SVG to broaden PE investments

Anneken Tappe
20 December 2011

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SVG Capital has announced plans to change its investment strategy and diversify its private equity commitments.

SVG Capital says it will broaden its investment strategy to maximise shareholder value, dropping its exclusivity deal with Permira to invest in other managers.

Although the relationship with Permira will remain important to the LP, SVG will make commitments to other private equity funds with a focus on MBOs. SVG will also make co-investments alongside the new funds, driven by its target to outperform public markets by 5% anually over the next 10 years.

To date, SVG has returned 70% of its portfolio investments, recently through the sale of Dutch animal food produver Provimi for £88m.

Permira and SVG formalised their relationship in 2005, with SVG committing €1.5bn to Permira IV and Permira V.

SGV is hoping to return £170m to its shareholders by means of market buy-backs and tender offers. During the financial crisis of 2008 and 2009, SVG shares fell by more than 85%.