Investment Trusts Magazine: Best Private Equity Trust
The winner of the Best Private Equity Trust award was Electra Private Equity, thanks to a 28 per cent return, which was more than four times the average return of the other 18 constituents of the Private Equity sector. It is managed by a team headed by Hugh Mumford and is invested mostly in the UK and continental Europe, favouring both direct investment and investments in private equity funds. Last year was exceptionally busy for the trust, with £257 million raised from investment disposals, which was 95 per cent more than their book value. There was also £131 million of new investments, which hopefully will give rise to further capital gains in the years ahead.
The strong asset performance last year helped boost the trust’s market capitalisation by £63 million to £550 million, which was good enough to give it a year-end ranking of 19th, or four places higher than 12 months earlier. Its valuation has increased by a further £60.1 million since, which could result in it ending 2007 with further improvement in its ranking. As far as private equity trusts are concerned, it is now the third largest, while its Ordinary shares are on a premium rating.
This article is from Investment Trusts Magazine (Issue number 83, summer 2007).
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