The net asset value (NAV) is defined as the sum of the fundamental values of every single private equity portfolio position, cash and cash equivalence, listed investments, and other assets, minus total liabilities.
LPX Group regularly determines the NAV’s for more than 100 global listed private equity companies using a standardized NAV model in order to make the data from the listed private equity companies comparable.
The valuation of the private equity portfolio is critical for the determination of the NAV of a listed private equity vehicle. As a first step the fair value of every single portfolio holding has to be determined. In doing so, every portfolio position is valued in accordance with generally accepted industry standards and summed up to the fundamental value of the private equity portfolio.
LPX makes a final determination for each calculated NAV on the basis of a standardized model. One standardized model for each company ensures comparability and transparency of the different private equity peer groups.
On the basis of the calculated net asset values, LPX invented the concept of the Net Asset Value (NAV) -Index.