Patria Private Equity Trust Reports 3.1% NAV Total Return for First Half of 2026

Patria Private Equity Trust, or PPET, has posted a solid first half for 2026. In plain English, the value of its portfolio kept moving up even though markets were choppy, private equity exits stayed slow and software valuations came under pressure.

The headline number is a 3.1% NAV total return for the six months to 31 March 2026. NAV means net asset value – effectively the underlying value of the trust’s investments after debts. That is the number private equity trust investors usually watch most closely.

My take: this is a good, steady update rather than a barnstormer. It shows resilience, but it also reminds investors that PPET is still dealing with the big issue hanging over listed private equity – a stubbornly wide share price discount.

Patria Private Equity Trust half-year results 2026: the key numbers investors need

Metric	31 March 2026	Comparator
NAV total return	3.1%	2.6% at 31 March 2025
Share price total return	5.5%	5.9% at 31 March 2025
NAV per share	862.5p	845.5p at 30 September 2025
Share price discount to NAV	33.1%	34.4% at 30 September 2025
Forecast annual dividend	18.4p	17.6p in FY25
Realisations	£125.6 million	£108.0 million at 31 March 2025
Drawdowns	£95.6 million	£107.0 million at 31 March 2025
Outstanding commitments	£824.9 million	£759.3 million at 30 September 2025
Available resources	£276.7 million	£294.2 million at 30 September 2025
Net gearing	9.7%	8.4% at 30 September 2025

Why PPET’s 3.1% NAV total return matters in a difficult private equity market

This result matters because the backdrop was rough. PPET itself points to geopolitical disruption, higher energy prices, inflation pressure, weaker public markets and slower M&A activity. That combination tends to hurt private equity valuations and delay exits.

Despite that, PPET still grew NAV per share from 845.5p to 862.5p. That suggests the underlying portfolio companies were still trading well operationally, even if market sentiment was less friendly.

The trust says the top 100 portfolio companies delivered average revenue growth of 13.7% and EBITDA growth of 13.4% over the twelve months to 31 March 2026. EBITDA is a rough measure of operating profit before interest, tax, depreciation and amortisation. In short, the businesses appear to be growing earnings at a healthy clip.

That is the good news. The less cheerful bit is valuation pressure. The median valuation multiple for the top 100 companies slipped to 13.4x EBITDA from 13.7x at 30 September 2025, which tells you market pricing got a bit colder.

Patria Private Equity Trust software exposure and market volatility: risk, but not panic

One area worth watching is software. PPET says around 19.5% of portfolio NAV is in software companies, with total information technology exposure at 23% of the underlying portfolio.

That has clearly been a drag on sentiment because listed software shares fell during the period, and private equity valuations are partly benchmarked against public market peers. So even if the companies themselves are still growing, the price investors are willing to pay has softened.

I would not call that a red flag on its own. PPET stresses most of this exposure is in B2B vertical software, and that the holdings are diversified. But it is a reminder that private equity valuations do not exist in a bubble. If listed peers wobble, private assets usually feel it too.

PPET dividend growth, share buybacks and the stubborn 33.1% discount to NAV

Income investors will like this bit. The board intends to increase the total dividend for the year to 18.4p per share, up from 17.6p, marking the 12th consecutive year of dividend growth.

That is a strong signal of confidence, and management says it is committed to maintaining the dividend’s real value. In a trust sector where payouts can sometimes feel a bit decorative, this consistency matters.

PPET also kept buying back its own shares. During the half year it repurchased 1.9 million shares for around £11.3 million. Since the buyback programme started in January 2024, total buybacks have reached 7.0 million shares, which the company says added 10.8p to NAV per share for remaining shareholders.

That is positive, but here is the big reality check: the discount is still 33.1%. Yes, it narrowed from 34.4%, but a one-third discount is still enormous. It means the market price of 577.0p is far below the reported NAV of 862.5p.

For bargain hunters, that may look attractive. For everyone else, it shows the market still wants proof that private equity valuations can convert into cash through exits.

PPET cashflows, new investments and balance sheet strength explained

Cashflow was encouraging. PPET generated £125.6 million of realisations against £95.6 million of drawdowns, so the portfolio produced net positive cashflow in the period.

That is important because private equity trusts live and die by cash discipline. They commit money up front, then managers call it over time. If exits dry up and commitments pile up, balance sheet stress can creep in quickly.

On that front, PPET looks under control rather than stretched. Outstanding commitments rose to £824.9 million, and the overcommitment ratio reached 39.4%. Overcommitment means the trust has promised more capital than it currently has on hand, on the assumption that money will come back from exits over time. That sounds scary, but it is normal in private equity, and PPET says this remains within its long-term target range of 30% to 65%.

It also had £276.7 million of available resources, including cash and an undrawn credit facility, at the period end. Net gearing rose to 9.7%, which is higher than 8.4%, but still not excessive by investment trust standards.

Investment activity remained busy too, with 10 new investments and commitments totalling £175.9 million. Notably, PPET committed £36.8 million to Patria Co-investment Partnership Fund I, a Patria-managed direct investment fund that should help it access more co-investment opportunities and, according to the RNS, avoid double charging on management fees.

What this PPET RNS means for retail investors now

I think this is a reassuring update overall. The portfolio is still growing earnings, cash realisations were stronger than drawdowns, the dividend keeps rising and the balance sheet appears robust enough to keep investing.

The negative is not hidden. Exit markets remain subdued, software valuations are under pressure, and the discount is still painfully wide. If that discount does not narrow meaningfully, shareholders may keep feeling that the market is giving little credit to the underlying portfolio quality.

So the investment case is fairly clear. If you believe PPET’s valuations are broadly sound and exit markets improve over time, a 33.1% discount could look compelling. If you think private equity marks are still vulnerable and exits stay frozen, the discount could remain sticky for a while yet.

For now, this half-year report says PPET is coping well, not cruising. In this market, that is a result worth respecting.