201. Why you can sleep more easily with private equity investments

Schroders investment directors Paul Lamacraft and Pav Sriharan talk us through the benefits of private equity investing and why the asset class is a great fit for an investment trust vehicle. The pair also talk about the types of companies they target for the British Opportunities Trust, discuss the importance of funding UK growth and buyout companies in what is an uncertain time for the UK economy, and reveal why they are excited about the prospects for their investment in Mintec.
Apple Podcast Spotify Podcast

One of the few products to be launched in response to the Covid-19 pandemic, the Schroder British Opportunities Trust seeks to tap into the unloved status of UK equities by targeting companies which have been in the eye of the storm. The portfolio consists of 30-50 small and medium-sized public and private businesses requiring fresh injections of equity, with the trust aiming to provide a net asset value total return of 10% per annum.

What’s covered in this episode:

  • What are the benefits of private equity investing and why the team focus on growth and buyout businesses
  • Why investment trusts are a great fit for investors looking to access private equity companies
  • The importance of understanding the exit options for a company at an early stage and the need to have as many options available as possible
  • How the team go about transforming a new acquisition to improve both its scale and value
  • Why there is an ongoing need to fund and support UK growth and buyout companies
  • The importance of ESG and why the management team are happy to invest in companies that need help to develop and deliver the right ESG framework
  • Why they are so bullish on their holding in a reporting agency for non-exchange traded food commodities
  • Why investors should be looking more closely at private equity as a long-term holding
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

More Episodes