Listed Private Equity offers the advantage that, in addition to the valuation of the private equity portfolio at book values (NAV) also a market price valuation is available. The LPX NAV P/D Index Series serve as an innovative research tool. The indices represent a link between the NAV and market price valuation of a private equity investment portfolio. Specifically, the LPX NAV P/D Index Series reflect the price-to-book ratio (premium/discount) of the private equity asset class.
The indices serve as a representative barometer for the current valuation environment of the private equity asset class and are thus particularly suitable for investors who are active in the private equity secondary market. The LPX NAV P/D Index Series are published in percentages on a daily basis, with negative index values referring to a discount and positive index values to a premium. A discount occurs if the market price is below the underlying book value (NAV). A premium, on the other hand, occurs if the market price exceeds the underlying book value (NAV).
The LPX NAV P/D Index Series are published daily and measure the premium/discount of the listed private equity universe. The LPX NAV P/D Index Series follow the identical structure as the LPX Listed Private Equity Indices and are divided into the following three modules:
- Size/Liquidity: LPX50 NAV P/D, LPX Composite NAV P/D, LPX Major Market NAV P/D
- Regions: LPX America NAV P/D, LPX Europe NAV P/D, LPX UK NAV P/D
- Private Equity Investment Styles: LPX Buyout NAV P/D, LPX Direct NAV P/D, LPX Indirect NAV P/D, LPX Mezzanine NAV P/D, LPX Venture NAV P/D
Empirical studies suggest that the NAV development of Listed Private Equity companies is highly correlated with the NAV development of traditional (unlisted) private equity funds. Against this background, the LPX NAV P/D Index Series can be used to approximate the current and historical valuation environment of the private equity asset class.