New Group Says Try P.E, For PEITs Sake

In an effort to capitalize on the current popularity of private equity, a group of p.e. investment trusts have joined together to drum up business for their vehicles.

In an effort to capitalize on the current popularity of private equity, a group of p.e. investment trusts have joined together to drum up business for their vehicles. Known as Initiative for Private Equity Trusts, the group was formed by some of the oldest names in the sector -- Dunedin Enterprise Investment Trust, Electra Private Equity, F&C Private Equity Trust, Graphite Enterprise Trust, Pantheon International Participations and Standard Life European Private Equity Trust. Their mission: to persuade retail investors and smaller institutions to send some of their money their way by educating them about issues that matter to those unfamiliar with the sector, namely liquidity issues, net asset value, cash drag, and how PEITs differ from venture capital trusts. “iPEIT will help them understand the risks as well as the potential rewards and enable them to make informed decisions,” Daniel Godfrey of the Association of Investment Trust Companies told Reuters. Perhaps their strongest talking point is this: According to the AITC, the average p.e returns for the past decade has been 268%, versus 110.8% FTSE All Share Index and 77% for MSCI World. To prove how well those PEITs do, the group’s Web site posts performance data for all 20 PEITS in the U.K.