BMO Private Equity Trust PLC

Hamish Mair

Managing Director, Head of Private Equity, Private Equity

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The Trust offers access to a diverse spread of private equity investments principally through exposure to specialist private equity funds and co-investments in individual companies. In particular, the fund manager looks to identify those managers with a proven ability to make excellent absolute returns over the medium to long-term. The Trust also aims to provide shareholders with a predictable and above average dividend, funded from a combination of revenue and realised capital profits. 

  • Affordable – save monthly or via lump sums to suit your budget
  • Diversified – one share provides access to a broad range of underlying investments
  • Expertise – specialist private equity investors since 1999
  • Income – attractive level of dividend payable quarterly 
BMO Private Equity Trust PLC is a member of LPeC, for more information please click here.

Objectives

Harnessing potential by direct and indirect investments

The Trust’s investment objective is to achieve long-term capital growth through investment in private equity assets, whilst providing shareholders with a predictable and above average level of dividend funded from a combination of the Trust’s revenue and realised capital profits.
 
The Trust has the ability to make private equity investments by taking stakes in private equity focused limited partnerships, offshore funds and investment companies. In addition to investing in newly formed private equity funds, the Trust may also purchase secondary private equity fund interests (that is, portfolios of investments in existing private equity funds). The Trust may also make direct private equity investments, mainly through co-investment in specific companies.
 
The private equity funds in which the Trust invests comprise buy-out funds, venture capital funds and mezzanine funds. Both the funds and the direct investments are selected in order to create an underlying portfolio which is well diversified by geography, sector, size of company, stage of development, transaction type and management style.

Diversified opportunities

In the right hands, a company with an innovative product, the right strategy and a strong brand can significantly grow its business and profitability. Such companies, however, often lie outside of listed markets and are therefore beyond the reach of individual investors. BMO Private Equity Trust PLC offers access to this potent ‘unlisted’ growth potential via specialist proprietary and third party private equity funds and direct investments in companies. BMO’s Private Equity Team has proven expertise in private equity manager selection and direct investment. This expertise, together with a robust approach to investment and an emphasis on quality opportunities, provides scope for long-term capital growth.

Risks

Private equity is a more specialist asset class and carries an increased level of risk compared to investing in cash. The principal risks over and above cash investing include:

  • Investment and strategic, external, regulatory, operational, financial and funding risks.
  • Gearing can magnify the negative impact on performance if the market falls.
  • Changes in rates of exchange may have an adverse effect on the value, price or income of investments.
  • Third party private equity funds may restrict or suspend redemptions or repayment to investors.

Investment Risks

The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Changes in rates of exchange may also reduce the value of your investment. The fund invests in private equity funds, exposing the fund to the performance, liquidity and valuation issues of these funds. Such funds typically have high minimum investment levels and may restrict or suspend redemptions or repayment to investors. The asset value of these shares and its prospects may be more difficult to assess. Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.

Fund Facts and Key Dates

Fund Facts
Investment manager BMO Investment Business Limited
Benchmark NAV Total Return
AIC sector Private Equity
Launch date 2001
Total assets £302 million (as at 30.09.18)
Currency Sterling
ISIN GB0030738271
SEDOL 3073827
Ticker symbol BPET
Key Dates
Annual general meeting May
Year end 31 December
Dividend payment date(s) January, April, July and October

The Board

Mark Tennant
Chairman
Mark is a member of the Advisory Board of T Rowe Price Global Investor Services. He is Chairman of the Centrica Combined Common Investment Fund Limited and a trustee of Grameen Scotland Foundation. Until recently he was a Senior Adviser to J.P. Morgan. He joined the Board in February 2009 and was appointed as Chairman in May 2010.
Elizabeth Kennedy
Chairman of the Audit Committee
Elizabeth is a corporate and commercial lawyer with Kergan Stewart with over 30 years’ experience in corporate finance, principally in IPOs, secondary issues and takeovers. She is also a director of Octopus AIM VCT 2 plc, Beatson Cancer Charity and two private technology companies and is also a member and past Chair of the AIM Advisory Group of the London Stock Exchange. She joined the Board in July 2007.
Douglas Kinloch Anderson, OBE
Non-Executive Director
Douglas is Executive Chairman of Kinloch Anderson Limited. He was National President of the Royal Warrant Holders Association, President of The Edinburgh Chamber of Commerce and Master of the Edinburgh Merchant Company. His career has included wide experience in manufacturing, retailing and exporting, particularly to Europe, North America and the Far East. He joined the Board in December 2000.
David Shaw
Non-Executive Director
David sits on the boards of a number of private companies including acting as Chairman of the charity Dyslexia Scotland. He was previously Chief Executive, then Chairman, of Bridgepoint Capital, a leading European mid corporate private equity firm until his retiral in December 2009. He joined the Board in November 2009.
Swantje Conrad
Non-Executive Director
Swantje was a Managing Director at J.P. Morgan with 26 years’ of experience across corporate finance, M&A, global capital markets, and institutional asset servicing. She is a non-executive director of Siemens Gamesa Renewable Energy, S.A. and a trustee of the Whitechapel Art Gallery, London. She was appointed to the Board in April 2017.
Richard Gray
Non-Executive Director
Richard is Vice Chairman of Panmure Gordon & Co. He has previously worked at Lazard & Co., Charterhouse, UBS and Hoare Govett and held senior positions in London and New York. He has broad experience across equity research, equity sales, equity capital markets, corporate broking and corporate finance. He was appointed to the Board in March 2017.

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