The PME methodology has been used by sophisticated private equity investors for almost a decade. CAPM-type approaches have also been used very widely. The problem with all of these models is that they are much better suited to quoted markets where information and pricing is known on a daily basis. For a private equity fund, you don't know what your real performance will be for many years, and likely until at least year number 7 when sufficient capital has been returned to provide a strong indication of final returns. Thanks for the additional research. I continue to believe that PME is a good tool and used in conjunction with other methodologies will help investors understand the performance of their private equity funds.