Gavin Wood
17 April 2018

Deutsche Beteiligungs – reduced earnings guidance for FY18

Lower market valuation multiples have materially affected H118 net income

Deutsche Beteiligungs (DBAG) has announced that it expects to report net income for the year to 30 September 2018 that is moderately (10% to 20%) lower than the €43.0m average of the last five financial years (the reference for previous guidance), equating to net income of between €34m and €39m for FY18. Previous guidance, first given at the time of the FY17 results and confirmed with Q118 results, was for a significant (more than 20%) increase in net income. The revised forecast is based on DBAG’s c €20m expected net income for H118, which reflects lower market valuation multiples being applied in the valuation of portfolio companies at 31 March 2018. DBAG’s guidance assumes constant market valuation multiples and so is subject to upward or downward revisions following significant market moves.

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Sarah Godfrey
31 October 2017

HBM Healthcare Investments top holding AAA receives takeover bid from Novartis

Tender offer for 100% of radiotherapeutic oncology specialist Advanced Accelerator Applications at 25% premium to 30 September valuation

Switzerland-based global healthcare giant Novartis has announced a takeover bid for Advanced Accelerator Applications (AAA), the largest holding of specialist investment fund HBM Healthcare Investments (HBMN). The deal values AAA, whose Lutathera treatment for neuroendocrine tumours was granted EU approval in September 2017, at US$3.9bn.

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Mel Jenner
27 October 2017

Witan Investment Trust announces the appointment of two European equity managers

Appointment of CRUX Asset Management and S. W. Mitchell Capital

Witan Investment Trust (WTAN) has announced the appointment of two European equity managers: CRUX Asset Management and S. W. Mitchell Capital. CRUX is a specialist asset management company with an emphasis on European equities and S. W. Mitchell is an investment boutique focused exclusively on European equities. Each manager has been allocated c 5% of WTAN’s assets (c £100m), funded by the liquidation of the pan-European portfolio that had been managed by Marathon Asset Management, plus an additional £24m from WTAN’s cash resources. Both portfolios will be benchmarked against the FTSE Europe ex-UK index. Following the transition, WTAN will have 10 external managers, each running regional, high-conviction mandates. WTAN’s executive team will continue to manage up to 10% of the trust’s assets in collective funds.

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Mel Jenner
16 October 2017

Qatar Investment Fund proposes broader investment remit and change of name

Proposed greater flexibility to invest across the Gulf Cooperation Council (GCC) countries rather than largely in Qatar

Qatar Investment Fund (QIF) has announced a proposed change in its investment policy to remove the current 15% limit on investment in GCC countries outside of Qatar. It has also put forward other proposals including: a tender offer for up to 10% of issued share capital; cancellation of the 2018 continuation vote, to be replaced by a 2021 vote and every three years thereafter; a tender offer in 2020 for up to 100% of issued share capital, subject to shareholder approval; and changing the company name to Gulf Investment Fund. All these proposals, with the exception of the 2020 tender offer, will be put forward at an upcoming extraordinary general meeting (EGM).

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Mel Jenner
13 September 2017

Finsbury Growth & Income Trust announces new holding in Manchester United

First new purchase since 2015

Finsbury Growth & Income Trust (FGT) has announced that manager Nick Train has initiated a holding in Manchester United. He is well renowned for his low-turnover investment approach and this is the first new position in FGT’s portfolio since the purchase of Rémy Cointreau in 2015. Manchester United listed on the New York Stock Exchange in August 2012 at a price of $14 per share. Its share price subsequently rose above $19 and is currently trading at c $17. The football club has a market cap of $2.7bn and currently offers a dividend yield of 1.07%. Train believes that the value of Manchester United’s global franchise is not reflected in its current share price. He cites the recent announcement of the sale of NBA basketball team Houston Rockets for $2.2bn, suggesting that Manchester United could be worth in excess of $5bn.

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Mel Jenner
29 August 2017

Witan Pacific Investment Trust announces changes to its multi-manager line-up and allocations

Number of managers increased from three to four

Witan Pacific Investment Trust (WPC) has announced it intends to change the line-up of its external multi-managers. It will retain Aberdeen Standard Investments and Matthews International Capital Management, but Gavekal will be replaced by Dalton Investments and Robeco Institutional Asset Management. The new allocations are as follows:
Aberdeen Standard Investments 25% (previously 42%)
Dalton Investments 10%
Matthews International 40% (previously 47%)
Robecco Institutional 25%

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Sarah Godfrey
5 July 2017

JPMorgan Global Growth & Income raises annual dividend by 24%

Payout goes up under 4% distribution policy after year of strong performance

JPMorgan Global Growth & Income (JPGI) has announced it intends to pay dividends totalling 12.16p per share for the financial year beginning 1 July 2017. This will be the first full year of operation for the trust’s new distribution policy, under which it aims to pay out a sum equal to at least 4.0% of the year-end NAV. The proposed dividend – 4.01% of the 30 June 2017 NAV – will be paid in four equal instalments, in October, January, April and July.

