Financial Investigator has featured new research from the EDHEC Infrastructure & Private Assets Research Institute examining how accurately private asset valuations reflect realised exit prices.

Authored by Evan Clark, Senior Private Market Analyst at EIPA, the article highlights findings from The Exit Test: What a Decade of Realisations Reveals About Valuation Accuracy. The research analyses 333 realised private equity and infrastructure exits across 29 UK-listed investment trusts between 2015 and 2026.

Key findings highlighted by Financial Investigator include:

• Across the full sample, the median exit uplift was 19%, with private equity at 20% and private infrastructure at approximately 23%.
• Almost 80% of exits were completed above the last reported carrying value.
• Exit uplifts have compressed since 2022, while longer holding periods are associated with lower uplifts.
• The findings raise broader questions around fair value, valuation governance and the use of NAVs in vehicles offering frequent liquidity.

The feature also considers the implications for defined contribution pension schemes and evergreen structures, where systematic mispricing may affect investors transacting at NAV.

📑Access the full article in Financial Investigator.

📖Download EIPA’s related publication, “The Exit Test: What a Decade of Realisations Reveals About Valuation Accuracy“