Peter Walls Sees Opportunity in ‘Out of Favour’ Private Equity Trusts
Peter Walls, manager of the £117.67mn Unicorn Mastertrust fund since 2001, primarily invests in investment trusts. Despite skepticism from financial advisers, he believes taking a long-term view can be highly rewarding.
Speaking to FT Adviser, Walls highlighted how today’s tech giants, often referred to as the Magnificent Seven, started with minimal capital but grew exponentially. He sees a similar potential in listed private equity funds, which he currently holds a significant weighting in.
“These funds are hugely out of favour and trading at discounts, but I see a major opportunity in private markets to generate value,” Walls explained. “Private equity often has a bad reputation, but the investment trusts I focus on have consistently outperformed by building businesses more efficiently.”
Walls believes lack of familiarity with investment trusts deters many financial advisers from recommending them. “Many IFAs prefer open-ended funds to avoid having to explain discounts and premiums to clients,” he noted. “Investment trusts need better awareness and education to bridge this gap.”
Despite industry hesitation, Walls remains confident that undervalued private equity trusts offer strong long-term potential for investors willing to take the first step into riskier investments.
