Kelso Group Holdings (LSE:KLSO) has increased its investment in Saga to 600,000 shares, with the holding valued at approximately £4.6 million and representing around 20% of Kelso’s portfolio.
The investment company increased its position following Saga’s interim results, which Kelso described as “excellent”. Kelso highlighted reductions in Saga’s debt and leverage, as well as the company’s customer database and the introduction of a new pet insurance product.
Kelso also noted increases in analyst price targets for Saga as part of its assessment of the investment.
According to Kelso, Saga is one of three companies in its portfolio whose share prices have doubled in value during the current year.
Kelso operates a concentrated investment strategy focused primarily on established UK-listed small and mid-cap companies. Its portfolio typically consists of fewer than 10 investments, with the company targeting profitable businesses that it considers to have established market positions and robust balance sheets.
The group said it generally avoids early-stage, speculative, highly cyclical and resources companies. Its approach combines investment with active engagement with portfolio companies.
Kelso was established in January 2023 and has completed four equity fundraisings since its formation, with each conducted at a progressively higher share price.
The company said approximately 80 known investors and a small number of institutional investors hold shares in Kelso. Its board collectively owns 16.2% of the company.
More about Kelso Group Holdings
Kelso Group Holdings is a UK-listed investment company focused on a concentrated portfolio of small and mid-cap businesses.
Its board has experience spanning fund management, private equity, corporate finance, law and mergers and acquisitions. The company seeks to generate long-term returns through investment selection, capital allocation and engagement with the companies in its portfolio.
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