This paper examines the accuracy of private asset valuations using 333 realised private equity and infrastructure equity exits across 29 UK-listed investment trusts between 2015 and 2026. By comparing exit prices with the last published and unaffected carrying values before announced deals, it measures the uplift or discount at which private assets are ultimately realised.

The results show that valuations systematically understate exit prices. Across all transactions, the mean and median uplifts were 32% and 19%, respectively, with almost 80% of exits completed above the last reported carrying value. Median uplifts were 20% for private equity and approximately 23% for private infrastructure, with similar results across time, investment trusts and buyer types.

The findings also show that persistent uplifts of this magnitude are not consistent with fair value principles under IFRS 13 and FRS 102. Since 2022, however, exit uplifts have moderated, alongside wider discounts to NAV and longer holding periods. Median uplifts fall from 47% for assets held for under three years to close to zero for assets held for seven years or more.

The implications extend beyond listed investment trusts. For defined contribution pension schemes and evergreen funds that must strike frequent NAVs, systematic mispricing can transfer value between participants who transact and those who do not, creating an important fiduciary and regulatory concern as access to private markets expands.

Read the full paper to explore the findings in detail.