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Iveagh lifts exposure to private equity

Iveagh has been increasing allocations to listed private equity within its range of funds.

The weighting to listed private equity has been lifted across the firm’s range of six risk-profiled funds. The Iveagh Adventurous Portfolio, which is the most aggressive offering, has seen weightings lifted from 10 per cent to 15 per cent.

Iveagh chief investment officer Chris Wyllie says: “The good news at the moment is we think there is good value left in listed private equity.

“There is still a juicy discount in some cases, about 15 to 20 per cent, and the net asset values are under upward pressure … as their portfolios are re-rated.

“We feel uninhibited about having more than 10 per cent, depending on the risk target, in these stocks.

“But we do not want to take too much fund-specific risk so we have put together a basket.”

Within this listed private equity basket are investment companies such as HG Capital, Electra, German-listed Deutsche Beteiligungs and JPM Private Equity Limited.

However, the funds exited their position in 3i last year after its share price increased.

Chelsea Financial Services managing director Darius McDermott says: “Private equity can be a rich hunting ground, especially with the discount management of investment trusts.

“Investors following this area closely tend to be able to spot opportunities for discount closure. If you buy something at 20 per cent discount and it goes to NAV, you have just made 20 per cent.”


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