Apax Global Alpha


#1

Subject private equity IT is a Channel Island outfit and not all that long in the market so no track record to speak of. Any holders out there or anyone with views?
Am also seeking views on Standard Life Private Equity as recent change in proposed dividend payouts has a
positive appeal.
Thanks in advance for all/any comments.

Baughwood


#2

Are you asking about Apax Global Alpha or Subject Private equity? I’m a little confused @baughwood

Standard Life private equity is a fund of funds trust that recently changed its investment mandate away from Europe only. It is one of my top picks for the sector, because it has a good management team who have delivered good returns over the medium to long term.

The dividend they’ve introduced is an attempt to reduce the discount, which is stubbornly high for listed private equity generally. The dividend will paid out of a mixture of income and capital profits. Personally I am not a fan of dividends from private equity funds, I’d prefer that they used the money to invest or if they cant find anything suitable return capital to shareholders.

They’ve also reduced fees by getting rid of the performance fee, though the management fee has gone up from 0.85% to 0.95%.


#3

Apax Global Alpha gets a mention here
http://www.moneyobserver.com/our-analysis/are-private-equity-trusts-too-risky-average-investor
but I must admits it is one of the PE trusts I don’t know much about.
Personally as there are many other long standing PE trusts with good long term performance I would be reluctant to consider a newish trust.
Worth considering Pantheon International (PIN/PINR), Harbourvest Global Private Equity (HVPE), F&C Private Equity (FPEO) if you are ok with a fund of funds approach. For a more direct approach I would consider HG Capital (HGT), Princess (PEY) or NB Private Equity (NBPE)

I’ve held Standard Life Private Equity (SLPE) for a few year, the recent increase in yield is aimed at reducing the discount - and it seems to be working. The trust is covered by Quotedata.com in case you are interested in more background (this is paid for research though).

In general the PE sector still had reasonable discounts (ignoring 3i), but they have been coming down recently.


#4

I like Pantheon or PIP. The long term numbers are really good as far as I can see. I asked the WhichInvestmetntrust guys to have a look at PIP and they said they would.

I suggest anyone else who wants more info on a private equity trust does the same.