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405.20p

SVG Capital

-4.30p at 15:53 on 21 May 2013
Detailed Analysis

Portfolio

Investment portfolio quarterly update – Q1 2013

While SVG Capital’s entire investment portfolio is formally valued at six month intervals (at 30 June and 31 December), the Company publishes quarterly net asset value updates. This adjusted net asset value is based on a revaluation of 97.5% of the net investment portfolio. The remainder of the investment portfolio has been valued at 31 December 2012 valuations, updated for any cash flow and foreign exchange movements.

Q1 2013 highlights

  • Total return on investment portfolio of +15% over the period
  • Performance has been driven by Permira IV
    o Significant uplift in the value of the quoted portfolio
    - Hugo Boss and Freescale added £63 million (23p per share)
    - ProSiebenSat valuation moved in-line with quoted share price, adding a further
    £31 million (11p per share)
    o Arysta Life Science has been written up by £22 million (8p per share), driven by earnings growth and expansion of multiples used in the valuation
  • Positive influence of multiples – the weighted average net multiple used to value the portfolio increased by 7% to 9.8x
  • Strong contribution from the SVG Advisers and SVG Investment Managers funds
    o Increase of 8% in the quarter or +£15 million (6p per share)
  • 60% of the portfolio is now valued on a quoted basis - no material change in its value since 31 March 20111
  • New commitments have been made to the Fifth Cinven Fund (€100 million) and Permira V (€100 million); SVG Capital expects to make further new investments in the next 12 months

Outlook

The portfolio is performing well with companies budgeting for continued growth in 2013. Permira and the underlying management teams continue to concentrate on creating value through operational initiatives as well as maintaining a strong focus on capital structures and risk.

1 As at 23 April 2013