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Private Equity Upside

Closed-end funds and OEICs
UncleEbenezer
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Private Equity Upside

#400607

Postby UncleEbenezer » March 31st, 2021, 2:59 pm

I guess Private Equity fits better on ITs than anywhere else on lemonfool.

We've seen Scottish Mortgage's unlisted assets doing nicely. We've had some interesting recent upsides in the VCT world. Today it's Princess Private Equity's turn: Princess sells Global Logic to Hitachi for $129m, against $89m carrying value.

I think we may be in an environment for some more happy events in PE. Discuss!

77ss
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Re: Private Equity Upside

#400615

Postby 77ss » March 31st, 2021, 3:51 pm

UncleEbenezer wrote:I guess Private Equity fits better on ITs than anywhere else on lemonfool.

We've seen Scottish Mortgage's unlisted assets doing nicely. We've had some interesting recent upsides in the VCT world. Today it's Princess Private Equity's turn: Princess sells Global Logic to Hitachi for $129m, against $89m carrying value.

I think we may be in an environment for some more happy events in PE. Discuss!


PEY is an IT, so I think this is the right board.

You may be interested in the following:

https://www.edisongroup.com/publication ... 021/28898/

Specifically about SLPE, which I bought nearly 4 years ago, but makes some general points about PE.

forrado
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Re: Private Equity Upside

#402389

Postby forrado » April 7th, 2021, 6:14 pm

77ss wrote:Specifically about SLPE, which I bought nearly 4 years ago, but makes some general points about PE.

Likewise, I’ve been a satisfied holder of Standard Life Private Equity (SLPE) stock for more or less the same time span. Being a fund-of-funds, I did initially baulk at the ongoing charge figure (OCF) of 1.1% which I still consider to be on the rich side. However, I can’t really begrudge such management deductions when the share price total return for past five years currently stands at 163.6%.

It’s been noticeable of late as to rerating that has been taking place amongst the small number of private equity ITs that make up the sector. The return of investor appetites for such risk assets has manifested itself in the shrinking of previously deep discounts. 12-month ago any one brave enough could have bought SLPE on a discount of some 42% whereas today it’s more like 12% subject to the accuracy of the NAV.

SKYSHIP
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Re: Private Equity Upside

#402541

Postby SKYSHIP » April 8th, 2021, 10:37 am

The Private Equity sector is on a bit of a roll. I made my last NBPE top-up yesterday @ 1160p; now at my MAX 10% allocation.

I still don't understand why NBPE is so cheap versus peers; but pleased to see Cazenoves agree - see excerpt below from MoneyWeek.

The average NAV discount of the 4 peers HVPE, PEY, PIN & SLPE is now a mere 11.6%. At today's 1185p NBPE is at 23.7%... The sp is a clear anomaly IMO; and should be 10% higher.

======================================

"NB Private Equity (LSE: NBPE) managed a 12-month return of 21% but still trades on a discount of 25% to estimated NAV, reckons analyst Chris Brown at JPM Cazenove, making it “excellent value”. He estimates the discount for Harbourvest (LSE: HVPE) to be 19%, which looks anomalous given its excellent record (a return of 100% over five years) and high exposure to the tech sector (29%). The record of Princess Private Equity (LSE: PEY) is even better, 106% over five years, but Brown rates it as only a “hold” as its discount of 16% is “fair relative to peers”. In absolute terms, it still looks attractive."

Incidentally, readers may find the PE thread on ADVFN quite useful; if only for the charts of most of the players

https://uk.advfn.com/cmn/fbb/thread.php3?id=26570589


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