NB Private Equity Partners dollar gains wiped out by sterling strength – The highlights from NB Private Equity’s results for 2017 are:
- 31 December 2017 Net Asset Value per share of $17.45 increased $1.54 from $15.91 at 31 December 2016. However, in sterling term the move translated to a 2p rise from GBP12.89 to GBP12.91
- NAV total return of 13.2%
- NAV increase was driven by realised and unrealised investment gains and portfolio yield income, offset by dividends paid and expenses
- NBPE’s NAV increase of $74.9 million during 2017 included:
- $89.4 million of realised gains, or $1.83 per share, net of tax expense
- $29.3 million of unrealised gains, or $0.60 per share, net of tax expense
- $16.5 million of yield income and dividends, or $0.34 per share
- $5.8 million of interest and other financing costs, or ($0.12) per share
- $24.6 million of management fees, operating expenses, and other expenses, or ($0.50) per share
- $5.5 million of losses on foreign exchange related to ZDPs and investments, or ($0.11) per share
- $24.4 million of dividends paid, or ($0.50) per share
Portfolio Commentary
- Strong cash flow: $252.8 million of realisations received during 2017
- Realisations: $112.9 million of proceeds received as a result of full sales of Evans, Deltek, Gabriel Brothers, Patheon, Ortholite, Capsugel and Oticas Carol, which in aggregate generated a 4.4x multiple
- New investments: 20 new equity investments and 12 new income investments completed in 2017 totalling $309.9 million
- Direct investment focus: 88% of fair value invested in direct equity and income investments at 31 December 2017
Outlook
The Manager believes that while many segments of the market remain competitive, there are a number of near-term opportunities that may be attractive investments for the portfolio and that the current investment pipeline remains strong.
NBPE : NB Private Equity Partners dollar gains wiped out by sterling strength