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Private Equity Upside

Closed-end funds and OEICs
Pendrainllwyn
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Re: Private Equity Upside

#429058

Postby Pendrainllwyn » July 20th, 2021, 2:12 pm

I have added to NBPE over the years and as the second largest position in my Investment Trust portfolio it is now a sizeable position for me. If I remember correctly it used to be quoted in USD. I like the Private Equity exposure, NBPE's co-investment approach and the decent dividend yield. The recent share price appreciation is very welcome but I have no intention of selling.

Pendrainllwyn

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Re: Private Equity Upside

#430755

Postby SKYSHIP » July 27th, 2021, 4:49 pm

3i Group (iii) stands at 1295p v. NAV of 1063p - a formidable 21.8% premium & a MCap of £12.6bn.

PIN has a MCap of £1.4bn and trades at a discount of 24.8%.

Now that I am holding (bought on a CFD today @ 2660), perhaps time for a little sector consolidation. Most PE trusts too small; but PIN a tasty morsel.

Both PIN & ICGT charts suggest a breakout North likely after a 4-5month consolidation period.

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Re: Private Equity Upside

#432193

Postby SKYSHIP » August 3rd, 2021, 10:05 am

Should someone bid for PIN then surely would have to be at a premium, as there are built-in further valuation gains.

I don't really expect a bonanza like that to happen; though would of course be delightful as it would deliver a 33%+ gain from 2650p!

What I do expect however is a tightening of the discounts across the sector. The recent widening out to an average of c23% is totally counter-intuitive as all trusts are returning great numbers and flagging up more to come.

Time to be overweight the sector IMO.

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Re: Private Equity Upside

#432540

Postby AWOL » August 4th, 2021, 7:59 pm

HVPE was the smallest holding in my SIPP at 4% and I wanted to tidy things up and am optimistic about PE so I topped up to 10% today. I have no idea if my timing is bad, and I get that the worry with PE is always the accuracy of the NAV, but given the track record here the -21.94% discount seams very generous. Still I know that discounts went very wide in the financial crisis but with the increasing trend of companies staying Private for longer this is a very interesting area of the market.

Am I missing something?

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Re: Private Equity Upside

#435359

Postby OLTB » August 17th, 2021, 12:58 pm

mickeypops wrote:I run a portfolio of income producing ITs to support our retirement. In capital terms the two outright winners are Princess Private Equity and Apax Global Equity. Both produce excellent income although Princess did cut the dividend last summer, before restoring it this year.

As for the property ITs in the portfolio, least said the better!


I subscribe to John Baron's website and his 'Summer' IT portfolio has just introduced APAX as a holding - there was an existing Private Equity holding (Standard Life Private Equity (SLPE)) so hopefully still some life left in the arena.

Cheers, OLTB.

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Re: Private Equity Upside

#435669

Postby mickeypops » August 18th, 2021, 1:38 pm

OLTB wrote:
mickeypops wrote:I run a portfolio of income producing ITs to support our retirement. In capital terms the two outright winners are Princess Private Equity and Apax Global Equity. Both produce excellent income although Princess did cut the dividend last summer, before restoring it this year.

As for the property ITs in the portfolio, least said the better!


I subscribe to John Baron's website and his 'Summer' IT portfolio has just introduced APAX as a holding - there was an existing Private Equity holding (Standard Life Private Equity (SLPE)) so hopefully still some life left in the arena.

Cheers, OLTB.


These two remain the standout winners in my IT income portfolio, up 63% (Apax) and 26% ( Princess) in capital terms respectively since 31.07.2018. Excellent income too.

MP

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Re: Private Equity Upside

#435672

Postby swill453 » August 18th, 2021, 1:50 pm

mickeypops wrote:These two remain the standout winners in my IT income portfolio, up 63% (Apax) ... since 31.07.2018

Results out tomorrow. I've held them since launch, a fairly random dip into an IPO I happened to see highlighted on AJ Bell's site. No regrets!

Scott.

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Re: Private Equity Upside

#435885

Postby swill453 » August 19th, 2021, 10:34 am

Apax Global Alpha (APAX) results today.
Strong performance across the portfolio in the first six months of 2021: AGA's Total NAV Return was 17.4% (14.9% constant currency).
...
Interim dividend of 5.97 pence per share declared, in line with the stated policy to distribute 5% of NAV p.a.

https://www.theaic.co.uk/companydata/0P ... nts/170253

The dividend is up 22.6% from the interim last time. Ex-dividend 26/08, payment 17/09.

Scott.

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Re: Private Equity Upside

#436696

Postby SKYSHIP » August 22nd, 2021, 5:21 pm

PIN - one of the very best performers in the listed PE Trust sphere.

On Friday there were a succession of small AT trades and the shares sunk at one time to as low as 2705p offered.

They closed at 2705p-2720p.

At 2720p the discount is at 23.1% - a high figure versus peers, in spite of yet another good month's performance in July.

