Listed Private Equity Insights: Validating Valuations 2024 (Invest Europe)

Summary

• As of 29 December 2023, global assets under management by listed private equity firms and funds totalled €3,369 billion.p.2
• Listed private equity firms had a combined market capitalization of €517.79 billion as of 29 December 2023.p.2
• In Europe, 3,000 private equity and venture capital firms manage more than 8,300 funds.p.5
• In 2022, 10.9 million employees—representing 5% of Europe's 236 million total workforce—worked in 27,645 private equity-backed companies, including 20,349 SMEs.p.5
• The valuation study analyzed exit data submitted by 13 of Invest Europe's listed private capital members.p.7

Key insights

1. Listed private equity offers investors of all sizes liquid access to private equity managers and funds listed on global stock exchanges.p.2
2. Persistent share trading discounts relative to net asset value stem in part from market uncertainty and mistrust around private portfolio valuations.p.2
3. Private equity valuations show lower volatility than public markets because managers take a conservative approach when adjusting portfolio values.p.3
4. Private equity managers derive fair market value using publicly traded comparables, transaction comparables, and discounted cash flow models.p.4
5. Private equity backing supported 20,349 SMEs across Europe in 2022.p.5
6. Back testing of valuations is conducted routinely by private equity firms in accordance with International Private Equity and Venture Capital Valuation (IPEV) Guidelines.p.6
7. Invest Europe's Listed Private Capital Roundtable comprises 22 of the association's listed members.p.7