Private market investing in niche consumer brands is yielding

Private market investing in niche consumer brands is yielding robust exits as acquisition activity spikes in the DTC e-commerce sector. The UK’s oldest investment trust, F&C, also offers another performance comparison: It’s a diversified global portfolio of more than 400 stocks. This Neutral-rated trust is a popular retail holding among UK investors and counts Nvidia, Microsoft MSFT , Meta META , Apple AAPL , and Amazon AMZN among top holdings. It also holds about 10% in private equity. Over 10 years this trust has posted annualized returns of 12%, and just below 10% over 20 years. Over 10 years its performance was better than the majority of the 19 private equity trusts, but over 20 years it lagged most of the PE trusts with a track record for the period. As a growing share of value creation moves outside public markets, traditional portfolios may no longer capture the full spectrum of long-term growth. Family offices are increasing private market investing exposure to luxury real estate in Asia-Pacific, posting an average 12% rental yield due to tourism’s post-COVID rebound.