Alternate Investment Market (AIM) listed Evolvence India Holdings Plc (EIH) has announced its results for the year 2008, with net asset value (NAV) per share falling by 38% to $0.713 as compared to last years $1.158. The net assets were valued at $46.3 million, a significant fall from last years $75.2 million. The fund has made a loss of $27 million for the year 2008. The firms stock price was down by nearly 10% to 48 pence at close of trading on 16 June.
The fall in EIH assets have come as India's Bombay Stock Exchange fell by about 61.5% in value in the calendar year 2008. But the index has bounced back by more than 57% in value since the beginning of this year, which is sure to have impacted the portfolio of EIH.
In another development, Mehdi Dazi has resigned as a non-executive director of EIH, to concentrate on his other business interests. EIH has appointed Anderson Whamond, who was till recently a director of AIM listed investment management group Charlemagne Capital Limited, as
an independent non-executive director . EIH's management agreement with Evolvence India Advisers Inc is also expiring by September-end, after which the fund will announce a new adviser.
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EIH was listed on AIM in March 2007 raising $65 million from investors. The fund has invested $45.1 million of the net proceeds of its public offering to Evolvence India Fund (EIF), a fund of funds which also makes co-investments. Another $6 million is invested in Evolvence India Life Sciences Fund (EILSF) and remaining $14 million in direct/structured investments.
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Write Downs and Defaults
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The London-listed firm has made unrealised write downs its investments in EIF and EILSF, and has also been hit a by loan default. Of the $45.1 million committed to EIF, a little more than $36 million has been invested, which has been fair valued at $26.084 million. The $1.92 million invested in EILSF has been fair valued at $1.6 million.
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The company also made a $2.5 million loan to Katra Holding, which is under default and EIH has initiated strong measures for its recovery.
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Exits
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EIF, which has a corpus of $250 million, has invested in 10 private equity funds and has made several co-investments. It has a portfolio of 110 companies directly and indirectly. This portfolio has had fifteen successful full exits and five partial exits, realising a multiple of above 2.5 times on the invested cost. The fund exited its shareholding in Centurion Bank of Punjab, one of its co-investments, at a gross IRR of 54% in 2008.
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Evolvence India Holdings also gave an unsecured loan of $7.8 million to Aqar Holdings at a rate of 10%, which was completely repaid during the year.
