Chicago, IL (PressExposure) October 10, 2008 -- In a month when the index of U.S. leading economic indicators fell, the Entrex PCI/Gazelleâs Index of high-growth private company revenue held its own in August.
The Entrex PCI/Gazelles Index marked a small 1.2 percent drop, based on August over July company revenuesâa dip that PCI analysts are calling a stabilization. The Index is still reporting 14.6 percent growth for the year.
Published monthly, the Entrex PCI/Gazelles Index tracks the revenue performance of a 10-company subset of the overall Entrex Private Company Index (PCI). The 10 participating companies represent the PCIâs 2007 top growth firms among companies with revenue up $250 million.
The Index closed at 1,246 in August, down from Julyâs close of 1,261, according to Entrex CEO Stephen H. Watkins. He said the private company sector, which has been the engine of growth in the U.S. economy, is showing some wear and tear from the Wall Street crisis, but not as directly as public company stocks.
âInvestors look at Wall Streetâs performance over the year and are disillusioned with traditional investment options,â said Watkins. âThey are looking for investments that allow for the growth and returns they seek. During this volatile time in the capital markets, the healthy growth cited by the PCI/Gazelles and PCI indices make a compelling case for looking to private company investment opportunities.â
Watkinsâ notions about investors seeking returns outside the traditional capital markets echo the sentiments from former International Trade Commission Economist Peter Morici, who was reported to criticize Wall Street investment opportunities on Oct. 3.
Morici was quoted by UPI as saying: âSince 2000, most of the (economic) gains have gone to private equity funds, hedge funds, investment bankers, executive buyouts, and the financial engineers that run the deals. Perceptions that too many of the gains are falling into the hands of hedge fund traders, Wall Street bankers and rock stars have a solid foundation in the data,â he said.
Morici further described Wall Street as dominated by deal-making that helped mostly the deal-makers. âThey put together firms, take them a part, get paid up front, extract billions in shareholder value, and then leave shareholders with vague promises about future synergies and depressed stock prices,â he said.
The PCI/Gazelles Index is sponsored by Chicago-based Entrex in partnership with Gazelles, an executive education and coaching firm. The PCI and PCI/Gazelles Indices are simply data research tools and not investable indices.
ABOUT THE PCI/GAZELLES INDEX: Published monthly, the Entrex PCI/Gazelles Index tracks the revenue performance of a 10 company subset of the overall Entrex Private Company Index (PCI). The 10 participating companies represent the PCIâs top growth firms from the previous year (as measured by year over year revenue) and focuses on the sector of private companies up to $250 million in annual revenue. http://www.privatecompanyindex.com
Co-sponsor, Gazelles, is the premier executive education & coaching for leaders of mid-size firms (30 to 2000 employees) around the globe. http://www.gazelles.com