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October 23, 2026 1:33 pm
|Carolyn Essid
An article published by Bloomberg on 23 October 2026 examines concerns over the accuracy of private asset valuations, drawing on new research by Evan Clark, Senior Private Market Analyst at EDHEC Infrastructure & Private Assets Research Institute (EIPA). Analysing 333 private equity and infrastructure equity transactions by 29 UK-listed investment trusts between 2015 and 2026, the study finds that reported valuations systematically understated eventual exit prices, raising questions about compliance with fair value accounting principles, investor protection and the reliability of valuations in evergreen funds.:
“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 about 23% for private infrastructure.
Clark said persistent gaps of this magnitude were inconsistent with ‘fair value principles’ under accounting rules IFRS 13 and FRS 102, and should ring alarm bells for investors in evergreen funds required to post frequent NAVs.”
📖 Read the full article on Bloomberg.
📥Download the paper “The Exit Test: What a Decade of Realisations Reveals About Valuation Accuracy“.
