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

Tetragon FinancialAnnouncement

11/08/2023 07:15

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RNS Number : 9559I  Tetragon Financial Group Limited  11 August 2023

London, UK, 11 August 2023

 

Edison issues update on Tetragon Financial Group (TFG)

Tetragon Financial Group (Tetragon) reported a 1.7% ROE in H123 and its NAV
increased by 1.7% in total return terms. The portfolio gained 3.0% on the back
of TFG Asset Management (which remains Tetragon's largest asset, representing
50% of its NAV), private equity assets and its direct listed equity
investments, while the remaining asset classes had a limited impact on NAV.
Tetragon targets returns uncorrelated with broader equity markets and a 10-15%
ROE (9.9% on average over the last five financial years, and 11.4% pa since
IPO). In H123 Tetragon was a net investor and increased its credit facility
utilisation to 75% (US$300m), deploying capital predominantly into private
equity assets and hedge funds, and further supporting the growth of TFG Asset
Management.

 

As at end H123 Tetragon had US$300m of its US$400m credit facility drawn,
translating into net gearing of 9.5% (FY22: 6.1%, FY21: net cash of 0.3%).
This compares to US$113m of undrawn commitments as at end-June (likely to be
drawn gradually in the coming years), of which roughly half was made to fully
controlled managers. In H123 Tetragon distributed US$43.5m in dividends and
share repurchases to its shareholders (in line with its four-year semi-annual
average of US$43.2m). Tetragon's cash position in H123 was supported by
US$119.4m in disposals and distributions, of which US$32.3m came from CLOs and
US$9.1m from a dividend paid by Equitix.

 

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