(Reuters) – Private equity firm SVG Capital Plc said on Monday that deterioration in the global economic environment and in public company comparable earnings multiples are likely to hit the valuation of the company’s portfolio at year-end.
SVG said current market conditions have affected exit opportunities, and it does not expect a significant level of distributions from the portfolio in the next 12 months in the absence of a meaningful recovery in the markets.
Market conditions continue to influence the level of calls, which it expects to be subdued for the next 12 months, the company said.
SVG Capital is the largest investor in private equity firm Permira [PERM.UL], accounting for around one-third of the European buyout house’s investor commitments, and is seen by some investors as a publicly quoted proxy for Permira.
SVG said Permira was examining ways in which it could assist its investors.
At 1254 GMT, SVG shares were up 5 percent at 384.5 pence. (Reporting by Ramkumar in Bangalore; Editing by Mike Miller)