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BMO Private Equity Trust PLC

Overview

BMO Private Equity Trust PLC is a fund of funds, investing in private equity through making primary commitments, secondary commitments and direct investments. Investments are well-diversified by industry, size of company, geography, stage of development, transaction type and management style.

BMO Private Equity Trust's objective is to achieve long-term capital growth through investment in specialist private equity funds, on a primary and secondary basis, as well as selective co-investments in private companies. The Trust can invest globally across the private equity spectrum but has a bias towards the European mid-market buyout niche.

BMO Private Equity Trust  pays an annual dividend equivalent to not less than 4% of Net Asset Value. The dividend is paid in quarterly payments* in January, April, July and October, funded from a combination of the Trust's revenue and realised capital profits.

*Prior to January 2018, the Trust paid semi-annual dividends.

  • Fund-of-funds, London-listed
  • Investment focus: global with European bias
  • Deal focus: LBO/MEZZ/VC
  • Dividend: yes

Key financials

Manager Overview

The Board has appointed BMO Investment Business Limited (‘the Manager’), a wholly owned subsidiary of BMO Asset Management (Holdings) PLC (‘BMO AM’), as the Company’s investment manager. BMO AM is a wholly owned subsidiary of Bank of Montreal (‘BMO’) and is part of BMO Global Asset Management.

The BMO Global Asset Management (EMEA) private equity business, known as BMO PE, manages BMO Private Equity Trust PLC through the Manager. BMO PE has been investing continuously in European private equity for more than 20 years and is a highly experienced specialist private equity business with a team that has a proven ability to identify and access strong performing prime/emerging managers across a range of strategies. Over the years BMO PE has developed a wide network of contacts in the private equity sector. Members of the team hold a number of seats on advisory boards or committees of funds and direct investments. Together they have a broad experience covering direct private equity, smaller companies, international equities and management of performance driven investment vehicles.

The Net Assets of the Company at 31 December are £285.6m giving a NAV per share of 386.29p. This represents a NAV total return over the quarter of 5.8% and gives a NAV total return for 2018 as a whole of 12.4%.

Hamish Mair, Investment Manager

Market commentary

The Company has delivered a strong outcome for the year. The performance is broadly based and the benefits of having a well diversified international portfolio are well demonstrated by the heterogeneity of the portfolio. Many of the companies are operating in specific niches and these can often show growth, which is more closely linked to the adoption of a product or service that to the background economy or dynamics of a particular industrial sector. The portfolio is well placed to deliver further growth in 2019.

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