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QuotedData’s morning briefing 4 August 2021

In QuotedData’s morning briefing 4 August 2021:

  • One of Schroder British Opportunities’s (SBO) private equity holdings, Rapyd, has completed a $300m Series E funding round. The global Fintech as a Service company had recently acquired Valitor, a European payments and card issuing company and also launched a venture arm. The additional funds will enable Rapyd to capitalise on emerging opportunities driven by significant demand for digital payments, embedded finance, and scalable cloud-based payment infrastructure across all segments and verticals. The business also plans to double down on its channel partnerships strategy, strengthening its footprint across major high-growth markets, and explore additional acquisitions that serve its strategic goals. Tim Creed, head of private equity investments at Schroders Capital, said: “We are delighted with the progress that Rapyd has made since our initial investment.
  • The Apax X fund, in which Apax Global Alpha (APAX) is a limited partner, has announced it has signed a definitive agreement to acquire majority stakes in EveryAction, an omni-channel engagement platform for non-profits, and Social Solutions, a case management software provider of data-driven insights to non-profit and public sector customers. Upon completion, the fund hopes to combine these two companies with CyberGrants (which it invested in in June 2021) to create a new leading provider of next-generation Software-as-a-Service solutions to the social good ecosystem. The combined company will have an enterprise value of $2bn and annual revenue of over $200m, making it the largest M&A transaction in the history of the social good software sector and the second largest and fastest-growing social good software company in the sector globally.
  • Mobius Investment Trust (MMIT) has released its results for the six months to 31 May 2021, in which it delivered an NAV uplift of 22.9% and a share price increase of 20.4%. The latter reached a record high of £1.47 in late July. While MMIT traded at an average discount to NAV of 5.6% during the period under review, the discount has continued to narrow and is now trading at a premium. Managers, Mark Mobius and Carlos Hardenberg, said: “Stock selection was an important driver of performance across geographies. Over the period, the top three largest contributors to performance were Indian software company Persistent Systems (+7.1%), Indian steel tubes manufacturer APL Apollo (+5.1%), and Taiwan-based technology company eMemory Technology (+4.8%). Both technology companies benefitted from increasingly digitalised processes and the arising demand for their software and cybersecurity solutions, while APL Apollo capitalised upon its market share gains throughout the pandemic.”
  • Impax Environmental Markets (IEM) has posted its interim results for the six months to 30 June 2021. During the period, the NAV total return was 13.5% (measured in pounds sterling and with dividends reinvested), outperforming its global comparator index, which returned 11.1% on the same basis. IEM’s shares traded between a premium of 0.1% and 13.3% during the period. The company issued shares throughout the period to meet demand and manage the premium. The manager said: “The positive absolute and relative performance versus the FTSE ET100 reflected a combination of strong asset allocation and stock selection. IEM benefitted from its underweight position in Renewable Energy which saw a valuation correction from previously inflated levels, together with overweight positions in Food, Agriculture & Forestry, and Water Infrastructure, which are all positively exposed to the re-opening of the global economy. The Company also benefitted, in relative performance terms, from a correction in technology names in the FTSE 100 but not owned in the portfolio, which struggled given expectations for rising interest rates. Overall earnings delivery of portfolio companies remained robust over the Period.”
  • European Assets (EAT) has published its interim results for the six months to 30 June 2021. During the period under review, it returned 13.4% in NAV terms, and 17.6% in share price terms, outperforming its EMIX Smaller European Companies (ex UK) Index total return of 10.5%. EAT achieved a record high share price of 138.75 pence per share during the period under review. The company remains confident of the continuation of its dividend policy of paying an annual dividend equivalent to 6% of its NAV at the end of the preceding year. Chairman of EAT, Jack Perry, said: “The majority of the first half of the year has been characterised by optimism of an economic and social recovery following the widespread vaccination programmes. While Europe initially lagged in this regard, it is catching up fast and politicians and central bankers appear determined not to do anything to stall the recovery. Monetary and fiscal policy remain extremely supportive despite growing inflationary pressures. The level and duration of these pressures is the preoccupying debate in the markets, with bond yields moving accordingly. Though the authorities are clear that they believe any inflationary spike will be transitory, the debate is likely to dominate market commentary into the second half. This will not distract the investment team from executing their philosophy and process. We are fortunate that our stock research is conducted in a large diverse region of opportunities. It allows us to uncover high quality niche opportunities at attractive prices, and this is what will drive our long-term returns.”
  • Phoenix Spree Deutschland (PSDL) has reported an increase in the value of its Berlin residential portfolio of 2.5% to €777.7m following the repeal of the rent freeze (Mietendeckel) earlier this year. The group has collected 89% of €2.1m back-dated rent from the period the Mietendeckel was in place. It was report half-year results to 30 June 2021 on 24 September.

We also have full year results from Henderson Smaller Companies, a quarterly NAV update from Standard Life Investments Property Income Trust and news of a possible offer by Custodian REIT for Drum Income Plus REIT.

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