In focus
36 / 37
[ SECTOR PROFILE ]
Despite powerful performance
over the past decade, the average
IT Private Equity trust stands on
a discount of more than 20 per
cent. Adam Lewis finds out why
the sector remains unpopular
Outcasts
P
rivate equity is an asset class
that splits opinion. Unlike
with most funds and trusts,
it sees portfolio managers
providing hands-on support to the
unlisted companies they hold in a bid
to maximise their value. But despite
significantly outperforming the UK
market over the short, medium and
long term, the majority of trusts in the
IT Private Equity sector remain on
significant discounts.
Take Pantheon International. The
£1.2bn trust has made 488.83 per cent
over the past 10 years (compared with
a sector average of 171.65 per cent),
yet is currently on a 21.3 per cent
discount to net asset value (NAV).
Meanwhile Princess Partners Private
Equity Holdings is up 125.11 per cent
over five years, but is on a discount of
16.7 per cent.
So what is worrying investors?
FE TRUSTNET
trustnet.com