SVG Capital Plc, the biggest backer of private equity firm Permira Advisers LLP, plans to return 300 million pounds ($465 million) to investors over three years after the value of its holdings rose 16 percent in 2012.
Net asset value a share climbed to 391.2 pence at Dec. 31 from 337.1 pence in the year-earlier period, buoyed by the firm’s holdings in fashion label Hugo Boss and casino operator Galaxy Entertainment, the London-based company said in a statement today. The firm also committed 100 million pounds to Cinven Ltd.’s latest private equity fund.
SVG Chief Executive Officer Lynn Fordham is seeking to broaden the firm’s range of investments beyond Permira following the financial crisis. The firm was forced to cut its pledges to Permira by more than half in December 2008 and raise funds in a share sale after the value of its holdings plunged.
“The work by Permira and the underlying management teams has translated into a material increase in the value of our assets,” Fordham said in today’s statement. “The company can now start laying the foundations of its future returns beyond the current portfolio with its first new commitment, which is to the fifth Cinven fund.”
SVG will also sell a 50.1 percent stake in SVG Advisers, its private equity fund management unit, to Aberdeen Asset Management Plc for 17.5 million pounds, the company said. After three years, Aberdeen has the option to buy the remaining stake for between 20 million pounds and 35 million pounds.
The stock advanced 6.2 percent to 368.40 pence in London trading, it steepest increase since June. The shares have jumped almost 28 percent so far this year.