F&C Private equity sees discount narrow in first half

FPEO : F&C Private Equity sees discount narrow in first half

F&C Private Equity‘s recent interims report a share price total return for the first of 2014 of 9.1% whilst NAV total return was -0.3% (including an adverse currency movement) reflecting a narrowing of the discount during the period. Co-investments were increased to 17.5 per cent of the portfolio during the period (up from 11.8%) and the medium term aim is to build this gradually to around 25%. FPEO’s investment partners have been deploying funds in a range of companies across Europe. Managed by Hamish Mair (pictured), FPEO reports seeing good flow of new opportunities in the European mid-market and the manager’s expect to commit to several more funds by the end of 2014. Additionally, the dealflow of co-investments and secondaries is reportedly good and the manager’s expect to add further to both categories as the year progresses. The primary negative has been the strengthening of sterling, which is the primary cause of the drop in NAV. 

FPEO has also arranging a new five year loan facility of approximately £70 million at the end of the period. The board intends to use some of this facility to at least partially fund the pending redemption of the FPEO’s Zero Dividend Preference Shares in December this year.