Invest Europe study: Listed private equity companies realise sale prices markedly in the double digits above book value

The Invest Europe report Listed Private Equity Insights: Validating valuations shows that exit prices achieved by listed private equity houses average 36 per cent (direct investments) and 47 per cent (funds of funds) above the last balance‑sheet valuation—based on actually realised transactions, not model calculations. The study’s findings draw on 193 disposals of direct investments and more than 3,000 exits from funds of funds between 2019 and 2024, encompassing both the pandemic shock and the interest‑rate turn.

In parallel, the report highlights that many listed private‑equity vehicles have been trading for years at a noticeable discount to their net asset value (NAV), even though portfolio companies are delivering solid performance. Invest Europe identifies, among other causes, an investor aversion to portfolio valuations. The assumption that assets are “massaged” or too opaque is addressed in the report with robust data intended to place such views in context.

Portfolio company valuations are prepared in line with recognised standards such as the IPEV Guidelines and employ established methods, including public‑market peers, transaction multiples and discounted cash flow models. The fact that realised sale prices often sit significantly above these carrying values is interpreted by the authors as evidence that valuations tend to be conservative rather than aggressive—and that the equity market is not fully pricing the value of the portfolio companies.

Shares of stock exchange‑listed private equity companies are described in the report as a way to open up this asset class to a broader investor base—unlike an ELTIF, with the tradability and regulation of ordinary shares. Globally, listed private‑equity firms and funds manage around 4.14 trillion euros in assets, with a combined market capitalisation of 663 billion euros.

A European perspective: Approximately 8,400 funds hold direct or indirect stakes in more than 28,600 portfolio companies. In 2023, these portfolio companies employed about 11.2 million people, around five per cent of all European workers. For retail investors, who generally lack access to traditional PE funds, listed vehicles provide a lever into an asset class that has often outperformed public equity markets historically—yet is currently trading at a discount on the stock market.

The full study is available on the Invest Europe website (membership required).