Investment trust NEDs private markets valuation skills under fresh scrutiny as demand grows

Questions over experience

The ability of investment trust non-executive directors (NEDs) to effectively understand and challenge valuations of private companies has been called into question, as demand for private investments rises and regulatory scrutiny intensifies.

Appetite for private market opportunities has rapidly increased in recent years, with investment trusts traditionally one of the preferred vehicles to access this area, with Numis analyst Ash Nandi highlighting the steady presence of alternative asset investment trusts on retail platforms' ‘most bought lists' over the last year. Number of investment trust share buybacks hits record high but effectiveness called into question As a result of this demand and launches of newer products targeting private market opportunities – including LTAFs in the UK and ELTIFs in Europe – processes and ...