Better Capital posts 42% NAV growth

The results of its 2009 Cell, which invests solely in Fund I, recorded NAV of £277.2m, which rises to £291.3m when distributions are included. This resulted in NAV per share of 134.06 pence, generating a total return of 35.22%.

Fund I raised a total of £210m and has so far returned £26.5m (12.6%). The fund has made seven platform acquisitions, three add-on deals and one exit over the last 12 months. 

Fund I's investment period closed at the end of 2012. By March this year the fund had returned £12.8m to the 2009 Cell. This triggered 2009 Cell's first capital distribution for £14.1m to investors. In April 2013 the fund made a further repayment of £12.4m. The distributions were made possible through a £10m repayment by Spicers and the divestment of debt instruments in ATH Resources.

Since its creation in December 2009, Fund I NAV has reached £291.3m, representing a compound annual growth rate of 10.6%.

For Fund II, which received investment solely from 2012 Cell, NAV is £174.7m, while NAV per share is 102.86 pence, generating a total NAV return of 3.75%.

Fund II has raised a total of £169.9m and has so far invested £110m (66.5%) to date. It has invested in three platform deals, meaning the fund is now 66.5% invested. Investments include beleaguered fashion retailer Jaeger, express parcel delivery business City Link and a £5m cash injection into double-glazed windows business Everest.

Better's outlook for the UK economy is gloomy, believing that it is unlikely that the UK economy will see any significant improvements in the near future. However, Better's board is confident that it is seeing good opportunities to invest in. Its confidence towards dealflow has led the board to pursue a further fundraising in the coming months through the issue of new shares in Fund II (2012 Cell) at a premium to NAV.

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• Credit/Special Situations
• UK / Ireland
• Better Capital LLP
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