APEF.L Regulatory News (APEF)

Aberdeen Private Equity Fund Limited (the "Company")

Factsheet for September 2010

This Factsheet contains commentary and news for the month ended 30 September 2010, unless otherwise stated.

Background

The Company is a Guernsey closed-ended investment company listed on the London Stock Exchange. The principal investment focus of the Company is to invest in private equity and private equity like funds. The Company has small legacy holdings in a number of hedge funds and other specialty funds, which are, for the most part, being worked out of the portfolio.

Investment Objective

The investment objective of the Company, as adopted by shareholders at the Extraordinary General Meeting and Class Meeting held on 3 June 2010, is to generate long-term capital gains. On the same date shareholders approved a new investment policy under which the Company seeks to achieve its objective through investment in a diversified portfolio of private equity funds. The Company may also hold direct holdings, as an ancillary part of its portfolio, in hedge funds, other specialty funds, unquoted companies and unquoted securities, including fixed interest securities, cash-equivalent investments and cash.

September Estimated Net Asset Value

Sterling shares: 86.74 pence

As described in the Company's prospectus and as has been the case since its launch, the net asset value ("NAV") and the NAV per share are both calculated monthly by the Company's administrator based on the latest published NAV for each underlying fund.

With only one exception, investments in underlying funds for the month ended 30 September 2010 are valued using the values (whether final or estimated) as advised by their managers, general partners or administrators. The Company therefore relied on valuation and reporting methods used by the managers, general partners or administrators of the underlying funds in deriving the 30 September 2010 NAV and NAV per share. The remaining holding has been valued at a level recommended by the Company's Investment Manager.

Source: Aberdeen Asset Managers Limited

Fund Manager's Report

Global equities rose in September, reversing the previous month's decline, on hopes that the economic recovery can be sustained. Well-received bond auctions by Europe's indebted periphery also eased debt concerns. Expectations that the US Federal Reserve and Bank of England will sanction further quantitative easing provided an additional boost to investor sentiment.

There was widespread reaction to the FOMC's meeting where the Fed talked of inflation being undesirably low and expressed a willingness to step up protection against downside risks to growth, effectively giving the green light to further QE unless inflation picks up or conditions improve in the labour market. Additional stimulus is expected to take the form of large scale asset purchasing of Treasuries.

Better than expected economic data and the acceleration in mergers and acquisition activity drove US equities significantly higher in September. Although core inflation remained flat for some time, gold prices continued to make new all-time highs during the month, reflecting the marked rise in long-term inflation expectations.

The European Central Bank raised its 2010 growth forecast but maintained an uncertain outlook. It held policy steady and extended emergency funding to banks into 2011.

European markets rose in September buoyed by continued strength in underlying corporate profitability, in spite of disappointing Eurozone data and worries over billion-dollar bailouts for Irish lenders. Flash PMI numbers for the Eurozone indicated that the recovery was losing momentum, although economic confidence improved unexpectedly. Concerns over the more indebted periphery resurfaced, as Ireland announced a bailout for Anglo Irish Bank and other lenders that could amount to as much as €50 billion.

The Bank of England kept its benchmark interest rate and size of bond-buying programme unchanged.

Inflation remained at 3.1% in August. Economic data increased worries of a faltering recovery as the services sector contracted for a second straight month, home prices and mortgage approvals continued to trend lower and jobless benefit claims rose for the first time in seven months. Consumer confidence deteriorated by more than expected on the back of looming public spending cuts.

In Japan economic data pointed to a still uncertain outlook. Prime Minister Naoto Kan, who survived a leadership challenge, unveiled details of his ¥920 billion stimulus plan and the Central Bank intervened to cool the Yen's appreciation.

Emerging markets snapped back in September as investors focused on signs of continued growth in developing economies rather than the largely disappointing data from the US and Europe.

Portfolio News

The Company's commitments total $212.8 million. No new commitments were made during September. The total drawn down on commitments made is approximately $134.7 million, with 6 capital calls being made in September, totalling $1.82 million. The Company has received total distributions of $10.6 million since inception. The Company received $1.48 million in distributions in September. One downwards revaluation was received during the month (PineBridge (2.07%)).

