SINGAPORE (Nov 2): Private equity fund TIH Limited sank into the red with a net loss of $1.0 million for the 3Q ended September, compared to earnings of $3.2 million a year ago.
This was mainly due to a net loss in investments at fair value through profit or loss of $1.16 million for 3Q17, compared to a net gain of $3.7 million a year ago.
The net loss was mainly attributed to the decrease in fair value of $0.3 million from the underlying portfolio investments held through Killian Court as well as distribution of dividends of $0.86 million from Killian Court to the company.
TIH’s net asset value per share increase to 52 cents as at end September, from 50 cents per share a year ago.
This was mainly due to cumulative fair value gains in Fortune Code of $7.0 million and investments at fair value through profit or loss of $2.5 million, which was partially offset by dividend payment of $2.4 million.
As at end September, cash and cash equivalents stood at $8.6 million.
TIH says its investments in listed securities may fluctuate, affecting fair value valuations of its portfolio investments, depending on prevailing public market conditions, and do not indicate a permanent increase or diminishing of the investment portfolio’s valuation.
“The buoyant economies in Asia present growth opportunities for TIH,” says TIH executive director Allen Wang.
“In the face of growing competition for deals and increasing valuations, we will continue to harness our strategic relationships as well as corporate finance expertise and capabilities to actively seek out attractive investments,” he adds.
TIH chairman Kin Chan says the group will continue to leverage its strong network of investors in Greater China and Southeast Asia to strengthen its deal-sourcing abilities.
“The group is focused on creating long-term value for shareholders and enhance capital return on equity,” he says.
TIH says the continuing recovery of the world economy has translated to an uptrend in private equity activity that is expected to continue in Asian markets.
This is supported by relatively cheap debt and ready cash as well as strong investor interest in startups, internet and consumer-oriented deals in the region, the group adds.
Shares of TIH closed 1 cent higher at 51.5 cents on Thursday.
