London, UK, 9 December 2020
Georgia Capital (CGEO): A private equity play on Georgia
Georgia Capital (GCAP) has a unique position as an experienced institutional financial investor in Georgia with superior access to attractive private investment opportunities. Its management team has built several market leaders before BGEO's de-merger into Bank of Georgia (BoG) and GCAP, which remain in GCAP's portfolio. A few of them are valued at c GEL0.5bn (c US$150m) and may be ripe for an exit in the medium term, which could help validate GCAP's strategy. Due to COVID-19, the company decided to focus its existing portfolio investments on the local renewable energy (wind and hydro) and private education sectors.
GCAP is trading at a c 42% discount to NAV, which is wider than its pre-COVID-19 levels of c 10-30% and the current average discount across listed private equity (PE) peers (c 23%). While GCAP is not paying dividends at present, it has conducted NAV accretive buybacks in the past and could do so again if the wide discount persists.
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