Listed trust Electra Private Equity's share price was given a lift in this morning’s trading as it continues to recover from last year's market shock.
Today's 2.8 per cent gain continues a positive trajectory for Electra's shares, which climbed 26.3 per cent over the half-year period to March end as investors took to it harvesting companies.
Shares are currently trading at 1603p, close to their 1700p-plus going rate through July before the Tea Party Movement impasse and fresh concerns over Greece's situation pummelled the stock market.
Since then, Electra has made realised gains equivalent to 137p per share, with cash coming in from the $1.1bn (€876m) sale of safety harness business Capital Safety to KKR, SAV Credit and Amtico. Some £268m (€335m) was realised over the six months while £92m was invested.
The firm's NAV, which was up 6.1 per cent per share, also saw a boost from improvements in portfolio company earnings as well as public businesses' comparable earnings multiples used as a valuation benchmark.
“Whilst there is now evidence that banks are starting to rationalise their portfolios and sell off non-core assets, the anticipated funding shortfall created by businesses unable to fully refinance their debt has yet to materialise,” said Electra Partners' managing partner Hugh Mumford.
He added that companies' need for cash to meet maturing debt will throw up investment opportunities for Electra to invest part of its £449m capacity in.