Private equity investors to reap rewards in 2005

returns

sector looks set to continue offering good short and long-term results in to new year

Investors in private equity investment trusts who have benefited from high returns and narrowing discounts this year are to reap further returns in 2005 as managers realise mature holdings. The sector has long been seen as a solid long-term play. An investment of £100 in the average AITC-member private equity trust would have risen to £436.50 over 10 years to 30 November calculated on a mid-to-mid basis, while the same amount invested in the average trust would be worth a comparatively modest £182.70. The sector is also posting good short-term returns, with growth of 20.3% on shares in th...