Private equity trusts under threat as discounts continue to widen

Analysis from Investec found that 14 private equity trusts, including Chrysalis Investments and Pantheon International, were valued by markets at just £10.9bn, despite holding assets worth £17.3bn. Analysts Alan Brierley and Ben Newell noted that over ten years, the trusts had returned an "impressive" 301% in NAV total return, compared to MSCI World and FTSE All Share total returns of 187% and 76% respectively. However, the trusts have seen their returns "diluted by discounts" over this time, they said, which they warned has become "embedded". "For many years, we have been underwhe...