CT Private Equity (CTPE)

Over its 26-year life, CT Private Equity (CTPE) has been a strong long-term performer (see Performance section) through the consistent application of a differentiated strategy which targets the lower-mid market of the European private equity universe. In particular, the team behind the trust believe that whilst these companies are typically higher risk, investors are well rewarded over the long term for taking this risk. By having a portfolio that is well diversified, investors can benefit from the asymmetry of returns from private equity investing.

CTPE is highly differentiated from the listed private equity peer group, which typically has a significant proportion invested in the US and tends to target larger businesses. By contrast, CTPE invests in smaller businesses, which are capable of growing significantly faster. But also, in the lower-mid market, deals tend to be significantly less competitive, which can result in lower multiples being paid to invest capital. This helps manage downside risks, but also offers the potential for extra returns if a premium valuation can be achieved on exit. As we discuss in the Portfolio section, we highlight details from CTPE’s recent capital markets event, which illustrates the potential for multiple expansion.

With exposure to 500 underlying companies, the range of businesses that CTPE has exposure to is wide. Many of these companies are positioned in exciting niches and have enormous dynamism. The portfolio as a whole is demonstrating strong earnings growth, with last 12-month EBITDA growth of 23%, to 30/06/2025, and offers a strong prospect of driving NAV growth yet further when they are realised. CTPE and the wider private equity sector have had a period of rather unexciting returns, but with companies still delivering impressive growth, in the manager’s view, there is a genuine prospect of further near-term NAV growth.