Princess Private Equity Holding Ltd on Tuesday reported a lower net asset value for 2022, citing high inflation and ‘aggressive’ interest rate hikes.

The Guernsey-based investment fund said NAV per share at December 31 was €14.62, down 4.2% from €15.26 a year prior.

The company declared a total dividend of €0.38, down 43% from €0.67 a year ago.

NAV total return was negative 1.6%, significantly outperforming the MSCI World Index, which was negative 13%. Princess Private Equity explained the NAV fall was largely during the first half of the year due to valuation changes brought by public market devaluations. The company noted that ‘the global economy is undergoing a fundamental change’.

Looking ahead, Princess Private Equity cited a ‘pronounced’ recession risk beyond 2023 and anticipates inflation will remain higher amid modest real economic growth, arguing that private markets provide robust diversification benefits.

Princess Private Equity shares were untraded on Tuesday morning in London, closing on Monday at 809.00 pence for a £559.4 million market capitalisation.

Copyright 2023 Alliance News Ltd. All Rights Reserved.