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Gavin Wood
22 June 2017

Altamir – Part-sale of Altran shares

Altamir has sold 50% of its largest holding, Altran, realising an estimated c 13% uplift to its portfolio valuation

Apax Partners and Altamir (LTA) have sold 14.8m shares in Altran Technologies, representing 50% of their combined 16.8% holding prior to the sale. In addition to the 8.4% of Altran’s share capital sold by Apax Partners and Altamir, the founding shareholders of Altran sold part of their shareholding, with a total 19.8m shares being sold, equating to 11.2% of Altran’s share capital. The shares were sold in a private placement to institutional investors at €15.0 per share, a 6.7% discount to the closing price of Altran’s shares on 21 June 2017, generating proceeds of €297m.

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Gavin Wood
20 June 2017

Deutsche Beteiligungs – First MBO investment in Switzerland

Third investment by DBAG Fund VII within six months of the start of its investment period

Deutsche Beteiligungs (DBAG) has announced that it will invest up to €14m for a 22% interest in duagon, a Switzerland-based provider of network components for data communication in railway vehicles. The deal represents DBAG’s first management buyout (MBO) in Switzerland and the third MBO investment by DBAG Fund VII within six months of the start of its investment period. The €1bn DBAG Fund VII will be 20% invested following the transaction, which is expected to complete in July 2017.

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Sarah Godfrey
15 June 2017

UK Commercial Property Trust acquires Sheffield office for £20m

Second purchase so far in FY17 at 5% yield

UK Commercial Property Trust (UKCM), a £1.2bn property investment company managed by Standard Life Investments, has acquired a 61,638 sq ft office building at Cutler’s Gate, Sheffield, from Ediston Property Investment Company (EPIC).

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Sarah Godfrey
1 June 2017

Polar Capital Global Healthcare investors back new strategy

£200m minimum target looks secure after tender offer

Investors in the c £250m Polar Capital Global Healthcare Growth & Income Trust (PCGH) have strongly backed a proposed continuation and strategy change at a general meeting held on 1 June. At the same time, holders of c 22% of the shares (worth c £54-55m based on the latest NAV and closing price) have chosen to exit via a tender offer for up to 100% of shares at close to NAV.

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Mel Jenner
30 May 2017

Witan Investment Trust announces changes to its global equity managers

Number of global managers reduced from five to three

Witan Investment Trust (WTAN) has announced a consolidation of its global managers from five to three. Existing managers Lansdowne Partners, Pzena Investment Management and Veritas Asset Management will each manage c 14% of WTAN’s assets (as at mid-May 2017 versus between 10% and 13% at end-April 2017). MFS Investment Management and Tweedy, Browne Company managed 5% and 3% respectively; their accounts will be closed. MFS was appointed in September 2004, when WTAN adopted its multi-manager approach and Tweedy, Browne in December 2013. WTAN’s CEO Andrew Bell says the change is intended to increase the trust’s performance potential. As a result, WTAN’s active share (a measure of how its portfolio differs from the benchmark) will increase from 70% at end-FY16 to 74%.

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Sarah Godfrey
24 May 2017

HBM Healthcare Investments benefits from takeover of True North Therapeutics

Blood disorder specialist Bioverativ to pay up to $825m including milestones

HBM Healthcare Investments (HBMN), a Swiss-listed public/private equity healthcare investment company, is set to benefit from the acquisition of privately held True North Therapeutics by NASDAQ-listed Bioverativ for up to US$825m (including contingent payments).

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Gavin Wood
24 May 2017

Altamir – Merger of top 10 portfolio holding Melita and Vodafone Malta

Combination will create a new fully integrated provider of mobile, fixed line, broadband and TV services

Altamir (LTA) has announced the merger of Maltese telecoms operator Melita, in which it holds a 28.9% stake through the Apax France VIII fund, with Vodafone Malta to create a fully integrated communications company, which will operate under the Vodafone brand, distributing a wide range of services including Vodafone’s global portfolio of products. Announced in December 2015, the acquisition of Melita by Apax France VIII fund and Fortino Capital was completed in early 2016. At end-2016, Melita had been held in Altamir’s portfolio for less than one year and so was valued at its residual investment cost of €33.9m, representing 3.9% of portfolio fair value. At completion, Apax France VIII fund and Fortino Capital will own 51% of the combined company and Vodafone will own the remaining 49%.

