PitchBook’s new PE manager framework

Download PitchBook’s Report here.

PitchBook has developed a new framework to help analyze GP investing styles. Using the Herfindahl-Hirschman Index (HHI)—a metric that measures concentration—we can assign GPs a style score using their past investments as guideposts. Industry concentration and geographic profiles are two index values, with the goal of quantifying a certain GP’s “style” going forward. While categories like generalist and specialist get tossed around pretty freely, it’s helpful to quantify what a GP’s style really is based on past decisions they’ve made. We emphasize that this methodology is simply a framework, and we encourage readers to explore additional ways to classify and combine these style metrics.

If you’re interested in learning more, we encourage you to thoroughly read our methodology explainer and familiarize yourself with how to interpret the raw scores and percentiles.