24 Nov 2014 07:00
ABERDEEN PRIVATE EQUITY FUND LIMITED
UNAUDITED HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
CHAIRMAN'S STATEMENT
I am pleased to present the first Half-Yearly Report and condensed financial statements of the Company since my appointment as Chairman on 16 September 2014. I would like to reiterate the Board's gratitude to Jonathan Carr, who retired as Chairman and a Director on that date, for his enormous contribution to the Company throughout his time on the Board.
The Half Yearly Report and condensed financial statements of the Company cover the six month period to 30 September 2014.
Performance and Dividend
During the period under review the Net Asset Value ("NAV") per Share rose by 4.2% to 114.4p. Inclusive of the 2.0p dividend paid in September 2014, shareholders received a NAV total return of 6.1% for the period under review.
Positive performance from the underlying holdings was also helped by a supportive currency movement for the period under review which contributed 0.7 pence to the 4.6p of NAV increase over the period[1]. The largely US Dollar denominated investment portfolio, and the Company's US Dollar cash holdings, saw strong translational gains following a strengthening in the US Dollar over the period.
Share Capital Management
During the period under review the Company did not purchase any of its own shares in the market. The discount at which the Company's shares trade to their NAV reduced slightly during the half year from 28.7% to 23.2%. The Board continues to monitor this level of discount, both in absolute terms and against the discounts of comparable companies. For the listed private equity sector as a whole, there has been little change in discounts to NAV, which remain high. Your Manager and Board remain committed to attracting new shareholders and both are engaged in presenting the Company to as wide a prospective audience as possible.
Gearing
During the period the Company agreed a £15m three year committed revolving credit facility with Lloyds Bank plc. This facility is available for general corporate and working capital purposes including bridging capital contribution commitments in accordance with the Company's investment policy and will provide the Company with increased flexibility if required in the future.
Portfolio
In the context of the positive NAV performance, the Board is pleased to note in particular the success of some of the Company's more recent investments, especially its investment in Northzone VI, a 2010 vintage Venture investment. This fund has seen a significant valuation uplift in the six months, principally owing to a mark-up in the value of Avito, a Russian on line classified advertising business. We also saw the widely predicted IPO of Alibaba in September, which was beneficial to the valuation of the Company's investment in Silver Lake Partners III.
The Manager has been active over the period, adding two new funds, CCMP Capital Investors III and Resolute Fund III, both US mid-market managers, and a co-investment in The Hillman Group alongside CCMP. There were two disposals of non-core positions in DFJ Athena (written down in the last financial year) and PineBridge Latin America Partners II.
Outlook
During the period under review global private equity as an asset class has continued to deliver strong returns, helped by positive momentum in public equity markets, buoyant M&A appetite, and the on-going effects of operational changes that have been implemented in these privately managed businesses. Since the end of the half year we have seen some pronounced volatility in equity markets with concerns rising over the prospects for global economic growth.
With much of the portfolio allocated to mid-market buyout, many of the underlying companies in the investment portfolio have been supported by their private equity sponsors in their operational strategy efforts. We believe that the core of the portfolio is well positioned to cope should there be any renewed weakness in any major economic region. With private equity houses continuing to raise new funds, and good pipeline investment opportunities, we believe that the outlook for the asset class and the Company remains favourable.
Howard Myles
Chairman
21 November 2014
INTERIM BOARD REPORT
Principal Risk Factors
Risk
An investment in the Shares is only suitable for investors capable of evaluating the risks (including the potential risk of capital loss) and merits of such investment and who have sufficient resources to bear any loss which may result from such investment. Furthermore, an investment in the Shares should constitute part of a diversified investment portfolio.
The risks described below are the principal risks which are considered by the Directors to be material to shareholders and potential investors in the Company. Greater detail on these risks is provided in note 19 to the Annual Report and financial statements for the year ended 31 March 2014 and the risks are broadly unchanged in the period since publication.
Shares
The market price and the realisable value of the Company's Shares, as well as being affected by their underlying net asset value, also reflect supply and demand for the Company's Shares, market conditions and general investor sentiment. As a result, the market value and the realisable value of the Shares may fluctuate and vary considerably from the net asset value of the Shares and investors may not be able to realise the value of their original investment.
Borrowings
The Company may borrow up to 25% of the NAV of the Company. Whilst the use of borrowings should enhance the total return on the Shares where the return on the Company's underlying assets is positive and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is less than the cost of borrowing, further reducing the total return on the Shares or increasing the scale of any losses.
Market Risks
The fair value of future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. Market risk comprises three elements: interest rate risk, currency risk and other price risk. Further details of these risks are disclosed in note 19 to the Annual Report and financial statements for the year ended 31 March 2014. Investment in private equity securities involves a greater degree of risk than that usually associated with investment in listed securities markets.
