SVG Capital Announces It Does Not Expect Fund Distributions In The Next Two Years

SVG Capital, the UK based listed private equity firm that invests a majority of its capital in Permira's funds, does not expect to receive any distributions from its investment portfolio in the next two years. "In the absence of a

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SVG Capital, the UK-based listed private equity firm that invests a majority of its capital in Permira’s funds, does not expect to receive any distributions from its investment portfolio in the next two years.

“In the absence of a significant improvement in the market environment, the company does not expect to receive any major distributions from its investment portfolio over the next 12 to 24 months,” the firm said in a statement.

SVG Capital has decided not to make any significant new commitments to funds for the next 12 to 24 months, and will only begin doing so once it has improved the strength of its balance sheet.

According to a statement, “Until the company is in a position to offer a return of capital to shareholders, no new commitments to third party managers will be made. In this period, any new commitments will be minimal and limited to existing funds to protect or enhance shareholder value, and commitments to new SVG Advisers funds.”

SVG Capital’s commitment to Permira funds, which currently represent 75% of the company’s investment portfolio, is not expected to change materially.

The firm has decided that, once sufficient distributions are received from its investment portfolio, it will offer investors a choice between reinvestment in the private equity asset class and return of capital.

SVG Advisers, the wholly-owned fund management subsidiary of SVG Capital, will be managed separately going forward. The CEO of SVG Capital will have responsibility for management of the company’s balance sheet, investment strategy and relations with shareholders. The CEO of SVG Advisers will be responsible for the successful management, development and growth of SVG Advisers specifically, the firm said.

These latest developments are the result of a review that was triggered by concerns over SVG’s ability to meet fund commitments amidst the trying economic climate.

D.C.

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