Edison Issues Listed Private Equity Report

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Sep 22, 2016, 06:09 ET

LONDON, Sept. 22, 2016 /PRNewswire/ -- The LPE structure addresses the limitations on accessibility and liquidity posed by the traditional limited partnership (LP) model used by PE. LPE allows investors simple, liquid access to an attractive asset class for the price of one share, albeit with reduced information and less efficient cash management than in the LP structure, as well as the additional costs involved in running a listed company.

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LPE funds have recently been trading at wide discounts to net asset value (NAV) of >20% even though investment performance has been good over the last five years.

This implies there is an information gap which, if addressed through wider engagement with the investor community, could help move LPE more into the investment mainstream. Recent corporate actions by informed, sophisticated investors, such as the bid by HarbourVest for SVG Capital, might indicate that the market is beginning to recognise the mismatch between low LPE fund valuations and strong underlying investment performance. This suggests there might be an interesting value opportunity for investors in the sector now.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website www.edisoninvestmentresearch.com.

About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

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For more information please contact:
Robert Murphy
Edison Investment Research
+44(0)20-3077-5700

Gavin Wood
Edison Investment Research
+44(0)20-3077-5700
[email protected]

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SOURCE Edison Investment Research