Global Definitions Database

A public market equivalent (PME) methodology where all private equity cash flows are compounded by the returns of the reference benchmark to the same single point in time, which when combined with the final net asset value (NAV), forms a series of future values of net cash flows; the impact of any changes in the reference benchmark on the actual private equity cash flows is effectively neutralized and the resulting net cash flows are not affected by any changes in the reference index but reflect only the sole private equity returns relative to the index returns.