Reinet NAV falls 3.7% on FX and private equity marks, but cash climbs to €2.1bn

Key topics:NAV pressure: NAV down 3.7% amid FX losses and lower private equity valuations.Liquidity strength: Cash rises to €2.11bn, far exceeding €679m in commitments.Portfolio shifts: Strong dividends and gains from Coatue, Prescient China, Grab and gold offset PE declines.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.Reinet Investments S.C.A., the Luxembourg-based investment vehicle associated with the Rupert stable, has reported a mixed set of interim results for the six months to 30 September 2025. The group’s Net Asset Value (NAV) fell due to currency headwinds and valuation declines in key private equity holdings, but cash reserves surged, dividend income strengthened and the share price gained nearly 9% on the Luxembourg Stock Exchange.NAV declined 3.7% to €6.66 billion, from €6.92 billion in March 2025, while NAV per share fell from €38.04 to €36.62. The consolidated accounts reflected a €190 million loss, reversing the €470 million profit recorded in the prior period.Management emphasised that the decline was driven largely by non-cash valuation adjustments and currency effects rather than operating or liquidity stress. Reinet continues to position itself defensively amid rising geopolitical and macroeconomic uncertainty.Private equity marks and currency pressure drag NAV lowerThe biggest contributor to the NAV decline was the reduced carrying value of several unlisted assets, most notably Pension Insurance Corporation Group Limited (Pension Corporation)—Reinet’s single largest investment.The Pension Corporation position fell by €378 million, driven by:€303 million in dividends received;a €144 million FX translation loss as sterling weakened;partially offset by a €69 million uplift due to the agreed transaction mechanism under the pending sale to Athora.Pension Corporation now represents 50.1% of NAV, down from 53.7% at March 2025.Other private equity holdings also registered declines:Trilantic Capital Partners: down from €424m to €310mTruArc Partners: down from €354m to €270mNanoDimension funds: down from €64m to €56mListed biotech holding Twist Bioscience dropped from €16m to €11m due to its share price fall.FX movements added to the drag, with both the US dollar and sterling weakening against the euro during the period.Liquidity strengthens and dividend income remains robustDespite the NAV contraction, Reinet’s liquidity position strengthened significantly. Cash and liquid funds increased to €2.11 billion, up from €1.82 billion, leaving the group with cash resources exceeding unfunded commitments (€679 million) by more than three times.New commitments of €298 million were made during the period—including a major €294 million commitment to TruArc Fund V—but only €7 million was drawn, reflecting measured capital deployment.Dividend income remained strong, particularly from Pension Corporation, which paid €303 million in ordinary and special dividends, up from €235 million in the prior period. Reinet also realised €90 million in gains from disposals across Trilantic, TruArc and Coatue holdings.The group paid a higher dividend of €0.37 per share (€67 million total), up from €0.35 in 2024.Positive marks in key growth investmentsSeveral of Reinet’s growth-oriented holdings saw fair value increases:Coatue funds: up from €198m to €232mPrescient China funds and management company: up from €141m to €160mListed investments rose from €125m to €138m, supported by gains in Grab Holdings (up to €54m) and SPDR Gold Shares (up to €70m).Reinet’s indicative share price rose 8.7% to €25.00, lifting long-term shareholder returns. Total return since inception now stands at 8.4% per year, with NAV compounding at 8.6% since March 2009.Pension corporation sale on trackReinet confirmed that the sale of its entire Pension Corporation stake to Athora Holding Ltd, announced in July 2025, remains conditional on UK regulatory approval but is expected to close by February 2026. The investment continues to be valued based on expected proceeds under the sale agreement.OutlookReinet’s interim performance reflects a portfolio experiencing valuation pressure in private equity and facing FX volatility, but supported by strong liquidity, robust income streams and solid long-term returns. Management said the company remains well positioned to deploy capital selectively as geopolitical risks and market uncertainty persist..Read the results in full by downloading the PDF below

Reinet NAV falls 3.7% on FX and private equity marks, but cash climbs to €2.1bn

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