The Trust aims to provide shareholders with long-term capital growth through investment in unquoted companies both directly and through private equity funds.

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Key points

  • Provides access to a diverse portfolio of mature companies, mainly in established European private equity markets, with over 300 underlying companies.
  • The manager is Graphite Capital which has over £1.7 billion of funds under management and has been investing for 32 years. The senior management team has worked together for over 16 years.
Fund facts
Investment manager Graphite Capital Management LLP
Benchmark FTSE All-Share Index
Sector Private Equity
Launch date 1981
Total assets Graphite £505.2 million (as at 31.10.13)
Currency Sterling
ISIN GB0003292009
SEDOL 0329200
Key dates
Annual general meeting June
Year end 31 January
Dividend payment date(s) June
Ex-dividend date(s) June

Fund manager commentary

In December Graphite Enterprise ("the Company") released its results for the nine months to 31 October, showing an increase of 7.6% in the net asset value to 679.7p per share and an increase in the share price of 14.0% to 555p. Since the quarter end, the share price has increased further, standing at 582.5p at 16 December, an increase of 19.6% over the financial year to date.

It was a busy third quarter, with the environment for realisations remaining good and an active new investment programme in place. The portfolio generated net proceeds of £17.0 million.

Over both the short term and the long term, the Company has been a top performer in the listed private equity sector. Over one, three and five years, our net asset value total return is the best of our peer group1.

Since 31 October2, the Company has continued to be very active on the new investment front, with a total of £29.3m invested in the portfolio. The largest new investment was the acquisition of City & County Healthcare by Graphite Capital, in which the Company invested £14.2 million. In addition, two co-investments have been completed: £5.6 million in David Lloyd Leisure alongside TDR Capital and £4.1 million in Frontier Medical alongside Kester Capital.

Realisations have continued to be strong, with Graphite Capital announcing the exits of Alexander Mann Solutions and Park Holidays UK, two of the Company's largest underlying investments at the start of the year. Together with other proceeds already received, these will generate more than £30 million of cash in the fourth quarter.

We have completed commitments of €15 million to PAI VI, €15 million to Activa Capital Fund III, £10 million to Bowmark V and €10 million to TDR Capital III. The balance sheet remains strong, with total liquidity of over £150 million.

1Funds-of-funds: Aberdeen Private Equity, F&C Private Equity, HarbourVest Private Equity, JP Morgan Private Equity, Pantheon International Participations, Princess Private Equity, Standard Life European Private Equity. (Source: Morningstar, total return in local currencies)
2As at the close on 16 December

As at 31 October 2013

The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. Emerging Markets, Unquoted Companies and Smaller companies carry a higher degree of risk and their value can be more sensitive to market movement; their shares may be less liquid and performance may be more volatile. The fund may invest in hedge funds or private equity funds which are not normally available to individual investors, exposing the fund to the performance, liquidity and valuation issues of these funds. Such funds typically have high minimum investment levels and may restrict or suspend redemptions or repayment to investors. The asset value of these shares and its prospects may be more difficult to assess.

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