JON Moulton’s private equity house warned over the impact of the Eurozone turmoil and Greece’s expected exit from the single currency as its first fund posted a 25 jump in valuations.
Turnaround firm Better Capital expects to take advantage of the rocky European markets to negotiate more deals and is making changes at its current portfolio companies to see their way through a period of “subdued growth,” chairman Richard Crowder said.
“The exit of Greece from the Eurozone is looking increasingly likely. Spanish yields have risen dramatically, even following the bail out of its banking sector. Relations between Germany and France are weak. Forecast economic growth for the Eurozone is poor. All this represents a considerable threat to the stability of the Eurozone,” he added.
Net asset value at Better Capital’s first fund rose 24.88 per cent to £256m over the year to 31 March.
It made net investments of £92.8m in the year, taking the total committed to £176.3m, meaning it is now 86.5 per cent committed.
One more investment is expected to follow.
The firm’s second fund, launched this year with around £166m to spend, bought double glazing firm Everest as its maiden acquisition.
A deal for Jaeger, the upmarket fashion chain previously rescued by entrepreneur Harold Tillman, followed after the financial year-end.
Crowder also described the opportunities for deals as “generally more compelling and larger” and said the firm had logged 719 leads at 31 March.
Better Capital, which was launched by buyout veteran Moulton, pictured, in 2010, has stakes in a string of troubled firms including Reader’s Digest and boat maker Fairline. Last year it bought parts of collapsed housing repair group Connaught.