Further updates from private equity funds include the last set of half-year results from Apax Global Alpha before its fund manager takes it private plus July valuation reports from Pantheon International, Patria and NB Private Equity. Winding-down Abrdn European Logistics Income prepares to pay out a further £53m to shareholders.
Apax Global Alpha (APAX) issues its last half-year results before being taken private by its fund manager pending a vote by shareholders. Chair Karl Sternberg says “the board shares my regret at the loss of one of the UK’s listed private equity funds; we remain firm believers in the value of the closed-ended listed structure for holding illiquid assets which offer substantial advantages over Long-Term Asset Funds. Despite the lull in performance over the last few years, we believe that Apax remains a high-quality private equity advisor.” Apax is buying the portfolio of stakes in its funds for £794m, 17.1% less than net asset value (NAV), though Sternberg indicated the true discount was lower as the valuation did not include the “substantial advisory fees” paid by the company during a strategic review and sales process. In the six months to 30 June NAV fell 6.1% to €1.1bn with dividends included, largely due to the dollar’s fall against the euro, which was a feature of results from Partners Group Private Equity (PEY) and CT Private Equity (CTPE) yesterday. On a constant currency basis the total underlying investment return was 2.5%. NAV per share stood at €2.29/£1.97 at 30 June.
Pantheon International (PIN) net asset value rose 3.7% last month with NAV per share of the private equity fund gaining 18.1p to 510.4p at 31 July. Positive currency movements added 13.9p per share followed by 4.4p from valuation gains and investment income with share buybacks contributing 0.8p and expenses and taxes deducting 1p from NAV per share. The £2.5bn portfolio of funds and direct stakes in private companies generated net cash of £8.6m during the month, receiving distributions of £23.1m and investing £14.5m in existing private equity funds. In addition it made £47.3m of new commitments to private equity funds including a £23.6m primary commitment to Hg Genesis 11, a European buyout fund focused on software and services companies. PIN said 80% of its fund holdings were still valued at 31 March. The gain in July leaves the portfolio up 5% over one year. At 325.5p yesterday the shares stood 36% below the new NAV. The company has spent £19m of the £30m allocated to share buybacks for this financial year.
Patria Private Equity (PPET) gained 0.6% last month with net asset value closing at £1.18bn at 31 July with NAV per share of 795.4p up from 790.3p at 30 June. The 5.1p increase reflected currency gains with the euro rising 1% against sterling and the US dollar advancing 3.4% versus the pound. These were partly offset by the second interim dividend payment of 4.4p per share or £6.6m. The rise leaves the funds portfolio up 6.6% over one year although the shares, trading on a 31% discount to NAV, have returned -1%. PPET invested £21m in commitments to existing funds and received £11.1m in distributions from investments in July.
PPET fund manager Alan Gauld will join QuotedData’s James Carthew for an “Understanding Private Equity” discussion at 11am this morning. Steve Tredget from Oakley Capital and Andrew Carnwath from CT Private Equity are also taking part. Register here.
NB Private Equity (NBPE) reported a 2.2% investment return for last month with net asset value per share of $27.54 (£20.81) at 31 July after payment of the $0.47 per share dividend, a total return of 2.2%. On a constant currency basis private equity valuations roe 2.3% in the second quarter and 1.9% year to date. A further 35,000 shares were bought back at a cost of $700,000 at an average 27% discount.
Abrdn European Logistics Income (ASLI) will pay out a further £53.5m to shareholders in the third distribution from its wind-down next month. This will be made through the issuance and immediate redemption of ‘B’-shares on 17 September. The payment is equivalent to 13p per ordinary share and follows the completion of recent asset sales. Following earlier ‘B’-share distributions of 4p and 12p per share in March and this month, the company will have paid out a total of 29p per share or £119.5m.
Warehouse REIT (WHR) has moved back the date of its annual general meeting from 2 September to 30 September to give shareholders time to consider the recommended cash offer from Blackstone. It will be held at the London offices of its fund manager Tilstone Partners. Blackstone has received acceptances from 35.6% of shareholders.
CVC Income & Growth (CVCG), a £186m floating rate loan fund, returned 0.6% last month with net asset value per share at 194.8p on 31 July. Fund managers Pieter Staelens and Mitch Glynn said European leveraged loan markets had been resilient and they had been “fairly active” with trades including cross-currency opportunities to take advantage of pricing differences between dollar and euro loans from the same issuer. The weighted market average price of loans in the portfolio was 93 versus their 100 maturity price, trading at a sterling yield to maturity of 13.5%. The shares yield 7.4% and stand on a small premium of 0.5% over NAV.
Tetragon (TFG) says the net asset value of its $3.5bn hedge fund and alternative asset platform slipped 0.6% last month with fully diluted NAV per share of $38.41 at 31 July. At $17.80 shares in the 2.6% dividend yielder stand on a 58% discount.
