Quarterly valuation update : the use of Sum of the Parts as a valuation methodology - Q2 2026

Three key themes from Q2 2026:

Bond yields eased after Q2 volatility, but uncertainty remains : Government bond yields were volatile following the onset of the Middle East conflict but ended Q2 modestly lower across the UK, Australia and Eurozone markets. US Treasury yields remained slightly above prior-quarter levels, reflecting continued uncertainty around Fed rate cuts.

Persistent discounts to NAV have led to further strategic actions by listed funds this quarter : The listed infrastructure fund discount to NAV narrowed materially, supported by improving rate expectations, stronger share prices and increased activity. In the renewables sector, several funds pursued sales processes or asset disposals to unlock shareholder value, highlighting the strength of private market valuations despite continued discounts to NAV.

SOTP enables a more tailored assessment of value and risk : Different business segments, asset stages and revenue streams may require separate valuation approaches, with component values aggregated to determine enterprise value. Premiums or discounts should reflect factors such as synergies, diversification, platform value and marketability, while HoldCo cashflows should also be considered. SOTP can be used either as a primary valuation method or as a cross-check.

Download our quarterly valuation update for Q2 2026: