25 years and going strong
Private equity has faced a tough period, made worse by conflict in the Middle East and uncertainty over how artificial intelligence affects software valuations. This has slowed mergers and acquisitions and delayed exits. Despite these challenges, Patria Private Equity Trust (PPET) has delivered strong NAV total returns, outperforming its peers over the past year, supported by some key exits as it marks its 25th anniversary.
PPET’s manager remains positive, noting that most portfolio companies continue to show healthy revenue and earnings growth. The manager also sees the current uncertainty as an opportunity, with lower entry valuations offering attractive investments. PPET has kept investing throughout the cycle and is well positioned to benefit when exit activity picks up and confidence in valuations improves.
Private equity fund of funds with a European bias
PPET aims for long-term total returns by investing in a diverse mix of top private equity funds and direct investments, mainly focused on the European mid-market.
At a glance
Share price and discount
Over the 12 months to 31 May 2026, PPET’s share price discount to NAV ranged from 23.8% to 35.1%, averaging 29.4%. On 19 June 2026, the discount was 29.7%. Since Q1 2024, the discount has stabilised, partly due to the trust’s share buybacks. However, the discount remains wide. If the exit market improves and NAVs increase, PPET and the sector are likely to see a re-rating.
Time period 31 May 2021 to 19 June 2026
Performance over five years
Over five years, PPET’s NAV and share price total return performance has outpaced the MSCI Europe Small Cap and LPX Europe indices. This highlights the strength of PPET’s investment process and manager selection.
Time period 31 May 2021 to 31 May 2026
| 12 months ended | Share price total return (%) | NAV total return (%) | MSCI Europe Small Cap TR (%) | LPX Europe total return (%) |
|---|---|---|---|---|
| 31/05/2022 | 10.8 | 38.7 | (7.9) | (11.8) |
| 31/05/2023 | (7.6) | 6.9 | (4.8) | (10.6) |
| 31/05/2024 | 38.4 | 5.6 | 16.3 | 18.6 |
| 31/05/2025 | 0.8 | 3.0 | 6.9 | (4.3) |
| 31/05/2026 | 10.5 | 12.5 | 18.3 | (3.8) |
Source: Bloomberg, Marten & Co
Fund profile
Read more about the trust on its website: patriaprivateequitytrust.com
PPET invests in top private equity funds and private companies across Europe. It makes primary and secondary investments in private equity funds, mostly limited partnerships, and also invests directly in private companies through co-investments and single-asset secondaries.
Private equity has a strong long-term record, but most investors cannot access it directly. Listed private equity vehicles like PPET give investors easy access to private equity through a liquid, daily-traded share.
Mid-market deals consistently outperform large- and mega-cap leveraged buyouts
PPET focuses on growing, cash-generative mid-market businesses (with an enterprise value of €100m–€1bn). The manager notes this segment is less crowded than the large-cap space, offering more opportunities for value creation and less dependence on IPOs for exits. PPET benefits from established relationships with Europe’s mid-market managers.
Patria highlights that mid-market deals often outperform larger buyouts. Citing Preqin, small- and mid-market funds beat larger funds by a median 266 basis points on net IRR and +0.1x on net TVPI. Patria also points to a wider pool of potential investments, lower entry prices, more value creation opportunities, and greater flexibility on exits in this segment.
The trust marks its 25th anniversary this year. Launched in 2001 as Standard Life European Private Equity, it has since changed names several times. In April 2024, Aberdeen Group sold its European private equity business to Patria Investments, prompting another name change. The senior management team, led by Alan Gauld, remains in place and now benefits from Patria’s larger resources, with Patria managing about $60bn in assets.
Market update
Concerns over AI disruption of software businesses has hit valuations
Concerns about AI disrupting software businesses have grown this year after Anthropic released new productivity tools that compete with current software. This has triggered a broad sell-off in software stocks, affecting both public and private company valuations in the sector. As a result, private equity trusts with software exposure, including PPET which has about 20% of its portfolio in software companies, have also been impacted.
Figure 1: MSCI Europe and MSCI Europe Small Cap total return
Source: Bloomberg, Marten & Co
Figure 2: MSCI Europe Software Index
Source: Bloomberg, Marten & Co
PPET’s manager argues that the recent sell-off in software stocks has been too indiscriminate, with little attention paid to differences between companies. They point out that factors like the type of software, its customers, and the data it uses all affect how exposed a business is.
Broad brush software sell-off ignores nuances across the sector
There is real disruption risk in application software, such as tools for daily workflows and customer service, with AI already replacing many human roles in contact centres and adoption set to grow. However, the manager notes that some areas of software are better protected.
A key defence against disruption, often overlooked, is the value of proprietary and regulated data, which large language models cannot easily copy. In sectors like financial services, healthcare, and legal, where certainty and compliance are vital, companies have a stronger competitive edge and are less likely to be disrupted by general AI models.
Software valuations are now highly uncertain. Until it is clearer which firms will gain or lose from AI, valuations are likely to remain volatile. This uncertainty is expected to slow deal activity in the short term, but PPET’s manager believes companies that successfully integrate AI into trusted platforms will improve their market positions and create long-term value.
Software buyouts at lowest level since Covid
Deal activity has dropped sharply, with software buyouts falling to $50bn in the first five months of 2026, down from $88bn a year earlier, according to PitchBook. As shown in Figure 3, investment has shifted from software to industrials.
Figure 3: Deal activity by sector (deal count)
Source: Preqin
Although software valuations have fallen, PPET continues to invest with specialist technology private equity managers like Hg and Expedition, seeing strong potential in the sector. PPET believes there are still good opportunities, especially with private equity firms skilled at finding businesses that can use AI to improve productivity.
About a fifth of PPET’s portfolio is in software companies, which could limit exit opportunities in the short term. For instance, uncertainty led to the cancellation of the planned London IPO of Norwegian software company Visma, PPET’s third-largest underlying holding at the end of 2025.
Exit opportunities scarce
War in the Middle East has added to challenges in the private equity exit market, which is already dealing with inflation, higher interest rates, the war in Ukraine, and tariff uncertainty. As a result, pricing has weakened, with global buyout funds’ implied cash yield averaging 14.2% from 2022 to 2025, down from 26.5% between 2013 and 2021, according to Preqin.
Lower entry valuations and less competitive deal environments improve future return profile
PPET’s manager notes that, despite this uncertainty and reduced market liquidity, business fundamentals remain strong. PPET’s top 100 portfolio companies saw average revenue growth of 12.4% and EBITDA growth of 13.1% in the year to 30 September 2025.
While geopolitical events may delay exits and reduce short-term liquidity, the manager believes these periods can create better future investment opportunities by lowering entry valuations and reducing competition for deals, giving investors more time to carry out thorough checks. PPET believes some of the best private equity returns come from times when market sentiment is low and deal activity is quiet.
For this reason, PPET has kept investing during this period (see page 13 for recent transactions), while also focusing on other priorities like share buybacks.
Investment process
PPET’s board sets strategy, guides the manager, and reviews the investment approach at least once a year, while daily management is handled by Patria Capital Partners.
PPET’s portfolio construction committee drives the top-down element of the investment process
The investment process uses both top-down and bottom-up analysis. Twice a year, the Portfolio Construction Committee (PCC) reviews the European economic outlook to shape long-term asset allocation and geographic focus. Allocation changes are gradual, but the PCC forms clear views on the most attractive countries.
PPET’s remit covers Europe, including the UK. The manager estimates there are about 1,500 European private equity funds, with around 800 considered suitable for investment. PPET tracks these funds through origination and regional specialists. As most European private equity firms raise capital every three to five years, about 150 funds are reviewed each year, but only a few pass the screening.
In each market, PPET identifies five to 10 preferred funds, with the best forming the investment pipeline. The strategy favours northern Europe, where private equity markets are most developed. Due diligence takes about three months for primary funds and one month for secondaries and direct investments.
PPET looks for “operational alpha”
A key principle is “operational alpha” — value created by managers actively improving portfolio companies. Preferred managers usually have strong in-house industrial expertise. PPET also looks for managers with unique strategies, strong investment teams, and sector focus, while avoiding those with strategy drift or excessive portfolio concentration.
PPET looks for motivated and stable underlying managers
Team stability and alignment are also important. PPET prefers managers with good succession planning and avoids firms with high staff turnover. Although a wide range of fund sizes is considered, the focus is on companies valued between €100m and €1bn.
Past performance is reviewed but only makes up about 20% of a manager’s score. A high rate of loss-making investments is seen negatively, but the manager values evidence of learning and improvement over time.
Long-term bias towards Europe
PPET has a long-term preference for European companies, where the manager sees many family and founder-owned businesses that private equity can help grow. The team believes Europe’s varied landscape—differences in language, culture, and regulation—creates barriers that favour established local firms over outside competitors. This often means less competition in the European mid-market and more attractive acquisition prices. Europe is also seen as a leader in ESG, with its private equity firms generally leading industry standards.
Fees on the underlying funds
PPET focuses on potential returns, net of fees
PPET carefully reviews fund structures to ensure fees are in line with the market, managers have the right incentives, and interests match those of investors. However, the focus is on achieving the best risk-adjusted net returns after fees, not just the lowest costs.
PPET does not charge a performance fee on top of the fees paid to underlying managers. Further details on PPET’s fees are on page 19.
Managing commitment levels
PPET carefully manages over-commitments to minimise cash drag. Total outstanding commitments were £836.0m at the end of March 2026
Patria manages the portfolio with a diversified maturity profile, using cash flow modelling to forecast drawdowns and distributions. The manager does not hedge currency exposure, believing the costs outweigh the benefits. Uninvested cash is held in euros, sterling, or US dollars to match the fund’s exposures. Details on borrowing facilities are on page 20.
