Schroder Ventures International Investment Trust plc (SVIIT), the UK-listed private equity and fund-of-funds investor, has announced a strong set of results for the final six months of 2002.
The firm reported a 9.5 per cent increase in net asset value (NAV) to £463m, up from £423m in the six months to June 2002. The results were boosted by its Homebase investment – which it made through its holdings in Permira's funds – that was exited late last year via the sale to Great Universal Stores. In total, SVIIT received approximately £109m from an original investment of £20m. The Homebase sale was voted the Exit of 2002 by readers of PrivateEquityOnline.com.
“We are pleased with the performance of the portfolio on the whole, especially given the performance of the public markets,” said SVIIT chief executive Nick Ferguson. “Even if you take out the performance of the Homebase investment, NAV fell by only one per cent compared with a 16 per cent fall in the FTSE-All-Share index during the same period.”
Ferguson said the firm intends to build on the performance of its Permira-led investments, with a substantial commitment to Permira’s third fund which the buyout firm is planning to launch soon. SVIIT also announced that it was launching a new fund, P123, which will comprise a proportion of the firm’s interests in Permira’s first and second funds, as well as a major commitment to Permira's third fund.
“The transfer of some of SVIIT’s interests in Permira Europe I and II to P123 will enable SVIIT to have a greater exposure to Permira Europe III, whilst providing investors in P123 with an exposure to Permira’s more mature funds,” added Ferguson. Further details of the fund are expected later this month.
Also launched this month is Schroder Private Equity Fund of Funds II (SPEFOF II). The fund, launched in conjunction with Schroders plc, is the successor fund to the Schroder Private Equity Fund of Funds I, which closed on E242m in June 2002. SPEFOF II will follow a similar investment remit to SPEFOF I, now 70 per cent committed, investing in both buyout and venture capital funds predominantly in Europe and the US.
In addition, SVIIT intends to make a commitment to the The Japan Fund IV (JFIV), which has been launched by MKS Consulting (formerly Schroder Ventures Japan). JFIV will predominantly invest in buyout transactions in Japan across a range of industries and sectors. Commented Ferguson: “We believe the early-stage buyout market in Japan is destined for significant growth over the next five years as a growing number of Japanese corporations begin to sell off assets.”