Electra Private Equity PLC ("Electra") is one of the oldest private equity businesses operating in London today. Electra listed on the London Stock Exchange in 1976.
Electra has delivered strong returns (on a total return basis). In the 10 years to 30 September 2016, Electra's NAV per share total return was 255% compared to 35% for the Morningstar Private Equity Index NAV per share return (ex-Electra). In the same period, Electra's share price total return was 237%, compared to 15% for the Morningstar Private Equity Index share price return (ex-Electra) and 76% for the FTSE All-Share Index.
Electra has one of the most flexible investment mandates in the listed private equity sector. This means it can invest in all market sectors, across the capital structure and in various forms of private equity (buyouts, co-investments, secondary portfolios and debt). This flexibility has been the key to Electra's success.
Unlike many of its peers, Electra invests directly from its balance sheet. This enables the pace of investment to be adjusted at any time to suit market conditions and the level of cash resources. As a result, Electra avoided the over-commitment problems that affected the sector during the 2008 financial crisis.
Due to Electra's permanent capital there is no need to fundraise every few years. Therefore there is never a requirement to sell an investment to demonstrate the necessary track record for fundraising or because an external fund is coming to the end of its life. Electra is therefore a committed long-term investor, realising investments only when returns are maximised for its investors.