SVG Capital sees rise in net asset value

SVG Capital’s net asset value is up 3%, and the company is accelerating its buyback programme plans.

The FTSE 250 firm posted an interim management statement for the three months to 31 October.

It said growth was in line with July 2015, with its net asset value per share up to 606p.

Investments made after 2012 continued to perform well, with a 7% total return on the quarter and a 10% total return over the year to date.

Its non-core portfolio also reported a total return of 2% in the quarter and 16% for the nine-month period.

However the performance of pre-2012 investments was impacted by a fall in the value of some of the quoted holdings, predominantly the 16% fall in Freescale's share price.

As a result, SVG saw a negative 8% return for the quarter from those investments, bringing the year to date return to -3%.

Meanwhile the firm received distributions of £23m received in the three months, taking total distributions to £389m. As the concentration of the investment portfolio declines and the maturity of the portfolio shifts, the quantum of distributions is expected to normalise

It also said it had a strong investment pipeline for the next 12 to 18 months, as it completes advanced due diligence on a number of potential fund commitments.

SVG Capital also said it will be accelerating its buyback programme to take advantage of recent market volatility as it continues to return excess capital to shareholders.

Chief executive Lynn Fordham said the company’s performance has been driven by commitments made in its 2012 strategy.

“We now have commitments to six leading private equity managers and four co-investments and will continue to build on this portfolio with further investments in the coming 12 months.”

Shares jumped on opening, up 12.4p (2.70%) to 472.5p at 0824 GMT.