Private equity funds are busy right now. This is what happens when low interest rates combine with an ocean of yield-hungry capital and a pandemic-induced dent to valuations. The UK, seen as a friendly environment for acquirers, has lately become a highly active feeding ground for these funds.
- Selling picks and shovels to PE
- Strong earnings growth projected
- Discount to Sanne bid multiple
- Accruing a dividend
- Limited free cash generation
- Choppy recent advisory trading
But how do ordinary retail investors get in on the action? One way is to invest in one of the private equity investment trusts that trade in public markets. Another strategy might be to simply buy the FTSE 350 Index and wait for the next wave of takeover offers.