Disclosure – Non-substantive Research
This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. With this commentary, Kepler Partners LLP does not intend to influence your investment firm's behaviour.
Private equity is making the headlines like never before. The recent bidding war for Wm Morrisons is a case in point although, over the last decade or so, private equity has been steadily increasing as a share of global M&A transactions. Despite their long heritage and strong performance, listed private equity trusts have traded on wide discounts to NAV for more than a decade. One of the chief reasons might be that the world of private equity is not well understood by professional and retail investors alike. In this article, we attempt to go back to square one. We try to provide a clear picture of what private equity managers aim to do, how they go about it, and what the risks and opportunities are, before examining what investment trusts bring to the private equity party.
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