Close

Good underlying performance and more divestments

The best performers in August were Compass, Pantheon and Chrysalis. As before, published reports and positive news resulted in higher stock market prices as the market received concrete data on good value growth.

In a full-year perspective, the American fund companies have performed best, closely followed by a mix of impressive companies like US Compass, German Aurelius, French Eurazeo, and British Chrysalis and HG Capital. The two Brits have a high proportion of investments in software and digital business models, while the others have a broader holding mix.

Our holdings are reporting good performance by their underlying portfolio companies and an increasing number of divestments at attractive valuations. The fund management has worked well, and our allocation choices have yielded significantly higher returns than if we had an equilibrium portfolio. This year’s high return is partly a recovery after the 2020 pandemic.

The annual return since the last year-end is 19.8%, which is exactly the same level as the return seen over five years. Despite this year’s gains for our holdings, many of the share valuations are at an attractive level. We have increased our allocation in several holdings that are traded with approximately a 20% discount to a conservative NAV, i.e. the valuation of the underlying portfolio companies.

Several US fund companies have a share valuation that corresponds to their fixed charges plus cash, which means that the profit sharing is valued at zero. For listed private equity companies in general, however, there are examples of high valuations, including in Sweden.

We remain upbeat about private equity’s opportunities to deliver good returns compared with other asset classes. Underlying companies are developing well and private equity’s active ownership model with a focus on profitability improvements and growth has good opportunities to continue to deliver high value growth. Of course, we have particularly great confidence in the managers we have chosen and the holdings are developing well at the same time as the share valuations are at a reasonable level.

More about the fund

More articles

Bridgepoint new holding – High return over 35 years
Carnegie Listed Private Equity

Bridgepoint new holding – High return over 35 years

More quarterly reports were published by our holdings in November. Like earlier reports, these showed very strong development. The month saw good value growth for the fund, despite stock market...

Tom Berggren 6 December 2021
Optimistic despite nervous market
Carnegie Listed Private Equity

Optimistic despite nervous market

After a long period of gains, stock markets turned downward in September and all major indices outside Japan and China were negative. As in previous periods of turbulence, Carnegie Listed...

Tom Berggren 6 October 2021
Private Equity continues to deliver good growth
Carnegie Listed Private Equity

Private Equity continues to deliver good growth

Carnegie Listed Private Equity returned 4.4 percent in July, and is up 31.6 percent for the year to date. The best performers this month were Blackstone, HG Capital and Ares...

Tom Berggren 10 August 2021