Private Equity

Thrugelmir

Moe_The_Bartender said:

I have about 5% in HVPE. Anything in private equity must be regarded as a long term hold - 15 to 20 years.

Increasingly companies are remaining private rather than seeking stock market listings. Likewise delisting into private ownership. A concerning trend. 

Audaxer

Linton said:

PEY (Princess Private Equity) , a PE IT, is about 7% of my income portfolio.  It has produced a steady dividend, current yield 4.5%, and has doubled in value with dividends reinvested over the past 5 years.

Another PE IT I was looking at was Standard Life Private Equity Trust. It also seems to have a decent current yield of 4.3%, and now is at a discount of 26.7%. I don't know if such a high discount is a concern or it represents a good buying opportunity?

Thrugelmir

Audaxer said:

Linton said:

PEY (Princess Private Equity) , a PE IT, is about 7% of my income portfolio.  It has produced a steady dividend, current yield 4.5%, and has doubled in value with dividends reinvested over the past 5 years.

Another PE IT I was looking at was Standard Life Private Equity Trust. It also seems to have a decent current yield of 4.3%, and now is at a discount of 26.7%. I don't know if such a high discount is a concern or it represents a good buying opportunity?

Personally I'd be taking a close look at the underlying portfolio. Valuation of private companies is often a subjective science and formally infrequent. 

george4064

I am a holder of BMO Private Equity Trust (BPET), allocated circa. 10% of my ISA portfolio to PE and that is fully invested in BPET. I wanted to gain access to several underlying PE funds (for diversification) without directly investing but also to have a trust manager to research and manage the allocations to the various underlying PE funds.

I haven’t held the trust for that long (purchased in 2020) but I am happy to continue holding.

pafpcg

Albermarle said:

"Does anyone on here (who doesn't own their own private jet)"

That condition might reduce the number of replies significantly 

Very few private jets are "owned" - most are leased!

For the OP looking for Private Equity investments, take a look at the AIC (Association of Investment Companies) website (www.theaic.co.uk) and find the Specialist Sector for Private Equity.  Hasn't anyone yet mentioned 3i?  The second-biggest investment trust of all (it's in the FTSE100), and specialises in private equity worldwide.  I've a few £ks in it (but not enough to pay the fuel bills on the LearJet...)

ivormonee

I have been looking at some private equity ITs recently. They generally show good returns on a 5 yr ann. basis, c. 14%. But drilling into discrete year data, I can see typically two great years (2020 and 21) c. 50%-70% returns, followed by three years at close to zero returns. This suggests significant volatility, so that on a risk-adjusted basis, the returns are not as impressive as they first seem.

Just wondering what others' view is on this?