Princess Private Equity direct investments drive NAV growth in 2018 – While Princess Private Equity (PEY)’s NAV in the year to December 31, 2018 was up by 6.8% percent on a total return basis, its shares were down 16% following a period of severe volatility in public markets in December, as investors went into risk-off mode.
In the year-end results press release, PEY Chairman, Richard Battey, states: “In 2018 Princess achieved a positive NAV performance driven by double-digit revenue and EBITDA growth at underlying portfolio company level. Following an active period for new investments and realizations, Princess is now fully-invested.”
The company provided the following key highlights:
- NAV increased to EUR 10.90 per share, representing a total return of +6.8% for the year
- Share price total return was -16.0% due to higher volatility in public markets and negative market sentiment in general
- Valuation developments (+10.2%) were the key driver of NAV growth. The largest contributors to NAV growth were the direct investments in Action (discount retailer), Permotio (international schools) and Ceridian HCM (software)
- The company paid total dividends of EUR 0.56 per share during the year, representing 5.2% of opening NAV
- Investment activity totalled EUR 157.0 million, including Partners Group’s acquisitions of GlobalLogic, Hearthside Food Solutions, Techem and Vishal Mega Mart
- Realisations of EUR 131.8 million, including the full exits of Trimco, Varsity Brands and VAT Group
PEY’s discount increased from 9.7% on November 30, 2018 to 24.3% on December 28 over the December market turmoil. Over recent weeks, the discount has mostly been in the 15-16% range, compared to 7-8% a year ago. PEY’s shares are up about 14% in the year-to-date.
About Princess Private Equity
PEY is an investment holding company domiciled in Guernsey that invests in private market investments. Investments include primary and secondary fund investments, direct investments and listed private equity. Princess aims to provide shareholders with both long-term capital growth and an attractive dividend yield. The portfolio has traditionally encompassed a broad sectoral exposure with large geographic exposures to Europe and North America. Buyouts transactions have traditionally dominated the portfolio, with a strong emphasis on small/mid-caps, whilst smaller allocations are made to special situations, mezzanine, venture and growth financing transactions.
Back in September 2017, the company introduced a sterling line of stock, PEYS, that is indistinguishable from the Euro line of stock except in regards to the currency it trades in. NB the PEYS portfolio is not hedged back into sterling.
Princess Private Equity direct investments drive NAV growth in 2018: PEY/PEYS