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Research shows 2010 may mark a period of sustained returns for listed
private equity
LPEQ, a group of 17 European listed private equity companies, today commented on historical research highlighting periods of sustained returns for listed direct private
equity following years where these investment vehicles have traded at a discount
to net asset value (’NAV’).
The research, conducted by LPX Group (’LPX’), shows that over a 16 year period,
when the share prices of listed direct private equity companies
traded at discounts to their NAV, they have typically produced superior returns
in the following three years.
In the 12 years since 1993 when these investment vehicles have traded at a discount
at the year end, they have outperformed global equities, as measured
by the MSCI World Index (’MSCI’), 75% of the time in the following three years.
For example, listed direct private equity traded at a discount of 16% at the end of 1998
and then produced a return of 71% for the years 1999 to 2001, outperforming the MSCI
which returned just 20% for the same period. Similarly, for the year 2002, listed direct
private equity traded at a discount of 22% and then returned 106% for the years 2003
to 2005, compared to the MSCI which returned 50%. Conversely, in 1999 and 2005
listed direct private equity traded at premiums of 15% and 6% respectively and returns
for the following three years were -17% and -56% respectively.
Listed direct private equity traded at a discount of 16% as at 31 December 2009,
which would suggest that, based on this historical analysis, returns from listed direct
private equity for the following three years for investors should be attractive.
Koen Dejonckheere, CEO of Gimv NV, a member of LPEQ, commented: “Despite
a challenging two years when discounts were at their widest for most of the sector,
the outlook for listed private equity is more positive going into 2010 and
the LPX research substantiates this. There is no reason why 2010 should not be
a good vintage year, so now is an attractive time to consider investing in the sector.”
Brian Scouler of Dunedin Enterprise, Managers of Dunedin Enterprise Investment
Trust PLC, a member of LPEQ, commented: “These findings are good news for investors
who are seeking returns in a low growth environment. Listed private equity in particular
offers private as well as institutional investors the most ready access to the asset class,
so any findings that show the potential of attractive returns in the sector is a positive
development for the investment community.”
ENDS
 For further information please contact:
Ed Gascoigne‐Pees/Nick Henderson, PR for LPEQ, +44 (0)20 7269 7132/+44 (0)20 7269 7114
Ed.gascoigne‐pees@fd.com/nick.henderson@fd.com
Andrea Lowe, Principal, +44 (0)20 8995 9466; andrea.lowe@lpeq.com
NOTES TO EDITORS
About LPEQ
LPEQ is a group of 17 European listed private equity companies with a combined market capitalisation
of over €5 billion. Launched in 2006 (originally as iPEIT), LPEQ’s aim is to raise awareness and
understanding of listed private equity among the investment community and its commentators. The
members of LPEQ are: Conversus Capital LP, Deutsche Beteiligungs AG, Dinamia Capital Privado SCR
SA., Dunedin Enterprise Investment Trust PLC, Electra Private Equity PLC, F&C Private Equity Trust plc,
Gimv NV, Graphite Enterprise Trust PLC, Henderson Private Equity Investment Trust plc, HgCapital
Trust plc, J.P.Morgan Private Equity Limited, JZ Capital Partners Limited, NB Private Equity Partners
Limited, Pantheon International Participations PLC, Princess Private Equity Holding Limited, Standard
Life European Private Equity Trust PLC and SVG Capital plc.
More information is available at www.lpeq.com
About LPX Group
LPX Group offers investment solutions for a transparent and liquid access to listed alternative asset
classes based on our in‐depth research & investment advisory. Furthermore LPX Group has pioneered
Listed Private Equity index series and serves as an index sponsor for listed alternative asset classes; the
Listed Private Equity (LPX) and Infrastructure (NMX) index series serve the financial community as
performance benchmarks, effective research tools and as the basis for a variety of tailored financial
products.
More information is available at www.lpx‐group.com
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