SVG Capital Plc, the biggest backer of buyout firm Permira Advisers LLP, said the value of its assets fell 14.5 percent in the third quarter as shares in investments including Freescale Semiconductor Holdings and Galaxy Entertainment Group Ltd. tumbled.
Net asset value fell to 336.7 pence a share at the end of September, the first decline since 2009, SVG said in a statement today. That was still better than the 290 pence to 310 pence range estimated by Oriel Securities Ltd. analyst Iain Scouller.
“The recent volatility in financial markets has driven down comparable earnings multiples and this has negatively impacted the valuation of our investment portfolio in the third quarter,” SVG said. “Given the current market conditions, we anticipate distributions from the portfolio to slow.”
The company marked down the value of its stake in Hong Kong-based casino operator Galaxy by 36.5 million pounds ($58 million) after the stock fell 30 percent in the third quarter. SVG Capital also reduced the value of its holding in Freescale by 26.2 million pounds following a 40 percent drop in the share price. Since Sept. 30, Galaxy Entertainment has increased 40.9 percent and Freescale by 10.5 percent, SVG said.
Permira is seeking 6.5 billion euros for a new buyout fund. It’s offering to cut fees for investors who sign up early, according to documents used to market the pool. More than 80 percent of SVG’s investment portfolio is allocated to Permira.