General
Shareholders have no right to redeem their Shares and in normal circumstances will only be able to realise their investment through the market. The Articles of Incorporation require the Company to propose a continuation vote at every third Annual General Meeting. The next continuation resolution, proposing that the Company continue its business as a closed-ended investment company, will be proposed at the Annual General Meeting to be held in 2016. If shareholders were to vote against the Ordinary Resolution to continue in 2016, the Directors would be required to put proposals to Shareholders for the restructuring or reorganisation of the Company.
Taxation and Exchange Controls
Any change in the Company's tax status or in taxation legislation and/or the imposition of exchange controls (including the tax treatment of dividends or other investment income received by the Company) could affect the value of the investments held by the Company, affect the Company's ability to provide returns to shareholders or alter the post-tax returns to shareholders.
Investment Strategy and Performance
Inappropriate long-term investment strategies in terms of, inter alia, asset allocation, level of gearing or manager selection may result in underperformance of the Company against the companies within the peer group. The Board regularly considers the Company's investment strategy and monitors performance at each Board meeting.
Portfolio Risks
Private equity investments are long-term in nature and they may take a considerable period to be realised. The majority of the Company's assets are invested in limited partnerships which invest in private companies. These unquoted investments are less readily realisable than quoted securities. Such investments may therefore carry a higher degree of risk than quoted securities. In valuing its investments in private equity funds or limited partnerships and in calculating its NAV, the Company relies to a significant extent on the accuracy of financial and other information provided by these funds to the Manager. Limited partnerships typically provide updated (unaudited) valuations on a quarterly or six-monthly basis. Further details on the valuation methodology are disclosed in Note 2 to the Financial Statements.
Alternative Investment Fund Managers Directive
The transition period for those funds and managers subject to the Alternative Investment Fund Managers Directive (the "Directive") came to an end on 22 July 2014. To ensure compliance with the Directive, the Company entered into a new management agreement with its existing manager, Aberdeen SVG Private Equity Managers Limited. Fees payable under the new agreement are the same as were payable under the existing agreement. In addition, the Company has appointed Ipes Depositary (UK) Limited as its depositary, in accordance with the Directive.
Going Concern
The Company's Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future. Note 19 to the Annual Report and financial statements for the year ended 31 March 2014 includes the Company's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and its exposure to credit risk and liquidity risk. The Directors have undertaken a rigorous review of the Company's ability to continue as a going concern including reviewing the level of the Company's assets and significant areas of financial risk including the level of liquidity, the estimated draw down of commitments and timing of realisations from the portfolio.
Directors' Responsibility Statement
The Directors are responsible for preparing this Half-Yearly Report in accordance with applicable law and regulations.
The Directors confirm that:
- the Half-Yearly Report and Condensed Half-Yearly Financial Statements have been prepared in accordance with IAS 34 'Interim Financial Reporting';
- the Condensed Half Yearly Financial Statements give a true and fair view of the assets, liabilities, financial position and profit of the Company as required by the Disclosure and Transparency Rules (DTR) 4.2.4R; and,
- the Chairman's Statement, Interim Board Report and Manager's Report (together constituting the Interim Management Report) include a fair review of the information required by DTR 4.2.7R and 4.2.8R.
The Directors of the Company are listed in the Half-Yearly Report.
For and on behalf of the Board of Aberdeen Private Equity Fund Limited
David Staples
Director
21 November 2014
MANAGER'S REPORT
At the end of September 2014, 81.7% of the Company's NAV was invested in 24 private equity funds and 2.9% in four co-investments alongside existing General Partners ("GPs").
Portfolio Commentary
The 24 private equity funds in the Company's portfolio are themselves invested globally in a wide range of market sectors, providing exposure in aggregate to 334 underlying companies[2].
In local currency terms, the portfolio generated a positive total return of 8.1%[3] for the period under review. This reflects good on-going performance from a number of our holdings, in turn driven by positive sentiment in quoted equity markets (for the period under review), and a supportive M&A environment.
The movement of the Company's investment portfolio from the opening value to the closing value is disclosed in the Half Yearly Report[4]:
The portfolio's investment performance was helped by our 2010 vintage investments Northzone VI and Lion Capital Fund III. These funds generated a total return of 21.4% in local currency and account for 49.3% of the portfolio's investment performance for the period under review. The performance of Northzone VI dominated, accounting for 34.2% of the Company's FMV[5] uplift over the period. The Company's 2008 funds also added to performance, with Thoma Bravo IX Fund and HIG Bayside Debt & LBO Fund II leading this vintage group. Performance from 2007 funds was mixed with a good return from Silver Lake Partners III and a small gain (relative to held value) recorded on the disposal of a previously written down investment, DFJ Athena. Our investments in Pine Brook Capital Partners LP, and MatlinPatterson Global Opportunities Partners III detracted from 2007 vintage performance as did our holding in PineBridge Latin America Partners II, the latter being sold in September at a valuation lower than book value.
