RCS - Tetragon Financial - Edison issues outlook on Tetragon Financial Group

Tetragon FinancialAnnouncement

29/06/2022 11:15

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RNS Number : 6308Q  Tetragon Financial Group Limited  29 June 2022

London, UK, 29 June 2022

 

Edison issues outlook on Tetragon Financial Group (TFG)

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.

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All reports published by Edison are available to download free of charge from
its website

www.edisongroup.com (http://www.edisongroup.com)

About Edison: Edison is a leading research and investor relations consultancy,
connecting listed companies to the widest pool of global investors. By
focusing on the volume and quality of investors reached - across institutions,
family offices, wealth managers and retail investors - Edison can create and
gauge intent to purchase, even in the darkest pools of capital, and then make
introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100
analysts covering every economic sector. Headquartered in London, Edison also
has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in
Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority
(https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfYL6AAN) .

Edison is not an adviser or broker-dealer and does not provide investment
advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst +44 (0)20 3077 5700 investmenttrusts@edisongroup.com
(mailto:investmenttrusts@edisongroup.com)

Michal Mordel +44 (0)20 3077 5700 investmenttrusts@edisongroup.com
(mailto:investmenttrusts@edisongroup.com)

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