SVG Capital reports a 12% increase in NAV per share to 735p for the six months to 31 July 2016. Excluding the currency benefit on the investment portfolio, the NAV growth was 6%.
During the period they committed GBP273 million to three new fund investments. They introduced two new managers to the portfolio (L Catterton and IK Investment Partners) and made a commitment to one of their existing managers (the Sixth Cinven Fund). They also completed two debt co-investments alongside our managers, taking the co-investment and direct portfolio to six investments.
The managers say that, whilst there are a small number of companies with operating performance behind plan, this is more than outweighed by the larger positive performers which have strong weighted average revenue and earnings growth. Companies in the Consumer and TMT sectors have seen particularly strong performance. Within Consumer, the portfolio is biased towards structural growth markets, such as health products and optical retailing. In TMT, they have seen very strong growth from co-investments, TeamViewer and Visma, resulting in uplifts in carrying value for both over the period. Elsewhere, they have seen double digit growth in earnings from Healogics and Medpace within Healthcare, and from PQ Corporation and Mauser within Industrials. A number of the larger portfolio companies are also cash generative which has enabled them to either reduce debt levels or recycle cash for organic growth or bolt-on acquisition opportunities.
SVI : SVG Capital interims show 12% NAV uplift in six months