SVG Capital Plc, the biggest backer of private equity firm Permira Advisers LLP, said the value of its assets rose 12 percent in the first half, boosted by investments in Hugo Boss AG and Galaxy Entertainment Group Ltd.
Net asset value excluding money management unit SVG Advisers climbed to 378.5 pence a share at the end of June, London-based SVG said in a statement today. That’s within the 363 pence to 383 pence range estimated by Oriel Securities analyst Iain Scouller.
“This has been another period of strong performance and progress for SVG,” Chief Executive Officer Lynn Fordham said. “The majority of companies in the portfolio continue to demonstrate resilient earnings growth. We remain mindful of the uncertainty in the macroeconomic environment and the impact this may have on our portfolio companies.”
SVG said in December it would return 170 million pounds ($266 million) to shareholders and widen its investments to buyout firms other than Permira. SVG has been overhauling itself since the financial crisis after it was forced to cut its commitment in Permira’s latest fund by half in December 2008. The firm has returned 87.4 million pounds to investors so far and is “making good progress” to replace Chairman Nicholas Ferguson, who will retire by the end of the year.
SVG Capital rose 1.7 percent to 265 pence as of 10:36 a.m. in London trading. The stock has climbed 29 percent this year, boosting the firm’s market value to 737 million pounds.
SVG marked up the value of its holdings in Hugo Boss and Valentino Fashion Group SpA by 20 percent to 314.4 million pounds, the firm said. The value of its holding in casino operator Galaxy Entertainment rose by 33 percent to 160.7 million pounds.
The firm’s five biggest investments, including Hugo Boss, Valentino and Galaxy, account for 73.3 percent of its holdings by value, with the three largest holdings reporting the greatest increases in value over the period, SVG said.
Permira said on July 12 it agreed to sell Italian luxury brand Valentino to a group led by Qatari investors. The deal valued SVG Capital’s holding in Valentino at about 59 million pounds, 30 million pounds more than the value it had on its books in the first quarter, SVG said then.
Permira’s current 9.6 billion-euro fund, raised in 2006, had increased in value by 28 percent at the end of June, compared with a gain of 10 percent by the end of 2011, according to a note sent to its investors today and obtained by Bloomberg News. Permira is seeking 6.5 billion euros for a new fund.