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Performance of Listed Private Equity Funds

by Gary Broughton

  • 20 May 2011
  • PE

Listed private equity funds trade daily on public markets and regularly publish quarterly and annual reports earlier than unlisted private equity funds. Tracking the performance data published within these reports gives an indication as to the likely performance of unlisted vehicles during the same period.

Preqin tracks the share prices and net asset value per share of over 80 listed private equity vehicles. By calculating the average quarterly change in share prices and net asset value per share (NAVPS) over successive quarters from Q1 2008 to Q4 2010, we see similar trends in the change in portfolio valuations of unlisted private equity vehicles and gain insight into their likely performance.

This analysis of listed private equity funds shows that Q4 2008 and Q1 2009 saw the biggest drop in share prices during the period. This coincides with the financial crisis, which resulted in large write-downs in portfolio valuation. There have been average quarterly increases in share prices since Q2 2009, with the exception of Q2 2010, and net asset value per share has seen average quarterly increases in every quarter since Q3 2009. During Q4 2010 the average increase in net asset value per share was 3.7%.

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