LPX newsletter
Dear Readers,
This newsletter includes:
As of end of August 2023, the LPX50 Index has risen by 20.21% YTD. The LPX50 NAV Index - measuring the underlying performance of the investment portfolio - increased by 5.53%. Among the top performers this year is Partners Group with a return of more than 20% in 2023 (in Swiss francs). Partners Group reported good figures this week. Thanks to a strong recovery in performance fees, Partners Group increased revenues in the first six months of 2023 by 19 percent to 1.05 billion Swiss francs. Pantheon International is another index member in the LPX50. They announced a share buy back programme recently. The programme amounts to GBP 200m and is aimed to tackle the current discount which lies at ca. 40%.
Chairman John Singer said the trust had committed to invest GBP 200m in the current financial year to 31 May 2024. This would be followed by a policy of dedicating a proportion of the company’s cash flow to share buybacks with more details to follow. Share buybacks of Listed Private Equity companies are generally a good sign and shows that managers are confident in their valuations and investments. We have seen a similar trend in the years after the financial crisis 2009.
1. LISTED PRIVATE EQUITY BAROMETER
👉 Click here to access the September edition of LPX Listed Private Equity barometer.
2. WEBINAR INVITATION
The valuation of a Private Equity portfolio requires unbiased and regularly updated data on the investment portfolio. How is it possible to value a diversified Private Equity portfolio on a daily basis and at the same time eliminating the reporting bias? Based on our data driven research we show how LPX provides daily performance updates on a diversified Private Equity and Venture Capital investment portfolio.
Date: Wednesday 27 September, 2023
Time: 4 PM CET
Platforms: LinkedIn live, Youtube live
👉 Click here to register
3. LPX50 HISTORICAL DIVIDEND YIELDS
📊 LPX50 index dividend yield calculated over the last 12 years provides valuable insights into the historical performance. LPX50 is designed to represent the global performance of the 50 most highly capitalised and liquid Listed Private Equity companies.
4. SELECTED PORTFOLIO NEWS
LPX AG index constituent company, HgCapital Trust plc ("HGT") has announced that it has agreed the sale of Commify , the UK headquartered leader in business messaging solutions, to ECI Partners .
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LPX AG index constituent company, Gimv ("GIMV") has entered into contractual agreements for possible sale of four portfolio companies: Coolworld (Sustainable Cities, NL), GPNZ (Healthcare, DE), Impact (Consumer, BE) and the name of fourth participation will be announced in the coming weeks.
5. WHY INVESTORS SHOULD LOOK AGAIN AT PRIVATE EQUITY?
LPX AG Managing Partner Dr. Michel Degosciu , together with co-authors Professor Karl Schmedders and Dr. Maximilian Werner, sheds light in a recent article published in IMD Insights, "Why investors should look again at private equity".
✅ Private equity presents a discount of 25-30% in valuations, historically signaling a buying opportunity. For example, 3i Group plc Group's private equity investment in Action has yielded positive results despite a low P/E ratio.
✅ Private equity is the bottom-of-the-market asset class, offering access to innovative, unlisted companies across sectors. Unlike corporate managers, private equity managers focus on identifying promising opportunities.
✅ Private equity thrives in both bull and bear markets. The LPX50 NAV Index shows it returned 8.34% in the decade to June 2020.
✅ While risks exist, including operational and managerial risks, private equity's potential rewards in uncertain times are compelling. Valuation discounts may not last forever, so now is the time to explore this investment avenue.
Click below to read the original article:
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Disclaimer: This content is provided for informational purposes and none of the content here should be construed as financial advice or an offer or solicitation for securities. The content is not intended to provide a sufficient basis on which to make an investment decision.