23rd Oct 2024 10:30
(Alliance News) - Patria Private Equity Trust PLC on Wednesday announced its sale of 14 underlying fund investments for around GBP180 million.
The Edinburgh, Scotland-based investment company said the 14 investments represented 13% of its portfolio at August 31. Proceeds from the sale will be received in two tranches, the first of which is due in December 2024 and the second is due in September 2025.
Lead Investment Manager Alan Gauld said: "As manager of Patria Private Equity Trust, we are continually monitoring both buy-side and sell-side opportunities in the secondary market. The investments we are selling in this transaction have performed well, but many were from older vintage years or focused outside of the mid-market buyout space. We were very pleased with the quality of buyer interest and the pricing achieved further illustrates the disconnect between the valuations of listed private equity investment trusts relative to the quality and attractions of their underlying portfolios."
The company will use the proceeds to reduce drawings on its GBP300 million revolving credit facility and increase the strength of its balance sheet. It said it will continue to focus its portfolio towards the mid-market buyout space, including increasing its allocation to direct investments, which represented 23% of the portfolio on August 31.
Shares in Patria Private Equity Trust were marginally up at 527.15 pence each on Wednesday morning.
By Emily Parsons, Alliance News reporter
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