The SVM balanced managed fund is holding BP Marsh & Partners because multi-manager SVM believes the private equity fund’s 50 per cent discount to net asset value is unjustified.
BP Marsh was established in 1990 as a niche venture capital provider to early-stage companies, mainly in UK financial services. It has invested in start-ups, management buyouts, management buy-ins and similar opportunities. It currently has a concentrated portfolio of 11 investments at various stages of development.
SVM says many investors have overlooked BP Marsh, which has enabled the multi-manager to build up a worthwhile stake at attractive prices. The private equity fund does not release regular asset values, but SVM believes its net asset value is 150p each share, with shares trading on a 50 per cent discount.
Fund manager Donald Robertson says: “This is unjustified, given its strong defensive characteristics, quality portfolio and capital return potential. The portfolio investments appear to have been very resilient through the recent recession and the managers have publicly stated they are confident of continued success in the future.”