Trusts up to 60% in cash

private equity trust managers struggling to find good value deals for realisation proceeds

Private equity investment trusts are running as much as 60% in cash because managers are struggling to find reasonably priced deals in which to invest proceeds from realisations. While some private equity vehicles, such as limited liability partnerships, can return cash to investors once investments are sold, ITs retain it for further investment, which has the potential to drag down future returns. The sector has produced some spectacular returns over the past couple of years. Over the three years to 28 February, shares in AITC private equity member trusts have returned 42.4%, compared to...