During September the Company bought back, for cancellation, a further 200,000 shares.

We continue to see large amounts of GPs trying to raise assets, particularly in the mid market buyout and growth capital segments. Many of these are well resourced experienced managers, who, providing they can raise sufficient capital from still sceptical LPs, are probably set to benefit from good timing as investment opportunities remain good, and developed economies find firmer footing. At the same time we are seeing many distressed funds seeking to raise, as they focus on growing opportunities in classic restructuring deals, mostly as a result of the excessive lending in 2004 - 2007. Much of that debt will struggle to be refinanced. We are however comfortable with our existing weighting to the distressed sector and are unlikely to commit to any new funds in this just now.

There is no specific portfolio news to report for September. Our GPs are starting to be much more positive about the exit environment and we hope to be able to report continued positive news on this area over the coming quarters.

The portfolio's commitment cover which includes cash and the strategic hedge funds was 87.9% at the end of the month. The pure cash commitment cover is 85.5%.

Portfolio Highlights

Geographical Allocation

Portfolio Holdings Asset Allocation

Source: Aberdeen Asset Managers Limited

Sterling Share Performance as at 30 September 2010

Total Return; NAV to NAV, Net Income Reinvested, GBP

Source: Aberdeen Asset Managers Limited and Morningstar

PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 30 SEPTEMBER 2010

Source: Aberdeen Asset Managers Limited

Cash: The Company currently invests its cash with counterparties that appear on Aberdeen Asset Managers Limited's approved lending list.

Strategic Hedge Funds: The part of the Company's portfolio formerly managed by Man Investments (CH) AG). 

This Factsheet update has been produced by Aberdeen Asset Managers Ltd which is authorised and regulated by the Financial Services Authority ("FSA") in the United Kingdom. Bramdean Asset Management LLP was the Company's investment manager for the period prior to 19 November 2009 and Aberdeen Asset Managers Ltd has been the Company's investment manager for the period since 19 November 2009.

This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (the "Act") and the handbook of rules and guidance issued from time to time by the FSA (the "FSA Rules").

This material is provided for information purposes, is intended for your use only and does not constitute an invitation or offer to subscribe for or purchase any of the products or services mentioned. This material has been provided specifically for the use of the recipient only and must be treated as proprietary and confidential information. It may not be passed on, nor reproduced in whole or in part under any circumstances without express written consent from Aberdeen. The material provided is not intended to provide a sufficient basis on which to make an investment decision. Information and opinions presented in this material have been obtained or derived from sources believed by Aberdeen Asset Managers Ltd and its affiliates to be reliable, but Aberdeen makes no representation as to their accuracy or completeness. Aberdeen accepts no liability for loss arising from the use of this material. Aberdeen gives no representations or warranty that any indicative performance or return will be achieved in the future or that the investment objectives and policies from time to time of the Company will be achieved.

You should note that, if you choose to invest in the Company, your capital will be at risk and you may therefore lose some or all of any amount that you choose to invest. This material is not intended to constitute, and should not be construed as, investment advice.

Potential investors in the Company should seek their own independent financial advice. Aberdeen neither provides investment advice to, nor receives and transmits orders from, investors in the Company nor does it carry on any other activities with or for such investors that constitute "MiFID or equivalent third country business" for the purposes of this FSA Rule.

PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE RESULTS.

Please note that up-to-date information on the Company, including its monthly NAV and share prices, factsheets, Annual Report and Financial Statements, Prospectus and portfolio information can currently be found at www.aberdeenprivateequity.co.uk.

Capita Registrar's helpline is 0871 664 0300 (calls cost 10 pence per minute plus network extras, lines are open 8.30am-5.30pm Monday-Friday). For callers outside the UK, please dial: +44 20 8639 3399.

Registered Office: Canada Court, Upland Road, St. Peter Port, Guernsey, GY1 3QE, Channel Islands.