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October 15, 2026 8:49 am
|Carolyn Essid
An article published in Hedge Fund Alpha on 15 October 2026, discussing recent research from 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. The report found that nearly 80% sold above their last reported carrying value, raising concerns about the accuracy of private asset valuations:
- 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.
📑Access the full article in Hedge Fund Alpha.
📖Download EIPA’s related publication, “The Exit Test: What a Decade of Realisations Reveals About Valuation Accuracy“.
