Private equity trusts: What is the market missing?

Taking advantage of discounts in LPE trusts

William Heathcoat Amory of Kepler Trust Intelligence

William Heathcoat Amory of Kepler Trust Intelligence

Some private equity trusts are on an average premium of 18%, while others trade on discounts of 15%. Are we missing something?

De-equitisation - the shrinking of the amount of public market equities in issue through share buybacks and M&A - means many investors are trying to find a way to invest in private investments. Among other things, they are attracted by the very different types of companies, and perhaps by well-publicised Unicorns. As a result, many investment trusts that offer exposure to private market investments are in hot demand - and are among the highest-rated trusts in the entire universe; the selection below have an average premium to a net asset value (NAV) of 17.6%. On the other hand, listed...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Investment Trusts