| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 34.31 | 135 |
| Intrinsic value (DCF) | 3.73 | -74 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Schroder UK Public Private Trust plc (SUPP.L) is a London-listed investment trust managed by Schroders, focusing on private and public equity investments across the UK and select international markets. The trust targets startups, mid-sized, and mature companies in high-growth sectors such as healthcare, technology, financials, industrials, and biotechnology. Its strategy involves taking significant stakes in both quoted and unquoted firms, primarily in the UK but with flexibility to invest in Europe, the US, and Asia. Operating in the competitive asset management sector, the trust aims to deliver long-term capital appreciation by backing innovative and scalable businesses. With a diversified portfolio and a focus on value creation, SUPP.L appeals to investors seeking exposure to private equity-like returns within a publicly traded vehicle. However, its performance is closely tied to the success of its underlying portfolio companies, which can be volatile given the early-stage nature of many investments.
Schroder UK Public Private Trust plc presents a high-risk, high-reward investment proposition, suitable for investors with a long-term horizon and tolerance for illiquidity. The trust’s focus on private and growth-stage companies offers potential for outsized returns, particularly in sectors like tech and biotech. However, recent financials show significant losses (net income of -£49.3m in the latest period), reflecting challenges in portfolio performance and market conditions. The absence of dividends further limits income-seeking investors. The trust’s low beta (0.44) suggests lower volatility relative to the market, but this may not fully capture the illiquidity risk inherent in private holdings. Investors should weigh the potential for capital appreciation against the trust’s track record, fee structure, and the broader macroeconomic environment impacting its sectors.
Schroder UK Public Private Trust plc operates in a niche segment of the asset management industry, blending public and private equity strategies. Its competitive edge lies in Schroders’ established investment expertise and access to deal flow, particularly in the UK mid-market. However, the trust faces stiff competition from larger private equity firms, venture capital funds, and other listed investment trusts with similar mandates. Unlike pure-play private equity funds, SUPP.L offers liquidity via its LSE listing, but this comes at the cost of potential discounts to net asset value (NAV), a common issue for closed-end funds. The trust’s ability to identify and nurture high-growth companies is critical, as its performance hinges on a relatively concentrated portfolio. Compared to peers, SUPP.L’s focus on earlier-stage investments increases risk but also differentiates it from more conservative, income-focused trusts. Its zero-debt balance sheet provides flexibility, but the lack of recurring revenue (e.g., management fees from external clients) means performance fees and portfolio exits are key drivers of returns.