The management of the asset portfolio in the first half of 2024 took place in a complex and uncertain investment environment, marked by elevated interest rates and heightened capital market volatility, demanding a prudent yet adaptable approach to ensure satisfactory performance.
In this context, following its investment strategy, Lion Capital S.A. focused on calibrating the portfolio towards assets/financial instruments that benefit from an inflationary environment, continuing the restructure of its portfolio by reducing minority exposures that do not align with the fund’s investment strategy, and actively managing majority stakes to develop businesses and enhance their performance.
Total assets under management surged to RON 4,827m, representing a robust 33.51% increase compared to the same period last year.
Net Asset Value reached RON 4,563m (RON 8.9913 per share), marking an 11.43% rise from the end of 2023 and an impressive 32.04% leap from June 30, 2023.
Dividend income emerged as a particular bright spot in the first half of the year, with Lion Capital reaping RON 137m, significantly outpacing the figure from 30 June 2023, the windfall reflecting the strong performance of the fund’s 2023 investment portfolio, which translated into generous dividend distributions in 2024.
However, the investment landscape presented challenges as well, thus the Gain/Loss on Investment position as of June 30, 2024, tilted unfavourably, with Lion Capital recording a RON 10m loss on financial assets at fair value through profit and loss (FVTPL). This stands in contrast to the RON 70m gain posted in the comparable period of the previous year.
Expenses as of June 30, 2024, saw a modest uptick (of approximately 15%) compared to the first half of the previous year, with increases noted in both fee-related and operational costs.
Lion Capital posted a net profit of RON 121m as of June 30, 2024, primarily driven by the robust dividend income.
Total comprehensive income as of June 30, 2024, stood at a positive RON 467m, reflecting the recognition in other comprehensive income of fair value appreciation in the portfolio of financial assets classified as FVTOCI (Financial assets at fair value through other comprehensive income).
The 1H 2024 Report in full is available on Lion Capital’s website, in Investor Relations • Financial Results section.
