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Performance of Listed Private Equity

by Etienne Paresys

  • 19 Mar 2010
  • PE

The performance of listed private vehicles is comparable to that of the unlisted sector. Listed private equity funds are traded daily and publish their financial reports earlier than their unlisted counterparts. Therefore, by analyzing the latest listed performance figures, we can predict how traditional private equity will report performance for Q4 2009. Preqin analyzes performance metrics for approximately 100 listed private equity vehicles.

Quarterly changes in net asset value for unlisted and listed private equity are strongly correlated. As with traditional private equity, net asset value per share (NAVPS) saw little change in Q4 2007, Q1 2008 and Q2 2008. In Q3 2008, listed private equity vehicles saw the value of their portfolio companies drop, and listed private equity NAVPS fell by 17%. NAVPS continued to decrease in Q1 and Q2 2009 before beginning to recover in Q3 2009. Quarterly changes in share prices fluctuate greatly over the period shown, but reflect the trend shown by NAVs during this time. Share prices dropped dramatically in Q4 2008, posting a decline of 39.6%, but they recovered over Q2 2009 and Q3 2009, posting increases of 29.2% and 25.4% respectively. For the quarter ending 31 December 2009, both share prices and NAVPS are posting positive but relatively small quarterly increases.

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