The net asset value of Princess Private Equity Holding Limited increased by 5.8% over the first half of 2016 to end the reporting period at EUR 9.78 per share (adjusted for the first interim dividend of EUR 0.27 per share distributed in June). As of the end of the reporting period, the 50 largest direct portfolio companies, representing 58.0% of NAV, achieved double-digit weighted average year-on year revenue and earnings (EBITDA) growth of 10.6% and 13.8% respectively. Positive revaluations for a number of direct investments were the main driver of performance over the period. Princess’ share price declined over the reporting period, closing at EUR 7.31 per share. This represents a total return of -3.8% for the first half of 2016.
Overall distribution proceeds to Princess from exited investments totalled EUR 131.2 million for the first half of 2016, compared to EUR 42.7 million in the corresponding period. The largest contributors to Princess’ NAV growth over the second quarter were the direct investments in VAT Group AG, Action and KinderCare Education:
VAT Group AG (VAT) completed a highly oversubscribed initial public offering on the SIX Swiss Exchange and began trading on 14 April at CHF 45 per share, which valued the company at a total market capitalization of CHF 1.35 billion. During the listing and subsequent exercise of the over-allotment option, Partners Group sold a portion of its shares in VAT and now holds 29.3% of the company. During the second quarter of this year, VAT Group AG recorded a positive share price development (+37.1% in CHF since IPO).
Action, one of Western Europe’s largest non-food discount retailers based in the Netherlands, reported positive financial performance: Net sales grew to EUR 2 billion in 2015 (+32% compared to 2014) while EBITDA rose by 36%. Action successfully expanded the number of stores with a particular focus on France where the number of stores more than doubled. Action now operates 655 stores in six countries. This year, Action plans to continue its store expansion, with a focus on France and Germany.
KinderCare Education, a leading US provider of early childhood education and care services for children aged six weeks to twelve years, reported higher than forecasted center occupancy rates and an increase in EBITDA for the second quarter 2016.
In the first six months of the year, Princess invested a total of EUR 49.7 million (compared to EUR 29.1 million in the same period last year). EUR 36.8 million was invested into four new direct equity investments (MultiPlan 2016, ADT Corporation, Hortifruti, Guardian Early Learning Group and Au Housing Finance Ltd.) and seven new direct debt investments. In addition a further EUR 12.9 million was invested in follow-up investments in existing portfolio companies (Permotio International Learning, KinderCare Education and the legacy fund portfolio).
PEY : Direct investments boost Princess Private Equity