume of $1.5tr, and Gauge Capital was ranked 5th.
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ABOUT HEC PARIS
Founded in 1881, HEC Paris is a leading European Business School. Its ambition is to positively impact both businesses and society thanks to its three-pronged approach, “Think, Teach, Act” and thus, to contribute to a more inclusive, sustainable and prosperous world. With 160 research professors from all around the world producing and teaching unique knowledge to more than 4,500 students from 110 different countries, the HEC Paris campus serves as a real laboratory for innovation and exchange which is open to the world’s diversity and challenges. Inspired by its 5 core values -Excellence, Curiosity, Entrepreneurial spirit, Diversity and Responsibility- HEC Paris offers a complete range of training courses for the leaders of tomorrow: the Pre-Experience Program, specialized masters, MSc, the Summer School, the MBA, the Executive MBA, the TRIUM Global Executive MBA, the PhD, as well as a wide variety of programs targeted to leaders and managers.
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ABOUT GAUGE CAPITAL (WWW.GAUGECAPITAL.COM)
Gauge Capital is a leading middle-market private equity firm based in Southlake, Texas. Gauge invests in five key sectors: healthcare, technology, business services, government & industrial services, and food & consumer. The firm manages more than $2.0 billion in capital and in 2020 and 2021, Inc. Magazine named Gauge one of the top private equity firms for founders. In 2021 and 2022, Gauge was also named to the Top 50 PE Firms in the Middle Market by Grady Campbell. For more information, please contact Andrew Peix, Managing Director of Business Development at firstname.lastname@example.org.