SVG Capital to sell investment managers firm to Hansa AG

Value of firm’s assets climbs 23% in first half

SVG Capital Plc, the biggest backer of private-equity firm Permira Advisers LLP, agreed to sell SVG Investment Managers as it posted 23 per cent increase in the value of its assets in the first half of the year.

Hansa AG, an investment company based in Basel in Switzerland, will buy the unit, which purchases minority stakes in publicly traded companies, London-based SVG said in a statement, without giving details of the transaction.

Chief executive officer Lynn Fordham has been overhauling the investment firm after it was forced to cut its commitment in Permira's latest fund by half during the financial crisis. SVG has since sought to broaden its range of investments and pledged in February to return £300 million (€349 million)to investors.

It also sold a stake in SVG Advisers, its funds-of-private-equity-funds unit, to Aberdeen Asset Management Plc.


“We have a portfolio of high-quality assets that continue to report good revenue and earnings growth,” Fordham said in the statement. “We are confident that the high quality management teams at the portfolio companies will continue to deliver growth for investors.”

Net asset value a share climbed to 480.4 pence as of June 30th from 391.2 pence at the end of December, buoyed by the firm's holdings in German broadcaster ProSiebenSat.1 Media AG and fashion label Hugo Boss, according to the statement.

The valuation of the two companies rose by about £119 million (€138 million). The stock closed at 408.30 pence in London, up 4.7 per cent on the day. It has gained 42 per cent this year. – (Bloomberg)