LPEQ, the trade group for European listed private equity, said that the Belgium-based Gimv firm is to become its sixteenth member, which means that LPEQ now represents a quarter of Europe’s tradable private equity companies, giving the group a greater chance to promote this form of investment vehicle.

Listed on Euronext Brussels since 1997, Gimv is an independent investment company managing a portfolio of €1.7 billion ($2.4 billion) in funds, including third party funds, LPEQ said.

Listed private equity vehicles have grown in size and number in recent years, giving individual investors who might otherwise not have enough money to enter unlisted vehicles the ability to tap into this asset class. Listed funds must be more open about their performance, although one drawback is that their share prices can sometimes trade at a sharp discount to their net asset value.

Explaining the decision to sign up, Koen Dejonckheere, Gimv’s chief executive, said: “We saw great advantages in joining LPEQ, which is steadily raising awareness of listed private equity, both through research studies and through contact with investors and their advisors.”       

LPEQ members include Euronext Amsterdam-listed Conversus Capital, the world’s largest publicly traded portfolio of third party private equity investments; Dinamia, Spain’s only listed private equity company and Frankfurt-listed Deutsche Beteiligungs. LPEQ was launched in 2006, originally known as iPEIT, to increase awareness and understanding of listed private equity among the investment community and its commentators. 

Meanwhile, revised data shows that European private equity investments dropped by 28 per cent to €54 billion last year, driven largely by a plunge in the number of big buyout deals, according to the European Venture Capital Association.

Private equity has experienced a setback since the outbreak of the credit crunch. Large-scale buyout deals, both by number and value, dropped by around 40 per cent, according to the European Venture Capital Association. The value of small and mid-market deals fell by 30 per cent, while the number of companies financed dipped by a fifth.

But early-stage venture capital investment remained undeterred by the economic slowdown, the EVCA said, with a 15 per cent increase in the number and 7 per cent in value of seed-stage and start-up companies receiving finance.

Private equity exits have slowed significantly since the start of the economic downturn, with European private equity funds exiting from more than 2,000 companies, representing €13.9 billion at cost. This is close to the 2003 exit level and down by half from 2007 levels.

Later this month, WealthBriefing and ComPeer, the research firm, will carry out research into listed private equity on behalf of LPEQ. This latest research will form part of LPEQ’s programme to continually assess sentiment towards listed private equity and improve understanding of the asset class among investors and advisors.