I would expect these to be back up to 2800p next week; on their way to 3000p before the end of 2021.

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Re: Private Equity Upside

#436758

Postby UncleEbenezer » August 22nd, 2021, 11:16 pm

SKYSHIP wrote:PIN - one of the very best performers in the listed PE Trust sphere.

On Friday there were a succession of small AT trades and the shares sunk at one time to as low as 2705p offered.

They closed at 2705p-2720p.

At 2720p the discount is at 23.1% - a high figure versus peers, in spite of yet another good month's performance in July.

I would expect these to be back up to 2800p next week; on their way to 3000p before the end of 2021.


Interesting. Do you have some kind of bot that alerts you to such (apparent) anomalies?

How would one tell if it is indeed an anomalously low price, or if it's sellers reacting to information we haven't seen about Bad News from one or more portfolio company?

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Re: Private Equity Upside

#436805

Postby UncleEbenezer » August 23rd, 2021, 10:25 am

UncleEbenezer wrote:
SKYSHIP wrote:PIN - one of the very best performers in the listed PE Trust sphere.

On Friday there were a succession of small AT trades and the shares sunk at one time to as low as 2705p offered.

They closed at 2705p-2720p.

At 2720p the discount is at 23.1% - a high figure versus peers, in spite of yet another good month's performance in July.

I would expect these to be back up to 2800p next week; on their way to 3000p before the end of 2021.


Interesting. Do you have some kind of bot that alerts you to such (apparent) anomalies?

How would one tell if it is indeed an anomalously low price, or if it's sellers reacting to information we haven't seen about Bad News from one or more portfolio company?


OK, just to add, I made a modest purchase this morning - thanks for the tip!

Wish I'd had the confidence of my convictions and bought more in the sector when I started this thread! Though I'm already overweight in it if we include VCTs and portions of SMT and one or two others.

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Re: Private Equity Upside

#436813

Postby richfool » August 23rd, 2021, 10:59 am

UncleEbenezer wrote:
SKYSHIP wrote:PIN - one of the very best performers in the listed PE Trust sphere.

On Friday there were a succession of small AT trades and the shares sunk at one time to as low as 2705p offered.

They closed at 2705p-2720p.

At 2720p the discount is at 23.1% - a high figure versus peers, in spite of yet another good month's performance in July.

I would expect these to be back up to 2800p next week; on their way to 3000p before the end of 2021.


Interesting. Do you have some kind of bot that alerts you to such (apparent) anomalies?

How would one tell if it is indeed an anomalously low price, or if it's sellers reacting to information we haven't seen about Bad News from one or more portfolio company?

I have similar thoughts to Uncle Ebenezer.

Also, in the event of a market setback, perhaps caused by tightening or at least some tapering, won't private equity funds be even more susceptible than equities generally?

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Re: Private Equity Upside

#436837

Postby UncleEbenezer » August 23rd, 2021, 12:34 pm

richfool wrote:Also, in the event of a market setback, perhaps caused by tightening or at least some tapering, won't private equity funds be even more susceptible than equities generally?


Your guess is as good as mine. Not all PE funds are equal. Bla bla ....

ITs in general are vulnerable in a market correction, as discounts grow and leverage works against them. PE of course shares those characteristics, and some of them may be amplified in the same way the current bull market is doing nicely for them (especially any that conform to the media stereotype of high leverage and financial engineering). Discounts in 2009 make sobering reading.

On the other hand, they offer a level of decoupling from irrationalities of the market in general. That can work in both directions.

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Re: Private Equity Upside

#439734

Postby richfool » September 4th, 2021, 9:14 pm

This article be of interest to holders of Private Equity, from the Mail Online. Performance comparisons at the end of the article.
As private equity firms swoop on UK PLC, is now a good time for investors to back these companies - or the funds and trusts that focus on them?

Private equity firms have sat on record levels of cash and are now rapidly targeting buyouts
Ordinary investors have generally been shut out of investing in private equity directly
But a handful of firms are publicly listed and there are a growing number of investment trusts with private equity exposure

https://www.dailymail.co.uk/money/inves ... quity.html

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Re: Private Equity Upside

#440046

Postby richfool » September 6th, 2021, 2:00 pm

Private Equity must be in vogue, as the Telegraph is also feauturing it:
https://www.telegraph.co.uk/investing/f ... uity-boom/

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Re: Private Equity Upside

#440203

Postby 77ss » September 7th, 2021, 8:09 am

richfool wrote:Private Equity must be in vogue, as the Telegraph is also feauturing it:
https://www.telegraph.co.uk/investing/f ... uity-boom/


Vogue? Boom? Bubble?

