SVG Capital
Results for the 13 months to 31 January 2015
Fifth consecutive year of double digit returns
NAV per share growth of 14% to 588p
Continued strong performance of the investment portfolio
- 10% total return in the 13 months, despite the significant headwinds of foreign exchange
- In constant currencies the portfolio generated a total return of 17%
- Fifth consecutive year of double digit returns
Good progress on new investment strategy
- £467m committed to private equity since 2012
- Post-2012 investments now account for 24% of the investment portfolio
- Weighted average earnings and revenue growth of 12% and 10% respectively
$100m commitment to FFL, a leading US mid-market private equity investor
- Invests in lower middle market companies with a typical enterprise value of $100m to $500m
Record period for distributions - £330m in total
- In addition, £300m of distributions announced since 31 January
Good pipeline of new investment opportunities
- Expect to make at least one further commitment this year and further co-investments
£470m capital return target reached
- Further tender offer of up to £70m in May 2015, taking total capital returned since December 2011 to £540m, well in excess of target
- Pricing of the tender offer will be with reference to share price and adjusted 31 January 2015 NAV
- Will continue to return excess capital through share buybacks and tenders
Balance sheet remains strong and good coverage of £367m of uncalled commitments
Lynn Fordham, CEO of SVG Capital commented: "This is our fifth consecutive year of double digit growth with significant gains across the portfolio, despite the significant headwinds of foreign exchange. The period also marked a record year for distributions with £330 million of proceeds received from the portfolio. Against this we have paid £177 million of calls as the transition to post-2012 investments gathers pace. New investments now account for 24%[5] of the portfolio with a number of the investments reporting strong operating performance.
Since the announcement of the change of investment strategy in 2011 we have returned £470 million of capital to shareholders and committed £467 million to new private equity investment, balancing longer term net asset growth with efficient balance sheet management. The forthcoming tender offer of up to £70 million takes total capital returned to shareholders to well in excess of our £470 million target and we will continue to return excess capital to shareholders through share buybacks and tenders, dependent on market conditions and our investment pipeline."
