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Index Methodology

The LPX NAV Index Series are an innovative solution to benchmark traditional private equity investments. The LPX NAV Index Series measures the fundamental value development of Listed Private Equity (LPE) companies as reflected by the Net Asset Value (NAV). The daily availability of the LPX NAV Index Series, made possible with the introduction of a standardized valuation model (i.e., LPX Live NAV Model), is particularly innovative. The LPX Live NAV Model ensures that all relevant information, such as 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 thus enablingthe daily valuation of the individual index members. The LPX NAV Index Series follows the identical structure as the LPX Listed Private Equity Indices. They are divided into the following three modules:

  • Size/Liquidity: LPX50 NAV, LPX Composite NAV, LPX Major Market NAV
  • Regions: LPX America NAV, LPX Europe NAV, LPX UK NAV
  • Private Equity Investment Styles: LPX Buyout NAV, LPX Direct NAV, LPX Indirect NAV, LPX Mezzanine NAV,  LPX Venture NAV

Empirical studies suggest that the NAV development of LPE companies is highly correlated with the NAV development of traditional (unlisted) private equity funds. Against this background, the LPX NAV indices can be used to approximate daily valuation fluctuations of a traditional private equity investment portfolio. The LPX NAV Index Series are therefore particularly suitable for all market participants in need of daily valuation barometer for their individual private equity investment portfolio.