LONDON, June 12, 2017 /PRNewswire/ --
DeA Capital has continued to be active in its direct investment portfolio in the opening months of FY17, returning to direct investment with a stake in a newly created and listed special purpose acquisition vehicle and a further reduction in its Migros stake. Q117 also saw further growth in AUM and a positive investment performance. Returning growth momentum to asset management and a diverse investment portfolio have the potential to create further value. Meanwhile the prospect of cash inflows as private equity fund investments mature provides a measure of protection against any rise in market volatility.
Our updated sum-of-the-parts (SOP) valuation at €1.88 (ex the recently paid €0.12 FY16 dividend) is little changed. Compared with the Q117 NAV per share of €1.96 (ex div), it replaces the book value of asset management with our estimated fair market value based on a peer comparison and it values the residual stake in quoted Migros at market. The 37% share price discount continues to appear conservative given the new momentum in asset management, the diversity of its investment portfolio and the potential for investment realisations.
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