CT Private Equity Trust Eyes Exit Opportunities Amid Resilient European Portfolio
EDINBURGH – Edinburgh-based investment firm CT Private Equity Trust PLC reported a period of stabilization and strategic positioning in its latest half-year results, expressing confidence in its ability to drive capital growth despite a complex global economic climate.
Portfolio Performance and Navigating Macro Volatility
For the first half of 2026, the trust reported a net asset value (NAV) of 695.07 pence per share as of June 30, a slight decline of 2.1% from the 710.33p recorded at the close of 2025. However, the firm noted a relative improvement in its NAV total return, which stood at minus 0.2%, outperforming the minus 2.5% return seen in the first half of 2025.
The trust’s leadership attributed the challenging environment to persistent geopolitical instability—specifically citing ongoing conflicts in Ukraine and the Middle East. These factors have exacerbated market volatility, disrupted supply chains, and kept inflation and interest rate expectations elevated.
The European Advantage
A standout feature of the report was the divergence between the US and European private equity markets. While the US market saw a sharp contraction, CT Private Equity Trust highlighted the structural appeal of Europe, noting lower entry multiples and greater opportunities for “alpha.”
“The company has long focused on the inefficient European lower mid-market and is well positioned to benefit from increased investor focus on European private companies,” the firm stated.
While exit markets remain generally constrained, the trust observed a 30% rise in exit values in Europe during the second quarter, largely buoyed by a flurry of “mega deals.”
Strategic Focus on Quality Software
The trust’s software portfolio saw some write-downs during the period, a reflection of broad sector-wide valuation compression. However, Investment Manager Andrew Carnwath remains optimistic about the quality of the underlying assets.
“We believe the portfolio is well-positioned given our focus on profitable businesses with proprietary data and mission-critical applications,” Carnwath noted. He emphasized that as the market matures, investors are increasingly differentiating between software companies that offer tangible, AI-driven benefits and those that do not, a trend he expects will reward the trust’s high-quality holdings.
Looking Ahead: A Pipeline for Realization
Chair Tom Burnet struck an optimistic tone regarding the company’s future, highlighting a robust pipeline for liquidity events. With over half of the portfolio’s value invested in assets held for more than three years, the firm is well-prepared for a more active exit environment.
“The board remains confident that the company is well-positioned to deliver both capital growth and income for shareholders over the medium term,” Burnet added.
As a signal of this commitment to shareholder returns, the company declared a quarterly dividend of 7.10 pence per share, a 1.3% increase over the 7.01p dividend paid at the same time last year.
Investors reacted favorably to the update, with CT Private Equity shares climbing 0.9% to 489.50 pence in early Friday trading in London.
