By Freya Berry
LONDON (Reuters) - British private equity firm SVG Capital (L:SVI) saw full-year returns of 10 percent on its investment portfolio, less than expected due to an adverse foreign exchange environment.
Its portfolio made a total return of 17 percent in the 13 months to the end of January on a constant currency basis, the firm said.
The euro has lost more than 10 percent against the dollar this year and 7 percent against the pound.
Despite the currency headwinds, SVG has seen five consecutive years of double-digit returns.
The company, which was spun out of the private equity arm of Schroders (L:SDR) in 1996 and gives investors access to private equity funds, grew its net asset value (NAV) per share by 14 percent to 588 pence.
SVG Capital was previously seen as a listed proxy for European private equity fund Permira, where it had most of its investments.
In recent years it has diversified its portfolio to include Cinven, Clayton Dubilier & Rice, CCMP Capital and U.S. mid-market manager FFL.
The firm said it expects to make at least one further investment in a private equity fund this year, as well as investments alongside such funds.
SVG Chief Executive Lynn Fordham declined to name the funds.
"We are in final due diligence on one European and one U.S. name," Fordham said.
SVG paid a record 330 million pounds ($491.63 million) of cash to investors in the period, with a further 300 million pounds announced since Jan 31.
Last week SVG and other funds sold its remaining holding in Hugo Boss (DE:BOSSn), signalling a successful comeback for the previously troubled luxury retailer. SVG made more than two times its money on the investment, Fordham said.
The firm said it would continue to return excess capital through share buybacks and tenders, which it has sought to increase since a strategic review in 2011.
(This version of the story corrects first paragraph to "full-year", not "first-half")