BOOK’s Q2 NAV (519.5p, +1.6%), whilst up, is softer than we expected given the strong exit. Discussions with management highlight a combination of difficult trading in one investee (see below) combined with a cautious view on valuation given the (soft) macro environment. Trading on a c14% discount to NAV, BOOK is trading wider than its 12 months average (c12%) but tighter than the wider sector (c24% discount, ex 3i and Apax). Whilst we are cautious about the near-term outlook (reflecting the UK economy) we are comfortable that BOOK will perform. This reflects the increasing maturity of its leading investees and management’s commitment to returning capital to shareholders rather than growing AUM. Our expectation is that a re-rating will be driven by continued positive NAV momentum and the return of capital.