Since its launch in 2001, PPET has used an over-commitment strategy. As of 31 March 2026, outstanding commitments were £836.0m, with about £82.3m unlikely to be drawn.
Portfolio construction
PPET targets returns of 1.7x cost/15% IRR
The process usually leads to six to eight new primary fund commitments each year, averaging €30m each. The target is a net return of at least 1.7 times the invested amount over the investment period and a 15% IRR.
Figure 4: PPET’s investment cycle
Source: Patria
Secondaries and direct investments
Secondaries were once a larger part of the portfolio, but their share has fallen as PPET now focuses more on direct investments. In these deals, PPET invests directly alongside private equity firms rather than only through fund commitments. By December 2025, direct investments made up 28% of the portfolio.
Direct investments and secondaries offer benefits such as more control over when money is invested, the option to invest later when a company’s progress is clearer, more targeted exposure to attractive sectors or deals, and lower ongoing charges since these investments usually have lower or no management fees.
The portfolio is closely monitored. PPET team members often sit on fund advisory boards for strategic oversight and meet underlying managers every quarter. The manager reports a high level of transparency into the underlying portfolios, though not all company-level details can be shared publicly. Instead, PPET publishes summary metrics like earnings growth and leverage.
PPET usually holds investments to maturity but may sell in the secondary market if expected returns drop below targets or if it believes maximum value has been achieved.
Asset allocation
PPET’s portfolio was valued at £1,412m at December 2025, with exposure to over 700 companies and a focus on midmarket investments.
By the end of 2025, 63% of the fund’s value was in primary investments managed by 17 core European private equity managers. The share of direct investments has grown to 28%, spread across 37 companies. The manager believes direct investments offer more focused exposure to their top portfolio companies and reduce fees, as co-investments usually have no extra charges. The plan is to keep increasing direct investments, as the manager expects them to outperform primary fund investments if managed well.
Figure 5: NAV split by holding period at 31 December 2025
Source: PPET
Figure 6: NAV split by investment type at 31 December 2025
Source: PPET. Note: Does not sum to 100 due to rounding.
The portfolio is well-diversified by vintage, with about 62% (including 22 direct investments) held for four years or more, and around a quarter held for over five years, which is seen as the ideal period for exits. This equates to roughly £885m of the portfolio that could be sold when market conditions improve.
The portfolio is also spread across regions and sectors but leans towards northern Europe and favours less-cyclical businesses in healthcare, technology, consumer staples, and industrials.
Figure 7: Sectoral exposure (%), 31 December 2025
Source: PPET
Figure 8: Geographic exposure (%), 31 December 2025
Source: PPET
At the end of September 2025, the 100 largest companies made up 60.3% of PPET’s portfolio. Their median valuation was 13.7 times EBITDA, with median debt at 3.9 times EBITDA. Over the past year, average revenue grew by 12.4% and average EBITDA increased by 13.1%.
Figure 9: PPET portfolio over the 12 months to 30 September 2025
| Top companies | Portfolio allocation (%) | Median valuation multiple (Price/EBITDA) | Median leverage multiple (Debt/EBITDA) | Average revenue growth (%) | Average EBITDA growth (%) |
|---|---|---|---|---|---|
| 10 | 15.8 | 14.8x | 3.2x | 15.8 | 20.3 |
| 30 | 33.0 | 14.6x | 3.6x | 13.2 | 13.7 |
| 50 | 43.0 | 13.8x | 3.6x | 11.6 | 12.5 |
| 100 | 60.3 | 13.7x | 3.9x | 12.4 | 13.1 |
Source: Patria
Top 10 fund exposures
Changes to fund allocations are mainly driven by realisations, reinvestment speed, and how often underlying managers revalue assets. Since our last note, two new funds have entered the top 10: Investindustrial VII and Nordic Capital Evolution Fund.
Investindustrial VII, a €3.8bn fund launched in 2019, held 13 companies at the end of September 2025. It focuses on mid-market firms in industrial manufacturing, healthcare, services, and consumer sectors, especially in Southern Europe. Major holdings include Fassi Group (cranes) and Eataly (Italian food and retail). PPET had an outstanding commitment of £7.1m to this fund at September’s end.
Nordic Capital Evolution Fund raised €1.2bn in 2021 and targets mid-market growth companies in northern Europe, mainly in technology, healthcare, and financial services. It held 11 companies at the end of September including Swedish installation group Hjo Installation and fintech company Qred. At the end of September, PPET had an outstanding commitment of £4.1m to the fund.
