The index will track the 100 largest private companies in the United States, according to data from research firm CB Insights. The companies will be ranked by their valuation, and the index will be weighted by market capitalization.
S&P Global says the index will provide investors with a way to track the performance of the private market, which is often opaque and difficult to access. The index will also help private companies to gauge their own growth and performance against their peers.
"We believe the S&P Kensho Pre-IPO Index will provide investors and private companies with a valuable tool for understanding and measuring the growth of the private market," said Dan Draper, S&P Global's head of innovation and strategy.
The index will be calculated daily and will be available on S&P Global's website.
