Value creation in the other portfolio was negative GEL 27 million in our other private businesses in 3Q20, with the decrease in the value primarily reflecting the negative impact of COVID-19 on LTM earnings – reads the report on Georgia Capital PLC Q20 and 9M20 results, which was released recently.
According to the official statement, the five businesses in GCAP’s “other” private portfolio are Housing Development, Hospitality and Commercial Real Estate, Beverages, Auto Service and Digital Services. They had a combined value of GEL 223.2 million at 30-Sep-20, which represented 9.3% of the total portfolio.
“We currently believe these businesses offer less scalable growth potential than our large and investment stage companies. Going forward we will comment on key developments in this portfolio that affect the aggregate value creation, and absent a development material to the aggregate portfolio value, a divestment or a change in our view of the growth potential of one of the companies in this portfolio, will not comment on individual businesses or their performance” – reads the report.