Figure 10: 10 largest private equity funds, as at 30 September 2025
| Fund name and vintage | Strategy | Geography | Value 30/09/25£m* | Value 31/03/25£m* | % of NAV 30/09/25 | % of NAV 31/03/25 | NAV change (%) | Net mult.130/09/25 | Net mult.131/03/25 |
|---|---|---|---|---|---|---|---|---|---|
| Altor Fund V (2019) | Nordic Middle Market | Northern Europe | 38.7 | 30.7 | 3.1 | 2.6 | 0.5 | 1.5x | 1.4x |
| Nordic Capital Fund IX (2018) | Complex buyouts global healthcare | Northern Europe | 34.4 | 36.2 | 2.7 | 3.0 | (0.3) | 1.8x | 1.7x |
| Structured Solutions IV Primary Holdings (2021) | Various | Europe & North America | 33.2 | 34.0 | 2.6 | 2.8 | (0.2) | 1.3x | 1.3x |
| Altor Fund IV (2014) | Nordic Middle Market | Northern Europe | 31.8 | 31.2 | 2.5 | 2.6 | (0.1) | 1.7x | 1.7x |
| Triton Fund V (2019) | Mid-market buyouts | Northern & Western Europe | 27.6 | 29.0 | 2.2 | 2.4 | (0.2) | 1.7x | 1.5x |
| PAI Europe VII (2019) | Upper mid-market buyouts | Western Europe | 27.4 | 29.8 | 2.2 | 2.5 | (0.3) | 1.5x | 1.5x |
| American Industrial Partners VII (2019) | Industrials buyout | North America | 26.9 | 25.8 | 2.1 | 2.2 | (0.1) | 1.8x | 1.7x |
| Investindustrial VII (2020) | Industrial buyouts | Southern Europe | 26.9 | 23.5 | 2.1 | 2.0 | 0.1 | 1.6x | 1.6x |
| IK Fund IX (2020) | Mid-market buyouts | Northern Europe | 26.6 | 25.2 | 2.1 | 2.1 | – | 1.3x | 1.2x |
| Nordic Capital Evolution Fund (2021) | Mid-market buyouts | Northern Europe | 26.1 | 21.9 | 2.1 | 1.8 | 0.3 | 1.2x | 1.2x |
| Total of top 10 | 23.7 |
Source: PPET
New fund commitments
During the six months to March 2026, PPET made three new fund commitments totalling €84m:
- €25m to Triton Smaller Mid-Cap III, a Pan-European fund targeting majority buyouts in business services, industrial tech, and healthcare.
- €42m to Patria Co-Investment Partnership Fund I, focused on European mid-market co-investments and managed by Patria. These commitments are excluded from PPET’s management fee to prevent double charging.
- €17m to One Peak Growth IV, a Pan-European fund focused on technology.
Other commitments
PPET made a second payment of £7m for Project Captain, which includes 13 fund interests and one direct investment.
Underlying holdings
Figure 11 shows PPET’s 10 largest holdings at the end of 2025. Since then, PPET has partially sold its direct investment in Action, raising £19.1m and roughly halving its exposure to the discount retailer. The manager says this sale took advantage of a liquidity window, as in 2023, to adjust the portfolio size rather than due to changes in Action’s performance.
The manager still sees strong growth potential for Action, despite recent weakness in France and Germany and uncertainty about its US expansion, so has kept a significant stake to benefit from future growth. The sale was completed at the 31 December 2025 valuation.
PPET also fully exited its holding in Spanish grocer Uvesco, selling to a Spanish consortium in February.
Figure 11: 10 largest underlying holdings, at 31 December 2025
| Company | Business | Fund | % of NAV 31 Dec 25 | % of NAV31 Mar 25 | % change |
|---|---|---|---|---|---|
| Action | Consumer staples – non-food discount retailer | Co-investment | 3.0 | 2.5 | 0.5 |
| Wundex | Healthcare – home-based treatments | Direct | 2.3 | 1.9 | 0.4 |
| Visma | Technology – enterprise resource planning | Direct | 2.2 | 2.1 | 0.1 |
| Vitrea | Healthcare – rehabilitation | Direct | 1.5 | ||
| Uvesco | Consumer staples – Spanish food retailer | Direct | 1.4 | 1.6 | (0.2) |
| NAMSA | Healthcare – medical device provider | Direct | 1.4 | 1.6 | (0.2) |
| NOBA | Financial – digital consumer bank | Direct | 1.4 | ||
| Trioworld | Industrials – polyethylene film manufacturer | Direct | 1.3 | ||
| CFC Underwriting | Industrials/B2B Services – Insurance software and underwriting | Direct | 1.3 | 1.4 | (0.1) |
| Groupe NGE | Industrials – public works construction | Direct | 1.3 | ||
| Total of top 10 | 17.1 |
Source: PPET
Since our last note, which used data up to March 2025, four new companies entered PPET’s top 10 by the end of 2025.
The underlying holdings are now Vitrea, NOBA, Trioworld and Groupe NGE, replacing European Camping Group, Froneri, CDL Nuclear Technologies and Access.
Vitrea is a leading rehabilitation provider in Europe, treating over 100,000 patients a year through 75 facilities in Germany, Austria, Switzerland and the Czech Republic.
NOBA is a digital consumer bank active in the Nordics and parts of Europe, offering consumer loans, savings, mortgages, credit cards and SME financing, with a focus on flexible, customer-focused services.
