Edison issues update on Princess Private Equity Holding (PEY)
|
Edison Investment Research Limited
London, UK, 7 September 2023
Edison issues update on Princess Private Equity Holding (PEY) Princess Private Equity Holding (PEY) posted a 3.5% NAV TR in H123, bringing its 12-month return to c 10%. Its portfolio maintains strong last 12-month (LTM) revenue and EBITDA momentum of 17% and 15%, respectively, at end-June 2023 and some of its holdings also benefited from peer multiple expansion (eg KinderCare). PEY’s holding-level balance sheet remains solid, with cash and the undrawn part of its credit line covering all of its outstanding investment commitments. PEY reiterated its dividend policy of paying 5% of opening NAV, which implies a c 6.7% yield.
We believe that PEY’s maturing portfolio could provide attractive exit opportunities once activity in the global M&A markets rebounds. This is underpinned by more than 30 of its investments (47% of NAV) being held for more than four years (vs PEY’s target holding period of five to six years). Over the five years to end-June 2023, PEY achieved a 50% average uplift to fair value one year previously for its 11 fully realised direct holdings, where it invested more than €5m in each. While a potential lengthening of holding periods (due to muted PE exits) and higher interest rates could somewhat limit uplifts for realised investments, we believe a pick-up in exit activity across the PE markets could prove supportive to PEY’s NAV TR.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Milosz Papst +44 (0)20 3077 5700 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1720465 07-Sep-2023
Latest directors dealings
- 6 hours ago ASOS
- 7 hours ago MJ Gleeson
- 7 hours ago Rolls-Royce Holdings
- 7 hours ago Crest Nicholson Holdings
- 8 hours ago Naked Wines