Dunedin Enterprise Investment Trust

Transcription

1 Dunedin Enterprise Investment Trust Access Mittelstand UK Investment trusts Dunedin Enterprise Investment Trust (DNE) is differentiated from its peers by a focus on small/mid-sized private equity investments in the UK. Improving UK economic growth and the manager s experience in this area are encouraging features on a medium-term view. As the exposure to legacy third-party managed European funds trends below 1%, the company should be more clearly seen as a single manager fund. If this is combined with a stronger NAV performance, there is good scope for the discount to narrow from the current level of over 2%. 12 months ending Share price return (%) NAV return (%) FTSE Small Cap ex Inv Trusts (%) LPX United Kingdom (%) FTSE All-Share ex Inv Trusts (%) 3/4/ /4/ (2.5) (1.6) (1.9) 3/4/ (2.6) /4/ Source: Datastream. Note: All % total return. LPX Index is for listed private equity funds. Investment strategy New investments are made through a Dunedin LLP (Dunedin) managed private equity fund or a direct co-investment with a Dunedin fund. The manager s experience in the sector and well-established relationships with advisors facilitate a flow of potential transactions. The characteristics Dunedin seeks include businesses with a proven management team, a strong market position and the potential, with assistance from Dunedin, to grow independently of economic trends: through internationalisation or acquisition, for example. The Dunedin team has a particular focus on industrial, business services and financial services sectors. 19 May 214 Price 422p Market cap 88m NAV per share (31/3/14) 532.3p Discount to NAV 21% Shares in issue Code Primary exchange Secondary exchange Share price/discount to NAV Share Price Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13 Jan/14 Feb/14 Mar/14 Apr/14 DNE Equity Discount m DNE LSE Three-year cumulative perf. graph Apr/11 Jul/11 Oct/11 Jan/12 Apr/12 Jul/12 Oct/12 Jan/13 Apr/13 Jul/13 Oct/13 Jan/14 Apr/14 N/A Discount (%) Outlook DNE Equity FTSE Small Cap Ex Inv. Trusts TR The manager reports that the current year has so far seen muted private equity deal activity in its small/mid-sized area. However, assuming the noticeable pick-up in economic activity in the UK and broader global recovery are sustained, the backdrop should be supportive for management confidence and hence transaction volumes, and also for portfolio company earnings and therefore valuations. NAV performance in 213 was primarily held back by specific difficulties in two companies; absent a similar problem, the current year should see an improvement with the majority of portfolio companies budgeting earnings increases. Valuation: Discount reflects substantial caution The shares trade at a discount to NAV of over 2% compared with an average figure of 13% for the Datastream index of private equity trusts (ex-3i). Given the progressive reduction in exposure to third-party funds and the potential for NAV performance to strengthen, there seems good scope for DNE s discount to narrow. 52-week high/low 44p 396p NAV high/low p p Gearing Net cash 2% Analysts Andrew Mitchell +44 () Martyn King +44 () Gavin Wood +44 () investmenttrusts@edisongroup.com Edison profile page Dunedin Enterprise Investment Trust is a research client of Edison Investment Research Ltd

2 Exhibit 1: Dunedin Enterprise Investment Trust at a glance Investment objective and fund background Recent news Dunedin Enterprise Investment Trust aims to achieve substantial long-term 19 March 214: Annual results NAV return.6% in year to end December. growth in its assets, with a return on equity of over 8%. The trust mainly invests in Dividend of 16.5p and further tender offer of 5.2m proposed. NAV total UK lower mid-market management buyouts with an enterprise value of 2m to return over 1 years 8% pa. 1m with the aim of partnering with management to build better businesses. 3 December 213: 6.3m investment in Kee Safety announced. The strategy was amended in 211 to focus on this area and the remaining thirdparty European managed fund investments are being reduced over time. Forthcoming announcements/catalysts Capital structure Fund details AGM 14 May 214 Ongoing charges (ex performance fee) 2.7% Group Dunedin Enterprise Interim results 28 August 214 (est) Net gearing % Manager Dunedin LLP Year end December Annual mgmt fee N/A Address Saltire Court, 2 Castle Terrace, Next dividend May 214 Performance fee N/A Edinburgh Launch date 1974 Company life Unlimited Phone Wind-up N/A Loan facilities 2m Website Funds under management (as at 31 December 213) Sector breakdown (as at 31 December 213) Support services (39%) Industrials (26%) Dunedin managed (64%) Third party (12%) Cash (24%) Financial services (11%) Construction and building mats. (9%) Consumer products and servs. (7%) Healthcare (5%) Technology (3%) Age of investment (as at 31 December 213) Geographic split of investments (as at 31 December 213) < 1 year (14%) 1-3 years (18%) 3-5 years (37%) >5 years (31%) UK (65%) Rest of Europe (11%) Cash (24%) Dividend history Share buyback history DPS (p) Full year div payment Special dividends 213 No of shares (m) Repurchased (LHS) Total cost Allotments (LHS) Total proceeds Cost/proceeds ( m) Source: Edison Investment Research, Dunedin Enterprise Investment Trust Dunedin Enterprise Investment Trust 19 May 214 2

