In new research entitled “The Exit Test: What a Decade of Realisations Reveals About Valuation Accuracy,” the EDHEC Infrastructure & Private Assets Research Institute (EIPA) 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, the research measures the uplift or discount at which private assets are ultimately realised.

Key Findings:

• 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.

• 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.

📥Download the press release:
New Research Reveals that 80% of Private Asset Exits were Completed above their Last Reported Carrying Value.

📖 Read the full publication:
The Exit Test: What a Decade of Realisations Reveals About Valuation Accuracy.