2025 share price surge and discount narrows: what moved CT Private Equity Trust?
CT Private Equity Trust’s 2025 prelims delivered the kind of split-screen year we often see in investment trusts: modest net asset value (NAV) progress, and a punchy share price response. The shares posted a 21.8% total return for the year, well ahead of the FTSE All-Share’s 6.4%. The discount to NAV tightened from 30.9% to 21.2%, with the year-end share price at 560.00p and NAV per share at 710.33p.
Why it matters: a narrowing discount can be a powerful driver of shareholder returns even when underlying NAV growth is steady rather than spectacular. It also signals improving sentiment toward the asset class after a sluggish 2023-24 for private equity exits.
NAV total return up 4.7%: steady rather than spectacular
NAV per share edged up from 706.03p to 710.33p. Add in dividends and you get a 4.7% NAV total return for 2025 (2024: 4.6%). That’s fine in a year when exit markets were only gradually reopening and FX knocked £1.9 million off the result.
Worth noting: 94% of the portfolio is valued on December 2025 figures, keeping recency high. The portfolio delivered underlying revenue growth of 17% and EBITDA growth of 24% in 2025, with co-investments growing revenues 24% and EBITDA 32% – robust fundamentals behind the steady NAV move.
Dividend lifted to 7.10p a quarter and a 5.0% yield
The Board nudged the quarterly dividend up to 7.10p, payable on 30 April 2026, taking 2025 total dividends to 28.13p per share. That’s the thirteenth consecutive annual rise, maintaining its AIC Next Generation Dividend Hero status. The year-end yield was 5.0% on the 560.00p share price.
My take: this is a clean positive. Sustained dividend growth plus a 5% yield offers tangible cash return while investors wait for further discount narrowing or NAV gains.
Busy year for deals: £61.5m invested, £80.1m realised
Deal flow picked up as the year progressed. New investments and drawdowns totalled £61.5 million, with realisations and associated income at £80.1 million. Undrawn commitments stand at £170.4 million (of which £22.8 million relates to funds past their investment periods). The trust enters 2026 “fully invested” with £50 million of headroom including facilities.
Commitments with an “emerging manager” edge
- Queka Real Partners II (€5m) – Iberian lower mid-market.
- Castle Mount Impact Partners (€10m) – co-investment fund with impact mandate.
- Hg Mercury 5 (€5m) – specialist software strategy.
- Kester Capital IV (£5m) – UK lower mid-market, tech and life sciences focus.
- Axiom Equity 2 (£8m) – UK B2B SaaS specialist.
- Co-invests: Frendy (€2.1m) and Vanda Research ($5m) – the latter backing a US acquisition that broadened its data franchise.
Exits show resilience
There were 49 underlying company exits in 2025, returning a weighted average 3.3x cost and 29% IRR, with an average 18% uplift to carrying value. Headliners included:
- Amethyst Radiotherapy – £8.2 million back (1.8x cost, 11% IRR).
- Weird Fish – £7.5 million returned over the year; remaining stake rolled for more upside (1.7x cost so far).
- Axiom 1 partial exit of JobLogic – £5.4 million from a strong sale to Vista Equity Partners.
- Dotmatics – fully realised, returning 8.3x cost and a 79% IRR.
- Inflexion-led exits such as Rosemont Pharmaceuticals (7.3x cost, 50% IRR) and Aspen Pumps (3.3x, 26% IRR).
Opinion: that breadth of exits at attractive multiples underpins confidence in carrying values and offers future firepower for redeployment.
Winners, write-downs and how the portfolio is valued
Before FX, the portfolio was up £37.6 million (6.4%) for the year. The portfolio’s valuation looks conservative at 10.3x EV/EBITDA with moderate leverage (net debt/EBITDA 2.5x). Co-investments stand at 11.4x and 3.3x respectively.