We have seen encouraging initial results from the Company's co-investment portfolio, and our investment in Dell is now marked substantially above cost.
Largest Performance by Fund[6]
Fund | Performance (US$m) |
Northzone VI L.P. | +5.0 |
Lion Capital Fund III L.P. | +2.1 |
Silver Lake Partners III L.P | +1.8 |
Thomas H Lee Parallel Fund VI L.P. | +1.6 |
Goldman Sachs Capital Partners VI L.P. | +0.7 |
Rest of the portfolio | +3.4 |
Total | +14.6 |
Northzone VI saw a significant uplift over the period, largely due to continued progress with Avito, one of the world's largest online classified advertising businesses which is active in Russia and Ukraine. Notwithstanding ongoing tensions in this region, this is now the best performing name in this fund. Avito's 2nd quarter 2014 revenues were RUB 1069m vs. the equivalent quarter in 2013 of RUB 579m, up 85%[7]. They have also seen page views leap to 17bn vs. 11bn in 2013. Northzone have also, subsequent to the period under review, announced the sale of online ad-serving business Videoplaza, to Telstra, at a valuation in excess of 2x Northzone's purchase price. Videoplaza was one of Northzone VI's first investments and had been bought in March 2010, at the same time as Energy Micro (this fund's first exit, in June 2013).
Lion Capital III, a consumer focused buyout fund, with a bias to European investments (though not exclusively so) saw valuation uplifts over the period from their investments in French frozen food retailer Picard which has seen continuing momentum in EBITDA, and fashion retailer John Varvatos which is seeing sales growth across both wholesale and resale channels. The manager also continues to see good progress with fashion retailer AllSaints and during the period executed a debt refinancing for its Alain Afflelou optical retailing business. Whilst Alain Afflelou continues to be impacted by the weakness in the French economy, it has seen a strong rebound in sales from their Spanish store base.
Silver Lake Partners III is one of our longer standing commitments, and is a fund focused on larger investments into technology and tech-enabled companies and other related growth industries. The fund achieved a valuation uplift over the period due to the IPO of Alibaba, completed in September, and by improved business and financial performance at Dell, a 2013 investment. The fund also saw a rise in the value of their holding in Avago, an electronic component manufacturer.
The valuation uplift seen in Thomas H Lee Parallel Fund VI was partly down to an increase in the valuation of Acosta, a US supermarket sales and marketing agency, as a result of its pending sale to the Carlyle Group, and an increase in the valuation of Comdata as a result of its pending merger with FleetCor Technologies. During the period the manager also sold a number of holdings including Nielsen Holdings and Moneygram International.
The Goldman Sachs Capital Partners VI portfolio valuation increase was driven by write-ups, including Biomet, GET and TransUnion Holding Company. Zimmer Holdings recently agreed to acquire Biomet, Inc., and TDC A/S recently agreed to acquire GET A/S. The Biomet deal is expected to close in Q1 2015. GET A/S is expected to close in Q4 2014. The fund also saw full exits of Michael Foods Group, Flynn Restaurant Group and Brakes Group.
New Investments
The Company paid calls of $15.8m over the period under review in relation to new investments ($9.5m the previous interim review period)[8] funding a number of new underlying and follow-on investments.
Five Largest Aggregate Fund Calls | US$m |
CCMP Capital Investors III L.P. | 3.9 |
Resolute Fund III L.P. | 2.8 |
Gores Capital Partners III L.P. | 1.0 |
Thomas H Lee Parallel Fund VI L.P. | 1.3 |
Lion Capital Fund III L.P. | 1.2 |
The Company committed to CCMP Capital Investors III in July 2014. CCMP is a US (and London) based private equity business focusing on predominantly US mid-market buyout transactions. The fund called $3.9m during the period to fund purchases of interests in The Hillman Group, a supplier of fasteners and fixings to the US home improvement industry, and Solvay Eco Services, a US based chemical manufacturer and the leader in sulphuric acid production. The Company made a co-investment alongside CCMP into The Hillman Group, taking our co-investment portfolio to four holdings.
The Company also committed to Resolute Fund III during the period under review. This fund is managed by The Jordan Company, who typically make investments in US mid-market businesses with enterprise values between $100m and $2bn. Calls totalling $2.8m were made over the period for their investments into Capstone Logistics, a leading US logistic consultancy business and Transilwrap, a US leader in the plastic film industry, both in terms of manufacturing and distributing.
Thomas H Lee Parallel Fund VI called $1.3m to cover new investments into Black Knight Financial Services, 1-800 CONTACTS and Phillips Pet Food. Black Knight is the leading provider of technology, services, data and analytics to the US mortgage industry. 1-800 CONTACTS is the largest direct-to-consumer retailer of contact lenses in the United States, with an approximate 10% market share in the highly fragmented contact lens market. Phillips Pet Food is the leading distributor of pet food and supplies in the US, serving pet stores, online retailers, feed & farm stores, groomers, vets, and humane organisations.
