Private Equity and infrastructure trusts reap rewards

Private Equity and infrastructure trusts reap rewards

Investment trusts focusing on the private equity space could help provide advisers with the diversification and exposure their clients need but without the risks of investing directly in the asset class, it has been claimed.

According to the managers of the £901m Pantheon International Participations investment trust, a strong year for private equity has helped to boost the net asset value for each share over the past month alone.

Andrew Lebus, manager of the trust, said a strong market had helped the trust to generate net cash of £17.8m during the month, with secondary investments being made globally, including £1.9m in a US medium buyout fund, with £2.2m, alongside Mid Europa Partners, in the Danube Food Group.

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Over the first quarter, the investment trust saw its portfolio value rise from £863m in December 2014 to £901m at the end of March. Its NAV per share rose 64p over the same period, from 1,513p in December 2014 to 1,578p.

This came as HICL Infrastructure Company announced it had sold its entire 50 per cent equity and subordinated debt interest and 100 per cent junior loan interest in the Fife Schools private finance initiative to a subsidiary of the PPP Equity PIP limited partnership, managed by Dalmore Capital Limited.

Investors will benefit from a profit on disposal, which after costs, is £0.6m higher than the directors’ valuation of £6.7m, which had been projected in September 2014 last year.

Adviser view

Alan Steel, director of West Lothian-based Alan Steel Asset Management, said: “QUOTE TO COME”