Castle Private Equity initiates new distribution policy
Castle Private Equity, the SIX Swiss Exchange listed fund of private equity funds, has approved a new distribution policy.
The policy will enable the Company to share realised gains with shareholders and has been initiated due to the strong recovery of the portfolio in the past two years and the Company’s success in reducing its over-commitment levels
Up to half the annual distributable gains will be allocated to shareholders, via share buybacks or capital repayments on an ongoing basis, the company said.
Assuming the policy is given regulatory and other necessary approval, the buyback programme could start by late August 2011. Shares worth up to $15m or about 3.4% of issued share capital would be repurchased this way.
The programme will run until 16 May 2012, when the company’s board will seek shareholder approval to cancel the repurchased shares, as well as some 521,885 already held in treasury.
Castle returned 7.76% between 1 January to 31 May 2011 in terms of net asset value. It returned 20.73% in NAV terms in 2010. The buyback programme is being pushed partly because of expectations that cash flow will be strong through this year as investments are realised.