F & C Investments

F&C Private Equity Trust

  • Tapping into to the exciting potential of private equity

  • How to Invest

    Open an F&C Savings Plan

    Call: 0800 136 420

    Invest online now

    Or contact your usual investment broker

  • Performance

    The Trust seeks to generate long term capital growth through investment in private equity assets. It also seeks to pay its shareholders a predictable and above average level of dividend.

  • F&C Private Equity Trust - market update

  • Fund manager commentary

    As at 30 September 2016 the Company’s net asset value (‘NAV’) was £240.1m, giving a fully diluted NAV per share of 324.75p, an increase over the quarter of 3.4%. During the period sterling has continued to weaken and this has given rise to a positive currency influence of around 1.8%. A healthy level of activity has been seen with realisations comfortably exceeding drawdowns. As previously announced an interim dividend of 6.12p per share was paid on 4 November 2016. At the end of the period the Company had cash of £32.1m. Together with borrowings of £25.4m, under the Company’s loan facility, net cash was £6.7m. During the quarter combined realisations and income totalled £19.4m and drawdowns from funds totalled £4.8m. The total of outstanding undrawn commitments at 30 September was £107.5m and of this around £17m is to funds where the investment period has expired.

    The level of activity does not appear to have been affected in the first full quarter following the vote for Brexit on 23rd June. The rate of drawdown to funds was down slightly at £4.8m compared with £7.2m in the immediately preceding quarter, but the realisation total at £19.4m was significantly up on the previous quarter’s total of £11.6m. On the face of it there appears to be a strong business as usual feel about the market with the impact of Brexit being one of many factors included in the investment decision-making process.

    The third quarter has been an active one for fresh commitments to private equity funds. The emphasis has been on strengthening some of our longstanding European relationships whilst selectively adding new ones. The European mid market for buy-outs is our focus. New commitments are as follows; £5m to Piper Private Equity VI, the consumer brands specialists whom we have backed three times before, €9m to Bencis V, the Benelux focused mid market fund investing in companies with enterprise value in the range €20 – €100m, €5m to Montefiore IV, a primarily France focused fund investing in the €25 – €250m size range, and €6.3m and €1.2m respectively to DBAG VII and DBAG VII B which will invest in German speaking European deals in the €75m – €250m size range. After the quarter end we have committed to two Nordic focused funds; €7m to Procuritas VI and €4m (40m SEK) to Summa I. Procuritas is a long standing relationship, but Summa is a new emerging manager bringing together executives from leading Nordic houses.

    There were no new coinvestments in the quarter but after the quarter end we have invested £2.6m for 12% of Babington, the Derby based provider of apprenticeships and other business training courses. This deal is led by RJD Partners, with whom we have a longstanding link. The investment thesis is based around the government mandated growth in apprenticeships which is coming through over the next few years, in part funded by the apprenticeship levy.

    New investments made by the funds have included £0.7m for Barber of Sheffield, a provider of consumables to the large and growing tattoo parlour sector (RJD Partners III), £0.6m for Questionmark, a provider of human resources and assessment and certification tools (FPE II), £0.3m for HRA Pharma, a France based speciality pharmaceutical company (Astorg VI), £0.3m for Palex, a Spanish distributor of healthcare equipment (Corpfin Capital IV) and £0.2m for Orbis, a company running autism specialist schools in Wales (August Equity III), amongst several others.

    As at 31 January 2017

  • Fund Performance

    Private Equity Trust - performance chart(1)

    Source: Lipper. Basis: share price, percentage growth, bid to bid, net income reinvested.

    Performance (%) as at 30.09.16

    Cumulative performance 1 month Year to date 1 Year 3 Years 5 Years
    NAV N/A 11.9 12.9 38.0 57.5
    Share price 3.6 14.4 24.7 49.9 107.9
    Standardised annual performance 2016 2015 2014 2013 2012
    NAV 12.9 15.6 5.7 9.3 4.5
    Share price 24.7 9.6 9.6 32.3 4.9

    Source: Datastream & Lipper. Basis: share price, percentage growth, bid to bid, net income reinvested. Basis in accordance to the regulations of the FSA.
    Past performance is not a guide to future performance. Stock market movements may cause the value of investments and the income from them to fall as well as rise and investors may not get back the amount originally invested.

  • The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. Emerging Markets, Unquoted Companies and Smaller companies carry a higher degree of risk and their value can be more sensitive to market movement; their shares may be less liquid and performance may be more volatile.

  • Hamish Mair BSc, MBA, ASIP

    Hamish Mair BSc, MBA, ASIP

    Director and Head of Private Equity

  • Related Video

    F&C Private Equity Trust Fund Manager Video

    Citywire Wealth Manager interviews Hamish Mair, Fund Manager, F&C Private Equity Trust (12 Sep 2016). For the full interview, visit the Citywire Wealth Manager website

Past performance is not a guide to future results. The value of investments can go down as well as up.

The shares of the Company are listed on the London Stock Exchange. Information in this section of the website concerning the Company is directed solely at persons who are located in the UK. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Potential investors must read our full terms and conditions before proceeding further with any investment product referred to on this website. The information on this website may not be suitable for everyone, and retail investors unsure whether an investment product referenced on this website will meet their individual needs should seek advice before proceeding further with such product.