The trust contains three unlisted companies comprising 4.5% of the total assets at the end of September 2021, up from 0.9% in 2020, according to results released today (24 November).
These are Swedish battery manufacturer Northvolt, German transport services company FlixMobility and German digital freight-forwarder sennder Technologies.
Baillie Gifford has been increasing its exposure to private companies and had approximately £5.6bn invested in 73 private companies by the end of September.
“The investments undertaken and the reputation Baillie Gifford is establishing as a private company investor is providing an increasing quantum of introductions with entrepreneurs,” the company said in a stock exchange announcement.
“This in turn is increasing the number and quality of potential investment opportunities into private companies which are able to demonstrate their ability to scale at an attractive rate.”
At the Annual General Meeting on 3 February, Baillie Gifford will ask shareholders to approve the increase for the European Growth trust.
The trust is trading on a 2.8% discount, according to the Association of Investment Companies (AIC).
Several investment trusts have been taking advantage of that capability, increasing their allocation to private markets. Baillie Gifford UK Growth trust and Fidelity China Special Situations have both said they will be increasing their exposure to unquoted companies this year.
