investorscraft@gmail.com

Stock Analysis & ValuationCT Private Equity Trust PLC (CTPE.L)

Professional Stock Screener
Previous Close
£570.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)224.45-61
Intrinsic value (DCF)192.32-66
Graham-Dodd Method4.19-99
Graham Formula33.70-94

Strategic Investment Analysis

Company Overview

CT Private Equity Trust PLC (CTPE.L) is a London-listed investment trust specializing in private equity investments across secondary indirect, direct, and fund-of-funds strategies. The trust focuses on private equity funds, buyout funds, venture capital, and mezzanine financing, with a geographic emphasis on the UK, Europe, and the US, while maintaining exposure to emerging markets. With a mid-market bias, CTPE invests in a diversified portfolio of mid-cap companies, adhering to strict asset allocation limits to mitigate risk. Operating in the competitive asset management sector, the trust provides investors with access to high-growth private equity opportunities typically reserved for institutional investors. Its disciplined investment approach and global remit position it as a compelling option for investors seeking private equity exposure within a publicly traded vehicle.

Investment Summary

CT Private Equity Trust PLC offers investors a unique opportunity to gain exposure to private equity through a liquid, publicly traded vehicle. The trust's diversified portfolio, geographic focus on developed markets, and strict investment limits provide a balanced risk-reward profile. With a net income of £19.7 million and a dividend yield supported by a £28.04 per share payout, CTPE appeals to income-focused investors. However, risks include exposure to illiquid private equity assets, market volatility, and reliance on fund performance. The trust's low beta (0.81) suggests relative stability compared to broader equity markets, but its negative operating cash flow (-£6.3 million) warrants caution. Investors should weigh the potential for long-term capital appreciation against the inherent risks of private equity investing.

Competitive Analysis

CT Private Equity Trust PLC competes in a niche segment of the asset management industry, offering retail and institutional investors access to private equity through a listed vehicle. Its competitive advantage lies in its diversified approach, combining secondary, direct, and fund investments while maintaining strict allocation limits to manage risk. The trust's UK and European mid-market bias differentiates it from global private equity giants, allowing for targeted exposure to high-growth regional opportunities. However, its smaller scale compared to larger private equity firms may limit access to top-tier funds and co-investment opportunities. The trust's structure as a closed-end fund provides stability but may trade at a discount to NAV during market downturns. Its ability to navigate the illiquid nature of private equity investments while providing liquidity to shareholders is a key differentiator, though performance remains heavily dependent on underlying fund managers' expertise.

Major Competitors

  • Pantheon International Plc (PNL.L): Pantheon International is a larger UK-listed private equity investor with a more global portfolio and longer track record. Its scale provides better access to top-tier funds, but its broader mandate may lack CTPE's mid-market focus. Pantheon's performance has been strong historically, but its larger size can sometimes limit agility in accessing niche opportunities.
  • IP Group Plc (IPE.L): IP Group specializes in university spin-outs and early-stage tech investments, differing from CTPE's mid-market focus. While IP Group offers higher growth potential from cutting-edge innovations, it carries greater risk. CTPE's more diversified approach across stages and sectors provides more stable returns compared to IP Group's concentrated tech bets.
  • Standard Life Private Equity Trust Plc (SLPE.L): Standard Life Private Equity Trust has a similar structure to CTPE but with a stronger emphasis on secondary market transactions. Its experienced team and Abrdn backing provide advantages, though CTPE's direct investment capability offers more control. Both trusts face similar challenges around NAV discounts and private equity illiquidity.
  • Princess Private Equity Holding Ltd (PEY.L): Princess Private Equity offers global exposure through Partners Group's platform, providing institutional-quality access that competes with CTPE. While Princess benefits from Partners Group's strong sourcing network, CTPE's UK/Europe bias and mid-market focus may offer more targeted regional exposure. Both face similar structural challenges as listed private equity vehicles.
HomeMenuAccount