Listed Private Equity Undervalued; Poised For Rebound -Study
The private equity industry in general is still struggling in the difficult market conditions, which make it difficult for them to buy and sell companies.
A a result, listed private equity companies, among them 3i Group PLC (III.LN) and Electra Private Equity PLC (ELTA), have seen their shares plummet in value over the last year.
Even as the equity markets recover, the shares of these companies continue to trade at significant discounts to net asset value presenting investors with a good buying opportunity, said LPEQ, the group of European listed private equity companies, in its third annual survey.
Over half of the 200 wealth managers polled by LPEQ intended to increase their allocation to the listed asset class over the next year and 60% cited widening discounts as a reason to buy shares. Some 13% of wealth managers not already investing in listed private equity said they plan to do so over the next year.
"It is reassuring to see the healthy demand and interest shown in LPE, in spite of a decline in performance over the past 18 months," said Ian Armitage of HgCapital PLC (HGT.LN) and LPEQ chairman.
Other advantages given for investing in listed private equity include portfolio diversification and liquidity, wealth managers said.
Company Web site: www.lpeq.com
--By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
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Publié le 28 septembre 2009 Copyright © 2009 Dowjones
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