Electra, the investment trust that invests in private equity ventures, has reported an 11 per cent year-on-year rise in diluted net asset value (NAV) per share to 2,473p at the end of September.
This compares with 2,225p at the same date in 2011, with the increase of 11% comparing to the FTSE All-Share increase of 13%.
Over the ten years to September 30th, the diluted NAV per share, inclusive of special dividends, has increased by 232% and Electra achieved an annualised return on equity of 13%.
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During the 12 months prior to the end of September, the company invested £150m, compared to £136m in the prior year.
Of the deals completed in this period, a total of £69m was invested in acquiring term debt in Park Resorts, one of the UK's leading caravan park operators, and £22m was invested in Peverel Group, one of the leading UK property management service groups.
"Over the year Electra Partners had a strong flow of new deal opportunities although the rate of conversion to investment was relatively low due to a number of factors including the large gap between buyer and seller price expectations," the company said.
It also commented that the above deals are good examples of its "ability to take advantage of distressed opportunities and make investments across the capital structure".
Looking ahead, the company said it believes its deal flow will increase in the coming months, driven by a greater number of distressed sales and the need for companies to refinance debt, dispose of non-core assets and simplify their businesses. It also expects further opportunities to arise from the banks as a result of new banking capital requirements.
Colette Bowe, Chairman of Electra Private Equity, said: "Electra continued to make good progress over the year to September 30th 2012. Proceeds from portfolio realisations, made at good uplifts to carrying values, were almost double those achieved in the previous year.
"With its experience of successful investment through a number of economic cycles, Electra Partners has the flexibility to adapt to changing market conditions and the ability to structure deals creatively so as to work around vendor constraints. The Board believes these factors will ensure that Electra continues to deliver value over the difficult period ahead."
Hugh Mumford, Managing Partner of Electra Partners, added: "Although Electra Partners experienced a strong deal flow throughout the year, pricing continued to be a significant factor in the number of new investments completed. Despite this, the aggregate value of new investments was greater than in 2011 and we remain committed to ensuring that all new acquisitions provide attractive returns and appropriately reflect the uncertainties ahead.
"With Electra's flexible investment mandate and ability to invest across the capital structure in both debt and equity positions, we expect that the number of new opportunities will rise over the next 18 months and deliver an increase in completed new investments."
The share price rose 1.82% to 1,850p by 14:35.
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