Trioworld is a top global producer of polyethylene film, operating 18 factories in Sweden, Denmark, France, the UK, the Netherlands, Germany and Canada, plus three recycling sites. Its business covers Stretch Film, Industrial Film, Consumer Packaging, Health Care Film and Carrier Bags.
Groupe NGE is a major French construction and civil engineering company, working on infrastructure projects in transport, rail, utilities, energy, telecoms and urban development, both in France and internationally.
New direct investments
In the six months to 31 March 2026, PPET made three new direct investments and one follow-on investment.
Figure 12: PPET co-investments over the six months to 31 March 2026
| Co-investment name | Investment | Company description |
|---|---|---|
| Omilia | £9.2m | Provides conversational AI solutions for use in customer care settings. Investment alongside Expedition Growth Capital. |
| AlphaPet | €7.0m | German-based digital platform for premium pet food in Europe. Investment alongside Capiton. |
| Bluu Unit | €5.0m | German heating, ventilation and air conditioning (HVAC) business that installs and maintains commercial HVAC systems. Investment alongside Triton Partners. |
| Boost.AI (follow-on investment) | £0.3m | Specialist in conversational AI solutions for an array of different sectors. Investment alongside Nordic Capital. |
Source: PPET
Omilia is a conversational AI and customer experience technology company focused on voice AI, chat automation, and intelligent customer service. Its platform helps large companies automate contact centre interactions using natural language understanding, speech recognition, and voice biometrics. Omilia’s technology is used in sectors like banking, insurance, telecom, healthcare, and quick-service restaurants, with clients such as Capital One, Taco Bell, Nissan, and Vodafone.
Taco Bell uses Omilia’s AI to automate drive-thru orders, speeding up service during busy times and increasing sales through upselling in quieter periods. The system is now in about 900 US stores, with 90% of orders at top locations handled without staff. Average order values have risen by 5-10% thanks to AI-driven upselling.
Drawdowns and distributions
Figure 13: Drawdowns by source, 12 months to 30 September 2025
Source: PPET
Figure 14: Distributions and secondary sales, 12 months to 30 September 2025
Source: PPET
Drawdowns since September 2025
Figures 13 and 14 show PPET’s drawdowns and distributions over the 12 months to September 2025, as reported in its annual report. In the six months to March 2026, PPET received £107.6m in distributions and made drawdowns of £96.3m.
Key realisations in the period included exits from GTreasury (treasury management solutions) by Hg Mercury 4, Froneri (global ice cream manufacturer) by PAI Strategic Partnerships, and Ahlsell (Nordic distributor of installation products) by CVC Capital Partners VII.
Major drawdowns included Nordic Capital XI for a follow-on investment in TradingHUB (trade surveillance technology), Investindustrial Growth III for a new investment in Virospack (cosmetics droppers), Investindustrial VIII for investment in Piovan (automation systems for polymers and food ingredients), and Archimed III for an investment in Dermapharm (hypoallergenic skincare and haircare products).
Commitment levels
As shown in Figure 15, at 31 March 2026, PPET had total outstanding commitments of £836.0m, though Patria expects £82.3m will not be drawn. At the same time, PPET had short-term resources of £277.6m, including cash, deferred consideration, and undrawn credit facilities. Of its £400m revolving credit facility, £140.2m was in use, and cash stood at £17.8m.
This results in an over-commitment ratio of 44.0%, which measures commitments exceeding liquid assets as a percentage of net assets. While this ratio has risen, it remains well within the manager’s 30% to 65% target range, giving the team flexibility to make new commitments.
Figure 15: PPET outstanding commitments
| Date | Outstanding commitments (£m) | Outstanding commitments in excess of undrawn loan facility and resources available for investment as a % of NAV |
|---|---|---|
| September 2023 | 650.0 | 35.3 |
| September 2024 | 665.0 | 37.7 |
| September 2025 | 761.0 | 38.2 |
| March 2026 | 836.0 | 44.0 |
Source: Patria
Performance
PPET’s estimated NAV per share was 864.9p, with a total NAV of £1,269.5m as at 31 March 2026. The main driver of PPET’s long-term NAV returns is earnings growth from its portfolio companies, both organic and through acquisitions.
Over five years, PPET’s NAV performance has outpaced the MSCI Europe Small Cap and LPX Europe indices. This highlights the strength of PPET’s investment process and manager selection. Over 70% of its underlying primary funds rank in the top two quartiles by TVPI and IRR. The average exit uplift in PPET’s portfolio was 41% in 2021, 20% in 2022, 18% in 2023, 26% in 2024 and 12% in 2025, all well above the global buyout averages of 12%, 3%, 2%, 1% and 2% over the same years.
