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Trends and Developments of Listed Private Equity – June 2012

by Gary Broughton

  • 08 Jun 2012
  • PE

Shares in listed private equity vehicles are traded daily on stock exchanges and are therefore accessible to anyone without the need to commit large sums of money or to have capital locked up for a long period of time. This makes investment into listed private equity a valuable alternative to traditional private equity and offers exposure to a market that has traditionally only been available to institutions and individuals that have large capital reserves available to invest. Listed private equity aims to provide long-term capital appreciation and regular dividends, without the constraint of a ten year fund life and is well suited to long-term holding as required by private equity investments.

Preqin currently tracks the share prices of over 100 listed private equity funds. By examining the average changes in net asset value per share (NAVPS) and share prices for listed private equity, we can gain an insight into the trends and developments of these listed vehicles, which act as an early indicator to the performance of more traditional unlisted private equity funds. Both share prices and NAVPS experienced a fall in Q3 2011, as a result of the worsening of the European sovereign debt crisis. The share prices of listed private equity funds also saw average quarterly decreases in the first three quarters of 2011, while in Q4 2011 there was a slight increase of 0.4%. The net asset value per share also experienced a small quarterly increase of 0.4% during Q4 2011.

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