Matador Secondary Private Equity AG publishes Annual Report 2022 - Profit is at the upper end of expectations
Matador Secondary Private Equity AG / Key word(s): Annual Results/Private Equity
Matador Secondary Private Equity AG publishes Annual Report 2022 - Profit is at the upper end of expectations
21-March-2023 / 18:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 16 LR
The issuer is solely responsible for the content of this announcement.
Ad HocMatador Secondary Private Equity AG - Annual Report 2022
Result amounts to CHF 5.3 million after taxes
Profit is at the upper end of expectations
Good business year despite adverse environment - NAV increases by more than 11%
Sarnen, March 21, 2023 - Matador Secondary Private Equity AG, a company specializing in secondary private equity, achieved a profit of CHF 5.3 million in the 2022 financial year. The main reason for this pleasing result is the good performance of the Secondary Private Equity portfolio: Matador currently has investments in a total of around 1,450 companies via 23 private equity funds. "The strong result illustrates once again that our focus on Secondary Private Equity, even during this difficult period, has proven to be the right strategic investment strategy," explains Matador's Board of Directors. Matador's net asset value increased by over 11% in fiscal year 2022.
One crisis was not yet over when we were already faced with the next: the Russian invasion of Ukraine raises many questions: From a humanitarian point of view, regarding the security situation, from an economic point of view and, of course, regarding the possible impact on Matador's portfolio. Matador's exposure in this region was minimal and no impact on Matador is expected.
On the contrary, due to several successful exits in FY 2022, we were able to achieve the ambitious annual targets in 2022. Several developments give reason to believe that this high level can be maintained in 2023.
Private equity has proven to be relatively stable and highly resilient despite economic uncertainty - as demonstrated during the 2008 financial crisis and the Covid pandemic. During both events, private equity-backed companies offered greater growth opportunities than many peers and delivered the returns investors wanted. Investors have learned from the past that those who are patient and invest during a crisis deliver higher returns in the years following the crisis.
It seems that history is repeating itself to some extent. Today, we observe investor behavior that closely resembles the pattern we saw at the beginning of the Covid pandemic. The main feature is the (involuntary) retreat of the largest and most experienced buyers. Many of these groups have significantly slowed their investment activity and are also having to restructure and sell their private equity portfolios. Just as in the early days of Covid, this has left the field wide open for secondary private equity investors like Matador, who now operate with much less competition. The secondary market has grown and evolved significantly in recent years: Sales of individual funds and portfolios are flourishing in this difficult environment. Matador Secondary Private Equity AG's deal flow is and will remain very high: "When liquidity needs arise for investors, this is always accompanied by good opportunities to enter into Secondary Private Equity transactions. Also in the current period we will examine promising investment opportunities in order to continuously develop the portfolio and to accelerate the portfolio expansion in 2023", explains the Board of Directors of Matador. In this context, different aspects are relevant for Matador: In addition to double-digit return opportunities, the greatest value is placed on diversification and, above all, risk minimization when selecting transactions.
In the past 20 years, Secondary Private Equity has achieved positive returns in every vintage year - even or especially during and after the financial and corona crisis. The chance of profitable transactions in all economic cycles makes Matador Secondary Private Equity AG an important, liquid component and stability anchor of a portfolio that is well diversified in terms of risk-reward and inflation aspects", says the Board of Directors.
About Matador Secondary Private Equity AG:
Matador Secondary Private Equity AG (ISIN: CH0042797206), headquartered in Switzerland, specializes in secondary private equity investments, with which the company has built a private equity portfolio broadly diversified by industry, region and economic cycle. The share is listed on the BX Swiss.
Contact:
Matador Secondary Private Equity Ltd.
office@matador-secondary-private-equity.com
Tel: +41(0) 41 6621062
Additional features:File: Matador Secondary Private Equity AG publishes Annual Report 2022 - Profit is at the upper end of expectations End of Inside Information
1588317 21-March-2023 CET/CEST
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