'Green shoots' for listed private equity as exit activity shows rebound signs

Flexibility in capital allocation calls

There are signs of an “impending” recovery for private equity exit activity, potentially offering investment trusts in the sector greater flexibility in capital allocation decisions.

According to the Jefferies report Listed Private Equity - Exit Activity Green Shoot, there are various "'green shoots'" that could signal a recovery in private equity exit activity. Analysts Matthew Hose and Fiona Huang noted the exit value of US private equity deals has increased quarter-on-quarter for the first time in twelve months, while HarbourVest Global Private Equity (HVPE) and Pantheon International (PIN) have disclosed growth in their Q2 distributions. There were also signs of IPO activity, with press reports pointing to potential exit activity of some of the underlying hold...