Figure 16: Cumulative total return performance over periods ending 31 May 20261
| 3 months (%) | 6 months (%) | 1 year (%) | 3 years (%) | 5 years (%) | |
|---|---|---|---|---|---|
| PPET NAV | 4.8 | 5.5 | 12.5 | 22.4 | 68.5 |
| MSCI Europe Small Cap | 1.7 | 10.5 | 18.3 | 47.1 | 28.9 |
| PPET price | 1.0 | 1.7 | 10.5 | 54.1 | 57.9 |
| LPX Europe | (1.6) | (6.5) | (3.8) | 9.2 | (14.0) |
Source: Bloomberg, Marten & Co. Note: 1) All returns in sterling equivalent terms
As shown in Figure 16, PPET’s NAV returns have underperformed the MSCI Europe Small Cap Index over the three years to 31 May 2026. However, PPET’s share price rose sharply, up 54.1% over the same period, benefiting from the recovery in listed European equities after their 2022 decline. In contrast, PPET’s NAV returns were not affected by the 2022 selloff and therefore did not experience a similar rebound.
Figure 17: PPET NAV relative to the MSCI Europe Small Cap over five years to 31 May 2026
Source: Bloomberg, Marten & Co
Peer group
PPET is part of the AIC‘s private equity sector, which has 17 members. For this analysis, we have focused on the 10 companies shown in Figure 18.
We excluded 3i Group, as it sees itself as an asset manager with investments beyond private equity. EPE Special Opportunities, JPEL Private Equity, JZ Capital Partners, and LMS Capital and Seed Innovations Limited are excluded on size grounds, making them less relevant comparators. JPEL Private Equity and Symphony International Holdings are also excluded as they are winding down.
PPET has delivered the highest NAV total returns in its peer group over the past year, driven by significant exits. Its long-term performance is also above average, as shown in Figure 18, reflecting the strength of its diversified private equity strategy.
PPET offers one of the highest dividend yields and the lowest ongoing charges in the sector. In our view, all these trusts are trading at discounts that are too wide.
Figure 18: AIC private equity sector comparison table, as at 19 June 2026
| Market cap (£m) | Premium/ (discount) (%) | Dividend yield (%) | Ongoing charge (%) | NAV TR1-year (%) | NAV TR 3-years (%) | NAV TR5-years (%) | NAV TR 10-years(%) | |
|---|---|---|---|---|---|---|---|---|
| PPET | 889 | (29.1) | 3.0 | 1.08 | 13.3 | 7.6 | 11.3 | 13.8 |
| CT Private Equity | 353 | (28.8) | 5.7 | 1.20 | 5.1 | 4.0 | 12.0 | 13.1 |
| HarbourVest Global PE | 2,357 | (23.1) | 0.0 | 2.17 | 6.7 | 4.6 | 10.2 | 14.0 |
| HgCapital | 1,810 | (25.9) | 1.3 | 1.50 | 1.1 | 5.3 | 10.8 | 16.2 |
| ICG Enterprise | 849 | (31.9) | 2.8 | 1.39 | 3.6 | 4.2 | 9.8 | 12.8 |
| Literacy Capital | 183 | (36.6) | 0.0 | 2.21 | (4.1) | 1.7 | 25.5 | – |
| NB Private Equity | 612 | (27.7) | 5.0 | 1.88 | 4.3 | 1.5 | 5.8 | 10.8 |
| Oakley Capital | 805 | (32.0) | 0.9 | 3.13 | 7.9 | 5.0 | 14.3 | 15.5 |
| Pantheon International | 1,587 | (22.5) | 0.0 | 1.35 | 3.1 | 4.2 | 8.2 | 11.4 |
| Partners Group Private Equity | 500 | (27.8) | 8.2 | 1.81 | (7.4) | (0.8) | 0.8 | 8.0 |
| Sector median | 849 | (28.8) | 1.3 | 1.50 | 4.3 | 4.2 | 10.8 | 13.5 |
| PPET rank | 4/10 | 7/10 | 4/10 | 1/10 | 1/10 | 1/10 | 4/10 | 4/9 |
Source: QuotedData webiste
Dividend
Dividend of 4.6p per quarter represents a 4.5% increase in the quarterly dividend rate year-on-year
For the year to 30 September 2025, PPET paid a total dividend of 17.6p per share, up 4.8% from the previous year. The trust expects to pay 18.4p for FY27, with 4.6p paid each quarter. The shaded bar in Figure 19 shows the likely Q2 payment in July 2026.
PPET is recognised by the AIC as a “next generation dividend hero”, having increased its dividend every year for over 10 years.
Figure 19: PPET’s dividend history over financial years ending 30 September
Source: PPET
Premium/(discount)
PPET’s discount has averaged 29.4% over 12 months
Over the 12 months to 31 May 2026, PPET’s share price discount to NAV ranged from 23.8% to 35.1%, averaging 29.4%. On 19 June 2026, the discount was 29.7%.
Since Q1 2024, the discount has stabilised, partly due to the trust’s share buybacks shown in Figure 21. However, the discount remains wide. If the exit market improves and NAVs increase, PPET and the sector are likely to see a re-rating.
Figure 20: PPET premium/(discount) over five years ended 31 May 2026
Source: Bloomberg, Marten & Co
Figure 21: PPET share buybacks by month
Source: PPET
Fees and costs
PPET’s investment management agreement does not include a performance fee
PPET pays Patria a base management fee of 0.95% per year on its total net assets, with no performance fee. The agreement can be ended by either party with 12 months’ notice.
