Portfolio analysis

This page contains analysis of the investment portfolio at 30 September 2014.

The management buyout funds portfolio represents the majority of SVG Capital’s net investment portfolio (78% at 30 September 2014). It is invested in eight funds with an underlying portfolio of 53 companies.

  30 Sep 2014 30 Jun 2014
Value £806.5m £873.3m
Percentage of investment portfolio 78.3% 80.0%

Performance overview

Key features of Q3 2014:

  • -3.9% negative total return with positive movements in the valuation of the unquoted portfolio partially offsetting decline in value of the quoted companies and negative impact of foreign exchange
  • Significant distributions received following the recapitalisation of Hugo Boss and final disposal of ProSiebenSat
  • Increased pace of calls to finance our new investments, including two co-investments (TeamViewer and Visma)
  • Most companies continue to report good earnings growth, especially those with exposure to diversified global revenue streams

The Aberdeen SVG managed or advised funds portfolio represents the majority of the remaining investment portfolio and largely consists of investments in the SVG Diamond funds. The three SVG Diamond funds are leveraged private equity fund of funds products with diversified underlying portfolios of predominantly US and European focused buyout funds.

At 30 September 2014, this portfolio represented 19% of the net investment portfolio and is invested in five private equity funds of funds managed or advised by Aberdeen SVG Private Equity Advisers.

  30 Sep 2014 30 Jun 2014
Value £190.4m £186.4m
Percentage of investment portfolio 18.6% 17.1%

Performance overview

Key features of Q3 2014:

  • 2.7% total return over the period as the underlying portfolios reported continuing valuation gains
  • Portfolio of high quality private equity investments
  • Distributions from the portfolio continue at a good pace and majority at significant uplifts to carrying value
  • SVG Diamond I now completely de-leveraged, SVG Diamond II has reduced leverage by c.30% and SVG Diamond III by c.40%

 

SVG Capital's look through exposure to the top five underlying private equity funds, in aggregate

Underlying fund

Manager

Geographic focus Vintage SVG Capital look-through
value at 30 Sep 2014
Permira IV Permira Global 2006 £19.8m1
Carlyle Partners V Carlyle US 2007 £17.1m
CVC European Private Equity Partners V CVC Global 2008 £14.4m
Olympus Growth Fund V Olympus Partners US 2007 £13.0m
The Fourth Cinven Fund Cinven European 2006 £12.6m