Lion Capital III, called $1.2m over the period to fund new investments in Alex & Ani, Perricone MD and follow on investments into ghd. Alex & Ani is a niche US jewellery brand, Perricone MD is the eponymously named skin care business set up by Dr Nicholas Perricone, and ghd is a UK based hair products manufacturing business, well known for their high quality heated hair straightening tools.
Gores Capital Partners III, called $1.0m over the period to fund investments into Tweddle Group and Hovis. Tweddle is a provider of service and instruction manuals for cars to automotive OEMs[9]. Hovis is a carve out from and Joint Venture with, Premier Foods plc and encompasses core businesses in bread and milling (they are the third largest bread bakery in the UK).
Distributions
The Company received cash distributions[10] of $19.2m during the period under review ($18.9m the previous year).
Five Largest Aggregate Fund Distributions | US$ |
Thomas H Lee Parallel Fund VI L.P. | 3.8 |
Tenaya Capital V L.P. | 3.7 |
StepStone International Investors III | 1.9 |
Silver Lake Partners III L.P. | 1.8 |
Coller International Partners V L.P. | 1.7 |
Thomas H Lee Parallel Fund VI distributed most of the proceeds following its exit of Acosta, a US supermarket sales and marketing company and on-going sales of their now quoted holding in Neilsen the global information and measurement company. The figure also includes dividend payments from West Corporation, Umpqua and Aramark.
Tenaya Capital V sold their holding in VideoIQ for below cost and also distributed proceeds from their IPO sale of Qunar shares. Quanar is a Chinese online travel aggregator and this sale brought the fund's DPI ratio to 0.99, thus effectively taking the investment to the point where it has distributed back all of its original commitment.
The Company's investment in StepStone International Investors III saw returns of distributable capital from various underlying funds, following their own sales of businesses held in those funds. These were spread across the portfolio and were reduced in quantum by on-going calls from StepStone.
The distributions from Silver Lake Partners III primarily relate to the final sale of their holding in US listed company Groupon and a small portion relating to a share sale of their overall stake in Alibaba, which went public in the US in early September. It also includes a distribution relating to the sale of Mercury Payment Systems (sold in June to Vantiv Inc, a US payment processing services provider).
The Coller International Partners V distributions comprised realisations from a variety of different underlying fund investments. They also included cash flows stemming from public market activity, including the Polypipe IPO (formerly held in Coller's Cavendish Square Partners investment) and SVG Capital's tender offer during the period.
In addition to the five largest aggregate distributions above, the Company received $2.2m from the sale of its DFJ Athena L.P. investment to a secondary purchaser, which was executed at a small uplift relative to held value. The sale was concluded simultaneously with a sale (to a different buyer) of the Company's holding in PineBridge Latin America Partners II. The DFJ Athena transaction will reduce the impact of the increase in the Company's overall Venture Capital weighting, itself driven by the uplift in the Northzone VI valuation.
Market News and Private Equity Environment
Prior to the pronounced market volatility experienced this October, for the period under review we saw continued economic and market developments that were broadly encouraging, including a pick-up in world trade and further advances from financial markets, with global equity markets reaching record highs at the close of the period. However, as markets have gone on to imply, the inherent fragility of the global economy remains and its recovery is potentially uneven.
Whilst the general consensus is that the worst of the global credit crisis is over, concerns surround the sustainability of the recovery in the light of increasing geo-political tensions spanning Ukraine and the Middle East, high unemployment, deflationary risks in the Eurozone, and potential repercussions from gradual monetary tightening in the US.
The outlook for the US economy remains relatively stable with the IMF predicting growth of 1.7% in 2014 (down from its previous predictions of 2.0% in June 2014[11] and 2.8% in April 2014) and maintaining its forecast of 3.0% growth for 2015[12]. The unemployment rate increased marginally from 6.1% in June to 6.2% in July[13] with other fundamental indicators of the country's wellbeing remaining encouraging. GDP increased by 4.0% over the second calendar quarter which was promising given its contraction in the prior quarter resulting from weather related slowdowns.
The US Federal Reserve's decision to continue with its tapering plans, having scaled back its monthly bond purchases by US$10 billion for the sixth consecutive time in July, is positive, and indicates that there has been a sustained improvement in the economy. As expected, the bond buying programme ended in October 2014, following which it is expected that interest rates will remain low for some time in order to further stimulate recovery[14].