For the year to 30 September 2025, the investment management fee was £11.1m, down from £11.4m in 2024. The ongoing charges ratio was 1.08%, slightly higher than last year.
GPMS Corporate Secretary Limited, a Patria subsidiary, provides company secretarial services, while IQ EQ Administration Services (UK) Ltd handles administration. Fees for both are adjusted each year in line with the retail price index. The secretarial and administrative agreements can be ended with six months’ and three months’ notice respectively.
Capital structure and life
Simple capital structure with one class of ordinary shares
PPET has a straightforward capital structure with only one type of ordinary share. These shares are listed on the main market of the London Stock Exchange. As of 19 June 2026, there were 146,255,166 shares in issue, with 7,491,128 held in treasury.
Phoenix Group Holdings owns over 50% of PPET’s shares. However, it has agreed not to use its voting power or take actions that would stop PPET from running as an independent business. This agreement helps protect minority shareholders’ interests.
Unlimited life
PPET has been set up with no fixed end date, reflecting the long-term nature of its investments. There is no regular process, like a continuation vote, to wind up the company.
Major shareholders
Figure 22: Major shareholders as at 19 June 2026
Source: Bloomberg, Marten & Co
Gearing
The loan facility has been increased to £400m
PPET has a multicurrency revolving credit facility of up to £400m, expiring in February 2028, with options to extend for up to two more years. The interest rate is the reference rate for the currency drawn plus 2.6%. A commitment fee of 0.8% or 0.9% per year applies to unused amounts, depending on usage, and there is an annual fee of 0.35%.
PPET has plenty of credit available to fund future investments
The facility is provided by RBS International, Societe Generale, State Street Bank International, State Street Bank & Trust Company, and Banco Santander. While PPET can borrow up to 100% of its net assets under its articles, the board does not expect borrowings to exceed 30% of net assets.
As of 31 March 2026, PPET had £259.8m undrawn from its £400m facility and held £17.8m in cash. Net gearing was 9.6% at 31 December 2025.
PPET’s board aims to keep the over-commitment ratio (outstanding commitments minus available investment resources and debt facility, divided by NAV) between 30% and 65% over the long term. As of 31 March 2026, the ratio was 44.0%.
Financial calendar
PPET’s financial year ends on 30 September. Annual results are released in January and interim results in June. The latest AGM was on 25 March 2026. Dividends are usually paid in January, April, July, and October each year.
Management
Lead manager Alan Gauld is a senior investment director in Patria’s private equity team. He is supported by Patrick Knechtli (head of secondary investments), Mark Nicolson (head of primary investments), Simon Tyszko (senior portfolio director), and Ramone Moody (investment manager), along with over 30 other professionals in the team.
Alan has a strong network and deep experience with leading private equity funds, especially across pan-European, French, Nordic, and Iberian markets. He is involved in sourcing, evaluating, and executing investments, as well as monitoring the portfolio. Alan is a qualified chartered accountant and holds a BSc (Hons) in Genetics from the University of Edinburgh.
Board
PPET’s board has five non-executive directors, all independent of the investment manager (individual experience is detailed below). Duncan Budge became chair at the AGM in March, succeeding Alan Devine, who retired after nearly 12 years on the board.
Figure 23: Board member – length of service and shareholdings
| Director | Position | Date of appointment | Length of service (years) | Annual fee (GBP) | Shareholding1 | Years of fee invested2 |
|---|---|---|---|---|---|---|
| Duncan Budge | Chair | 1 February 2025 | 1.3 | 84,460 | 15,041 | 1.1 |
| Calum Thomas | Audit committee chair and senior independent director | 30 November 2017 | 8.4 | 60,770 | 13,700 | 1.4 |
| Dugald Agble | Director | 1 September 2021 | 4.8 | 53,560 | 17,221 | 2.0 |
| Diane Seymour-Williams | Director | 7 June 2017 | 8.9 | 53,560 | 31,500 | 3.6 |
| Yvonne Stillhart | Director | 1 September 2021 | 4.8 | 53,560 | 13,718 | 1.6 |
| Average (service length, annual fee, shareholding, years of fee invested) | 5.6 | 61,182 | 18,236 | 1.9 |
Source: Patria, Marten & Co. Note 1) shareholdings as per most recent company announcements as at 29 April 2026. 2) Years of fee invested based on PPET’s ordinary share price of 608.00p as at 19 June 2026.
Duncan Budge (chair)
Duncan was executive director and chief operating officer of RIT Capital Partners Plc from 1995 to 2011. He has wide board experience and is currently a non-executive director at Lowland Investment Company Plc, Biopharma Credit Plc and Asset Value Investors Ltd. He was recently chair of Artemis Alpha Trust Plc and Dunedin Enterprise Investment Trust Plc.
