Q: Hello,
It has been some time since you remarked on CVG - could you provide current comments.
Thank you
It has been some time since you remarked on CVG - could you provide current comments.
Thank you
5i Research Answer:
CVG is down 6.8% year-to-date and pays a 1.15% yield. Results can be quite varying on a quarter-to-quarter basis similar to other smaller private equity companies. Recent results in FY2024 have been solid, displaying positive revenue and earnings growth. At 0.9x book value, the valuation is decently attractive. It has plenty of cash and no debt. We think private equity can be an effective diversification tool to add to an equity portfolio. The weak performance recently and choppy results deter us from CVG but we generally think it is an OK private equity play for its size.