My view would be fair value should be somewhere in the middle. I'm surprised to see these funds marking assets up immediately. Value is what someone is willing to pay for those assets and that should be the purchase price unless there was a special circumstance where the seller needed liquidity desperately and you were able to get at a true discount. The NAV is just an estimate of fair value.
Related... Funds Are Booking Big One-Day Windfalls Buying Private-Equity Stakes https://www.wsj.com/finance/investing/funds-are-booking-big-one-day-windfalls-buying-private-equity-stakes-664f3423?st=6tx8rgulwwjekfm&reflink=desktopwebshare_permalink
My view would be fair value should be somewhere in the middle. I'm surprised to see these funds marking assets up immediately. Value is what someone is willing to pay for those assets and that should be the purchase price unless there was a special circumstance where the seller needed liquidity desperately and you were able to get at a true discount. The NAV is just an estimate of fair value.
Very good note. Agree with your summary. PE is not for everyone, lack of transparency a negative and challenging for retail investors.
Fully agree