F&C Private Equity says that, as at 30 June 2016 the Company’s net asset value was GBP232.2 million giving a NAV per share of 314.08p. Taking into account last year’s final dividend of 5.83p per share paid on 31 May 2016 the NAV total return for the first half of the year was 8.2 per cent. The Board has declared a semi-annual dividend of 6.12p.
Ionisos is the largest uplift in the portfolio at GBP1.9 million reflecting its post period end sale. The Inflexion Funds have had a strong start to the year and Inflexion 2012 Co-Investment Fund and Inflexion 2010 are up by GBP1.5 million and GBP0.9 million respectively. Park Holidays continues to trade well and profits progression has resulted in a GBP0.9 million uplift. In Sweden Procuritas IV has been uplifted by GBP0.5 million, mainly reflecting the very strong trading of ice cream machine maker Gram. Downgrades have included our co-investment in Meter Provida which has had some weaker trading and is down by GBP0.6 million. Lesser adjustments have been included for some of the mature and older funds with each of August Equity Partners II, PineBridge New Europe II and Candover 2005 down by GBP0.3 million.
In the first half of the year they have invested through funds and co-investments a total of GBP19.3 million. Realisations over the period were GBP19.2 million. During the first half of the year six new commitments to funds have been made and two co-investments. Following the period end a further five fund commitments have been made.
A number of UK based funds have been added. GBP4 million was committed to FPE Fund II, a growth equity fund managed by the team formerly part of Stonehage Fleming, Europe’s largest multi-family office. GBP10 million was committed to August Equity Partners IV, the latest fund from these well-established lower mid-market buyout specialists. GBP3 million was committed to Inflexion Enterprise IV and GBP2 million to Inflexion Supplemental Fund IV. These funds, each of GBP250 million, will invest respectively in companies with enterprise values of GBP20 million – GBP45 million and in somewhat larger deals alongside the main Inflexion funds. After the period end GBP5 million was committed to Piper Private Equity VI, a GBP100 million fund which will invest in UK lower mid-market companies involved in consumer brands. A commitment of GBP7.5 million has been made to SEP V, backing one of the UK’s most successful venture capital firms.
In Europe EUR8 million was committed to Astorg VI, a France focused mid-market buyout fund which specialises in control investments in B2B companies with market leading positions in niche sectors. French exposure has been further renewed through the commitment, after the period end, of EUR5 million to Montefiore IV, a services sector fund investing in companies in the enterprise value size range of EUR25 million – EUR250 million. Two new commitments were made to their leading German speaking Europe investment partner, DBAG. EUR6.3 million was committed to their fund VII and EUR1.2 million to fund VII B. DBAG Fund VII follows DBAG’s long term strategy in mittelstand, mainly capital goods, companies and Fund VII B will selectively invest in a limited number of these deals as a ‘top up’ fund. Lastly they have identified a fund to capture the best of the Benelux region. EUR9 million has been committed to Bencis V, a mid-market fund focusing on companies with enterprise values between EUR20 million and EUR100 million.
Two new co-investments were added during the first half of the year. EUR4 million was invested for 6.2 per cent of Calucem, a Croatia based speciality chemicals company which is the world no 2 producer of Calcium Aluminate Cement (CAC), a material which is used in a number of high performance construction and industrial applications. The company has the dual benefits of a competitive cost base in Croatia and a largely German based R&D team. The deal is led by Italian mid-market specialists Ambienta. GBP4.4 million has been invested for 14.3 per cent of Ashtead, an Aberdeen-based oil services company which rents and services specialist equipment used in inspection maintenance and repair for existing production fields, brownfield extension and new field construction. The deal is led by Buckthorn, a specialist private equity manager focusing on energy and energy services.
FPEO : F&C Private Equity posts 8% return for H1