BMO Private Equity (BPET) trust has had a very strong period of performance so far over 2021, which builds on what turned out to be a stellar 2020 NAV return. That said, the latest NAV includes a 30 June valuation for only 23% of the portfolio, with the rest valued prior to this. Given the strength of the market, this suggests that there is potentially ‘juice left in the tank’. Due to buoyant valuations, it is no surprise to see BPET’s underlying managers capitalise: the value of realisations f
Companies: BMO Private Equity Trust
Private equity investing has been around for many decades. However private equity is making the headlines like never before. The recent bidding war for Wm Morrisons is a case in point although, over the last decade or so, private equity has been steadily increasing as a share of global M&A transactions as the graph below shows.
Companies: ICGT OCI NBPU BPET HGT
Returning 15.4% over the 6 months to 30 June, BPET’s NAV TR was strong and its share price TR (+39.1%) was even stronger. The board declared a quarterly dividend of 4.7p (up 9.6%). Encouraging, the NAV return was driven largely by earnings growth and exit activity not multiple expansion. In our opinion, the pandemic has demonstrated the robustness of BPET’s portfolio. Discussions with management highlight a strong pipeline of opportunities (exits and investments) and an expectation for activity
BMO Private Equity Trust (“BPET”) offers investors access to a diversified global (with a UK bias) hybrid private equity portfolio that is oriented to the lower mid-market. BPET offers a differentiated set of exposures to its peers and the wider sector. The fund has delivered strong long term ROEs (averaging c10%-12%pa), in line or better than the peer group and an excellent FY2020 +22.6%. Our expectation is for the fund to continue to deliver 10-12% (prefx) ROEs. In 2020 following the Covid cor
BMO Private Equity Trust (BPET) offers investors a distinctive approach to accessing private equity, in that it invests with managers at a relatively early stage in their development. BPET’s manager believes this means being exposed to more motivated teams and to lower mid-market deals where BMO are more likely to be offered co-investment opportunities. The team aim to manage risks by deliberately diversifying across a wide range of underlying companies, funds and managers. Private equity has d
BMO Private Equity Trust (BPET) offers investors a distinctive approach as a private equity fund of funds. Listed private equity trust NAVs have considerably outperformed the FTSE All Share and the Numis Smaller Companies Index over the past five and ten years. BPET aims to provide access to private equity’s strong returns, whilst also managing the risks by deliberately diversifying. Consequently BPET has c. 100 investments, in funds and co-investments, that are managed by around 50 underlying m
After a turbulent January, market participants are understandably cautious. We discuss some of the key macro themes that we think are likely to be pertinent for investors for the rest of 2016. Our central thesis is that the equity market is still underestimating two key risks: the return of inflation in developed markets and the risk of a further slowdown in emerging markets. Obviously, these two outcomes have significant implications for the global equity markets in general and specific markets
Macros: Commodities - EnergyIndices and MarketsEmerging Markets
Research Tree provides access to ongoing research coverage, media content and regulatory news on BMO Private Equity Trust.
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Palace Capital has released a good trading update of for the 6 months to 30 September. The Group has achieved good progress both across the portfolio and in sales achieved at Hudson Quarter. With cash reserves rising, the Group continues to look for value creative opportunities to recycle capital which should realise value for shareholders. Buy
Companies: Palace Capital plc
We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
The third quarter continued to enjoy record CIB revenues and loan provision recoveries. Consensus expectations have now largely aligned with our projections, thus leaving limited upside potential in our view.
Companies: Barclays PLC
Non-Standard Finance (‘NSF’), one of the leading providers of unsecured credit to UK adults, published interim results for the half year to 30 June 2021 on 28 September. Overall, these showed a significantly lower loss before tax due to improved operational performance and lower below the line charges. The group also reported that current trading was ahead of plan primarily due to strong collections performance. Discussions with the FCA regarding the redress programme for guarantor loans custome
Companies: Non-Standard Finance Plc
NextEnergy Solar Fund’s investment in NextPower III opens up geographic opportunities in Latin America, Asia and other parts of Europe much earlier than could have been delivered by direct project investment. Additionally, the JV announcement with energy storage system (ESS) developer Eelpower is also an attractive way to accelerate portfolio diversity as well as opening up the door to further asset growth. By working with partners experienced in different geographies and the energy storage segm
Companies: Nextenergy Solar Fund
What’s new: Tatton’s interims trading update confirm it has “delivered strong growth in all its key metrics during the period including revenue, profits and assets under management” (AUM). It is “trading in line with expectations”.
Companies: Tatton Asset Management Plc
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What’s cooking in the IPO kitchen?
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
AuM pushed on in Q2, hitting £10.8bn – including the acquisition of the Verbatim funds (+13% in H1 organic only). Crucially, net inflows have remained strong through the whole of H1 at £109m avg pcm. This flow momentum underpins an encouraging outlook, both near and medium-term. We leave our forecasts unchanged although note risk to the upside heading into H2. We will review our model again at the Interims. Given the pace of growth and scale of opportunity from already established relationships,
Gore Street’s trading update confirms expectations of a strong trading environment for batteries in both the GB and Irish markets. Driven principally by high gas prices creating electricity market volatility and with tight capacity margins likely to remain, we see the company continuing to generate excess cash returns in this financial year at least.
Companies: Gore Street Energy Storage Fund PLC
Currently, Gore Street Energy Storage Fund (GSF) primarily relies on revenue from frequency response services, including Dynamic Containment (DC), to estimate near-term returns. The dislocation in the UK power market has led to a sharp rise in returns available from energy arbitrage leaving GSF’s assets well placed to benefit from this increased volatility. In September, those of GSF’s GB storage assets that participated in the actively-traded GB power markets generated revenues that were signif
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Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
Companies: ZYT CIC DMTR GILD LMS MMAG PYC SMRT SBI
Companies: Chrysalis Investments Limited
Today's news & views, plus announcements from BHP, MGGT, RIO, BWY, MONY, BGO, YOU, AVAP, PCA & SOLG.
Companies: AVAP BGO RIO SOLG
TMT Investments PLC have provided a portfoloio update. We have published research on this which is attached and a snapshot of the research is below.
The venture capital company investing in high-growth technology companies has moved one step closer to its first IPO driven exit. In a portfolio update announced this week TMT noted that its portfolio company Backblaze, Inc. publicly filed with the SEC on 18 October 2021. TMT currently holds a 9.97% interest in Backblaze, Inc. (pre its expected fun
Companies: TMT Investments
Companies: Shaftesbury PLC