Realisations and realised profits

Realisation proceeds for the year were £2,207 million, an increase of 70% over 2005. The favourable market conditions experienced in the first six months continued throughout the second half, enabling strong realisations across all business lines (shown in table 4). We also made further progress in selling down the SMI portfolio, realising £268 million from 278 investments. In total, 38% of our opening portfolio value was realised during the year.

In continental Europe realisations totalled £891 million (2005: £365 million), reflecting the maturity of the portfolio which we have built up in this region.

Realisations were made at a profit over opening carrying value of £576 million (2005: £250 million), representing an uplift on sale of 35%, and are stated net of write-offs of £66 million (2005: £37 million).

During the year, 15 of our portfolio companies achieved IPOs across nine different markets and £229 million of realisation proceeds were raised through sales at the time of flotation or subsequently. Sales from other quoted portfolio companies generated proceeds of £143 million.

Cash proceeds have also been generated through refinancing portfolio businesses where we have realised £168 million and through secondary buyouts, where we have sold 10 assets for £404 million.