25th Sep 2013 11:03
LONDON (Alliance News) - Graphite Enterprise Trust PLC Wednesday said its net asset value per share increased 8.1% in the first half of its financial year as equity markets continued to recover, and it's seeing many opportunities to invest in new funds and to acquire interests in existing funds having doubled commitments since the end of the year.
"Over both the short and long term, the company's net asset value has been one of the top performers in the listed private equity sector. The maturity of our portfolio and its strong recent performance make Graphite Enterprise very well positioned for future growth," Chairman Mark Fane said in a statement.
The 8.1% increase in net asset value to 682.3 pence compared with a 6.8% increase in the FTSE All-Share in the six months to end-July. The underlying value of the portfolio in local currencies grew 9.3%, driven by earnings growth at the portfolio companies, and its net assets reached an all-time high of GBP498 million.
"Over GBP40 million of commitments were made in the six months to July and since then we have committed GBP100 million to Graphite Capital's latest fund," it said, bringing total commitments to over GBP250 million.
"We expect to make further new commitments in the coming months," it added.
It realised GBP39.6 million from sales from the portfolio, and invested GBP30.1 million in new additions.
"We do not believe, however, that the impact of rising equity markets has yet been fully reflected in our portfolio, with valuation multiples remaining broadly unchanged," Fane said. "If this positive market backdrop persists, we expect good underlying company trading to drive stronger realisations and this in turn will drive the company's net asset value performance."
Graphite Enterprise shares were up 3.3% at 528.84 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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