Georgia Capital - Benefiting from strong macro tailwinds in Georgia

Georgia Capital’s (GCAP’s) NAV per share in Georgian lari (GEL) total return (TR) terms was 8.2% in Q322. At the same time, further GEL strength against sterling (driven by the strong local economy) resulted in a 25.5% NAV/share increase in sterling terms. The main driver of GCAP’s NAV increase was the strong performance of Bank of Georgia (BoG) shares (21% of GCAP’s portfolio at end-September), which rallied by 52% during the quarter in sterling terms. GCAP’s ‘live’ NAV estimate currently stands at £18.87, with its share price implying a 60% discount to NAV, significantly wider than the average across listed private equity companies.