GIMV: A unique way to capture outperformance in the private equity market GIMB BB

Gimv’s share price has been unable to benefit from the post-vaccine rally. This is unjustified in our view as we expect a strong uptick in the underlying portfolio valuation based on the performance of our reference indices. As such, we estimate Gimv’s TEV at € 53.1 ps (HY20/21: € 44.7 ps), implying a discount of 6.3% (2y avg: premium of 6.8%). After also accounting for the V-shaped recovery in private equity markets, the record level of PE valuations, use of leverage at the holding level, and the current attractive valuation, we see Gimv as a unique opportunity to invest in a historically outperforming market. Based on our TEV of € 53.1 ps and premium in line with the historical averages, we upgrade our rating to BUY and up our TP from € 55.0 to € 57.0 ps.