Epiris, the manager of Electra Private Equity (Electra), has announced that it has sold its remaining stake in Hollywood Bowl. Electra is to receive £40 million from the sale. This reportedly represents a small decrease in Electra’s NAV on the valuation of the investment at 30 September 2016 but, inclusive of proceeds already received, Espiris says that this equates to a total equity return for Electra’s investment in Hollywood Bowl of 3.9x original cost and an IRR of 92%.
About Electra Private Equity
Electra Private Equity is a private equity investment trust which has been listed on the London Stock Exchange since 1976. As at 31 March 2017 its net assets were £2.1 billion or 5,544p per share. Electra’s objective is to achieve a return on equity of between 10% and 15% per year over the long term by investing in a portfolio of private equity assets. Electra says that performance is in line with this objective: for the 10 years to 31 March 2017 Electra’s return on equity was 13% per year. Electra says that its performance has been consistently superior to that of the Morningstar Private Equity Index and the FTSE All-Share Index.
On 25 January 2016 the Board of Electra announced that it was reviewing the Company’s investment strategy and policy and its structure. On 26 May 2016 the Board provided an interim update on this review in which it announced that it had decided to establish an executive function and served twelve months’ notice of termination of the contracts under which management of its operations and investments is outsourced to Epiris. On 14 October 2016 the Board announced the outcome of the first phase of the review, including its intention to internalise all management functions and to migrate the Company from an investment trust structure to a “corporate” structure; and its intention to commence the second phase of the review in June 2017. On 31 May 2017 Epiris will cease to manage Electra’s business and affairs.
Electra Private Equity to receive £40m from the sale of its remaining stake in Hollywood Bowl