Public versus Private: Why PE is a better bet for investors today

PRIVATE EQUITY

Publically listed companies have "muddied" the true representation of the FTSE as a proxy for the UK economy says Alex Barr, co-manager of the Aberdeen Private Equity fund. Is the transparency and freedom of the private equity sector a better alternative for investors?

The fundamental dynamics of UK stock markets are changing and there is scepticism from investors over the agendas of publicly listed companies. Firstly, finding new and innovative companies to invest in is becoming increasingly tough as the number of new constituents listing each year on all major UK markets declines, while average valuations and a string of below par floatation’s have forced many to look abroad. Secondly, those that have listed in recent years have somewhat muddied the true representation of the FTSE. Commodity constituents for example, operate production sites and t...