Powerhouse Ventures Powers Ahead with 6.8% Fund Return and $1.7M Capital Boost

Strong Quarterly Performance Amid Market Volatility

Powerhouse Ventures Limited (ASX: PVL) has delivered a solid quarterly update for the period ending 31 March 2025, demonstrating resilience and strategic progress in a challenging market environment. The company reported operational revenue of $284,000, supported by positive trading profits and asset revaluations, underscoring its diversified business model.

At quarter-end, PVL held a robust cash position of $2.87 million with no debt, complemented by $2.06 million in ASX-listed assets. This financial strength was further bolstered by an over-subscribed capital raise of $1.7 million, providing the company with a timely buffer to continue executing its growth strategy.

Funds Management Division Delivers Strong Returns

The Aliwa Alpha Fund, PVL's flagship managed fund acquired recently, delivered a commendable 2.97% return in March and a 6.81% return for the first quarter of 2025, net of fees. This performance sets a positive tone as the fund prepares for roadshows aimed at raising fresh capital under the PVL banner.

Looking ahead, PVL is advancing plans for its "Critical Infrastructure Global Opportunities Fund," targeting emerging technologies in sectors such as the Space Economy, Quantum Computing, Next Generation AI, and Energy Transition. This fund, scheduled for launch in the September quarter, reflects PVL's commitment to investing in future growth frontiers.

Corporate Advisory Division Milestones and Challenges

The Corporate Advisory Division marked a significant achievement with the successful reverse merger and re-listing of Metal Powder Works (ASX: MPW). PVL played a pivotal role in identifying the target, facilitating the merger with K-TIG Ltd, advising on capital strategy, and securing Morgans Corporate as Lead Manager. This transaction generated a facilitation fee that doubled in value by quarter-end, alongside capital gains from direct investments.

However, the division faced setbacks due to the voluntary administration of Site Group International (ASX: SIT), a legacy issue that led to the write-down of PVL's holding to zero. Despite this disappointment, PVL remains engaged with SIT to explore residual value recovery and continues to apply disciplined risk management to navigate such challenges inherent in small-cap markets.

Treasury Division Enhances Liquidity and Asset Profile

PVL's Treasury Division focused on improving the liquidity and duration profile of the balance sheet to support the expanding client-facing Funds Management and Corporate Advisory businesses. The proportion of listed and liquid investments increased to 30% of the total investment base, up from 21% in the previous quarter, reflecting a strategic shift towards more liquid assets while maintaining high conviction in longer-term investments.

Outlook

With Net Tangible Assets rising from $14.0 million to $16.2 million and NTA per share steady at 10.2 cents, Powerhouse Ventures is positioning itself to be valued more on its revenue-generating capabilities than as a passive investment vehicle. The company’s strategic focus on client-facing divisions and emerging technology funds suggests a promising trajectory as it navigates market uncertainties.