DeA Capital, a De Agostini group company, is Italy’s leading alternative asset manager of real estate, private equity and NPLs, with AUM of c €11.9bn at 31 March 2019. The portfolio, including co-investment in funds managed, investment in the asset management platform and direct investment, amounted to c €372m.
At 31 March 2019 (Q119) alternative AUM was c €11.9bn, up from €11.6bn at end-Q118 and at a similar level to end-Q418. Commission income was a strong €16.9m compared with €14.4m in Q118, benefitting from performance-related fees. Fund launches have continued, with the DeA Capital Alternative Funds managed DeA Endowment fund, aimed specifically at banking foundations, and the group has acquired the remaining minority in DeA Capital Real Estate. The end-Q119 holding company’s financial position remained strong at €92.5m, or c 20% of NAV and the c €31m dividend distribution (€0.12 per share) in May is substantially matched by c €23m of dividend upstreaming from the AAM business. Shareholders have approved the cancellation of 40m treasury shares, with effect from August. This will have no impact on liquidity, NAV, or EPS. End-Q119 NAV per share was €1.82 (end-Q418: €1.84), before payment of the dividend.
Low interest rates support demand for alternative assets, while fund maturities and other divestments are supporting cash flow for reinvestment and distributions to shareholders, even after meeting outstanding investment commitments.