Q2 2014 saw a setback in the Eurozone's recovery, with GDP remaining flat from the previous quarter[15]. Over the period there were a number of disappointing figures from countries within the Euro area including Germany, which has traditionally been one of the region's strongest economies. The problem of low inflation has persisted, resulting in the ECB taking the unprecedented step of imposing negative interest rates on bank deposits alongside a range of more conventional measures intended to stimulate recovery.
The outlook for the UK remains positive, with the IMF upgrading its forecast for economic growth in 2014 to 3.2% in July 2014, from 2.9% in April and 2.4% in January this year, the most for any advanced economy[16]. Other signs that the UK's economy is recovering and gaining momentum include unemployment continuing to fall, from 6.5% in May to 6.4% in June[17], and estimated Q2 2014 GDP increasing by 0.9% quarter on quarter, the highest for any calendar quarter since Q2 2010[18].
The near term outlook for the wider private equity market continues to be supportive on many metrics. There is however likely to be some near term uncertainty, certainly over IPOs and possibly some compression to the multiple on invested capital that private equity managers can deliver, given current expensive deal pricing. However deal activity is expected to continue on its upward trend. Worthy of note is the surge in the number of covenant lite loans issued in 2014, particularly in the US where US$83.6 billion was issued in Q2 2014, up 41% from the same period in 2013[19]. This sector has represented an increasing proportion of leveraged loans sold to institutional investors in 2014 and this is a trend which we expect to continue and subsequently drive deals.
In Q3, the exit trend we saw in Q2 has continued, if not accelerated, as evidenced by the record breaking US listing of Alibaba (as held in Silver Lake III) in September. The key question for 2015 is whether this level of exit activity is sustainable in light of concerns regarding pricing and the flux in global IPO markets.
Portfolio Strategy and Outlook
Private Equity has been delivering strong returns for some time now, post the cessation of the Global Financial Crisis, and for the period under review this is particularly true. Whilst deal pricing is expensive and debt multiples have largely returned to 2007 levels, we still seem to be in a positive environment for Private Equity. GPs[20] are still seeing strong deal pipelines, and their ability to transform and exit these businesses is being proven. Much of this thesis is reflected in our two most recent fund investments, CCMP III and The Resolute Fund III, solid US mid-market managers.
For the Company's 2014 year end Annual Report we commented that "we expect to see strong cash inflows ....as capital markets continue to be accommodative for private equity exits". This has very much been the case over the period, and encouragingly we have seen exits from some of our more recent investments, notably the 2010 vintage funds, Gores Capital Partners III and Northzone VI. Whilst there may be some shorter term blockages on the IPO exit route, we still see no major impediment to the overall exit environment and as such are continuing with our planned investment programme.
We are still reviewing the UK private equity market though have become more mindful of valuations here. There are also many pan-European managers currently raising funds, all of whom we know well. It is likely that we will make one further commitment this financial year to one of these areas. We have not ruled out a further US investment, possibly into the smaller US growth sector. This is an area of the private equity market that sits between the established venture and buyout sectors, and generally focuses on maturing businesses with a proven business model, that for the most part are delivering positive EBITDA.
Following the sale of non-core holdings DFJ Athena and PineBridge Latin America Partners II, we continue to review our portfolio and do not rule out further secondary sales. The secondary market remains strong and we currently do not see much value in adding names to the portfolio via the secondary purchase route, though we do review on an opportunistic basis.
Our principal objective with our primary fund programme is to make sure we continue to add high quality names whilst maintaining an appropriate level of cash commitment cover. During the period under review the Company finalised a new three year multi-currency debt facility with Lloyds Bank plc of £15m, which meant that at the end of the year that cash commitment cover stood at 64.9%. Excluding the debt facility this stood at 36.1%.
We are pleased to report good progress on our co-investment portfolio having added a fourth name to our existing holdings with The Hillman Group, where we invested alongside CCMP. We continue to evaluate all opportunities here, aiming to ensure both sector and sponsor diversity.
