PE trust discounts narrow as investors capture valuation opportunity

Gap shrinking as Q4 data comes to light

London-listed private equity trusts have seen long-standing discounts to net asset value (NAV) begin to narrow in recent weeks, aided by positive analyst comments and the publication of strong results from the fourth quarter of 2020.

Managers of private equity investment trusts have faced "frustrating" discounts for some time, but the gap is expected to narrow further as companies continue to publish data for the three months to 31 December. Pictet Alternative Advisors launches first thematic private equity fund Just three of the 15 trusts in the AIC Private Equity sector are currently trading at premiums to NAV, with 3i Group's 29.3% premium to NAV of £931m skewing the sector average to a premium of 10.4% as of 17 March. Head of intermediary communications at the Association of Investment Companies Nick Britto...