Hostile takeover bid for SVG as Brexit makes Private Equity trusts even cheaper


#1

Originally published at: http://whichinvestmenttrust.com/hostile-takeover-bid-for-svg-as-brexit-makes-private-equity-trusts-even-cheaper/
The Fund-of-funds trust is subject to a £1 billion bid from a U.S. based rival, and follows the takeover of peer Electra, in what might harbor the first of many transactions in the Private Equity sector. SVG Capital (LON:SVI), looks set to fall to larger U.S. rival HarbourVest , which also controls the UK listed…


#2

Discounts across the PE trusts are really large and I think the reason is they don’t make any effort to sell themselves to ordinary investors like us. I think they only try and attract the institutions and that’s to their detriment.

If they put more effort in addressing small investors, who seem to make a difference when it comes to trusts I reckon the discounts would come in.


#3

Yes i agree, PE trusts don’t do enough to narrow their discounts. They should make more effort with smaller investors on website like this and Investors Chronicle etc but they just seem to be interested in doing this.

I suspect it’s because of their backgrounds in managing money for the super wealthy, whilst treating their investment trust clients as something they didn’t need to bother with.

Why aren’t the Boards of these trust doing more too. I am reluctant to invest in them because I don’t see the discounts narrowing until they make more effort.


#4

Generally I think PE trusts get reasonable coverage in the personal investing magazines, and often will be included in annual tips. Many produce good annual reports, analyst presentations and fact sheets. Hg Capital being a good example amongst many.

I’m comfortable with discounts, and if anything many discounts have come in very recently, F&C Private Equity and HG Capital being two cases in point.

Given you can’t generally access private equity through unit trusts, they are a great investment trust sector and display the advantages that trusts give.

I would advise most investors with a reasonable risk appetite to have a luck.They form ~20% of my SIPP portfolio.