Sofina: private funds generated 98% of portfolio result

After a €394 million loss one year earlier, Sofina reported a positive result of €857 million for the first half of 2026. That figure should not be read like the earnings of an ordinary operating company.

Sofina has no factories, no shops and no technology platform. Its result primarily changes with the fair value of its holdings. The €857 million is therefore largely an accounting revaluation of the portfolio. It is neither recurring operating profit nor cash actually received.

Two portfolios of similar size, two very different contributions

At 30 June 2026 the investment portfolio stands at €11.831 billion. Sofina Direct accounts for €5.862 billion and Sofina Private Funds for €5.969 billion. The two engines are almost equal in size. Their contribution is not.

Value creation reaches 16.1% in private funds, or 13.0% excluding currency effects. In the direct portfolio it is only 0.9%, and turns slightly negative at −0.2% once currencies are stripped out.

Direct companies progressed, but multiples absorbed the effect

Sofina's presentation isolates a €307 million positive impact from company performance. That amount was almost entirely absorbed by a €265 million decline linked to peers and valuation multiples, plus a €52 million negative impact from listed holdings. The resulting market impact was −€10 million.

Companies can progress without an increase in fair value if the market pays less for each euro of future result. Conversely, a higher valuation can result from a more generous multiple without equivalent operational improvement. In the first half, operating progress in the direct portfolio was absorbed by multiples and listed holdings.

Currency effects then added €61 million to Direct, keeping reported value creation positive. The contribution from businesses should therefore be separated from the contribution from currencies.

Private funds recorded €691 million of market impact

Sofina Private Funds increased from €4.893 billion to €5.969 billion. New capital calls were only part of the change. Calls added €407 million, distributions subtracted €186 million, market impact contributed €691 million and currencies added €164 million.

Private fund performance relies on manager reports and fair-value methods. More than 81% of the Sofina Private Funds portfolio is based on reports as at 30 June 2026 or on market prices or transaction prices, but part of it is still adjusted from information at 31 March. Realised value at exit may differ.

The €857 million result is not a recurring figure to capitalise

Portfolio result reached €874.9 million: €854.6 million came from Private Funds and €20.3 million from Direct. Adding €30.8 million of dividends, then subtracting €35.8 million of management fees and €12.5 million of other items, gives a group result of €857.5 million.

The 98% portfolio-result ratio is an Opulion calculation: 854.632 divided by 874.904, or 97.7%, which we round to 98%. It measures the contribution of Private Funds to portfolio result. It measures neither their weight in assets nor their share of group result after expenses.

The equivalent result of €24.20 per share should not be mechanically annualised or multiplied by a price-earnings ratio as if it came from stable operations. For an investment company, net asset value, valuation quality, realised exits and cash flows are more instructive.

Net asset value per share increased from €305.77 to €326.48, or +6.8% in six months. A slight decrease in shares outstanding modestly reinforced the per-share increase: Sofina held 1.368 million treasury shares at the end of June, against 1.235 million at the end of December.

Portfolio growth also consumed cash

Sofina invested €732.7 million in the first half and received €237.5 million from disposals and distributions. Net deployment therefore reached €495.2 million. After the dividend, expenses and other flows, the group moved from €430 million of net cash to €219 million of net debt.

This change warrants monitoring, although the report does not indicate current stress. Net debt against the portfolio gives a loan-to-value ratio, or LTV, of 1.9%. Sofina had €1.080 billion of gross cash and €1.370 billion of undrawn credit facilities, against €1.456 billion of total uncalled commitments: €1.449 billion in the private funds and €7 million in the direct portfolio.

The gap between share price and net asset value reaches 31.8% at 30 June

At 30 June 2026, net asset value per share was €326.48 and Sofina's closing share price was €222.6. The gap was 31.8%, rounded to 32% by the company.

The discount remains wide. Higher net asset value, a rebound in private funds and improved transparency coexist with it. The report does not establish the cause. It does provide three measurable items to follow: 92% of the portfolio is unlisted, half-year performance was concentrated in the less directly observable portfolio and the group moved from net cash to net debt.

These facts establish neither that the shares are inexpensive nor that the discount is justified. They identify measurable sources of uncertainty without claiming to explain the market price on their own.

Five points to follow after the report

What the half year really says

The first half of 2026 marks a rebound that was not uniform. Sofina Private Funds drove value creation. Sofina Direct recorded operating progress that was absorbed by multiples. At the report date, the gap between the share price and published asset value was 31.8%.

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