MSCI launches daily private market index

On March 26, MSCI, the international index provider, announced the launch of the MSCI Nowcasting (daily net asset value) index.

The series of indexes is designed to provide daily benchmarks that can be used for decision-making for private credit and private equity.

According to the announcement, the private markets typically disclose data on a quarterly basis, which creates a clear information lag for investors between two disclosure weeks. MSCI’s Nowcasting technology can provide daily, decision-ready estimates of asset net asset values (NAVs), while remaining consistent with its existing benchmarks.

More specifically, the series of indexes consists of two parts. The MSCI Global Private Credit Index (MSCI All Country Private Credit Index) is intended to help the chief investment officer (CIO), risk management teams, and investment advisers identify turning points in the credit cycle and enable daily monitoring of private credit risk exposures. Meanwhile, the MSCI Global Private Equity Indexes (MSCI All Country Private Equity Indexes) provide daily signals for private equity exposures. The combination of the two indexes can jointly enable the daily inclusion of private assets in multi-asset risk models, support more timely monitoring and attribution analysis between two disclosure cycles, and provide references for decision-making in asset allocation and portfolio construction.