Private equity trusts: What is the market missing?

Taking advantage of discounts in LPE trusts

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William Heathcoat Amory of Kepler Trust Intelligence
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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...

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