Clairvest (CVG) Q4 2024 earnings summary

Executive summary

• Book value at March 31, 2024 was $1,176.3 million ($80.16/share), up from $1,150.3 million ($78.38/share) at December 31, 2023, but down from $1,217.7 million ($81.05/share) at March 31, 2023.

• Net income for Q4 2024 was $26.1 million ($1.78/share), driven by increased fair value of investments.

• Fiscal 2024 ended with a net loss of $3.4 million ($0.23/share), reflecting $38 million in net realized gains and $84 million in net unrealized losses, mainly due to foreign tax regulation changes.

• Launched Clairvest Equity Partners VII, a US$1.2 billion fund with a US$300 million commitment from Clairvest.

• Subsequent to year end, completed new investments in waste management and gaming, and exited Durante Rentals at a loss.

Financial highlights

• Q4 2024 net investment gain was $22.0 million, compared to a loss of $12.1 million in Q4 2023.

• Fiscal 2024 net investment loss was $19.4 million, improved from a $62.2 million loss in fiscal 2023.

• Total assets at March 31, 2024 were $1,342.1 million, down from $1,429.7 million a year earlier.

• Total cash, cash equivalents, and temporary investments were $330.2 million at year end.

• 350,300 shares were repurchased and cancelled during the year for $25.9 million at an average price of $73.94/share.

Outlook and guidance

• Management is optimistic about opportunities for CEP VII but remains cautious due to operational and external challenges, including regulatory changes.

• The company expects continued active investment and portfolio management in the coming year.