Chapter 8
Listed private equitya
8.1 INTRODUCTION
Private equity vehicles that are quoted on international stock markets are the subject of this chapter. Listed private equity (LPE) are listed vehicles—companies or funds—that offer investors exposure to the private equity asset class. These vehicles pursue a defined private equity strategy (e. g., venture, buyout, mezzanine) and are committed to the private equity investment process in deal screening and selection, structuring transactions, and monitoring and divesting portfolio companies. Underlying investments must be predominantly non-public companies (for more precise classifications of LPE see Bilo, 2002; LPX GmbH, 2008; Partners Group, 2008; RedRocks LPE, 2008; Lahr and Herschke, 2009).
LPE has been around for a long time with the first listings of LPE vehicles dating back to the 1960s.1 Despite these early occurrences, LPE is a fairly new asset class. Exhibit 8.1 tracks listing and unlisting of funds during the 25-year period 1985–2009. Two peaks in the listing of private equity can be noticed from this figure: a surge during the dotcom era and from 2005 to 2007. In 2000, 53 LPE vehicles listed their stock on exchanges, while the latest peak occurred in 2006 when 50 companies went public. Listing numbers in general seem to follow the business cycle. Listings declined sharply in 2007, alongside the overall economic climate. De-listings reached their peak in 2008 when 23 vehicles dropped out. The relative proportion of de-listings ...