There is certainly a lot of activity. Yesterdays announcement of an IPO of Goldman Sachs' Petershill asset mananger is just one of several lately:

https://www.reuters.com/business/financ ... 021-09-06/

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Re: Private Equity Upside

#440260

Postby UncleEbenezer » September 7th, 2021, 11:26 am

77ss wrote:
richfool wrote:Private Equity must be in vogue, as the Telegraph is also feauturing it:
https://www.telegraph.co.uk/investing/f ... uity-boom/


Vogue? Boom? Bubble?

There is certainly a lot of activity. Yesterdays announcement of an IPO of Goldman Sachs' Petershill asset mananger is just one of several lately:

https://www.reuters.com/business/financ ... 021-09-06/

Indeed, lots of activity and good news for (existing) investors was the theme of this thread. That was coming up for six months ago, and so far so good. I think it may have some way to go yet, though of course we can't rule out a black swan.

Do you think mainstream media attention might cause discounts to shrink?

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Re: Private Equity Upside

#440393

Postby 77ss » September 7th, 2021, 5:54 pm

UncleEbenezer wrote:
77ss wrote:
richfool wrote:Private Equity must be in vogue, as the Telegraph is also feauturing it:
https://www.telegraph.co.uk/investing/f ... uity-boom/


Vogue? Boom? Bubble?

There is certainly a lot of activity. Yesterdays announcement of an IPO of Goldman Sachs' Petershill asset mananger is just one of several lately:

https://www.reuters.com/business/financ ... 021-09-06/

Indeed, lots of activity and good news for (existing) investors was the theme of this thread. That was coming up for six months ago, and so far so good. I think it may have some way to go yet, though of course we can't rule out a black swan.

Do you think mainstream media attention might cause discounts to shrink?


I can't know, but I would have thought that media attention would influenced small punters rather than serious money.

I hold SLPE and its discount varies a lot - between about 36% and 12% recently. Currently at about 20%.

A brief comment in today's Times encapsulates my (mild) concerns. To paraphrase - is GS cashing in at the top of the PE market?

I shall be keeping a careful eye on SLPE's discount. Taking my profit if it narrows too much.

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Re: Private Equity Upside

#441259

Postby richfool » September 10th, 2021, 1:43 pm

More about Private Equity, this time from Questor of the DT about Hg Capital:
Questor: our private equity pick shows premium trusts are sometimes worth paying for

Questor investment trust bargain: HgCapital may not boast the share price discount of many rivals but its returns have been spectacular
By Daniel Grote 9 September 2021 • 5:00am

-----– the bigger the better, provided that the investment case stacks up and a credible path to narrowing it can be discerned. Size isn’t everything, however. Investment trust shares on double-digit discounts are enticing, but sometimes it’s the more fully priced opportunities that prove to be the better bets.

HgCapital is a case in point. When we first tipped shares in the private equity trust two years ago they were on a 5.7pc discount. That’s better than nothing, but not much to write home about, particularly as shares in rival trusts routinely traded at discounts four times as large.

Yet since March 2019, when we labelled HgCapital a “buy”, its shares have beaten the returns of all our other private equity trust tips, which may have seemed more obvious bargain contenders, by a comfortable margin. A return, including dividends, of 116pc is spectacular and more than double that managed by ICG Enterprise, now on a 13.3pc discount, and Pantheon International, whose shares trade 18.4pc below the value of its assets.

Oakley Capital, tipped a month after HgCapital, comes closest: it has returned 97pc over the same period. Its shares trade on a 20.9pc discount.

https://www.telegraph.co.uk/investing/f ... mes-worth/

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Re: Private Equity Upside

#442706

Postby richfool » September 16th, 2021, 9:31 am

For those holding or interested in APAX:
Apax Global Alpha Ld
Initial Public Offering of Thoughtworks
RNS Number : 9324L
Apax Global Alpha Limited
16 September 2021

Apax Global Alpha Limited

Initial Public Offering of Thoughtworks

The Apax IX Fund ("Apax IX"), in which AGA is a limited partner, is an indirect shareholder in Thoughtworks, a global technology consultancy that integrates strategy, design and engineering to drive digital innovation. Following Thoughtworks' announcement on the 14 September 2021 of the pricing of its initial public offering of common stock ("IPO"), shares of Thoughtworks started trading on the Nasdaq on the 15 September 2021. The closing price per share of common stock on the 15 September was $29.29 ("Closing Price").

At the Closing Price, and based on latest exchange rates1, AGA's remaining look through position in Thoughtworks is valued at approximately €158m. In addition, AGA's pro-rata share of IPO proceeds to be received by a subsidiary of Apax IX on closing of the IPO is c. €15m. Together with the remaining value, this represents an uplift of c. 89% or c.€82m to Thoughtworks' fair value at 30 June 2021 and an uplift of c.5.9% of AGA's Adjusted NAV (or €0.17 per share) at 30 June 2021
.
https://www.investegate.co.uk/apax-glob ... 00059324L/

I see a modest increase (3.45%) in the SP today.

I recently too a small holding in APAX.


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