Biggest uplifts
- CARDO Group – written up by £16.5 million on a secondary agreed pre year-end; in February 2026, 65% was sold for £14.2 million, taking realised return to 5.3x cost and total return to 7.9x (129% IRR) with a retained stake.
- Weird Fish +£7.0 million on strong trading.
- Cyberhawk +£3.3 million; Utimaco +£2.0 million; AccountsIQ +£2.0 million; Vanda +£1.9 million post-Exante acquisition.
Not all one-way traffic
- Breeze Group -£6.1 million amid delayed projects and weaker funding backdrop in UK/US research markets.
- Cybit -£4.6 million; TWMA -£4.5 million; Accuvein -£3.9 million; Pathfactory -£3.6 million.
- Apposite Healthcare II -£3.0 million; August Equity IV -£2.1 million within funds.
Verdict: healthy mix of winners and losers, but crucially the big uplifts are linked to third-party transactions, which is a strong validator of carrying values.
Balance sheet, gearing and fees
Net debt rose to £96.5 million at year-end (2024: £76.5 million), taking gearing to 16.0% (13.2%). Liquidity remains comfortable with £50 million available including the borrowing facilities. Ongoing charges held steady at 1.2% of average net assets and, notably, no performance fee is payable – the three-year annualised NAV IRR was 4.0%, below the 8.0% hurdle.
There were no share buybacks in 2025 and dividends paid totalled £20.050 million.
Leadership handover at the top
After 27 years, long-standing lead manager Hamish Mair will retire at the conclusion of the 2026 AGM, handing the reins to deputy Andrew Carnwath (17 years of private equity experience, CFA). Hamish remains a senior adviser to the team. On the Board, Chairman Richard Gray will retire at the AGM, with Tom Burnet set to become Chairman. Jane Routledge joined the Board on 1 January 2026; Swantje Conrad will retire at the AGM.
What it means: continuity looks strong – Andrew has worked closely with Hamish for 12 years. The advisory role should help preserve institutional memory through the transition.
Risks and 2026 outlook: oil shock and AI jitters
The Investment Manager flags two macro risks. First, the war in Iran (from 28 February 2026) has effectively closed the Straits of Hormuz, disrupting around 20% of global oil and gas supply. Direct portfolio exposure is limited, but second-order inflation and recession risk rises if disruption persists.
Second, AI volatility: listed software valuations dropped sharply in early 2026 amid fears AI-native products could pressure SaaS business models. The trust’s software exposure is about 20% of portfolio value and, importantly, focuses on profitable, mission-critical, domain-rich businesses at a weighted average 13.6x EV/EBITDA – a sensible stance.
Overall view: the risk backdrop is “above average”, but the portfolio’s diversification (over 500 companies), strong earnings growth and improving exit markets provide decent ballast.
Key numbers from the RNS
| NAV per share (year-end) | 710.33p |
| NAV total return (2025) | 4.7% |
| Share price (year-end) | 560.00p |
| Share price total return (2025) | 21.8% |
| Discount to NAV (year-end) | 21.2% (from 30.9%) |
| Total dividend (2025) | 28.13p per share |
| Next dividend | 7.10p on 30 April 2026 |
| New investments | £61.5 million |
| Realisations and income | £80.1 million |
| Undrawn commitments | £170.4 million |
| Net debt / Gearing | £96.5 million / 16.0% |
| Ongoing charges | 1.2% |
| Portfolio valuation | 10.3x EV/EBITDA; net debt/EBITDA 2.5x |
Josh’s bottom line
This is a solid set of numbers with three clear positives: a 5% and rising dividend, a meaningfully tighter discount, and credible realisations at attractive multiples. The negatives are familiar – higher gearing than last year, a handful of write-downs, and an uncertain macro picture. With a well-telegraphed manager transition and a healthy pipeline of exits and co-investments, CT Private Equity Trust looks set up for more grind-it-out NAV progress – and if discounts continue to narrow, shareholders could see that translate into further share price strength.
