The Private Capital Access Index: Methodology and Implications
18 Pages Posted: 14 Jan 2013
Date Written: December 29, 2012
Starting in the first quarter of 2012, the Pepperdine Private Capital Markets Project has done a quarterly survey of private companies asking questions about the demand for and availability of external capital for their business. Through factor analysis, we have identified a subset of variables from this survey data that together represent the overall state of the world with respect to private companies’ demand for and access to capital. From this data and using factor analysis we construct two indices, scaled from zero to one hundred. The first, called the Private Capital Access (PCA) Index, reflects the current availability of capital to private firms. The second, the Private Capital Demand (PCD) Index, measures the current need for external capital by these same firms.
Keywords: Private Capital Markets, Debt, Equity, External Capital
JEL Classification: G10
Suggested Citation: Suggested Citation