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Trust Insider: why it's worth going continental for PE exposure
by James Carthew on Feb 18, 2014 at 00:01
Altamir’s NAV took a hit in 2008 and has not yet surpassed its peak but it has been making steady upward progress over the past five or six years. Altamir is outperforming the French stock market and its peer group (based on LPX Europe).
Like PEH, Altamir can point to a record of substantial uplifts in NAV when making disposals – they say around 54% on average between 2004 and June 2013.
Altamir has a much more concentrated portfolio than PEH – 22 companies at the end of 2013 about 16 of which were in the French funds and six in the new London fund. This works out to about 55% by value of the fund being invested in France.
They plan to up the exposure to the London fund over time. Nine of these companies were acquired before 2008.
Like PEH, the managers have a substantial stake in the business – around 25%. They are not invested in or employed by Apax however, so they can be objective. They acknowledge the discount is too wide and are keen to close it.
James Carthew is a director of Marten & Co
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