Permira performance boosts SVG

Strong performance across Permira’s funds has sent SVG Capital’s net asset value up 16.6% in the first quarter.

SVG Capital, fresh from forcing through a strategy overhaul enabling it to invest in funds outside Permira, posted strong first quarter results Thursday, sending its share price up nearly 4 percent in overnight trading.

The UK fund of funds was buoyed by strong performance across Permira’s three funds, where NAV rose 15 percent, with a 19 percent increase in Permira IV alone, said a Permira investor. Permira declined to comment.

Nine of SVG’s 10 biggest investments by value were written up, with Danish Telecoms company TDC the only write-down. The firm’s exposure to casino group Galaxy Entertainment was written up 46.4 percent to £175.8 million, while clothing designer Hugo Boss was up 20.9 percent to £315.4 million.

That performance sent SVG’s NAV per share up 16.6 percent to 393.2p, it said in the results statement.

SVG returned a total of £60.8 million to shareholders in the first quarter. It announced the completion of a £50 million tender offer at 321p per share, as well as the buy-back of £10.8 million of shares. Net debt now stands at £187.3 million, 16.5 percent of adjusted shareholders’ funds.

In February, SVG reported its best cash position since the onset of the financial crisis, with net debt of £128 million – 12 percent of shareholders’ funds – at year end.

The fund of funds has been free to invest in managers besides Permira, which traditionally has received almost all its capital, since an extraordinary general meeting last month where 66 percent of shareholder votes were in favour of the change.

The vast majority of ‘against’ votes came from Coller Capital, which has held a 20 percent stake since 2009. Coller claimed there was an agreement that SVG would be wound-down enabling shareholders to fully exit their investments.