Calum Thomson (senior independent director and chair of the audit committee)
Calum is a qualified accountant with over 25 years’ experience in financial services. He joined Deloitte LLP in 1988 and spent 21 years as a senior audit partner before retiring. Calum is currently a non-executive director and audit committee chair at Diverse Income Trust, AVI Global Trust Plc, and Baring Emerging EMEA Opportunities Plc. He also holds the same roles at BLME Holdings Limited and Bank of London and The Middle East Plc.
Dugald Agble (independent director)
Dugald was appointed on 1 September 2021. He has a PhD in Chemical Engineering from Imperial College London and over 20 years of private equity investment experience. He began his career at Nomura Principal Finance Group, which became Terra Firma Capital Partners, and has since invested in emerging and frontier markets at Helios Investment Partners and 8 Miles. Dugald also serves on the supervisory board of FMO, the Dutch finance institution.
Diane Seymour-Williams (independent director)
Diane spent 23 years at Deutsche Asset Management Group (formerly Morgan Grenfell) from 1981 to 2005, holding senior roles such as CIO of Asian Equities, CEO of the Asian asset management business, head of European client relationships, and head of global equity product. She later worked for nine years, from 2007 to 2016, at LGM Investments, a specialist global emerging markets manager, where she was global head of relationship management at an emerging markets manager. Diane is a non-executive director at Baillie Gifford China Growth Trust Plc and Brooks Macdonald Group Plc, where she has chaired the remuneration committee since 2012. She also volunteers on the investment committees of Newnham College, Cambridge, and the Canal & River Trust.
Yvonne Stillhart (independent director)
Yvonne was appointed on 1 September 2021. She co-founded Akina AG, a Swiss private equity manager that merged with Unigestion S.A. in 2017. With over 30 years’ experience, Yvonne has held senior roles in business growth, leadership, private equity, infrastructure investment, finance, banking, and risk management across various industries and regions.
She is a non-executive director and Audit and Risk committee member at UBS Asset Management Switzerland Ltd., and chairs the Social and Ethics committee at South Africa’s EPE Capital Ltd. Yvonne holds director certificates from Harvard Business School and ESG Competent Boards, and speaks German, English, Spanish and French.
SWOT and bull vs. bear analysis
Figure 24: SWOT analysis
| Strengths | Weaknesses |
|---|---|
| Good long-term performance track record | Weaker shorter-term returns could undermine the buy case for PPET and the asset class |
| Experienced and well-resourced investment team | Relatively high exposure to software companies that are perceived to be under threat from AI |
| PPET’s progressive dividend policy should be attractive to income-seeking investors | |
| Opportunities | Threats |
| Heightened uncertainty leads to lower entry valuations and the prospect of outsized future returns | The threat of AI to the software sector proves founded, to the detriment of valuations |
| The exit landscape remains challenged for an extended period of time |
Source: Marten & Co
Figure 25: Bull versus bear case
| Bull | Bear | |
|---|---|---|
| Performance | The exit market conditions improve and the meaningful valuation discounts that listed European mid- and small-cap stocks trade on versus US peers will be reflected in PPET’s valuations | The macro environment does not improve, and realisations continue to be scarce. Software valuations fall further on AI advancements |
| Dividends | PPET has increased its dividend target for FY26 by 4.5% and has grown it every year for more than 10 consecutive years | Severe market conditions may impact dividend payout, although the board is committed to maintaining the value of the dividend in real terms going forward |
| Outlook | Any progress in the macro environment – an end to the war in the Middle East, for example – could be the trigger for a switch to more positive sentiment. PPET could experience a “double whammy” of rising NAV and a narrowing discount | A prolonged difficult exit environment could undermine confidence in private equity |
| Discount | Discounts on almost all investment companies focused on private equity are too wide, and PPET is no exception to this. This is an opportunity to be highlighted | Wide discounts have been stubborn and prone to periods of widening during “risk-off” environments |
Source: Marten & Co
Previous publications
QuotedData has published a number of notes on PPET. You can read these by clicking the links in the table below or by visiting our website.
Figure 26: QuotedData’s previously published notes on PPET
| Title | Note type | Date |
|---|---|---|
| Sitting in a sweet spot | Initiation | 10 May 2016 |
| Reinvestment phase underway | Update | 14 September 2016 |
| Dividend doubled to 4.0% | Update | 22 February 2017 |
| Loading the portfolio | Update | 3 July 2017 |
| A good year; more to come? | Update | 8 December 2017 |
| Putting capital to work | Annual overview | 17 July 2018 |
| Now with direct investments | Update | 29 May 2019 |
| Share price out of sync? | Update | 15 July 2020 |
| Proving its mettle | Annual overview | 16 September 2021 |
| Laying the foundations for future returnsv | Update | 8 September 2022 |
| Unrecognised success | Annual overview | 8 September 2023 |
| On the way to greener pastures | Update | 10 April 2024 |
| Long-term success – near-term opportunity | Annual overview | 24 February 2025 |
| Difficult conditions make for better vintages | Update | 24 October 2025 |
Source: Marten & Co
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