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PEI Group's Strategic Acquisition of SIPA

In a significant move that is set to reshape private market analytics, PEI Group, a global leader in business intelligence and analytics, has announced its acquisition of Scientific Infra & Private Assets (SIPA). This acquisition is expected to accelerate innovation in analytics, particularly within private equity and infrastructure markets.

Background of SIPA

Founded on over a decade of rigorous academic research at the EDHEC Infrastructure & Private Assets Research Institute, SIPA has emerged as a preeminent provider of indices, benchmarks, and rating solutions tailored for private infrastructure and private equity markets. Their flagship products include infraMetrics, privateMetrics, and privateAlpha, which stand as significant assets for institutional investors and asset managers seeking reliable market references and valuation analytics.

Enhanced Portfolio and Commitment to Data-Driven Analytics

The integration of SIPA into the PEI family will amplify PEI's existing analytics portfolio, a dedicated effort towards enhancing transparency and alignment in private markets. SIPA is unique in its ability to produce benchmarks that accurately reflect the performance and risk profile of these markets, with comprehensive data on one million private asset prices generated monthly. This robust approach provides investors with greater granularity and reliability than traditional listed proxies or appraisal data.

Through this acquisition, PEI aims to deliver an extensive suite of market analysis, including detailed fund data, firm-specific information, and overall deal flow insights. This information will empower investment teams to make more informed decisions, aiding in strategy formulation and risk management.

SIPA’s Extensive Impact and Global Reach

SIPA's solutions are already utilized by investors managing assets exceeding USD 1 trillion in private equities, as well as adherence to regulatory frameworks like the International Capital Standard. By utilizing PEI’s extensive network, the reach of SIPA’s data is anticipated to broaden significantly, becoming accessible to all players in the private market ecosystem—from institutional investors to consultants and retail advisors.

This synergy promises a unified platform for clients, facilitating improved insights into private market performance, risk assessment, and valuation processes.

Partnership with EDHEC to Sustain Scientific Excellence

SIPA’s journey began in 2016 when EDHEC founded the EIPA to enhance scientific understanding of private markets. This partnership led to the creation of significant classification standards such as The Infrastructure Company Classification Standard (TICCS) and the Private Company Classification Standard (PECCS), which are now crucial for market valuation and risk assessment methodologies.

PEI Group’s CEO, Edouard Tavernier, highlighted the strategic alignment of SIPA’s benchmarks within PEI’s operational framework, asserting that this integration signifies a step towards providing valuable intelligence for decision-makers engaged in global private markets.

Meanwhile, SIPA’s CEO, Frédéric Blanc-Brude, expressed enthusiasm about scaling SIPA’s mission in collaboration with PEI, emphasizing the benefit of connecting to PEI’s robust research infrastructure and client base.

EDHEC Business School Dean, Emmanuel Métais, acknowledged the partnership as a successful instance of transforming academic insights into practical solutions that provide value to market participants while promoting continued research on vital challenges within private asset evaluation and performance measurement.

Conclusion

This acquisition cements PEI Group’s position as a frontrunner in delivering essential intelligence and tools to navigate the complexities of private markets. As they combine insights from SIPA with their unique data offerings, PEI is well-positioned to cater to the evolving needs of investors striving for more informed and strategic investment decisions.