LPX launches direct index

As investor appetite for listed private equity grows so too does the hunger for information. LPX has developed an index to track primary fund performance.

LPX, a Swiss-based publisher of research and indices on global listed private equity, has launched LPX Direct, an index created in partnership with Bank Julius Baer & Co., a Swiss wealth manager.

It is LPX’s twelfth private equity index and covers only those listed private equity companies that make direct private equity investments, focussing on general partners and not fund of funds or quoted management companies.

Evaluation for the index dates back to December 31, 1998.

LPX maintains a database of almost 300 listed private equity companies, which qualify for inclusion if more than 50 percent of their net assets are invested in the private equity domain. The valuation model that LPX has developed takes into account not only the total net assets, but also their allocation.

The database allows for classification and integration of companies that focus on sub-segments of the private equity domain, such as buyout, mezzanine or venture capital.

LPX Direct is made of companies with net assets consisting of no less than 80 percent of direct private equity investments and that meet certain liquidity criteria. From candidates that meet these criteria, a well-traded subset is selected for the index.

LPX Direct is diversified by both the stages of private equity investment (venture, growth and buyout) and the geographical allocation of the investments.