BURGISS PRIVATE CAPITAL
CLASSIFICATION SYSTEM

When Burgiss began to create and assemble a database of fund performance, solving the pervasive problem of fund identity and classification was our priority. How can we help our clients create a benchmark for European Buyouts unless we go back to basics and establish what makes a Buyout fund a Buyout fund? And what countries, exactly, make up Europe? 

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In 2016, the Burgiss Private Capital Classification System (PCCS) was released as a set of taxonomies to help bring transparency, standardization, and precision to classification process. It is an objective and sensible approach to categorizing private capital assets, and allows clients to better identify the best peer group for their investments, allowing better forecasting decisions, deeper understanding of portfolios, and more precise benchmarks 

A critical aspect of PCCS is that it is a system governed by rules which minimizes subjectivity and leads to more consistent decisions. With that in mind, the PCCS incorporates a rule-based approach that takes on the form of a decision tree sequence (Figure 1.) to determine the appropriate category within each taxonomy. 

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The PCCS definitions and the assignments by Burgiss® have been widely embraced by publishers, institutions, and academics who use Burgiss data for independent research. Of course, as with any robust classification system, the PCCS is subject to yearly review and revision.