abrdn Private Equity Opportunities Trust - Wider discount to NAV amid macro risks

Abrdn Private Equity Opportunities Trust (APEO) posted a 6.8% NAV total return (TR) in H122 (ending March 2022), which was a function of a robust return in late 2021 (in calendar Q421 at 5.2%, driven by profitable exits). The NAV TR between end-December 2021 and end-June 2022 stands at 2.4%, but its latest NAV is still largely based on end-March 2022 valuations and does not capture the subsequent sell-off in public equities. APEO’s manager acknowledges that macro headwinds are likely to exert pressure on corporate earnings and portfolio valuations in H222. We note that this has already been reflected in its share price as APEO’s discount to NAV widened to c 39% (versus 20% in our February 2022 note).