LPX AG is a leading research house in the field of Listed Alternatives and provides detailed insights into the underlying private equity investment portfolio of the Listed Private Equity companies within coverage. Specifically, a standardized NAV model ensures direct comparability and transparency with regard to the valuation and classification of the individual portfolio companies.
With the launch of the LPX NAV Index Series, performance benchmarks were created for the first time. They reflect the fundamental value development measured by the Net Asset Value (NAV) of LPE companies. The LPX NAV Index Series represent an innovative tool for the daily performance measurement of traditional private equity investments. Thus they are particularly suited for use in the field of risk management and performance benchmarking of traditional private equity investments via limited partnerships.
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 enabling the daily valuation of the individual index members. The LPX NAV Index Series follows the identical structure as the LPX Listed Private Equity Index Series. 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 indices are therefore particularly suitable for all market participants in need of daily valuation barometer for their individual private equity investment portfolio.