Something peculiar is unfolding in private markets. You can now buy a dollar’s worth of high-quality private equity businesses – portfolios compounding earnings at 8 per cent – backed by the world’s more sophisticated investors, for about 65¢.Listed private equity vehicles are currently trading at discounts to their net asset values of more than 35 per cent, up sharply from 27 per cent at the start of the year. The assets sitting behind those discounts are, by most measures, performing well.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Forget the bad headlines, there’s money to be made in private funds
There are currently two distinct waves of anxiety at listed private equity, but neither holds up particularly well under scrutiny.
TL;DRAI
Listed private equity vehicles trade 35%+ below NAV while underlying assets compound earnings at 8%—a persistent market inefficiency. At ~65¢ per dollar, quality PE portfolios offer acquisition arbitrage for investors with available capital.
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