Alexander Barr
Aberdeen SVG Private Equity Managers Limited
21 November 2014
Condensed Statement of Comprehensive Income
Six months ended | Six months ended | Yearended | ||
30 September 2014 | 30 September 2013 | 31 March2014 | ||
(unaudited) | (unaudited) | (audited) | ||
Notes | US$'000 | US$'000 | US$'000 | |
Gains on investments | 8 | 9,627 | 3,461 | 22,020 |
Income | 9 | 28 | 41 | 71 |
Currency (losses)/gains | (316) | 195 | 207 | |
Investment management fee | (1,317) | (1,390) | (2,669) | |
Other operating expenses | (849) | (645) | (1,256) | |
Tax recovered/(incurred) on distribution income | 10 | 32 | (554) | (441) |
_________ | _________ | _________ | ||
Profit attributable to equity shareholders | 7,205 | 1,108 | 17,932 | |
_________ | _________ | _________ | ||
Earnings per share (£) | 11 | 4.06p | 0.63p | 9.88p |
_________ | _________ | _________ | ||
The Company does not have any income or expense that is not included in profit for the period, and therefore the "Profit attributable to equity shareholders" is also the "Total comprehensive income for the period", as defined in International Accounting Standard 1 (revised). | ||||
All items in the above statement derive from continuing operations. | ||||
All income is attributable to the equity shareholders of Aberdeen Private Equity Fund Limited. | ||||
Condensed Balance Sheet
As at | As at | As at | ||
30 September 2014 | 30 September 2013 | 31 March 2014 | ||
(unaudited) | (unaudited) | (audited) | ||
Notes | US$'000 | US$'000 | US$'000 | |
Non-current assets | ||||
Financial assets held at fair value through profit or loss | 6 | 171,557 | 150,262 | 163,509 |
_________ | _________ | _________ | ||
Current assets | ||||
Cash and cash equivalents | 31,641 | 32,326 | 35,969 | |
Tax receivable | - | - | 113 | |
Trade and other receivables | 231 | 343 | 29 | |
_________ | _________ | _________ | ||
31,872 | 32,669 | 36,111 | ||
_________ | _________ | _________ | ||
Current liabilities | ||||
Trade and other payables | (594) | (581) | (446) | |
_________ | _________ | _________ | ||
Net current assets | 31,278 | 32,088 | 35,665 | |
_________ | _________ | _________ | ||
Net assets | 202,835 | 182,350 | 199,174 | |
_________ | _________ | _________ | ||
Capital and reserves | ||||
Share capital | - | - | - | |
Share premium | 229,199 | 229,199 | 229,199 | |
Revenue reserves | 13 | (26,364) | (46,849) | (30,025) |
_________ | _________ | _________ | ||
Equity shareholders' funds | 202,835 | 182,350 | 199,174 | |
_________ | _________ | _________ | ||
Net asset value per share (£) | 12 | 114.36p | 103.60p | 109.73p |
_________ | _________ | _________ |
Condensed Statement of Changes in Equity
Six months ended 30 September 2014 (unaudited) | |||
Share capital & | Revenue | ||
Share premium | reserves | Total | |
US$'000 | US$'000 | US$'000 | |
As at 31 March 2014 | 229,199 | (30,025) | 199,174 |
Profit from operations | - | 7,205 | 7,205 |
Dividend paid | - | (3,544) | (3,544) |
_________ | _________ | _________ | |
As at 30 September 2014 | 229,199 | (26,364) | 202,835 |
_________ | _________ | _________ | |
Six months ended 30 September 2013 (unaudited) | |||
Share capital & | Revenue | ||
Share premium | reserves | Total | |
US$'000 | US$'000 | US$'000 | |
As at 31 March 2013 | 229,199 | (44,576) | 184,623 |
Profit from operations | - | 1,108 | 1,108 |
Dividend paid | - | (3,381) | (3,381) |
_________ | _________ | _________ | |
As at 30 September 2013 | 229,199 | (46,849) | 182,350 |
_________ | _________ | _________ | |
Year ended 31 March 2014 (audited) | |||
Share capital & | Revenue | ||
Share premium | reserves | Total | |
US$'000 | US$'000 | US$'000 | |
As at 31 March 2013 | 229,199 | (44,576) | 184,623 |
Profit from operations | - | 17,932 | 17,932 |
Dividend paid | - | (3,381) | (3,381) |
_________ | _________ | _________ | |
As at 31 March 2014 | 229,199 | (30,025) | 199,174 |
_________ | _________ | _________ |
Condensed Statement of Cash Flows
Six months ended | Six months ended | Yearended | |
30 September 2014 | 30 September 2013 | 31 March2014 | |
(unaudited) | (unaudited) | (audited) | |
US$'000 | US$'000 | US$'000 | |
Cash flows from operating activities | |||
Profit for the period | 7,205 | 1,108 | 17,932 |
Net interest income from cash and cash equivalents | (28) | (41) | (71) |
Gains on investments | (9,627) | (3,461) | (22,020) |
Increase/(decrease) in trade and other payables | 148 | (1,464) | (1,599) |
(Increase)/decrease in trade and other receivables | (89) | (31) | 170 |
_________ | _________ | _________ | |
Net cash outflow from operating activities | (2,391) | (3,889) | (5,588) |
Cash flows from investing activities | |||
Net interest income from cash and cash equivalents | 28 | 41 | 71 |
Distribution income from investments | 588 | 2,014 | 3,271 |
Realised gains on investee distributions | 5,960 | 4,484 | 11,374 |
Capital calls in relation to investee expenses | (1,801) | (1,219) | (2,509) |
Purchases of investments including calls | (15,732) | (8,372) | (22,085) |
Sales of investments and returns of capital | 12,564 | 12,994 | 25,162 |
_________ | _________ | _________ | |
Net cash inflow from investing activities | 1,607 | 9,942 | 15,284 |
Cash flows from financing activities | |||
Equity dividend paid | (3,544) | (3,381) | (3,381) |
