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Listed Private Equity

  • Private equity involves investments of equity capital in private businesses. It provides 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 potential 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 issue with lock-up; no issue with fixed investment horizon

Access

No minimum investment requirements in contrast to traditional private equity (limited partnerships); direct and immediate exposure to a diversified private equity portfolio; no issue with 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 (buyout, growth and venture) and financing styles (equity and mezzanine)

Cost

No transaction cost except for bid-ask spread; on average lower management fees than for limited partnerships

Performance

Long-term outperformance of all major asset classes 

Discounts

Investor can often buy at a discount to Net Asset Value (NAV)

 

 

For detailed information please refer to the LPX site.


Gehe zu Produkt NMX-INFRAGehe zu Produkt LPX