Investing in private equity through 'secondaries'

PRIVATE EQUITY

Pantheon International Participations' manager, Andrew Lebus, says discounts in the secondary market are allowing investment trusts to invest in private equity cheaply.

Over the long run, private equity has outperformed listed equity index returns. Yet many investors are excluded from accessing it due to the high investment entry levels – which tend to be in the millions. In addition, investing in private equity often means locking away your cash in illiquid investment vehicles for a decade or more. A more liquid route to accessing private equity, however, is through a listed vehicle which invests in the asset class. This allows investors to invest smaller amounts, but with greater liquidity. There are numerous trusts which have been investing in ...