Key Highlights

  • CT Private Equity Trust PLC (LSE:CTPE) offers a Dividend Yield of 6.08%.
  • The quarterly dividend rose 1.3% to 7.10 pence per share, with the latest paid on 30 October 2026.
  • Total dividends for 2025 were 28.13 pence per share.
  • NAV per share was 695.07 pence at 30 June 2026, while the discount widened to 28.9%.

Trust Overview

CT Private Equity Trust PLC (LSE:CTPE) is a London Stock Exchange-listed Investment trust managed by Columbia Threadneedle Investments. It invests in private equity funds and co-investments, mainly in the European lower mid-market, giving shareholders exposure to a diversified pool of private companies.

The trust's objective is to achieve long-term Capital growth while providing a predictable and above-average level of dividend, funded from a combination of Revenue and realised capital profits. The shares offer a dividend yield of 6.08%.

Dividend Record

CT Private Equity Trust pays quarterly dividends and has a long record of increases. Total dividends for 2025 were 28.13 pence per share. In 2026, the quarterly dividend increased to 7.10 pence from 7.01 pence, a rise of 1.3%. Payments of 7.10 pence were made on 30 April, 31 July and 30 October 2026, the latest following an ex-dividend date of 8 October 2026.

The predictable quarterly schedule is one of the trust's key attractions for income investors, who receive cash four times a year.

How the Dividend Is Funded

Private equity generates little conventional dividend income, so the trust funds payouts partly from realised capital gains when portfolio companies are sold. This approach allows a high dividend relative to NAV, but it relies on a steady flow of exits over time. When exit markets are subdued, the trust uses its capital reserves and borrowing facilities to maintain payments.

NAV Performance

NAV per share was 710.33 pence at the end of 2025, delivering a total return of 4.7% for the year. In the first half of 2026, NAV fell 2.1% to 695.07 pence, giving a NAV total return of negative 0.2%, an improvement on the negative 2.5% recorded in the first half of 2025. Over five years, NAV total return was around 65%, reflecting good long-term growth.

The Discount Challenge

The share price has lagged NAV. The discount widened from 21.2% at the end of 2025 to 33.5% at 31 March 2026 and 28.9% at 30 June 2026. That gap drove a share price total return of negative 9.3% for the half-year, despite a broadly flat NAV. The wide discount is the main reason the yield is above 6%, since the dividend is calculated relative to a much higher NAV.

Borrowing and Liquidity

The trust agreed a three-year extension of its borrowing facilities with RBSI and State Street, running to February 2030. This provides Liquidity to meet commitments to underlying funds and support dividends while waiting for exits. The portfolio is well diversified, with the largest holdings including Inflexion Strategic Partners, Weird Fish, Utimaco, San Siro and Sigma, each representing around 2% to 4% of net assets. That Diversification reduces dependence on any single exit to fund distributions. Over the longer term, the trust's share price total return has been attractive, with gains of about 33% over five years to August 2026 despite the recent discount widening.

Exit Environment

Exit markets remain challenging. European exit numbers were flat in the second quarter of 2026, although exit values rose almost 30%, driven by a few very large transactions. The board says the portfolio is increasingly well placed for a more active exit environment and remains confident of delivering both capital growth and income over the medium term. Leadership at board level has also changed, with Tom Burnet becoming chair in May 2026.

Risks

Key risks include a prolonged slowdown in exits, falling private company valuations, higher borrowing costs and continued discount widening. Geopolitical uncertainty, including conflicts affecting energy markets and Supply chains, can affect portfolio companies. Outstanding commitments to private equity funds must also be met when called, which competes with dividends for cash if realisations are slow.

Is the Dividend Sustainable?

The dividend at CT Private Equity Trust PLC (LSE:CTPE) appears sustainable over the medium term. The payout represents about 4% of NAV, a level that long-term private equity returns have historically supported, and extended borrowing facilities provide liquidity. The 6.08% yield is enhanced by a wide discount, which may narrow if exits accelerate.