First Fund to Offer Access to Morningstar Indexes’ New AI-driven Private Equity Replication Index—No Lock-Ups, No Performance Fees, and Monthly Liquidity
CHICAGO, February 18, 2025–(BUSINESS WIRE)–Third Wire Asset Management, a team of industry veterans dedicated to improving access to alternative investments responsibly, has launched the Third Wire / Morningstar PitchBook US Buyout Replication Index Fund (“USBRIF” or the “Fund”). The Fund is the first to offer investors direct exposure to the newly launched Morningstar PitchBook Buyout Replication Index (the “Index”), which was developed to systematically capture the key characteristics of buyout investing by tracking publicly traded small- and mid-cap stocks that resemble companies in private equity buyout funds.
USBRIF provides access to a strategy designed to provide a buyout-like risk/return profile with the transparency of public markets—offering daily pricing, monthly liquidity, no performance fees, and no J-Curve or capital calls.
“Private equity investing is long overdue for innovation,” said Daniel Harms, CEO of Third Wire Asset Management. “When I first saw PitchBook’s analyst note on buyout replication, I saw an opportunity for investors. For too long, private equity has lacked a true benchmark, leaving a significant gap in the market. PitchBook’s research not only addressed this gap but also reinforced something else I’ve long believed—there had to be a better, cleaner, and cheaper way to access private equity-like returns.”
A New Benchmark for Private Equity Investing
The industry has long struggled to find a reliable benchmark for private equity. Traditional public indexes fail to reflect private equity’s sector tilts, leverage, and security selection biases. Meanwhile, private equity firms report valuations infrequently, artificially smoothing volatility and obscuring real risk.
The Morningstar PitchBook Buyout Replication Index was built to help address these issues, offering a systematic, data-driven approach to modeling buyout’s risk/return profile using public equities.
“The Buyout Replication Index aims to replicate returns from private equity buyout funds with the transparency and liquidity of the public markets,” said Sanjay Arya, Head of Innovation, Index Products at Morningstar Indexes. “We are excited to partner with Third Wire as they use the index to deliver an innovative alternative to traditional private equity offerings to their clients.”
Taking the Private Out of Private Equity
The Morningstar PitchBook Buyout Replication Index is designed to systematically replicate the risk/return profile of private equity buyouts using publicly listed equities.
Read More: Third Wire Eyes Private Markets Evolution — Brings Investors New Fund Based
