'Unwarranted' private equity trust discounts set to narrow further

AIC Private Equity sector trading at 13.6%

London-listed private equity investment trusts have continued to narrow "unwarranted" large discounts to NAV, which opened up in the wake of the coronavirus pandemic.

Aided by positive analyst comments and the publication of strong results from the fourth quarter of 2020, there is growing consensus that long-standing discounts will narrow further amid an environment "ripe for value-added investments". As of 14 April, the AIC Private Equity sector was trading at an average premium of 13.6%, skewed heavily by 3i Group's 33% premium to NAV. Just five of the 18 trusts in the sector trade at a premium, with HgCapital the only other vehicle to trade at a double-digit premium. Head of intermediary  communications at The Association of Investment Companies...