3 Fund profile: Addressing a UK niche Established in 1974 and listed on the London Stock Exchange in 1987, Dunedin Enterprise aims to generate substantial long-term capital growth from its role as a provider of private equity capital: primarily for UK lower and mid-market management buyouts, management buy-ins and growing companies. For a period the company had invested in third-party, mainly European, private equity funds, but these are now well advanced in the process of being exited with the exposure at the end of 213 reduced to two funds accounting for just over 1% of assets. As the trust moves towards a sub-1% exposure to third-party funds it should be seen more clearly as a single manager fund focused on its particular areas of expertise in UK lower mid-market management buyouts rather than an (out-of-fashion) fund of private equity funds. Investment approach: Focused, involved The trust is managed by Dunedin LLP, an independent private equity manager based in Edinburgh with more than 4m committed or under management on behalf of the trust and three limited partnership funds. The team of 16 investment professionals has average private equity experience of over 12 years with the senior members working together since Dunedin s own buyout in The investment policy was modified in 211 such that any new investments would either be direct or through private equity funds managed by Dunedin. Direct investments will be co-investments alongside private equity funds managed by Dunedin, enabling DNE to increase its exposure to a specific company. Each private equity fund Dunedin raises invests in around 1 companies, maintaining focus and enabling the manager to contribute to the development of the business. The manager targets management buyouts and buy-ins in the UK lower-mid market (enterprise value 2-1m) where there is an opportunity to partner with company management to improve the business. Characteristics that Dunedin seeks include: 1. Proven management team with the desire to create and deliver value; 2. Strong market position, niche or brand; 3. Clear organic growth potential uncorrelated with the UK economy; 4. Internationalisation opportunities; 5. Potential for buy and build (acquisition driven growth) or roll-out; 6. Barriers to entry; and 7. Legislation-driven products or services. Given its experience, Dunedin is well placed to provide advice to management on strategy, operations and finance including the development of a growth strategy, introducing key personnel, identifying M&A opportunities, structuring the balance sheet efficiently and developing appropriate financial controls and reporting. The manager focuses on several sectors with a current focus on industrials, business services and financial services. Other areas of expertise are energy, healthcare and consumer and leisure. Investments are structured to deliver capital growth and may include ordinary shares, preference shares, loan stock and mezzanine debt. Deals are identified by a combination of research by Dunedin s own origination team and wellestablished relationships with the advisory community. The knowledge Dunedin has accumulated in its chosen areas facilitates the process of sourcing opportunities. When it comes to exiting an investment, Dunedin has a flexible approach to both timing and route, waiting for appropriate market conditions and company performance to enhance returns. The fact Dunedin Enterprise Investment Trust 19 May 214 3

4 that many of the businesses have or are in the process of developing international activities has the benefit of broadening the potential range of purchasers on exit. Given the size of investments, business sales are more likely to be to trade or secondary buyers rather than IPOs. The manager s view The manager notes that the UK economy appears to be stable with signs of improvement and that internationally there is an improving trend. In tandem with this, most portfolio companies are budgeting for increased profits in 214. The environment for deals has been relatively quiet in the first half so far, but the manager expects this to improve during the second half if current economic trends persist, providing management/ owners with greater confidence when agreeing terms. Current portfolio positioning Sector and geography The manager s particular expertise and experience in the industrial, financial services and business services sectors are reflected in the exposures in the portfolio with support services 39%, industrials 26% and financial services 11% being the largest sectors (end 213). The sector exposure is little changed from the end-212 position. Geographically, the recent reduction in exposure to third-party managed funds in Europe means the portfolio is predominantly UK-based (65%) with the remaining European exposure at 11% and the balance in cash. Given the existing international sales of some investee companies and the manager s interest in supporting internationalisation of the businesses where appropriate, the underlying international exposure is likely to remain significant (the manager suggests an indicative figure of 4% of net income from outside the UK). Portfolio by investment type The majority of the portfolio is invested through Dunedin-managed buyout funds or direct investments (together 64% last year) with cash and European, third-party managed private equity funds accounting for the balance (see Exhibit 2). Evident from the chart is the investment of substantial cash balances held in 29 and then, following the change in investment approach adopted from November 211, the progressive reduction in exposure to third-party managed funds to under 12% of the total at the end of 213. The portfolio is therefore now substantially focused on investments managed by Dunedin in its area of expertise in UK lower mid-market private equity. Exhibit 2: Portfolio by investment type % 8% 6% 53.7m 29.1m 4.2m 23.5m 35.8m 33.9m 25.7m 27.9m 13.6m 4% 2% % 34.4m 87.2m 13.9m 76.5m 75.1m 34.7m Dunedin managed Third party (mainly Europe) Cash, Edison Investment Research Dunedin Enterprise Investment Trust 19 May 214 4

