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Consultants

The continuous valuation of illiquid investments has become increasingly important in light of recent regulatory requirements. This applies in particular to alternative asset classes which are not traded on a regulated market. Private equity investments are particularily affected, which makes it more difficult to monitor the risk of a private equity investment adequately.

A world first, the LPX NAV Index Series allows an investor to assess the fundamental value development of a diversified LP private equity portfolio on a daily basis and so they can make the necessary adjustments promptly. For this purpose, LPX AG has developed a standardized LPX Live NAV model, which ensures that all relevant information, including distributions, trade sales, IPOs, etc., affecting the NAV of an index member, is immediately reflected in the LPX NAV Index Series. This methodology increases the valuation frequency beyond the officially published NAVs and thus enables the daily valuation of the individual index members.

 

The LPX NAV Index Series serve as an innovative benchmarking tool, particularily as the indices are published on a daily basis. LPX AG also provides an additional tool, the LPX NAV P/D Index Series, which combines the market value and the book value (NAV) of an private equity portfolio so it can be used as an indicator for the current valuation environment of the private equity asset class.