EIH investment in EIF extended until 2019

5th Jan 2017 09:03

(ShareCast News) - EIH updated the market on its investment in Evolvence India Fund on Thursday, noting that as at 30 June the company's largest investment was $20.1m invested in EIF, equivalent to 31.2 cents per share.At that reporting date the unaudited fair value of the company's investment in EIF was $20.6m, equivalent to 31.9 cents per share, representing a 1.03x multiple over cost.In order to maximize the value of the unrealised portfolio and to execute orderly exits, EIF's investment manager had extended the life of the fund until 31 October 2019, EIH reported."During the extension period the management fees will be reduced by 60% from the previous level and are capped at a fixed annual amount," the board reported."The company pays certain annual management fees and expenses to EIF in respect of its commitments to that fund."While these costs are embedded in the capital account of EIF and do not appear in the profit or loss for the company, the reduction in the management fees by 60% nonetheless represents a cost reduction for the company."The directors said they reviewed certain underlying financial information provided by EIF's investment manager, and remained confident that as EIF's underlying portfolio matures and further realisations are achieved, further cash distributions will be received.