Questor on Patria Private Equity – Questor: This index-busting trust proves high fees can be justified
Investment trust bargains: Well-managed private equity is more than financial engineering
Somewhere along the line, private equity seems to have acquired a bad reputation, but Questor thinks that London-listed private equity investment trusts deserve far better press. The newly renamed Patria Private Equity Trust is a case in point.
There are good reasons why investors should have exposure to unlisted businesses within their portfolios. For example, there are excellent companies and whole sectors of the market that cannot be accessed except through private equity.
Formerly Abrdn Private Equity Opportunities (the Abrdn team recently moved to a much larger private equity specialist and the trust went with it), Patria Private Equity Trust’s performance record over the long term is well ahead of almost all global equity investment trusts and well ahead of indices.
Over the 10 years to the end of July 2024, shareholders enjoyed a return of 279pc. That compares to 204pc for the MSCI All Countries World Index and just 83pc for the FTSE All-Share. Over 20 years, shareholders have earned a return of 908pc versus 586pc for the global index.
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