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:
Liquid exposure to the private equity asset class; no issue with lock-up; no issue with fixed investment horizon
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
Transparent private equity investment portfolio; listing involves high standards of disclosure
High degree of diversification across regions, private equity investment styles (buyout, growth and venture) and financing styles (equity and mezzanine)
No transaction cost except for bid-ask spread; on average lower management fees than for limited partnerships
Long-term outperformance of all major asset classes
Investor can often buy at a discount to Net Asset Value (NAV)
For detailed information please refer to the LPX site.