SVG Capital rides currency wave amid takeover offer

SVG Capital posted its results for the six months to 31 July on Friday, with a net asset value per share of 735p at period end - a 12% increase in the six months.

The FTSE 250 firm reported a significant uplift from currency in the period, with the NAV seeing a 6% increase at constant currencies.

Over 12 months, SVG’s NAV had risen 21%.

The board reported its investment portfolio saw total return of 13% over the six months, with its core investment portfolio - 50% of the net investment portfolio - continuing to perform well with 13% total return as well.

Structured products, which represent 28% of the net investment portfolio, also saw 13% total return over the period, while other investments - 5% of the net investment portfolio - posted a 10% total return.

“The latest strong performance builds on the double digit annual growth of the past six years,” said SVG Capital CEO Lynn Fordham.

“The company benefits from a portfolio of investments with strong aggregate revenue and earnings growth, and an experienced and capable investment team.”

Fordham said the board was continuing to maintain a strong balance sheet and good coverage of its uncalled commitments.

“This has enabled us to take advantage of compelling investment opportunities as they have arisen and we have now made nine significant fund investments with eight leading managers since our strategic review of the business.

“The board believes that the unsolicited final offer from HarbourVest BidCo undervalues the company and its assets,” Fordham explained.

She said the board was continuing to be focused on delivering maximum value to its shareholders.

“The company has received approaches from a number of credible parties, which the Bbard believes may lead to an offer competing with HarbourVest and could deliver SVG Capital shareholders superior value than HarbourVest Bidco's final offer.”