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Listed Private Equity

Private equity involves investments of equity capital in private businesses by providing long-term committed share capital to help unquoted companies grow and succeed. Listed Private Equity (LPE) companies are private equity companies listed on a stock exchange. LPE companies follow the same business model and exhibit the same risk and return characterisitcs as their unlisted counterparts. An LPE company provides shareholders an immediate exposure to a diversified private equity portfolio and exhibits the following characteristics:

Liquidity - Liquid exposure to the private equity asset class; no capital lock-up; no fixed investment horizon

Access - No minimum investment requirements in contrast to traditional private equity funds (limited partnerships); direct and immediate exposure to a diversified private equity portfolio; no j-curve effect

Transparency - Transparent private equity investment portfolio; listing involves high standards of disclosure

Diversification - High degree of diversification across regions, private equity investment styles (i.e., buyout, growth and venture) and financing styles (i.e., equity, debt and mezzanine)

Cost - No transaction costs except for bid-ask spread; on average lower management fees compared with tradtional private equity funds (limited partnerships)

Performance - Long-term outperformance of all major asset classes

Discounts - Investors can often buy at a discount to the fundamental value (Net Asset Value)