Yes , not unhappy, but have the feeling this could finally be ready to climb beyond 500p |
Highest price in over 12 months.
Plenty of high yielding possibilities around at the moment too. |
Sold a chunk c.494p. Will probably regret it. |
Webinar to accompany today's fairly upbeat 3rd quarters: |
Yep happy to add, seems very undervalued. Need a few decent realizations to get nav and the share price it going, Hopefully it will happen one day. |
If I did not have the redo the bathrooms at the new place, I would definitely top up.
As said earlier, the divi by itself eases the pain of perceived stagnation in the share price Holding long term. |
Just topped up. |
And yes, carried interest does not effect shareholders, well not directly.
And yes, the whole sector has seen its discounts slip out a few points this autumn. However, all the managers are sounding quite upbeat in their recent updates. |
I added (again) yesterday. Just is much too cheap, and you get a 6.5% div to ease frustrations. I suspect that there has been steady pre budget selling from the savings plan, where folks would have built up good capital gains over the years. It holds approx 33% of the shares, so... |
I have several PE trusts and all but one are looking a little sickly, so this is not an outlier. Just out of favour I would say. |
I thought carried interest benefitted the general partners or managers of the fund and not the underlying fund / shareholder returns but I am no expert. |
I'm trying to work that out myself. The carried interest rate has been increased to 32% from April with more changes in 2026. I think that's pretty significant to private equity but I'm not sure to what extent. Can anyone add a little more colour? |
More of an opportunity at 420p or am I missing something with ramifications of the budget. ? |
Oxman, with a medium to long term view( and not meaning to teach anyone to suck eggs), CTPE at 6.3% yield, progressive dividend for the last 11 years, interest rates due to drop further
Discount at approx 37%.
I only have a small holding here as focus on higher yielding investments but happy to build my position over the medium term |
Seems to have been in the doldrums for quite a while. Must be a lot of value to out building up. My hope at least. Added a few sub 440p. Just hoping the budget doesn't screw up the sector for any reason. Any views on catalysts to get the share price going again. |
 Not such a long termer as you rambutan2 but did buy FPEZ-the zeros-about 20 years ago as well as the ordinary shares which I sold out of 3 years back but came back in post results last week.
For those who missed it here is a Citywire article on the interims
quote
CT Private Equity (CTPE) treaded water during the first half of the year despite making realisations totalling more than £50m and at a 35% premium.
The £477m fund, which invests in both private equity funds and stakes in individual private companies, reported a net asset value (NAV) total return of 0.8% for the six months to the end of June as the share price slid 4.5%. At the same time, the discount widened from 33.4% to 37.6%.
That was despite the company buying back 1.25 million shares over the six-month period for £5.8m, which added 0.6% to NAV, and a strong period for realisations, which were achieved at an average 35% premium to the prior valuation.
ealisations and associated income totalled £52.3m during the six months, up 31.4% on the same period last year. The most significant realisation was pet retailer Jollyes for £18.6m (with a further £400,000 expected) at 4.2 times cost.
Charles Murphy, an analyst at Singer Capital Markets – joint broker for the fund – said the modest uplift in NAV was ‘an artefact of reporting timelines’, with 85% of valuations being as at 31 March and only 15% as at 30 June, and not reflective of underlying performance.
With this year’s exits already exceeding the 2023 total and trading at investee companies remaining healthy, he expects returns to ‘accelerate in the second half with earnings growth and exits increasingly translating into the NAV’.
The 6.3%-yielding fund is currently trading on a 36% discount to NAV, wider than its 12-month average (33%) and private equity fund-of-funds and hybrid peers (33.1%).
Murphy expects the discount to narrow as returns ‘normaliseR17; in line with a 10-year average of 14% per annum. Over the next 12 to 24 months, he reckons CT Private Equity has the potential to deliver total shareholder returns of at least 25% from a combination of discount narrowing and NAV growth.
Winterflood analyst Elliott Hardy said realisations of around 10% of net assets in the first half at a 35% uplift offered ‘transactional evidence to support the prevailing NAV’.
‘That said, we expect CTPE’s managers will be hoping for a further recovery in natural liquidity to help reduce the fund’s gearing over the short to medium term. There are signs that this may be on the horizon.’
At the end of the period, the fund had net debt of £91.3m, equivalent to a gearing level of 15.5% – up from 14.6% at the end of 2023.
Stifel analyst Iain Scouller pointed to the fund’s ‘relatively higher leverage and commitments’, which gives him little optimism of the discount narrowing substantially.
‘The managers say a number of companies are planning exits for later this year, which would be helpful for cash flow,’ he said, ‘but there is limited visibility on these at this stage.’
Stifel retained its ‘hold’ recommendation on the shares and gave a ‘fair valuation’ of 485p (previously 480p) – a 30% discount to the latest NAV.
Good grounds
Chair Richard Gray said there were ‘good grounds for confidence that further substantial gains will be possible in the second half’.
‘Specifically, the partial hiatus in dealmaking which typified the period of adjustment last year and the start of this year now appears to have passed,’ he said. ‘An uptick in activity is generally positive for asset values.’
Manager Hamish Mair (pictured) said the dealflow of funds and co-investments ‘remains very strong with hundreds of investment opportunities appraised’.
‘These come from investment partners which we have invested with for many years and from others who are newer in our network,’ he said.
New investments during the period totalled £35.9m across four new fund commitments, one new co-investment and five significant follow-on investments to existing portfolio companies.
Dividends declared for the six-month period totalled 14.02p, in line with the fund’s stated policy of aiming to deliver an annual yield equivalent to at least 4% of NAV. |
Solid results out today as distributions start to pick up and the manager sounding glass half full. I added a few earlier this week and it remains one of my favourite PE trusts, with its differentiated remit - UK/Euro small buyout. And that's speaking as someone who knows all the trusts very well having invested in them since the 90s - yes, I remember this one being born! At the current price it's a steal, and the div eases the frustration of the static share price. Aimho.
Here is the, as alway good, IMC presentation from earlier today: |
I now see this as a income stock too as it is reliable at giving a good dividend. A bit weird to see PE like this, but if it behaves like an income stock, it will be milked like one.
It will also have to "correct" on the way up at some point. |
Just bought in 447p. Hoping this can have a good run as market conditions improve and after going sideways for a number of years must be a bit of pent up value. 6% yield helps. |
Within the outlook statement (when discussing potential realisations for this year)
Usually exits average over 30% above latest carrying value and so contribute considerably to NAV growth.
I read that as a forecast given some of these deals must be in the preliminary stages at the very least - as why else state it? |
1st quarter commentary: |
Which underlying investment is "San Siro" ? |
Results presentation and Q&A. As expected, all looking good. |
Today's results moved things up today! |
I added a few today as too cheap at 420p on 6.5% yield. This can be pretty illiquid so dips like the current one are the time to buy as they tend not to last that long. Of all the PEITs this one holds buyouts at the smaller end of the mkt, so something a bit different and where cheap valuations are aplenty in the UK and Europe at the moment. Prelims were out on the 28th last year. |
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