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Beware of falling unicorns: listed private equity has problems too

Funds that are listed on the stock market, but invest in private assets, are vulnerable to all kinds of conflicts — it is not clear they are regulated properly

Unicorns down: investing in private-market growth is not as easy as it looks
Unicorns down: investing in private-market growth is not as easy as it looks Photo: Getty Images

Problems in private equity get noticed when retail investors lose. The collapse of Neil Woodford’s firm, after the manager dabbled in unquoted investments, has focused many people’s attention.

But concerns with the asset class go beyond individual rogue managers or poorly structured funds. At the heart of the matter is the question: How can unquoted investments be valued consistently?

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