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Gavin Wood
16 May 2017

Oakley Capital Investments – acquisition of Schülerhilfe from Deutsche Beteiligungs

Third new investment for Oakley Capital Private Equity Fund III within three weeks

Oakley Capital Investments (OCL) has announced a new investment in private tutoring services provider Schülerhilfe via Oakley Capital Private Equity Fund III, which has agreed to acquire the business from DBAG Fund VI, managed by Deutsche Beteiligungs (DBAG). The transaction fits Oakley Capital’s model of partnering with entrepreneurs, with Schülerhilfe CEO Dieter Werkhausen investing in the deal alongside Fund III. OCL’s share of the equity investment is expected to be around €42m, dependent on the final capital structure at completion, with the transaction being partly funded by a debt facility from Alcentra. The investment in Schülerhilfe follows Oakley Capital’s acquisitions of intellectual property and technology services provider TechInsights, announced earlier this week, and web-server management software platform Plesk, announced two weeks ago.

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Gavin Wood
16 May 2017

Deutsche Beteiligungs – sale of Schülerhilfe to Oakley Capital

Strategically important first divestment by DBAG Fund VI

Deutsche Beteiligungs (DBAG) has announced the sale of private tutoring services provider Schülerhilfe to Oakley Capital Private Equity. The investment in Schülerhilfe was DBAG Fund VI’s first transaction in October 2013 and its sale marks the fund’s first divestment after less than four years. This is a strategically important transaction for DBAG as it represents the first realisation of an investment outside of the team’s traditional core sectors of expertise, confirming DBAG’s ability to complete deals successfully across a broader range of industries. The transaction price has not been disclosed but DBAG management has confirmed that the sale was at a premium to Schülerhilfe’s portfolio valuation and will contribute around €9m to DBAG’s net income in the third quarter of FY17.

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Gavin Wood
2 May 2017

Deutsche Beteiligungs – significant uplift to FY17 earnings guidance

FY17 net income projected to exceed comparable FY16 net income by more than 20%

Deutsche Beteiligungs (DBAG) has announced that it expects to report net income for the year to 30 September 2017 that significantly exceeds the €46.3m comparable income for the prior year, equating to net income of more than €56m for FY17. Previous guidance, first given at the time of the FY16 results and confirmed with Q117 results, was for a moderate 10% to 20% decline in net income. The revised forecast is based on c €44m preliminary net income for H117, which follows DBAG’s announcement today of the divestment of its stake in Romaco Group.

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Sarah Godfrey
31 January 2017

HBM Healthcare Investments: two IPOs and Q316/17 results

Public offers of portfolio holdings at significant upside to carrying values


Swiss-listed healthcare investment specialist HBM Healthcare Investments (HBMN) has seen a material increase in NAV from the initial public offerings of two of its private portfolio holdings, ObsEva and Anaptys Biosciences. Both companies listed on the US NASDAQ exchange on 26 January.

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Mel Jenner
19 January 2017

The Merchants Trust announces benchmark change

Performance measure moved from FTSE 100 to FTSE All-Share index

The Merchants Trust (MRCH) has announced that it will be changing its benchmark with effect from 1 February 2017.

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Sarah Godfrey
5 January 2017

European Assets Trust declares dividend for 2017

Fund pays distributions equal to 6% of year-end net asset value


European Assets Trust (EAT) has today declared its dividend for 2017. The fund has a policy of making distributions equal to 6% of year-end net asset value (in euros), paid in three instalments at the end of January, May and August.

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Gavin Wood
23 December 2016

Tetragon Financial Group adopts IFRS reporting from 31 December 2016

Incentive fee crystallised to be paid in shares, restricted for five years

Tetragon Financial Group (TFG) has announced that it is adopting IFRS reporting for accounting periods ending on and after 31 December 2016. IFRS NAV is expected to be substantially the same as fair value NAV, which TFG has been reporting since September 2015. However, moving from US GAAP to IFRS increases the reported NAV of certain TFG Asset Management businesses, principally LCM and Polygon, to reflect their fair value, and will crystallise an incentive fee payable to TFG’s investment manager, Tetragon Financial Management (TFM). This incentive fee will be paid in shares, held in escrow until 31 December 2021, and subject to a clawback mechanism. Based on fair value NAV at 30 September 2016, the incentive fee would have been US$27.1m, as stated in TFG’s third quarter report.

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Gavin Wood
8 December 2016

Deutsche Beteiligungs – DBAG Fund VI final investment; DBAG Fund VII investment period starts

DBAG Fund VI will be 86% invested after Dieter Braun transaction

Deutsche Beteiligungs (DBAG) has announced that it will invest up to €5.9m for a 13.1% interest in Dieter Braun (Braun), a supplier of cable assemblies to the automotive industry (one of DBAG’s core sectors of expertise). DBAG is co-investing alongside DBAG Fund VI in the management buyout of Braun from financial investor Seafort Advisors. This represents the final investment by DBAG Fund VI, which will be 86% invested following the transaction, and therefore also marks the commencement of the investment period for newly launched €1.0bn DBAG Fund VII.

