Hypothetical growth of $100 invested by index

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PitchBook and Morningstar recently introduced their Buyout Replication index, which is snapshotted below in part. Here’s a snippet as well of the analysis in the introductory note: The Index would have performed well in the past 10 years on both an absolute and a relative basis, especially in the period after the March 2020 sell-off. It would have returned an annualized 14.7% from the beginning of 2014 through November 2024, 6.1 percentage points higher than the Morningstar US Small Cap Extended Index. 9Adjusting the small-cap benchmark in a stepwise fashion provides insight into what drove this outperformance with respect to sector selection, leverage, and security selection. All three of these components contributed positively to relative performance, although security selection was the main driver. Over the full period, sector selection, leverage, and security selection contributed 0.9, 1.3, and 3.9 percentage points, respectively, to the Index’s annualized outperformance over the small-cap benchmark.