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 Company aims to pay quarterly dividends with an annual yield equivalent to not less than four per cent of the average of the published NAV per Ordinary Share as at the end of each of its last four financial quarters prior to the announcement of the relevant quarterly dividend and not less than the prior quarter’s dividend. Dividends are 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
Harnessing potential by direct and indirect investments
The Company’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 Company’s revenue and realised capital profits.
The Company aims to pay quarterly dividends with an annual yield equivalent to not less than four per cent of the average of the published NAV per Ordinary Share as at the end of each of its last four financial quarters prior to the announcement of the relevant quarterly dividend and not less than the prior quarter’s dividend.
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.
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.
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.
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
BMO Investment Business Limited
NAV Total Return
£428 million (as at 31.03.21)
Annual general meeting
Dividend payment date(s)
January, April, July and October
Sustainability and ESG
Environmental, Social and Governance (“ESG”) issues are the three central factors in measuring sustainability and can present both opportunities and threats to the long-term investment performance the Company aims to deliver to Shareholders. The Board is therefore committed to taking a responsible approach to ESG matters. There are two strands to this approach. The Company’s own responsibilities on matters such as governance and the impact it has through the investments that are made on its behalf by its Manager.
Mark is Chairman of the Centrica Combined Common Investment Fund Limited and Chairman of Scottish Land and Estates. He is also a member of the Advisory Board of T Rowe Price Global Investor Services and a director of UTI International. 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 has over 30 years’ experience in corporate finance, principally in IPOs, secondary issues and takeovers. She is a director of Octopus AIM VCT 2 plc, Beatson Cancer Charity and a private technology company, a consultant with Davidson Chalmers Stewart, Solicitors and a member and past Chair of the AIM Advisory Group of the London Stock Exchange. She joined the Board in July 2007.
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 began her career in banking at J.P. Morgan in 1991 from where she retired as Managing Director in 2017. During this time Swantje gained extensive experience in corporate finance/M&A, global markets and investment management. She is a supervisory board member at RENK GmbH and previously served as Independent Director of Siemens Gamesa Renewable Energy S.A. and on various charitable boards. She was appointed to the Board in April 2017.
Richard is a career investment banker who has extensive capital markets and corporate finance experience and has held senior positions in London and New York. He is a director of Zeus Capital and has previously worked with Panmure Gordon, Lazard, Charterhouse and UBS. He is a non-executive director of CVS Group plc, a member of the Strategic Board of Banco Finantia, an independent director of Alpha Real Capital’s Board and Vice Chairman of Invescore Group. He was appointed to the Board in March 2017.
Tom is Non-Executive Chairman of Inspired Thinking Group, Non-Executive Chairman of Kainos plc and Non-Executive Chairman of The Baillie Gifford US Growth Trust plc. Previously he served as CEO, Executive Chairman and as a Non-Executive Director of AIM company accesso Technology Group plc. He started his career as an Army Officer serving in the Black Watch (R.H.R.) and is a member of the Queen’s Bodyguard in Scotland.
Audrey has a distinguished career in business and public life. Audrey is currently Chairman and CEO of W. A. Baxter & Sons (Holdings) Ltd and has served previously on the boards of a number of public and private companies, charities and voluntary organisations.
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