F&C Private Equity Trust has announced in its interim results, to 30 June 2014, that it has raised its exposure to co-investments from 11.8% to 17.5%. This is part of the company’s medium term plan to build the allocation up to 25%.
The company delivered a share price total return for the six months of 9.1% for ordinary shares.
During the first half of the year total drawdowns and co-investments were £13.8m. Two new co-investments were made during the first half of the year. £3.3m was invested in Park Holidays, the country’s fourth largest caravan holiday park operator, and £2m was invested in Ticketscript, the Netherlands based provider of cloud based selfserve event ticketing, promotion and management software. One new commitment to a private equity fund was made in the first half of the year, with £3m committed to UK lower mid-market fund Primary Capital IV.
Distributions in the first half of the year totalled £18.7m, the company also reported. In addition, the Company received £2.2m of income. This brings the total of distributions, including income, to £20.9m for the first half, approximately 10 per cent ahead of the total at the same stage last year. There have been no realisations from the co-investment portfolio but the flow of realisations from the fund holdings has been substantial. The exits were widespread by sector and geography.
Commenting on the outlook for the remainder of the year, fund manager Hamish Mair, said: “The private equity market in Europe and further afield is typified by a healthy level of activity. The first half of the year saw signs of renewed exit activity in markets such as France and Spain.
“In the UK, exits were achieved not only to other private equity firms and to trade, but also through the stockmarket, signalling that the recovery is in general well established. Company profits continue to recover, notwithstanding the generally sluggish economic growth and the continuing fiscal adjustments to government balance sheets. Private equity fund raising is progressing and whilst much of the capital is going to already well financed household names, there are signs that more emerging managers are also raising funds, albeit not always through conventional structures.
“In the European mid-market our investment partners remain able to acquire good companies at apparently sensible prices and we expect to commit to several more funds by the year end. The deal flow of co-investments and secondaries is strong, and we expect to add further to both categories as the year progresses.”