What Nasdaq Built
Nasdaq has introduced a new suite of Private Capital Indexes built on its eVestment dataset, marking a notable expansion in the institutional infrastructure surrounding private markets. While public asset classes have long relied on transparent benchmarks to frame performance, private capital has historically operated without a widely recognized, rules-based measurement framework.
The new indexes aggregate private fund performance using data from Nasdaq eVestment, an institutional investment platform where approximately 14,800 distinct funds have reported performance since the dataset’s inception. Coverage spans several core segments including private equity, private debt, and real assets, with an initial focus on areas such as buyout, venture capital, real estate, and fund of funds.
Beneath the Methodology
The construction process signals deliberate institutional design. Funds must meet specific data qualifications, including vintage year, net asset value (NAV), capital activity, and reported performance, before inclusion.
Returns are calculated at the fund level using a Modified Dietz quarterly measurement and aggregated into index-level results. By using NAV-weighting (where larger funds receive greater weight), the structure is broadly analogous to market-cap weighting in public benchmarks.
The “Laggard” Problem: Feature, Not a Bug
A primary challenge in private market reporting is the inherent time delay. Unlike the real-time ticker of the S&P 500, private valuations are “stale” by nature, often lagging public markets by 90 to 180 days.
Nasdaq addresses this through a standardized two-quarter restatement process. Each quarter, new index values are calculated for the period ending six months prior, while the previous two quarters are restated as final data trickles in. For allocators, this formalizes the “lag” into a predictable rhythm, acknowledging that in private markets, accuracy is more valuable than immediacy.
Early Observations From the Data
Backtested performance offers an initial view into how the indexes behave across market environments. Venture strategies show higher volatility alongside the potential for stronger returns, while private debt has delivered an attractive risk-adjusted profile due to lower volatility.
The data also captures the sharp post-pandemic rise in private asset performance and the subsequent slowdown in 2022. Notably, private debt stood out as a resilient asset class during that period, though experienced allocators recognize that “volatility dampening” (due to infrequent appraisals) often masks the sharp drawdowns seen in public equivalents.
Competitive Landscape: A Crowded Field
Nasdaq’s entry places it in direct competition with established incumbents like MSCI (via Burgiss), Cambridge Associates, and State Street.
- The Distinction: While Cambridge Associates is often the “gold standard” for consulting-led benchmarks, Nasdaq is leaning on the “rules-based” purity of its eVestment data.
- The Strategy: By offering these indexes through Global Index Watch, Nasdaq is positioning itself as the bridge for firms looking to create “investable” products, such as private market ETFs, which require the transparency of a public-index provider.
The “Secondary Market” Connection
The significance of these indexes extends beyond data; it is a vital piece of a larger puzzle. Nasdaq also operates Nasdaq Private Market (NPM), a platform designed to facilitate the trading of private company shares.
Strategic Synergy: By building the “Scoreboard” (the Indexes) alongside the “Stadium” (the Secondary Exchange), Nasdaq is attempting to solve the liquidity problem. Historically, private assets were hard to sell because they were hard to price. A credible, rules-based benchmark gives secondary buyers and sellers a common language to determine “fair value,” potentially accelerating the velocity of capital.
Direction of Travel
Measurement typically follows scale. Once datasets reach institutional depth and methodologies become systematic, benchmarks emerge not as innovation but as infrastructure.
Whether these indexes become widely adopted reference points will depend on allocator usage and consultant integration. Their introduction nonetheless contributes to the broader normalization of private assets within institutional portfolios. If the past decade expanded access to private capital, the next may be defined by how rigorously it is measured.
References:
Ilan, A., & Jankiewicz, R. (2026, February). Intro to the Nasdaq Private Capital™ Indexes. Nasdaq Index Research & Development.
