APEO.L Share News (APEO)

(Alliance News) - abrdn Private Equity Opportunities Trust PLC on Wednesday declared an increased full-year dividend, although its total return narrowed.

The Europe-focused investor in private equity funds and co-investments said its diluted net asset value was 777.7 pence per share at September 30, up from 753.2p at the same time one year prior.

Shares in abrdn Private Equity slipped 0.4% to 498.00p in London on Wednesday morning. The stock is up 6.2% over the past 12 months.

NAV total return for the year to September 30 was positive 5.4%, compared with the positive 14.1% delivered the year before. For the same period the FTSE All-Share Index delivered a positive 13.8% total return, compared with the prior year's negative 0.4%.

The trust, which is managed by Edinburgh-based investment company abrdn PLC, declared a 16.00p per share dividend for the year, up from 14.40p for financial 2022.

abrdn Private Equity said the current private equity market is proving tough, with "the sharp rise in interest rates" impacting pricing expectations along with the availability and cost of financing. The trust said this had "ultimately" caused "a material decrease in private equity activity" throughout last year.

Chair Alan Devine added: "Whilst I currently hear rumblings in the market about sentiment starting to improve gradually, with more sale processes initiated in the second half of 2023 than in the first half of 2023, both the board and the manager are not anticipating a sharp rebound and we suspect a return to 'normal' private equity activity levels might be some way off yet.

"However...private equity is an asset class that should viewed over the long term, where new investment decisions are often made with a five-year time horizon in mind.

"The immediate road ahead remains uncertain, but the governance model of private equity has proved many times in the past...that it facilitates nimble and active ownership and allows underlying businesses to adapt more quickly to changing market circumstances."

By Emma Curzon, Alliance News reporter

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