18 March 2010

Private Equity Investor

BUY

10/07/2003

Private Equity Investor is an unique investment vehicle which raised £100m at the height of the tech bubble in February 2000. This cash was committed to 18 top-performing US venture capital funds to invest. After three years, two thirds of the money has been drawn down but the bear market has meant the uncommitted cash, parked in bonds, has outperformed the venture capital investments made so far. This approach has also protected the company's net asset value to a certain extent, restricting its fall since launch to 25.9% leaving it at 143.6p per share at the end of March. Chairman Barbara Thomas has now prudently called the top of the bond market and switched the group's fixed income portfolio into a bespoke fund of hedge funds. Over the past year, net asset value fell 21.4%, but the shares fell even further, sliding 29.4% to 87.5p, putting them at a 39% discount to net assets. Some £35m, or 70p a share, remains uninvested, meaning the £37.8m venture capital portfolio is valued at only £13.5m, or 27p a share. This seems unfair, particularly as some investments, such as in Internet travel agent Expedia, are being realised. Since the year-end active investor Laxey Partners has built up a 11.7% stake in the company, noticing the extreme value. The shares have risen 9.5p but still stand at a 32.5% discount. Investors should follow Laxey's lead and take advantage of this.

Sector: General Financial

Companies: Private Equity Investor

Market cap: £48.5m

PE Forecast: n/a

Share price: 97p

Subscribe today

£7,277

That’s what you would have in your portfolio if you had invested £6,000 into the six Company Watch recommendations in our April 2009 issue.

Subscribe now and receive a 50% discount

AIM in Review 2010

Growth Company Investor, in association with the London Stock Exchange, presents the most wide-ranging and detailed examination of the AIM market: AIM in Review 2010. For more information and to order, click here or contact our marketing team on 020 7250 7056.

M&A on AIM 2009 - Which are the most active sectors for M&A? Which are the most active brokers to follow?

M&A on AIM 2009 is a unique and wide-ranging examination of merger and acquisition activity on AIM over the past 12 months, with an analysis of all the acquisitions, disposals, takeovers and delistings on AIM, including
canvassing the opinions of some of the major M&A powerbrokers. To order click here.

Free – Latest Stock Recommendations

Free access to the latest AIM stock recommendations and news from the award-winning Growth Company Investor team. Receive our tips on what stocks to buy direct to your inbox every Tuesday and Friday. Find out more today.

Select your level of risk and we select the funds

Cautious? Positive? Adventurous? Choose between three levels of risk for a fund of funds from Sharefunds, our sister company. Click here for more information.

The AIM Guide 2009/10

The brand new, fully updated AIM Guide 2009/2010 is now available to purchase. AIM Guide is the only fully comprehensive guide to AIM and is regarded as 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies.   Order your copy today and benefit from a £10 discount!

VCT Special Report 2009

This report's principal aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest. Click here for more information.

Cash Shells Special Report 2009

Business XL, the award-winning monthly magazine for growing companies, is delighted to announce the launch of a new study on cash shells. The research provides a comprehensive overview of cash shells on AIM, companies that have become a significant feature on the AIM landscape. Buy the Cash Shells 2009 Research Report today or email Halid Delkic to obtain a free two-page abstract.

Share recommendations and small-cap stock picks

Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.

Popular Recommendations

Latest Recommendations

European Goldfields 18/03/2010

European Goldfields hopes to move from AIM to the Full List by the end of 2010 after securing a key permit in Romania.

StatPro 17/03/2010

Revenue visibility at StatPro, the Wimbledon-based provider of analytics and data to asset managers across Europe, South Africa and North America, continues to improve.

Altona Energy 17/03/2010

Altona Energy is seeking approval from Australia's Foreign Investment Review Board for its multi-billion dollar coal-to-liquids project in South Australia's Arckaringa Basin.

More Recommendations

Sectors

Vitesse Media Events