5 Maturity of investments At the end of 213 portfolio investments were relatively mature in the context of the company s history (see Exhibit 3), with 68% by value over three years old, including 31% over five years old. The variation seen over the last 1 years reflects the normal cycle in private equity investments and lumpiness associated with a relatively small number of investments. Exhibit 3: Portfolio maturity Percentage of portfolio value 1% 8% 6% 4% 2% % < 3 years > 3 years, Edison Investment Research While CGI, at 16 years, is an example of a longstanding investment in the portfolio, the maturity profile suggests the next two or three years could be a period of relatively high realisation and reinvestment activity. This would take place against the backdrop of an improving economy and higher stock market valuations that may enhance realisation values, but also make it more challenging to secure attractive new investments. Exhibit 4 shows the recent pattern of realisations and additions for the Dunedin-managed investments within the portfolio. There was a peak in additions in 21, which included CitySprint, Weldex and U-POL among the current top 1 investments, while 212 saw a similar peak in disposals. Exhibit 4: Additions to and realisations of Dunedin managed investments m Additions Realisations, Edison Investment Research Top 1 holdings The top 1 holdings are shown in Exhibit 5 and account for 66% of the trust s net asset value at year end. There are a further eight investments accounting for about 1% of assets (including two at zero value) with the balance accounted for by cash. Exhibit 5 also gives brief details of the top 1 investments. Dunedin Enterprise Investment Trust 19 May 214 5

6 Exhibit 5: Top 1 investments as at end December 213 Company name Year of investment Type DNE % holding Cost of investment ( m) Directors valuation ( m) % of DNE net assets Description CitySprint 21 Acquisition 11.9% % The UK's leading same-day distribution network. CGI 1998 MBO 41.4% % Specialised fire glass manufacturer and supplier. Realza Capital 28 Fund 8.9% % Targets investments in Spain valued at between 2m and 1m. Currently invested in four companies. Hawksford International 28 MBO 16.% % Jersey-based; establishes and administers trusts, foundations, family offices, companies and private trust companies for high net worth individuals and corporate clients. Formaplex 27 MBO 17.7% % Manufactures moulds and tools for the motorsport and rapid prototyping industries. Kee Safety 213 3rd MBO 9.4% % Provider of safety systems and products. Weldex 21 2nd MBO 15.1% % The UK market-leading crawler crane hire company. U-POL 21 MBO 5.2% % A leading independent supplier of automotive refinish products. Red Commerce 211 2nd MBO 18.7% % A global supplier of SAP experts to international corporations and consultancies. Innova/5 28 Fund 3.9% % Invests between 1m and 5m into growthorientated companies based in Central and Eastern Europe. Warsaw-based. Top 1 holdings %, Edison Investment Research New investments and realisations in 213 During 213 new investments of 18.5m were made, of which most ( 14m) were through Dunedin managed funds with the remaining 4.5m in third-party managed funds. The investments included 4.1m in Trustmarque Solutions, a business services company that manages customers computer software and licensing from leading providers such as Microsoft and McAfee; the initial investment was followed by a further.2m to help finance an acquisition: an illustration of DNE s interest in investing in the development of its companies. Kee Safety ( 6.3m invested) is a supplier of safety products including fall protection equipment and guardrail systems and the investment will help the company to expand its international sales further. Realisations of 27.3m were completed in 213, including the sale of Practice Plan to Wesleyan Assurance with proceeds during the year of 15.1m (capital and income), 3m above the 212 valuation and generating an IRR of 43%. Also sold were two European fund investments, Egeria Private Equity Fund III and FSN Capital III, together raising 17.4m, which was in line with net asset value. Commitments versus cash The overall level of investment commitments made by the company has averaged 76m over the last four years and this was the amount outstanding at the end of 213 (see Exhibit 6). Within this the commitments to the diminishing level of European funds has shrunk to below 14m and the company has made a commitment of 6m to the latest Dunedin buyout fund (III) of which 47m is outstanding with investment to take place over the next four years. With nearly 28m of cash and a revolving borrowing facility (to 27 February 217) of 2m, this leaves unfunded commitments of c 28m. On the assumption that the funds are likely to end up drawing approximately 9% of commitments (c 69m) and given the maturity of the portfolio, the board is comfortable with the funding position. Dunedin Enterprise Investment Trust 19 May 214 6

