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
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