NAXS - Strong quarter but valuation below hist. avg.

NAV +8. 5% in …driven by strong development of PE funds Valuation is now below historical average Another strong quarter, in terms of both NAV and TSR NAVPS as of 31 March was SEK 63. 04, implying an increase of +8. 5% in total-return terms.

Total shareholder return (TSR) amounted to +7% (SIXRX benchmark +14%), as the discount to NAV ticked up by 1pp to 19%. Regarding the direct investments, Awilco Drilling declined by +5% following an exceptionally strong Q4, while Scout Gaming Group gained +2%. Keurig Dr Pepper was up +8%.

Private equity fund investments currently comprise 69% of NAV (87% including commitments), direct investments 6%, and net cash 26%. Activity level remained high Following the intense Q4, Q1 also turned out to be a quarter characterized by high activity. NAXS made another co-investment with JAB Holding (Krispy Kreme Doughnuts), following the previously announced co-investment in Pret Panera Company in January.

In addition, four new acquisitions were carried out by the underlying funds, and four exits were completed (or agreed on). A partial exit was made through the IPO of Kreate in Finland. According to NAXS, PE market activity has returned to normal levels amid strong equity markets.

NAV discount stands out as high in the sector NAXS currently offers exposure to 13 funds from nine different managers and six direct investments. The discount to NAV currently stands at 18%, which is below the historical average (2010-) of 16% and stands out as high in the investment company sector. Furthermore, the balance sheet is strong and we believe the dividend yield is likely to stay at around 6% over the next few years, based on today’s valuation.