22nd Nov 2019 14:50
(Alliance News) - BMO Private Equity Trust PLC on Friday said its net asset value rose in the third quarter of 2019, with the biggest positive valuation change coming from its co-investment in Croatia's Pet Network.
As at September 30, BMO Private Equity's NAV per share had climbed 6.1% to 390.81 pence from 368.45p the same date the year before and 1.2% from 386.29p at the end of 2018. NAV total return for the three months to the end of September was 1.7%.
A number of valuations took place in the year, with Pet Network having a GBP1.4 million valuation gain in the period.
The private equity fund and private business investor declared an 8.1% higher quarterly dividend of 3.87p per share, having paid a 3.58p per share dividend the year before.
Investment Manager Hamish Mair said: "Activity within the private equity market internationally remains at healthy levels albeit below 2018 levels. This is backed by on going appetite for the asset class and strong fund raising. New deals are being initiated in all markets in near record volumes. The very strong market for exits which has characterised the last three years is showing some signs of catching its breath. The trading performance of the portfolio is robust with a limited number of sector or company specific areas of concern.
"The price of new deals remains high by historic standards driven in part by the considerable amounts of private equity commitments and abundant cheap debt. Despite this the lower mid market in Europe remains relatively less expensive and continues to be a good hunting ground for our value-oriented investment partners. The heterogenous nature of our dealflow also continues. At this stage in the year, there is considerable scope to build further shareholder value."
Shares in BMO Private Equity were down 0.6% at 363.87p in London on Friday afternoon.
By Anna Farley; [email protected]
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