3i Group plc is a multinational private equity and venture capital company based in London, United Kingdom.
13 billion company (investment trust). About 2 billion in Infrastructure rest is private equity.
One company represents 6 billion of assets.
Action a dutch company its valuation has incresed 31 fold.
Its a retailer a negative
A discounter a positive. Think Aldi lidl iceland and B and M.
Expanded from Holland into 8 countries. Increased its shops by 200 plus last year.
3i group (as opposed to 3i Infrastructure) have said they have no plans list or sell it.
It has traded at a average of 14% premium this year. Presently trading at a 10% discount. Checking on Hargreaves Lansdown it was at one point this year on a 30% premium.
Investment trusts Private equity investment are valued independently and Conservatively. Conservatively because the investments are unlisted and therefore illiquid. The average increase to the illiquid unlisted valuation when they are sold is roughly 20%. That assumes they make it and don’t fail.
This i assume is the reason for the fall in all private equity investment trusts
The above can be simplified
Private equity firms are buying off other private equity companies at too high a price. To much money chasing to few investments.
I am not sure this is relevant to investment trusts as the valuation are done independently. Feel free not to quote me!
AIC Private equity sector other than one company all are at big discounts
Do plenty of research on the above investment trusts. Some are being wound up. Symphony International directors are not working for the benefit of shareholders.
It is always best to check actual dividends and especially don’t trust 5 year average increase in dividends without checking.
Also special dividends are never included in the headline dividends. So it needs to be checked as private equity often pay special dividends when they sell a company.
3i doesn’t do that its aim is to increase dividends or at least hold them at the previous years amount.
They achieved this since 2010
Over the last 5 years they held it one year (covid) and increased it in the other 4. The average was 11.9% increase each year. Last year was a 20% increase.
Opps forgot 28% share price gain over 5 years. If you take into account the discount not terrible.