Grab a slice of big private-equity deals

Private-equity investment trusts (PEITs) have made impressive returns in recent years. James McKeigue explains how they work - and tips one trust for the adventurous investor.

When American private-equity giant KKR bought British pharmacy Alliance Boots in 2007, the $11.7bn deal was Europe's largest leveraged buy-out. Critics thought KKR would fail to make a decent return. But five years later KKR has proved the doubters wrong.

Last month it resold a chunk of Boots to an American pharmacy, almost tripling its original investment. While these mega deals are out of reach for most of us, there is a way that retail investors can get involved in the sector, via private-equity investment trusts (PEITs). But should you do so?

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.