_________ | _________ | _________ | |
Net cash outflow from financing activities | (3,544) | (3,381) | (3,381) |
_________ | _________ | _________ | |
Net change in cash and cash equivalents for the period | (4,328) | 2,672 | 6,315 |
Cash and cash equivalents at beginning of the period | 35,969 | 29,654 | 29,654 |
_________ | _________ | _________ | |
Cash and cash equivalents at the end of the period | 31,641 | 32,326 | 35,969 |
_________ | _________ | _________ |
Notes to the Financial Statements
1. | General information Aberdeen Private Equity Fund Limited (the "Company") was incorporated with limited liability and registered in Guernsey on 5 January 2007. The Company's shares were listed on 9 July 2007 whereupon the Company became a closed-ended investment company, domiciled in Guernsey. The Company is authorised by the Guernsey Financial Services Commission. This condensed interim financial information was approved for use on 21 November 2014. This condensed interim financial information does not comprise statutory accounts within the meaning of the Companies (Guernsey) Law, 2008. Statutory accounts for the year ended 31 March 2014 were approved by the Board of Directors on 24 June 2014. The opinion of the auditors on these accounts was unqualified. This interim financial information for the half year period ended 30 September 2014 has been reviewed by the auditors but not audited. |
2. | Basis of preparation |
This condensed interim financial information for the half year ended 30 September 2014 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority in the UK and with IAS 34, "Interim Financial Reporting". The condensed interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2014, which have been prepared in accordance with International Financial Reporting Standards. |
3. | Accounting policies |
The accounting policies are consistent with those of the annual financial statements for the year ended 31 March 2014. | |
New accounting standards | |
At the date of authorisation of these interim financial statements, the following Standard and Amendments were in issue but not yet effective: | |
IFRS 9 Financial Instruments (effective 1 January 2015) | |
Amendments to IFRS 9 and IFRS 7 - Mandatory Effective Date and Transition Disclosures (effective 1 January 2015) | |
Amendments to IAS 34 Interim Financial Reporting (effective 1 January 2016) | |
The Directors anticipate that the adoption of this Standard and these Amendments in future periods will not have a material impact on the financial statements of the Company. |
4. | Segmental information |
The Company was engaged in one segment of business during the period: investment in the Private Equity Funds portfolio. A reconciliation of movements in value during the period can be found in notes 6 and 8 where additional information has been provided for the benefit of shareholders. Whilst the Company details holdings of investments in Private Equity Funds and Quoted Equities, these are considered a single business segment and are not monitored or reported on separately to management. The holdings in Quoted Equities were acquired as part of an in-specie distribution from one of the underlying Private Equity investments and were not deemed to be a separate activity or investment strategy of the Company prior to the disposal of the final remaining holding during the period. | |
The Company is domiciled in Guernsey. All of the Company's income from investments is from underlying investments that are incorporated in countries other than Guernsey. | |
The Company has a diversified portfolio of investments and no single investment may account for more than 20% of the Company's gross assets at the date of investment. |
Six months ended | Six months ended | Yearended | ||
30 September 2014 | 30 September 2013 | 31 March 2014 | ||
5. | Dividends on equity shares | US$'000 | US$'000 | US$'000 |
Amounts recognised as distributions to equity holders in the period: | ||||
Dividend for 2014 - 2.00p (2013 - 2.00p) | 3,544 | 3,381 | 3,381 | |
_________ | _________ | _________ |
30 September 2014 | 30 September 2013 | 31 March 2014 | ||
6. | Financial assets at fair value through profit or loss | US$'000 | US$'000 | US$'000 |
Cost at beginning of period | 129,221 | 131,736 | 131,736 | |
Additions | 15,732 | 8,372 | 22,085 | |
Disposals | (12,564) | (12,994) | (25,162) | |
Realised (losses)/gains on investments | (7,673) | - | 562 | |
_________ | _________ | _________ | ||
Cost at end of period | 124,716 | 127,114 | 129,221 | |
Unrealised gains on investments | 46,841 | 23,148 | 34,288 | |
_________ | _________ | _________ | ||
Fair value at end of period | 171,557 | 150,262 | 163,509 | |
_________ | _________ | _________ | ||
The financial assets of the operating segment of the business at fair value through profit or loss are analysed below. As at 30 September 2014 there was one operating segment, being Private Equity Funds (including direct and co-investments). | ||||
Private | ||||
Quoted Equities | EquityFunds | Total | ||
30 September 2014 | US$'000 | US$'000 | US$'000 | |
Cost at beginning of period | 391 | 128,830 | 129,221 | |
Additions | - | 15,732 | 15,732 | |
Disposals | (487) | (12,077) | (12,564) | |
Realised gains/(losses) on investments | 96 | (7,769) | (7,673) | |
