Key Takeaways
- • CT Private Equity's new chair Tom Burnet forecasts accelerating profitable exits, citing a recent 71% uplift on the Cyberhawk stake ($17.9m realized on a $125m acquisition) as evidence of improved exit conditions.
- • Over half of CTPE's portfolio has been held for more than three years, creating a "meaningful pipeline of potential future realisations" in what management characterizes as an increasingly favorable exit environment.
- • First-half realisations surged 135% year-over-year to £63.6m, with disposals achieving an average 32% uplift to carrying value, though a subsequent July sale of £25m in fund investments realized a 16% discount to net asset value.
- • Despite solid portfolio performance and a 5.7% dividend yield, the trust's share price discount widened substantially from 9% to 29% in the first half of 2026, resulting in a 9.3% total return decline despite stable net assets of £497m excluding debt.
- • Andrew Carnwath assumed portfolio management responsibilities in May following Hamish Mair's retirement after 26 years; NAV per share remained relatively flat at 695p despite currency headwinds and operating expenses.
Summary
CT Private Equity (CTPE), the £346m investment trust, is positioned to deliver additional profitable exits following strong recent realisation activity, according to new chair Tom Burnet. The trust achieved a landmark 71% uplift when selling its stake in Cyberhawk, a US drone-based inspection group acquired for $125m in June, realizing £17.9m proceeds. Burnet, who assumed the chair role in May replacing Richard Gray, characterized CTPE as "increasingly well placed for a more active exit environment" given the maturity profile of its underlying holdings.
The portfolio composition supports management's optimism: more than half of CTPE's assets have been held for over three years, creating what Burnet described as a "meaningful pipeline of potential future realisations." First-half 2026 results validated this outlook, with disposals climbing 135% year-over-year to £63.6m. These realisations exceeded new investment commitments by £23m, providing funds for the trust's 5.7% quarterly dividend and share buyback programs targeting the widening discount. Disposals across the portfolio achieved an average uplift of 32% to carrying value during the first half, though momentum moderated in July when CTPE sold £25m of fund investments at a 16% discount to net asset value.
Market sentiment, however, has diverged sharply from portfolio fundamentals. The share price discount expanded from just over 9% to nearly 29% during the first six months of 2026, resulting in total shareholder return of negative 9.3% when including the quarterly dividend. Net assets excluding debt remained stable at £497m, while NAV per share declined marginally by 0.2% to 695p at 30 June following the impact of finance costs, operating expenses, and currency movements.
Portfolio management transitioned in May when Andrew Carnwath succeeded Hamish Mair, who retired after 26 years overseeing the trust's private equity fund and unquoted company investments. Burnet simultaneously serves as chair of Baillie Gifford US Growth (USA), another listed investment company.
The portfolio composition supports management's optimism: more than half of CTPE's assets have been held for over three years, creating what Burnet described as a "meaningful pipeline of potential future realisations." First-half 2026 results validated this outlook, with disposals climbing 135% year-over-year to £63.6m. These realisations exceeded new investment commitments by £23m, providing funds for the trust's 5.7% quarterly dividend and share buyback programs targeting the widening discount. Disposals across the portfolio achieved an average uplift of 32% to carrying value during the first half, though momentum moderated in July when CTPE sold £25m of fund investments at a 16% discount to net asset value.
Market sentiment, however, has diverged sharply from portfolio fundamentals. The share price discount expanded from just over 9% to nearly 29% during the first six months of 2026, resulting in total shareholder return of negative 9.3% when including the quarterly dividend. Net assets excluding debt remained stable at £497m, while NAV per share declined marginally by 0.2% to 695p at 30 June following the impact of finance costs, operating expenses, and currency movements.
Portfolio management transitioned in May when Andrew Carnwath succeeded Hamish Mair, who retired after 26 years overseeing the trust's private equity fund and unquoted company investments. Burnet simultaneously serves as chair of Baillie Gifford US Growth (USA), another listed investment company.
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