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Listed Private Equity – Change in Net Asset Value per Share and Share Price by Quarter

by Gary Broughton

  • 30 Sep 2011
  • PE

The listed private equity market offers investors an alternative to traditional private equity investment and is open to anyone, without the need for large capital reserves or long term commitments. Shares in listed private equity vehicles are traded on a daily basis and results are typically reported earlier than unlisted private equity funds, enabling the performance of these listed vehicles to act as an indicator to the performance of traditional private equity funds.

At Preqin, we track the quarterly share prices and net asset value per share (NAVPS) of over 100 listed private equity vehicles. By monitoring the latest quarterly changes, we can gain insight into the likely performance of traditional private equity funds before results for these funds become available. The analysis shows that throughout 2008, net asset value per share (NAVPS) showed quarterly decreases during all four quarters as the financial crisis resulted in large write-downs of portfolio valuations. From Q2 2009, NAVPS show quarterly increases until Q1 2011 as markets recovered. During Q2 2011 NAVPS have increased by an average of 1.4% while share prices have seen an average decrease of -1.6%.

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