DeA Capital (MI:DEA) has a strategic focus on its alternative asset management business, which is among the largest players in Italy, and also holds a portfolio of fund and direct investments. Assets under management in both the private equity and real estate asset management subsidiaries grew in Q3, reflecting new fund launches and a more stable appetite for real estate funds. The shares trade at a wide discount which, along with the diverse portfolio and the prospect of cash inflows as private equity fund investments mature, should provide a measure of protection against any rise in market volatility.
AUM and NAV strengthen
Since the end of 2015 DeA’s AUM has increased from €9.5bn to €9.9bn (+4%) or €10.8bn (+13%) including the SPC (debt recovery) business acquired in July. While Q3 asset management fees were down 10% y-o-y, still showing the impact of earlier outflows from property funds, they have been on a rising trend from Q216. NAV growth in the third quarter from €1.98 to €2.03 mainly resulted from retained profits and changes in the fair value of the IDeA I and IDeA EESS funds.
To read the entire report Please click on the pdf File Below