7 Exhibit 6: Commitments and funding ( m) Fund Commitments Funding Unfunded commitments Equity Harvest Fund Cash and near cash 27.9 Dunedin Buyout Fund I (.7) Revolving facility 2. Dunedin Buyout Fund II (14.6) Dunedin Buyout Fund III (47.3) Realza (6.5) Innova (7.2) Total (76.3) 47.9 (28.4) Investee company leverage moderate Exhibit 7 shows the levels of net debt in the investee companies as a multiple of EBITDA with 58% of the portfolio below 2x and an overall weighted average of 2.3x. This appears moderate in comparison with the average European leveraged buyout debt/ebitda of 4.6x (S&P Capital IQ 213) and a figure of 6.7x from the latest BVCA report on the performance of UK private equity portfolio companies (212). More than 5% of the portfolio companies debt matures after 216 (Exhibit 8). Exhibit 7: Investee s net debt/ebitda Exhibit 8: Investee company s debt maturity % of portoflo % of portfolio <1x 1-2x 2-3x >3x Debt/EBITDA Later years Debt maturity Valuation multiples appear moderate too Exhibit 9 shows the average EV/EBITDA valuation for the portfolio companies valued on an earnings basis. This has been relatively stable at 6.x to 7.1x 1 over the three years compared with 16.3x to 23.6x for the support services sector (which represented between 6% and 39% of the portfolio). Therefore, from an investor s point of view there is a healthy element of prudence built into the valuation approach, with valuations not rising unless companies demonstrate growth. Exhibit 1 gives an analysis of the valuation method used, including 5% of the portfolio on an earnings basis where an increase in maintainable profits has generated an increase in value and 23% where a provision has been made for a reduction in value. The remaining 27% of the portfolio was either valued at cost or on net assets. Premier Hytemp and Weldex, where there were reductions in value (see performance section), have been valued on a discounted assets basis. 1 Figures for 31 December. Dunedin Enterprise Investment Trust 19 May 214 7

8 Exhibit 9: EV/EBITDA valuation Exhibit 1: Valuation methods EV/EBITDA x % of portfolio DNE portfolio companies Support services sector Cost Earnings - provision Earnings - uplift Net assets Performance As shown in Exhibit 11, the Dunedin Enterprise NAV total return has underperformed the UK LPX (private equity) and FTSE indices shown over the periods from six months to five years. We attribute this mainly to the diversification into European funds in 27 and the associated hedging of euro exposure (see our research note dated 6 November 213 for analysis). Over 1 years the NAV return has outperformed the LPX UK index substantially and is significantly ahead of the company s benchmark, FTSE Small Cap Ex Investment Trust Index. The annualised total return over 1 years was 7.2% and over five years 6.4%. Exhibit 11: Cumulative performance comparison between DNE and LPX and FTSE indices % total return Six months One year Three years Five years 1 years DNE Equity DNE NAV FTSE Small Cap Ex Inv. Trusts LPX United Kingdom FTSE All Share Ex Inv. Trusts Source: Thomson Datastream, Edison Investment Research Exhibit 12 shows the discrete annual performances for DNE NAV, the company benchmark FTSE index and the LPX UK index (all total return). This illustrates that the company has deviated significantly from both indices. DNE s NAV return outperformed the LPX UK index in six of the 1 years shown with total returns more than 2 percentage points stronger in 27, 28 and 211; it also outperformed the FTSE Small Cap Index in these years. Exhibit 12: DNE NAV, LPX UK and FTSE Small Cap ex Inv Trusts performance % DNE NAV FTSE Small Cap ex Inv. Trusts LPX UK Source: Thomson Datastream. Note: Total returns. Dunedin Enterprise Investment Trust 19 May 214 8

