Private equity investor SVG Capital, which achieved decent growth in its net asset value (NAV) in the first half, saw it head the other way in the third quarter.
NAV per share was 361.8p in the three months to September 30th, down 4.4% on the quarter. Combined with NAV growth of 12.3% in six months to June 30th, the year-to-date NAV growth was 7.3%.
However, since the quarter-end, positive movements in the quoted portfolio have added £21.3m, equal to 8.0p per share, taking the roll-forward NAV to 369.8p as at October 18th.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
SVG said: "We have continued the active management of the balance sheet, concentrating on potential future incremental returns from the more mature assets with reference to our long term public market outperformance target and alternative uses of capital, including buying back our shares in the market."
However, the company said that remains cautious about its outlook: "Visibility of the operating environment is limited and macro-economic concerns remain prominent."
SVG realised £102.1m of proceeds during the three-month period, including £70.8m from the partial realisation of Galaxy Entertainment Group after Permira IV, in which SVG has holdings, sold a 53% stake in the Hong Kong-listed casino and hotel operator.
There was a negative total return of 1.5% in its investment portfolio during the third quarter with foreign exchange and a 12% decline in Hugo Boss's share price largely behind the result.
Net debt fell to £136.5m in the quarter, bringing the net debt as a percentage of shareholders' funds down from 19.3% at the half to 13.5%.
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
