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29 Jun 2022 10:53
Edison Investment Research Limited Tetragon Financial Group (TFG): Offering a diverse exposure to alternative assets 29-Jun-2022 / 10:52 GMT/BST
London, UK, 29 June 2022
Tetragon Financial Group (TFG): Offering a diverse exposure to alternative assets Tetragon Financial Group (Tetragon) focuses on alternative asset classes offering excess risk-adjusted returns (ie ‘intrinsic alpha’). This includes private equity holdings in alternative asset managers, investments in funds, as well as balance sheet investments in alternative assets. Tetragon posted a 14.1% NAV total return in FY21 in US dollar terms and so far saw only an 0.6% NAV decline in 2022 until end-April. It continues to make distributions to shareholders through NAV-accretive share buybacks (it completed a US$42m tender offer in April 2022) and dividends (with its LTM payout implying a 4.1% yield).
TFG Asset Management remains the largest asset in Tetragon’s portfolio (45% share of NAV) and management reiterated its intention to at least partially exit this position, with the sale of individual asset managers now more likely than an initial public offering of the whole entity. In this context, we note that TFG Asset Management’s valuation reflected in Tetragon’s end-April NAV equals c 1.3x Tetragon’s current market capitalisation. Within TFG Asset Management, management considers LCM (valued at 29% of Tetragon’s current market cap) and BentallGreenOak (23% of market cap) as being more mature, while the largest position Equitix (71% of market cap) is still in its growth phase. Click here to view the full report or here to sign up to receive research as it is published.
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1386555 29-Jun-2022
corporate announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.