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Gavin Wood
7 December 2016

Witan revises performance benchmark weightings from 2017

The trust’s investment approach remains unchanged

Following a review, Witan Investment Trust (WTAN) has announced changes in the composition of its performance benchmark, which will take effect from 2017. The trust’s investment approach remains unchanged and the revisions to the benchmark reflect changes in the investment universe from which the majority of portfolio holdings are selected. Witan’s composite benchmark provides a reference for performance comparison rather than a guideline for portfolio allocations. The benchmark has evolved over time, with the current benchmark in place since October 2007.

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Gavin Wood
6 December 2016

Standard Life European Private Equity Trust - changes to investment policy, dividend policy & fees

Proposed change of trust name to Standard Life Private Equity Trust

The board of Standard Life European Private Equity Trust (SEP) is proposing changes to the trust’s investment policy to remove the current size and geographic restrictions on private equity investments. Notwithstanding, the majority of the portfolio will retain a European focus. In addition, to maximise the returns on cash held pending investment in private equity funds, the board is also proposing to broaden the investment policy in regard to cash management to incorporate listed direct private equity investments, to be utilised opportunistically in suitably liquid investment companies. To reflect the proposed changes, to be voted on by shareholders at SEP’s Annual General Meeting on 24 January 2017, the board is recommending to shareholders that they approve a change in the name of the company to Standard Life Private Equity Trust.

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Gavin Wood
11 November 2016

Tetragon Financial Group commences US$50m tender offer

Repurchase of TFG shares at below NAV will be accretive to NAV per share

The US$50m tender offer was initially announced by Tetragon Financial Group (TFG) on 31 October in its Q316 quarterly report. It will be conducted as a “modified Dutch auction” with shareholders able to tender their TFG non-voting shares at prices ranging from US$10.80 up to US$12.00 per share. The offer is expected to expire on 8 December 2016, with the determined purchase price and any proration factor announced on 13 December 2016 and the purchase of shares settled promptly thereafter. This offer for up to US$50m follows TFG’s US$100m tender offer in June 2016 under which 10m TFG non-voting shares were repurchased.

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Gavin Wood
8 November 2016

Deutsche Beteiligungs announces divestment of Grohmann Engineering to Tesla Motors

Exit will generate a positive value contribution in the first quarter of FY17

Deutsche Beteiligungs (DBAG) announced today that it has agreed the sale of Grohmann Engineering, a developer and manufacturer of plants for industrial automation, to strategic buyer Tesla Motors after almost 30 years as a portfolio holding. The financial terms of the agreement have not been disclosed but DBAG has confirmed that the sale price is higher than its most recent portfolio valuation and the exit will generate a mid-single digit positive value contribution in the first quarter of its current financial year to 30 September 2017.

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Sarah Godfrey
28 October 2016

VinaCapital Vietnam Opportunity Fund announces full-year results to 30 June

Outperforms benchmark VN index by 11pp in USD terms


In its annual results to 30 June 2016, VinaCapital Vietnam Opportunity Fund (VOF) has reported positive returns both in absolute terms and relative to the VN index benchmark. Its US dollar net asset value rose by 15.3% over the period, outperforming the benchmark, which rose by 4.3%.

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Gavin Wood
28 October 2016

Tetragon Financial Group declares US$0.1675 per share Q316 dividend

Q316 dividend in line with Q216 and 3.1% higher than Q315

Ahead of releasing its results for the three months to 30 September 2016, Tetragon Financial Group (TFG) has declared a dividend of US$0.1675 per share in respect of the third quarter (Q316). The ex­dividend date is 31 October 2016, the record date is 1 November 2016 and the payment date is 25 November 2016.

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Gavin Wood
27 October 2016

Deutsche Beteiligungs proposes €1.20 per share dividend for FY16

Recommended increase in FY16 dividend to €1.20 from €1.00 in FY15

Deutsche Beteiligungs (DBAG) announced today that at the Annual Meeting of Shareholders on 22 February 2017, a dividend of €1.20 per share will be proposed for the year to 30 September 2016 (FY16), representing a 20% increase from the €1.00 per share FY15 total dividend.

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Sarah Godfrey
25 October 2016

HarbourVest Global Private Equity consolidates listing in London

Cancellation of Euronext Amsterdam listing


HarbourVest Global Private Equity (HVPE) has today delisted from the Euronext Amsterdam exchange, as announced in the half-year results to 31 July 2016.

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