Focus - PEUG PA - 131,4Euros
PEUGEOT INVEST
Focus on private equity
PI implemented a portfolio construction strategy with a regular annual commitment approach starting in 2014 and then formed a dedicated team. These developments have accelerated since 2017. The group has sown a lot and the value of private equity fund shares has quadrupled since then.
The PI strategy is structured around a limited number of partners with whom the group seeks to build ongoing relationships. The group invests mainly in Europe and the United States in Growth and LBO funds, mainly in the Tech and Healthcare sectors.
PI does not yet report on the performance of its investments. We modeled recent investment flows and expected distributions starting in 2021 over an 8-year period. Based on the average multiples paid and exit levels achieved in private equity over the last few years, we calculated the expected investment flows and distributions. We conclude that the group will benefit in the coming years from repayments in excess of its capital calls, unlike the last 5 years.
M€ | 30/06/2021 | ||||
NAV | 5 667 | ||||
NAV per share | 227,4 | ||||
LTV | 16% | ||||
Gross Debt | 1 013 | ||||
Market capitalization (12/01/22) | 3 224 | ||||
CAROLE ROZEN | FRANCOIS DIGARD |
carole@theia-recherche.com | francois@theia-recherche.com |
SponsoredParis,research12 janvier 2022
Table of contents
Growing and accelerating commitments since 2017 | 7 |
A strategy focused on growth and LBO funds in Europe and the United States | 8 |
A "value-added" LP | 11 |
High selectivity | 11 |
Equity investments only | 12 |
Cross-fertilization: a lever on investments | 12 |
Evolution of the private equity market | 13 |
What is the sensitivity to a drop in valuation multiples? | 15 |
Disposals, repayments, distributions: substantial additional income | 17 |
Update of the NAV: 45% discount | 20 |
Risk of conflicts of interest | 25 |
Disclaimer | 25 |
PI in pictures
Chart 1 : 10-years PI stock price
Chart 2 : H1 GAV of PI by asset type
Real EstateOther Assets
9% 1%
Co-Investment
12%
Peugeot 1810
Investment44%
Capital
8%
Holdings
26%
Chart 3 : Historical discount and NAV over 10 years
250 | 60% |
200 | 50% |
150 | 40% |
30% | |
100 | 20% |
50 | 10% |
0 | 0% |
NAV | Price |
Discount | Linéaire (Discount) |
Source of graphs: Factset, Peugeot Invest, Theia Recherche *Investments = Assets excluding Peugeot 1810
Chart 4 : Evolution of unlisted assets
3000
2500
2000
1500
1000
500
0 | |||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 2020 H1 21 | ||||||
Unlisted equity assets | Private equity | Co-investment | Real estate | ||||||||||||
Chart 5 : Listed vs. unlisted in the Investment GAV*.
2500
2000
1500
1000
500
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 21
Total listed holdings excluding Peugeot 1810 | Total unlisted assets | ||
Chart 6 : European peers' discounts/premiums
120% | |||
100% | Latour AB; | ||
80% | 96% | ||
60% | 3i; 53% | ||
Sofina; 40% | |||
40% | |||
20% | Kinnevick; | ||
18% | |||
0% | Gimv; 9% | ||
GBL; -31% | Industrivarden; -9% | ||
-20% | Wendel; - | Eurazeo; -23% | |
Exor; -22% | |||
-40% | |||
-60% | Peugeot Invest; -45% | ||
* Price at 12/31/21 compared to last published NAV
Focus on private equity | 12/01/22 ∙ 3/26 |
Table 1 : Estimated NAV of Peugeot Invest as of 12/31/2021
Stellantis
Faurecia
Peugeot 1810
Lisi (total)
SEB
Safran
Orpea
CIEL
Tikehau Capital
Spie
Listed holdings
Unlisted holdings
Total equity investments
Private equity vehicles
JDE
KDP
Unlisted co-investments
Co-investment
Immobilières Dassault
Unlisted real estate assets
Real estate
Other financial assets and liabilities
Treasury
Other assets
Gross asset value of investments
Total gross revalued assets
Debt
Net asset value
Net asset value per share
Current stock price
Discount
Source: Peugeot Invest, Theia Research
Value (€M)
3 739
180
2 998
293
305
44
287
14
72
193
1 208
456
1 664
536
6
136
667
809
88
507
595
11
33
44
3 648
6 646
-1 013
5 633
226,0
124,0
45%
Chart 7 : Assets Investment* by sector (H1 21) | Chart 8: Assets Investment* by geography (H1 21) | ||
Automotive | |||
Other | 6% | Asia/Africa/Latin | |
18% | Aerospace | America | |
6% | |||
North | |||
America | |||
Consumer | 33% | ||
Goods | |||
Real Estate | 18% | ||
16% | |||
Logistics | Europe | ||
2% | |||
Healthcare | 51% | ||
Services | Financial | 21% | |
Services | |||
7% | |||
6% | |||
Source: Peugeot Invest *Investments = excluding Peugeot 1810 | Source: Peugeot Invest *Investments = excluding Peugeot 1810 |
Focus on private equity | 12/01/22 ∙ 4/26 |
- long-termpresence whose value has quadrupled in 5 years
Investment in private equity funds represents nearly a quarter of Peugeot Invest's unlisted assets at present. It is a major growth axis in both Europe and the United States that has been accelerating since 2017.
In addition to its long-term holdings, historically made up of listed assets, the group has increased, particularly since 2017, its equity investments in two types of commitments: co- investments and private equity funds. As we showed in our study "Peugeot Invest: A Famous Unknown", the weight of unlisted assets has doubled over the past 5 years to 58% of GAV Investments (i.e. excluding Peugeot 1810). The value of private equity units has quadrupled over the period, but their relative weight has remained stable compared to unlisted investments. In H1 2021 it represented 24% of the Group's unlisted assets.
Chart 9 : Valuation of PE funds in the NAV (€M)
Source : Peugeot Invest
Focus on private equity | 12/01/22 ∙ 5/26 |
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Peugeot Invest SA published this content on 12 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 January 2022 09:31:06 UTC.