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Performance of Listed Private Equity

by Bronwyn Williams

  • 16 Jul 2010
  • PE

Preqin tracks share prices and net asset values (NAVs) for about 100 listed private equity vehicles, including 35 venture funds, 27 buyout funds, and 24 funds of funds. Analyzing the quarterly median discount and premium levels for listed buyout funds, venture funds and funds of funds between March 2007 and March 2010 reveals the market has improved and the discounts to NAV have narrowed. For the period observed, buyout funds were trading at a premium to NAV of around 10% up to September 2007, while fund of funds and venture were trading at a discount to NAV. From December 2007, all fund types were trading at a discount and saw their discount to NAV deteriorating until March 2009 as the market reached its bottom. Funds of funds have been the most affected, trading at a median discount of 77% at their lowest point in March 2009.

Prices of listed private equity vehicles provide a good proxy for the pricing of secondary fund interests, as buying a share in a listed private equity vehicle is conceptually very similar to buying a secondary interest in a limited partnership. Preqin uses listed private equity discount and premium levels as a proxy for pricing secondary fund interests. For more information, please visit www.preqin.com/SecondaryMarketMonitor.

For more information about closed ended private equity fund performance please see how Performance Analyst can assist you.

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