Diversification and performance
30 June 2021
Brederode’s portfolio consists of two distinct and complementary operational sectors: non-listed, or Private Equity, holdings, and listed securities.
The unique combination of these two portfolios allows optimal management of the liquidity risks linked to the uncalled Private Equity commitments while remaining fully invested overall.
Concentration of talents,
alignment of interests and creation of value
Brederode’s Private Equity portfolio consists mainly of commitments in fixed-term (10-12 year) associations usually referred to as Limited Partnerships, or simply Funds. The managers of these funds invest the called amounts in various projects which they then manage until such time as they resell (exit) them, which is typically after a period of 4 to 7 years.
Brederode also analyses all opportunities for direct co-investment in certain projects identified as promising, in parallel with certain Funds.
Brederode’s Private Equity operations date back to 1992. With its extensive experience and its network of contacts, the Brederode group is able to focus on the most promising projects, led by the best teams of managers.
Mid and long term performance
|(in € million)||10 years||5 years||3 years|
|Value at the beginning of the period||463,92||719,28||877.79|
|Cash flow during the period||131,63||-104,12||-100,72|
|Value at the end of the period (*)||1.554,83||1.554,83||1.554,83|
|IRR (Internal Rate of Return)|
The valuations at the beginning and at the end of the financial year relate to the NAVs reported in the IFRS-accounts on the basis of preliminary information available at the time of the closing of the accounts. The performance variances with the final valuations are not significant.
Advantages of the Private Equity
1. Alignment of interests of the parties involved
The interests of each of the parties involved are optimally aligned thanks to incentives put in place aimed at encouraging both the General Partners and the management of the acquired companies to maximise the return on investment for the shareholders over a period of generally four to seven years.
2. Long-term value creation
3. Optimisation of financial leverage
4. Rigor and discipline
Breakdown by style
30 June 2021
30 June 2021
30 June 2021
30 June 2021
Geographical breakdown of Private Equity activity in June 2021
(in € million)
(in € million)
Breakdown of Private Equity investments by vintage year
Our main partners in Private Equity
Providence Equity Partners
The Carlyle Group
Vista Equity Partners
List of the main Private Equity managers
as 30 June 2021 (in € million)
The top 25 General Partners included in this list represent 74% of the total commitments.
Quality, diversification and liquidity
The listed securities portfolio focuses on around twenty high quality companies. It is rigorously managed in order to balance its defensive nature with the profitability, liquidity and growth objectives.
Breakdown of the listed portfolio
30 June 2021
Performance by investment and by industry as 30 June 2021
|Samsung Electronics Co., Ltd. produces electronic products for consumers and industry, semi-conductors, PC’s, peripheral equipment, screens, televisions and household appliances such as air conditioners and microwave ovens. The company also produces internet access systems, telecommunication equipment and mobile phones.||110,29||8,7%|
|MasterCard, Inc. offers payment solutions through its credit and debit services and payment programmes with financial institutions. The company also offers transaction services for debit and credit cards, transferable money, automated counters and traveller cheques.||96,45||7,6%
|The company Intel develops, produces and sells IT-parts and related products. The main products are microprocessors, computer mice, integrated processors, microcontrollers and memory cards, graphic products, network and communication products, operating software, conference systems and digital imaging products.||53,24||4,2%
|Relx PLC provides information solutions for professional customers across industries. The Company publishes information for the scientific, medical, legal, and business sectors. Relx serves customers worldwide.||44,61||3,5%
|Sofina SA is an investment company listed on the Brussels stock exchange.||167,87||13,3%
|Novartis AG manufactures pharmaceuticals and health care products for the general public, including medicine for the treatment of cardiovascular diseases, breathing difficulties and infectious diseases, internal and urological pathologies, products in the field of oncology, dermatology, eyesight, arthritis, vaccines, diagnoses and animal health.||50,68||4,0%
|Sanofi is a worldwide pharmaceutical company focusing on the research, development and production of medicine and vaccines for the treatment of cardiovascular diseases, thrombosis, metabolism disruptions, tumours, the nervous system and internal medicine.||41,53||3,3%
|Fresenius SE & Co KGaA is a worldwide group offering health products, dialysis treatment and health care products for home use, perfusion-, transfusion-and diagnostic equipment, blood-plasma separators and hemofilters, food supplements and solid and liquid pharmaceutical products.||30,85||2,4%
|Unilever SA produces well-known brands and consumables such as food products, detergents, perfumes, hygiene and household products. The company is also listed on the London stock exchange.||79,57||6,3%
|Nestlé SA is an international company producing and selling a wide range of food products such as milk, chocolate, sweets, mineral water, coffee, cream, herbs and pet foods.||70,82||5,6%
|Iberdrola S.A. produces, distributes, commercializes and sells electricity in the United Kingdom, the US, Spain, Portugal and Latin America. The company specializes in clean energy, wind energy in particular.||80,22||6,3%
|Enel SpA operates as an integrated electricity and gas distributions company. The Company generates, distributes, and sells electricity and gas. Enel also provides electric transportation and storage services. Enel serves customers worldwide.||62,86||5,0%
|Oil & Gas||57,76||4,6%
|Royal Dutch Shell PLC – via its subsidiaries – explores for, produces and refines petroleum. The company produces fuels, chemical products and lubricants. The company owns and manages a worldwide fuel station network.||31,07||2,5%
|TotalEnergies SA explores for, produces, refines and sells petroleum and natural gas. The company also has a chemical division producing polypropylene and polystyrene, rubber, paint, ink, glues and resins. Total also operates a fuel station network in Europe, the United States and Africa.||26,69||2,1%
|Royal Bank of Canada is a diversified financial services company. The Company provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services. Royal Bank offers its services to personal, business, public sector and institutional clients with operations worldwide.||38,15||3,0%
|3M Co. conducts operations in electronics, telecommunications, industrial, consumer and office, health care, safety, and other markets. The Company’s businesses share technologies, manufacturing operations, brands, marketing channels, and other resources. 3M serves customers in countries located around the world.||36,9||2,9%
|Telenor ASA develops and supplies telecommunication, information and media services. The company offers telephone services and operates IT-systems. It offers telephone cards and telephone services, mobile data, satellite communication and television messages. It is represented in Norway and various other countries.||27,45||2,2%
|Other holdings < € 10 MM||6,69||0,5%
Portfolio on 30 June 2021
|Securities (In € millions)||Number of shares||ISIN-code|
|Samsung Electronics (GDR)||73.490||US7960508882|
|Fresenius SE & Co||701.191||DE0005785604|
|Oil & Gas|
|Royal Dutch Shell||1.827.439||GB00B03MLX29|
|Royal Bank Of Canada||447.200||CA7800871021|
|Other holdings < € 10 MM||n.a.|