COVID-19 VPEG3 Portfolio Update
The current environment around COVID-19 and restrictions imposed by Government’s on the operations of businesses across the economy continues to evolve daily. As such, VPEG3’s management continues to monitor all underlying company investments through active discussions with VPEG3’s remaining underlying private equity fund managers on an ongoing basis. The following points provide a summary overview of the analysed impact to VPEG3’s underlying portfolio;
- VPEG3 has a well-balanced portfolio of 30 underlying company investments, diversified across a range of industry sectors and geographic regions within Australia and New Zealand, all of which are impacted in different ways by COVID-19,
- 21 portfolio companies representing 72.9% of VPEG3’s Net Asset Value (NAV) operate Essential Service businesses or provide a majority of their products and services to Essential Service businesses as defined under current Australian and New Zealand Government COVID-19 business definitions,
- 23 portfolio companies representing 80.3% of VPEG3’s NAV have reported either a net benefit or a low impact to their financial performance as a result of each Government’s imposed COVID-19 restrictions on the economy,
- VPEG3’s portfolio of investments generally have a low to moderate level of gearing, with a majority of companies still generating good cashflows and either have sufficient cash reserves or the ability to draw down on existing finance facilities to satisfy their financial obligations, should a prolonged economic downturn persist.