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.
Loading…