Patria Private Equity Trust’s 2025 results – growth back on track, discount still tempting
Patria Private Equity Trust (PPET) has posted its strongest year since 2022, with a 10.6% NAV total return for the 12 months to 30 September 2025. The share price total return was 7.0%, and the Board kept the dividend growing in real terms. It is also a changing of the guard: long-serving Chair Alan Devine will step down at the March 2026 AGM, with Duncan Budge to take over.
For retail investors, the story is a blend of improving portfolio momentum, active capital allocation, and a still-wide discount that could be the opportunity.
2025 in numbers – the quick read
| NAV total return | 10.6% |
| Share price total return | 7.0% |
| NAV per share | 845.5p (up from 780.1p) |
| Share price discount to NAV | 34.4% at year-end, c.24.1% at time of writing |
| Total dividend per share | 17.6p (FY24: 16.8p) – yield 3.2% at period end |
| Realisations / Drawdowns | £180.2m / £237.6m |
| New investments | 21 totalling £300.1m |
| Outstanding commitments | £759.3m – over-commitment ratio 33.8% |
| Liquidity | £294.2m short-term resources (cash + undrawn RCF) |
| Gearing | 18.1% |
| Ongoing charges ratio | 1.08% |
| Direct investments | 27.2% of portfolio value, 37 companies |
Jargon buster: NAV total return is the growth in net asset value including dividends. Over-commitment ratio measures undrawn fund commitments net of liquidity as a percentage of portfolio NAV – a normal feature of private equity trusts that helps keep capital fully invested over time.
Where the returns came from – steady fundamentals, FX tailwind
The portfolio delivered 8.0% growth in constant currency, with FX adding a 3.9% tailwind thanks to a stronger Euro. Realised exits came at an average 11.9% uplift to valuations two quarters prior, and headline returns on exits were 2.3x cost. That is solid given 2025’s subdued M&A backdrop in the first half.
- Top 100 companies posted 13.1% average LTM EBITDA growth.
- Less cyclical sectors dominate: information technology and healthcare are 45% of exposure, and when you add consumer staples, over half the portfolio sits in steadier areas.
- Second-half momentum was notable: NAV total return of 7.9% for the six months to 30 September 2025.
In short, operational progress continued to do the heavy lifting while FX helped. The mix of resilient sectors and mid-market specialist managers is showing through.
Cash flows, commitments and liquidity – headroom in place
Drawdowns of £237.6 million outpaced realisations of £180.2 million, which is not unusual in a slow exit market. Underlying distribution activity actually nudged up year on year once you strip out a large 2024 secondary sale.
- New commitments were £300.1 million across nine primaries (£193.8m), three secondaries (£61.9m) and nine directs (£44.4m).
- Outstanding commitments rose to £759.3 million, partly due to more primaries and currency movements.
- Over-commitment ratio was 33.8% – squarely within PPET’s long-term 30%-65% range.
Balance sheet-wise, PPET extended and upsized its revolving credit facility to £400.0 million in February 2025, leaving £172.6 million undrawn at year-end and £121.5 million of cash – £294.2 million of short-term resources in total. That gives the Trust ample flexibility to fund calls and act on opportunities while exits pick up.
Discount, buybacks and dividends – what matters for shareholders
At 30 September 2025, the shares traded on a 34.4% discount to NAV. The Board reports this was generally narrower than close peers and, at the time of writing, around 24.1%. The Board has been active with buybacks, deploying £22.7 million in FY25 and 5.5 million shares since January 2024, adding 8.5p to NAV per share.
The dividend rose again to 17.6p, paid quarterly. At year-end, that was a 3.2% historical yield based on the 555p share price. The Board is committed to maintaining the dividend in real terms, and PPET holds AIC “Next Generation Dividend Hero” status.
Opinion: a still-elevated discount, ongoing buybacks and a progressive dividend create a supportive backdrop for returns if portfolio momentum continues and exits accelerate.
Strategy in focus – more direct deals and the European lower mid-market
PPET’s portfolio is anchored in the European mid-market, where primary buyouts and genuine operational value creation are centre stage. The current split is:
- Primary funds: 63.3%
- Fund secondaries: 9.5%
- Direct investments: 27.2%
Management expects direct investments to move to around 30%-35% in the short term. During 2025, 78% of new commitments were in the lower mid-market – roughly €100 million to €500 million enterprise value at entry – where PPET sees the best scope for hands-on transformation and multiple routes to exit.
That tilt matters. In a world where cheap debt is less abundant, operational alpha becomes the differentiator. Owning more of the direct deals alongside core managers can also trim underlying costs and enhance performance potential.
Governance, reporting and the Chair transition
Alan Devine will step down as Chair at the 25 March 2026 AGM, with experienced industry figure Duncan Budge to succeed him. The Board has been visibly engaged – not least on buybacks, retail marketing, and a perception study – and signalled it will keep pushing on outreach with a Capital Markets Day set for 29 June 2026.
PPET has also moved from monthly estimated NAV updates to quarterly NAV announcements, better aligned to private valuation cycles, and set up an SPV in March 2025 as part of the enlarged RCF security package. Financial statements now follow UK adopted international accounting standards.
Risks and watch-outs
- Exit market timing – 62% of portfolio value is four years old or more, so a recovery in M&A could catalyse distributions and NAV uplifts. But the pace depends on macro stability.
- Currency – FX helped this year. PPET does not hedge, so swings can cut both ways.
- Over-commitment – managed at 33.8% with substantial liquidity, but continued discipline is key if exits lag.
- Valuation multiples and leverage – the top holdings’ median metrics remain sensible for quality assets, but a sharp reset in public comps would flow through to private marks.
My take – a constructive setup at a discount
PPET has strung together 16 consecutive years of positive NAV total return, and 2025 shows the engine still runs: mid to high single-digit constant currency growth plus FX, resilient earnings across core sectors, and decent exit uplifts even in a thin market. Liquidity is strong, the over-commitment is controlled, and the Trust is gradually building a bigger, more mature direct book that can drive future performance.
For investors, the key debate is the discount. At 34.4% at year-end – and c.24.1% more recently – you are still getting a wide margin to NAV for a diversified, high-quality European mid-market portfolio with a progressive dividend and ongoing buybacks. If exits continue to accelerate in 2026 as early signs suggest, that combination could be powerful.
Bottom line: a solid year operationally, a supportive balance sheet, and a strategy pointed at the right segment of private equity. If you believe the exit cycle normalises from here, PPET looks well placed for the next leg.
