Better Capital has released its interim management statement for 2012.
The limited liability, closed-ended investment company was incorporated on 24 November 2009 in Guernsey, and converted to a protected cell company in January 2012, changing its name from Better Capital to Better Capital PCC.
Upon conversion, the company established the 2009 cell to which it attributed its investment in BECAP fund (Fund I) which has a portfolio of investments in distressed businesses.
It also established a new protected cell, the 2012 Cell, which issued new shares raising £169.9 million for investment through the 2012 Cell into BECAP12 fund (Fund II) which will invest in a portfolio of distressed businesses.
The 2009 and 2012 cells have the investment objective of generating attractive total returns from investing in portfolios of businesses which have significant operating issues and may have associated financial distress, with a primary focus on businesses which have significant activities within the UK and Ireland.
The company stated that its 2009 cell has committed an aggregate of £203.8 million, and the 2012 cell has committed an aggregate of £165.5 million.
At 10 August 2012, Fund I had cash balances of £20.4 million, placed with instant access through a diversified cash management policy.
Market conditions for most portfolio companies remain weak but the majority of Better Capital’s businesses in Fund I are holding solid, with aerospace part supplier Gardner continuing to benefit from strong market demand in the civil aerospace sector
However, the company stated that the traditional direct marketing business of Reader's Digest continues to decline in line with market trends, as its customer base shifts to electronic gadgets.