Traditional private equity funds are mainly characterized by the fact that no market prices are available and the daily valuation of a private equity portfolio is therefore very complex. Against the backdrop of increasing risk management requirements, the continuous valuation of a private equity portfolio for institutional LP investors has become increasingly important.
LPX AG met this challenge by launching the LPX NAV Index Series, which reflect the fundamental value development of the private equity asset class on a daily basis measured by the Net Asset Value (NAV). The modular structure of the performance benchmarks by region and private equity investment styles allows LP investors to evaluate and monitor their individual private equity portfolio on a daily basis. The LPX NAV Index Series is particularly suited for risk management and can be used as a performance benchmark of a traditional private equity portfolio.
LPX AG also publishes the LPX NAV P/D Index Series, which combines the market value and the book value (NAV) of a private equity portfolio and it can thus be used as an indicator of the current valuation environment (premium/discount) of the private equity asset class. It hence is of particular of interest to investors who are active in the private equity secondary market.