DeA Capital (MI:DEA) has continued to be active in its direct investment portfolio in the opening months of FY17, returning to direct investment with a stake in a newly created and listed special purpose acquisition vehicle and a further reduction in its Migros stake. Q117 also saw further growth in AUM and a positive investment performance.
Returning growth momentum to asset management and a diverse investment portfolio have the potential to create further value. Meanwhile the prospect of cash inflows as private equity fund investments mature provides a measure of protection against any rise in market volatility.
A good start to 2017
AUM continued to grow during Q117, reaching c €10.9bn with an additional €0.5bn at SPC that we track separately. NAV per share increased to €2.08 (cum the FY16 dividend) compared with €2.03 at year end, driven by a recovery in the value of Migros (worth 3c per share) and gains on fund holdings, particularly the IDeA EESS (energy efficiency) Fund, in which DeA doubled its ownership share to c 30% late in FY16.
Since Q1 DeA has completed a further partial exit from Migros via the exercise of a put option at TRY30.2 per share, raising an immediate €17.8m in cash. The sale crystallises a €3.8m P&L gain with a small €0.6m reduction in NAV.
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