Tag: Private equity

Mit liquiden Bausteinen die Private Equity Performance konstruieren

Posted on | by Robin Jakob

Private equity is often favored over stocks by investors due to its higher returns and lower volatility. However, stocks can sometimes outperform private equity, especially when leveraging legal skew, leverage, and volatility tolerance. While private equity funds provide attractive returns with less market fluctuation, the rise in interest rates and reduced deal-making activity have impacted their performance. Some investors now view liquid equity investments, like those in listed private equity indices, as a viable alternative, offering benefits of both private equity and stock market exposure, with lower fees and greater liquidity.

Authors: Patrick Eisele
Publication date: 30 September 2024
Published in: portfolio institutionell
Volume/ Ausgabe: 2024, 9
Source download link: https://www.portfolio-institutionell.de/mit-liquiden-bausteinen-die-private-equity-performance-konstruieren/

Market-based private equity returns

Posted on | by Robin Jakob

Using the universe of business development companies (BDCs), a unique publicly traded segment of U.S. Private Equity (PE), for the period 1998–2017, we provide the first in-depth examination of their performance and risk-adjusted characteristics and compare our results to contrasting evidence derived from recently wwweloped time series proxies for unlisted PE returns. BDCs exhibit zero alpha, beta of one, and significant exposure to SMB, HML, and CMA factors of 0.5, 0.7, and -0.3, respectively. BDC performance and market beta are sensitive to fund size and leverage. We provide evidence that BDC returns capture both the asset selection and PE ownership elements of the unlisted PE investment strategy. Finally, an event study analysis shows that NAV disclosures become informative only after the adoption of the Statement of Financial Accounting Standards 157 (SFAS 157). We posit that BDCs provide a readily available market-based PE benchmark for use by regulators, market participants, and academics.

Authors: Theodosis L. Kallenos / George P. Nishiotis
Publication date: 6 November 2023
Published in: Journal of Banking & Finance
Volume/ Ausgabe: Volume 157
Source download link: https://www.sciencedirect.com/science/article/abs/pii/S0378426623002339

Why investors should look again at private equity

Posted on | by Robin Jakob

This document discusses LPX AG’s business strategies and its use of indices in the listed private equity market. It covers the intricacies of listed private equity investments, the challenges of limited data availability in private equity, and the transparency that listed equity offers over traditional private equity.

Authors: Dr. Michel Degosciu, Karl Schmedders, and Maximilian Werner
Publication date: 24 August 2023
Published in: IMD – International Institute for Management Development
Volume/ Ausgabe:
Source download link: https://www.imd.org/ibyimd/finance/why-investors-should-look-again-at-private-equity/

Don’t mind the Listed Private Equity gap

Posted on | by Robin Jakob

Explores the concept of discounts in listed private equity and argues that current market conditions present a buying opportunity, discussing the resilience of private equity values and the misconceptions about market discounts.

Authors: Dr. Michel Degosciu
Publication date: 10 November 2022
Published in: IFA Magazine
Volume/ Ausgabe:
Source download link: https://www.trustnet.com/news/13340589/dont-mind-the-listed-private-equity-gap

Ein Anlagetipp der besonderen Art

Posted on | by Robin Jakob

This article discusses how difficult it is to outperform the market, with many experts believing it is impossible to consistently achieve returns above the overall market. However, it suggests that the sharply fallen prices of private equity stocks, some trading at significant discounts, could present an attractive buying opportunity, as similar situations in the past have often led to above-average returns.

Authors: Markus Städeli
Publication date: 27 August 2022
Published in: Neue Zürcher Zeitung
Volume/ Ausgabe: 
Source download link: https://www.nzz.ch/finanzen/die-rohstoffpreise-sinken-lohnt-es-sich-jetzt-einzusteigen-ld.1784875

Private equity zum Discountpreis

Posted on | by Robin Jakob

The LPX Group in Zurich is renowned for its private equity and infrastructure index construction. Their strict criteria focus on companies with at least 50% of revenues from core infrastructure, ensuring stability and inflation protection. Notably, private equity investments often come with significant discounts, offering investors opportunities for potentially higher returns. This approach has shown strong, resilient performance, especially during inflationary times.

Authors: Michel Degosciu
Publication date: 26 August 2022
Published in: Börsen-Zeitung
Volume/ Ausgabe: Nr. 164
Source download link: https://www.boersen-zeitung.de/unternehmen-branchen/private-equity-zum-discountpreis-64731054-246f-11ed-8588-399066903a43