9 Last year was one of relative weakness with a marginally negative NAV return lagging the small cap and private equity indices, which were up over 4% and nearly 3% respectively. Important factors here are the relative stability of the private equity valuations (see Exhibit 9) and specific weakness in two of the portfolio companies that offset a moderately positive overall performance for the rest of the portfolio. This is evident in Exhibit 13, which shows the movement of NAV in m over the year: realised and unrealised gains/other movements broadly balanced each other. The tender offer and dividend, which are shown as negatives, are not factors in the total return discussed above, but contribute to the movement in the absolute net asset figure on the balance sheet. Exhibit 13: Net asset movement attribution NAV 1 Jan 213 Unrealised value increases Unrealised value decreases Realised profit Tender offer (ex-costs) m Dividends paid Other movements NAV 31 Dec 213 Next we look more closely at the unrealised valuation movements. Key positive contributors were CitySprint, CGI and Hawksford (see Exhibit 14). CitySprint (13.7% of net assets), which is the leading UK same-day distribution network, has been successfully expanded through 13 acquisitions and the valuation move reflected a 2% increase in maintainable earnings based on both organic and acquired growth. The CGI, fireproof glass, business is very cash generative and here a 6% increase in maintainable earnings was paired with a 2.9m reduction in external debt; it accounts for 7.2% of assets. At Hawksford (trust administration 6.8% of net assets) acquisitions are the key driver of growth and maintainable earnings increased 9%. Exhibit 14: Unrealised valuation movements for m CitySprint CGI Hawksford UPOL Other Weldex Premier Hytemp -4. The main detractors were Premier Hytemp and Weldex. Premier Hytemp is a provider of highly engineered components for the oil and gas industry (notably Christmas tree valve assemblies) together with nickel alloys. It has a significant part of its operations in Singapore and one its customers here encountered internal problems that led to a substantial reduction in orders. At the same time the performance of the nickel alloy business suffered from write-downs on stocks. New management has been or is in the process of being appointed and Dunedin is supporting the Dunedin Enterprise Investment Trust 19 May 214 9

10 company in addressing its difficulties. In the meantime, as noted earlier, the valuation basis has been moved to a discount to assets, at half the book cost, with the investment accounting for 3.4% of net assets at the year end. Weldex is the UK market leader in crawler crane hire. While the company is well placed to benefit from major construction projects, the development of offshore wind farm projects has been delayed resulting in a profit reduction. Clear evidence of earnings progress would be required before the valuation basis could be adjusted positively; at 65% of book cost the investment accounts for 5.4% of assets. Discount While the investment company sector as a whole experienced a substantial widening of discount during the financial crisis (to c 2% see Exhibit 15), the private equity investment trust sector experienced an extreme excursion with the discount topping 6%. As shown, the private equity sector discount has narrowed substantially, to below 2%, but remains significantly wider than for investment companies as a whole. Exhibit 15: Discounts inv trust and PE inv trusts 2 Exhibit 16: Discounts DNE and PE investment trusts 2 Discount % -2-4 Discount % May/6 May/7 May/8 May/9 May/1 May/11 May/12 May/13 DS UK Investment Trust Index UK Private Equity investment trusts ex-3i -8 May/6 May/7 May/8 May/9 May/1 May/11 May/12 May/13 DNE UK Private Equity investment trusts ex-3i Source: Thomson Datastream. Note PE. = private equity. Source: Thomson Datastream, Edison Investment Research In this context we can see that DNE s discount (Exhibit 16) followed a rather similar broad pattern to its private equity peers. However, more recently, its discount has lagged the index noticeably, with the relatively sluggish relative performance likely to have been a key factor. The flipside of this is that from the current level of more than 2% there should be good scope for discount narrowing given an acceleration of NAV performance. Capital structure and fees The company has a simple capital structure with 21m ordinary shares in issue. At the end of March 214 the balance sheet was debt free with cash or near cash of 26.4m or 23% of assets. The company s articles permit borrowing equivalent to the issued share capital and capital and revenue reserves. However, the board s policy is to limit gearing to 4% of gross asset value. As noted in the discussion of commitments and funding (pages 6-7), there is a 2m facility maturing in 217 that the board believes will meet funding requirements. Reflecting the level of management required in a private equity portfolio, fee levels are typically higher than for an investment company investing in listed stocks. Dunedin management fees relating to direct investments, the Fund of Funds Limited Partnership, Co-investment Limited Partnership and third-party managed funds are 1.5% of the value of investments. There is a.5% charge on undrawn commitments to third-party funds. The company also pays the same fees as other investors in Dunedin managed funds. There is a performance fee arrangement in place to Dunedin Enterprise Investment Trust 19 May 214 1

