ELTA : A good year for Electra
Electra Private Equity, chaired by Roger Yates (pictured) has had an eventful but nonetheless successful year. An approach by Sherborne Investors, which was ultimately defeated at an EGM at the beginning of October, may have been a distraction but, despite this, Electra has provided a return of 15% on its diluted NAV during the 12 months to 30th September. During the same period its share price rose 19%. Electra targets total returns of 10 – 15% per annum, over the long term, and so this years results are at the top end of the long term range. Moreover, during the last ten years its diluted NAV (including dividends) has provided a return of 262%, which is equivalent to an annualised total return of 14% per annum.
Electra has made, for the second year running, a record level of investment (£410m for 2014 vs. £337m for 2013). 96% of this was in Electra’s direct unlisted portfolio where new investments were made in buyouts, co-investments and bolt-on transactions. Portfolio realisations were £352m, down £459m for 2013, but reflects the high levels of realisations during the last two years. In terms of outlook, Electra reports that it is seeing encouraging trading within underlying its underlying portfolio companies and, if this continues, it could be supportive of further NAV growth.
Following the defeat of the Sherbourne resolutions, the board announced a review of Electra’s fee arrangements, its capital structure and distribution policy. The board intends to release the results of this review shortly.