Access Private Markets Through HVPE Technology
In the dynamic landscape of UK finance, listed private equity investment trusts are gaining traction, with investor interest selectively but steadily growing. This is particularly true for trusts offering dependable income, access to unique assets, or exposure to undervalued companies.
This trend is evident in the growing number of investment trusts trading above their net asset value (NAV). As of June 2025, 24 trusts were trading at a premium, compared to 19 the previous year. This shift reflects a growing willingness among investors to pay extra for trusts specializing in income, with proven track records, or with access to scarce assets.
One such trust is Primary Health Properties (LSE:PHP), which currently offers a yield of 6.85% and is in the process of merging with Assura, creating a £6 billion asset group if approved. Fidelity Special Values (LSE:FSV) also stands out, appealing to value investors by focusing on undervalued shares with turnaround potential.
UK small caps continue to be attractive due to valuations well below historic averages and strong M&A activity. Over 30% of buyers of small caps recently have been private equity firms, indicating ongoing opportunities for private equity investment trusts with exposure to this segment.
Specialist private equity vehicles like Venture Capital Trusts (VCTs) also continue to evolve. Gresham House VCTs recently rebranded and aim to provide attractive, tax-free dividend returns from diversified portfolios, underscoring ongoing opportunities in venture-style private equity investments listed on the market.
Looking ahead to 2026, several potential opportunities present themselves. Income-oriented trusts, such as healthcare property trusts or energy efficiency trusts, may continue to attract demand as interest rates remain relatively low and cash yields unattractive. Trusts focusing on undervalued, unloved sectors or companies with potential for recovery could offer capital gain opportunities.
Investors may also find opportunities in trusts with exposure to UK small caps or in VCTs that provide tax-efficient access to early-stage private equity. Additionally, many trusts still trade at discounts, offering potential entry points for patient investors to benefit from NAV recovery or structural improvements.
One notable player in this space is HVPE, which boosted its net asset value per share through a significant buyback in 2024 and plans to allocate up to $235m for buybacks and dividends in 2025. HVPE is also simplifying its investment structure to improve understanding of the trust and the listed private equity market.
The private equity sector offers a significant opportunity today, according to HVPE. The sector is home to dynamic companies in high-growth sectors such as AI, healthcare, and business services. However, it's crucial to consult a financial adviser before making any investment decisions, particularly if uncertain about the suitability of an investment.
In conclusion, UK-listed private equity investment trusts that combine dependable income, value-driven strategies, and exposure to private equity-backed small caps or venture capital segments are well placed to offer compelling investment opportunities. The evolving market environment favors income-focused and specialist trusts given current investor preferences and interest rate trends.
- In the UK, business opportunities are thriving in the private equity sector, with investment trusts like Primary Health Properties (LSE:PHP) and Fidelity Special Values (LSE:FSV) gaining traction due to their focus on income, unique assets, or undervalued companies.
- For investors seeking potential capital gain opportunities, trusts concentrating on undervalued sectors or companies with recovery potential could prove advantageous, while those with exposure to UK small caps or Venture Capital Trusts (VCTs) may offer tax-efficient access to early-stage private equity investments.