11 incentivise realisation of the European third-party managed funds; this runs to the end of 214 and is capped at 1.5% of gross proceeds and associated undrawn original commitments. In line with other private equity managers, the investment executives of Dunedin are entitled to participate in a carried interest scheme in the Dunedin Buyout Funds; this includes a requirement to meet minimum performance criteria. Exhibit 17: Fee and expense analysis m except where shown Investment management fee Management performance fee.48 Management fee for investing in Dunedin funds Other expenses (admin, directors, audit etc.) Total fees and expenses Net assets Average net assets Management fees as % of average net assets 2.% 1.9% 1.6% 1.4% 2.5% Other expenses as % of average net assets.6%.5%.4%.5%.5% Total fees and expenses as % of average net assets 2.6% 2.4% 2.1% 1.8% 3.1% Ongoing charge ex-performance fee 2.6% 2.4% 2.1% 1.8% 2.7%, Edison Investment Research An analysis of fees and administration costs is set out in Exhibit 17. This shows that while other expenses have been held relatively stable over the period, management fees as a percentage of net assets declined until 213, when a combination of lower net assets and the incidence of performance fees increased total fees and expenses from 1.8% to 3.1% of average net assets. The ongoing charge, excluding performance fee, was 2.7%. As shown in the peer group analysis, even this increased level is not out of line with the sector average. Distribution policy In November 211 the company introduced a distribution policy. Under this at least 5% of capital gains made on realisation of investments in UK lower mid-market buyouts and a substantial proportion of realisations of third-party managed funds will be used to fund distributions including share buybacks, tender offers, returns of capital and dividends. The policy is intended to reduce the cash drag on shareholders returns. Since the policy was introduced the trust has paid a special dividend of 4.3m (16p) in September 212 and returned a total of 39.1m in tender offers. A further tender offer of approximately 5.2m closed 14 May 214 following the realisation of the investment in Practice Plan. Peer group comparison In the peer group table (Exhibit 18), we have selected a small subset of the AIC private equity sector and shown average values for the full list of 36 companies and the selection. In this context the DNE NAV total return over one and three years has lagged the private equity sector and the average of its more immediate peers. The comparison is more even over five years, with DNE ahead of the sector average but moderately behind the selected company average. We have discussed the fees and expenses earlier, but note that in this table the ongoing charge is ex-performance fee (1.6% including) and does not capture the Dunedin fund fees that we have incorporated in Exhibit 17. The share price discount to NAV is similar to the unweighted sector average, but there is a wide range and the weighted average is a 6% discount compared with DNE s discount of over 2% (as a further comparison the Datastream sector ex-3i index average discount is c 12%). Dunedin Enterprise Investment Trust 19 May

12 The yield of c 4% is near the top of the range in the sector, ranking fifth of 36 stocks. Exhibit 18: Closed-end private equity fund peer comparison Market cap ( m) NAV total return one year NAV total return three year NAV total return five year Discount (cum fair) Latest ongoing charge Perf fee Net gearing Yield Candover Investments No 121. Dunedin Enterprise Yes Electra Private Equity Yes 89. Graphite Enterprise Trust No HgCapital Trust Yes PE sector average PE sector median Average for selected cos Source: Morningstar, Edison Investment Research. Note: all % unless shown and as at 28 April 214. The board The board comprises four directors (with year of appointment in brackets): Duncan Budge (212, chairman May 214), Liz Airey (29, senior independent director from 212), Brian Finlayson (27) and Federico Marescotti (29). All directors are independent. Edison, the investment intelligence firm, is the future of investor interaction with corporates. 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Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Frankfurt +49 () Dunedin Schumannstrasse Enterprise 34b Investment 28 High Holborn Trust 19 May Park Avenue, 39th Floor Level 25, Aurora Place Level 15, 171 Featherston St Frankfurt Germany London +44 () London, WC1V 7EE United Kingdom New York , New York US Sydney +61 () Phillip St, Sydney NSW 2, Australia Wellington +64 () Wellington 611 New Zealand Edis world auth Edis Inc ( not r Edis finan or in for in prom Grou Edis ment this r of am differ opini advic maki resu 214 licen writte