Georgia Capital - NAV per share stable in local currency in Q222

Georgia Capital’s (GCAP’s) NAV per share in Georgian lari total return (TR) terms remained broadly stable in Q222 (a 0.2% increase) after absorbing the impact from lower public market multiples and higher discount rates in Q122 (when NAV per share declined by 16.5% in TR terms). Having said that, the continued appreciation of the Georgian lari against sterling (driven by the strong local economy) resulted in a solid 14.4% NAV TR in sterling terms in Q222 (-2.1% in H122). We also note that the share price of Bank of Georgia recouped some of the Q122 losses in Q222 and rose further by 61% after end-June 2022 (well above 2021 levels), which brought GCAP’s ‘live’ NAV estimate to £17.41 at 24 August. This now implies a 61% discount to NAV, well ahead of other listed private equity companies.