Thoughts on illiquidity discount for PE valautions
Curious as to your thoughts on taking an illiquidity / private company discount for PE valuations?
The argument for it is obvious.
The only argument against it that I have heard is that if you are a control investor (which is what traditional PE is) then owning public shares will also create the same challenges - quickly liquidating / selling the whole controlling interest will be difficult.
What are your thoughts?
it's one more variable to tweak to get you the mark you want.
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