SVG Capital fashions upbeat outlook: Value rises supported by new investments
Investor and fund manager SVG Capital was upbeat about the outlook for private equity firms, after reporting half-year numbers showing a smart return from Hugo Boss.
SVG (up 5.9p to 427.3p), which typically jumps on board with investments by buyout houses such as Permira, said the value of its holdings was up, with net asset value per share 4 per cent higher at 535p.
It gained £69.4million from the sale by the Permira IV fund of a 6 per cent stake in fashion house Hugo Boss, whose new 2014 advertising campaign is fronted by Hollywood actress Gwyneth Paltrow.
Successful sale: SVG made £69.4million from the sale by the Permira IV fund of a 6 per cent stake in fashion house Hugo Boss, whose new 2014 advertising campaign is fronted by Hollywood actress Gwyneth Paltrow, pictured
It has realised a further £116million in cash distributions since June, making a total of £209million, as rising stock markets made equity sales more lucrative.
But it has poured cash into 14 projects, investing £149million since the beginning of the year.
Total return on its investments 3.4 per cent during the six months but would have been 6.9 per cent if not for the strength of sterling.
Boss Lynn Fordham said she was ‘positive on the long term outlook for private equity, albeit we are cautious about pricing and leverage levels in certain areas of the market currently.’
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