_________ | _________ | _________ | ||
Cost at end of period | - | 124,716 | 124,716 | |
Unrealised gains on investments | - | 46,841 | 46,841 | |
_________ | _________ | _________ | ||
Fair value at end of period | - | 171,557 | 171,557 | |
_________ | _________ | _________ | ||
Private | ||||
Quoted Equities | EquityFunds | Total | ||
30 September 2013 | US$'000 | US$'000 | US$'000 | |
Cost at beginning of period | - | 131,736 | 131,736 | |
Additions | 3,094 | 5,278 | 8,372 | |
Disposals | - | (12,994) | (12,994) | |
_________ | _________ | _________ | ||
Cost at end of period | 3,094 | 124,020 | 127,114 | |
Unrealised gains on investments | 772 | 22,376 | 23,148 | |
_________ | _________ | _________ | ||
Fair value at end of period | 3,866 | 146,396 | 150,262 | |
_________ | _________ | _________ | ||
Private | ||||
Quoted Equities | EquityFunds | Total | ||
31 March 2014 | US$'000 | US$'000 | US$'000 | |
Cost at beginning of year | - | 131,736 | 131,736 | |
Additions | 3,094 | 18,991 | 22,085 | |
Disposals | (3,265) | (21,897) | (25,162) | |
Realised losses on investments | 562 | - | 562 | |
_________ | _________ | _________ | ||
Cost at end of year | 391 | 128,830 | 129,221 | |
Unrealised gains on investments | 137 | 34,151 | 34,288 | |
_________ | _________ | _________ | ||
Fair value at end of year | 528 | 162,981 | 163,509 | |
_________ | _________ | _________ | ||
7. | Fair value hierarchy | |||||
IFRS 7 'Financial Instruments: Disclosures' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making measurements. | ||||||
Fair value estimation | ||||||
The Company has adopted IFRS 13 'Fair Value Measurement'. The fair value of financial assets and liabilities traded in active markets is based on quoted market prices at the close of trading on the period end. If a significant movement in fair value occurs immediately subsequent to the close of trading on the period end date, valuation techniques will be applied to determine the fair value. An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||
Investments in private equity funds, including co-investments, may not have a readily available market and are therefore valued based on the fair value of each private equity fund as reported by the respective general partner as per the capital account summary statement, normally updated and received on a calendar quarterly basis, which includes estimates made by those general partners. The Board and Manager believe that this value, in most cases, represents fair value as of the relevant statement date, although, if other factors lead the Board or Manager to conclude that the fair value attributed by the general partner does not match their estimate of actual fair value, the Board and Manager will adjust the value of the investment from the general partner's estimate. The Board and Manager estimate fair value using publicly available information and the most recent financial information provided by the general partners, as adjusted for cash flows since the date of the most recent financial information. As the key input into the model is official valuation statements, we do not consider it appropriate to put forward a sensitivity analysis on the basis insufficient value is likely to be derived by the end user. 71% by value of the portfolio has been valued using 30 September 2014 quarter-end valuations and 29% has been valued using valuations based on the 30 June 2014 quarter-end, updated to include cash flows in the quarter to 30 September 2014. | ||||||
The Company has classified fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: | ||||||
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; | ||||||
Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (ie as prices) or indirectly (ie derived from prices); and | ||||||
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). | ||||||
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement of the instrument in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the financial asset or liability. | ||||||
The determination of what constitutes "observable" requires significant judgement by the Directors in consultation with the Investment Manager. The Directors consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. | ||||||
The following tables summarises by level within the fair value hierarchy the Company's financial assets and liabilities at fair value as follows: | ||||||
Level 1 | Level 2 | Level 3 | Total | |||
30 September 2014 | US'000 | US'000 | US'000 | US'000 | ||
Financial assets at fair value through profit and loss | - | - | 171,557 | 171,557 | ||
_______ | _______ | ______ | ______ | |||
Level 1 | Level 2 | Level 3 | Total | |||
30 September 2013 | US'000 | US'000 | US'000 | US'000 | ||
Financial assets at fair value through profit and loss | 3,866 | - | 146,396 | 150,262 | ||
_______ | _______ | ______ | ______ | |||
Level 1 | Level 2 | Level 3 | Total | |||
31 March 2014 | US'000 | US'000 | US'000 | US'000 | ||
Financial assets at fair value through profit and loss | 528 | - | 162,981 | 163,509 | ||
_______ | _______ | ______ | ______ | |||
A reconciliation of fair value measurements in Level 3 is set out in the following table (Private Equity Funds includes co-investments): | ||||||
Private Equity | ||||||
Funds | ||||||
Six months ended 30 September 2014 | US'000 | |||||
Opening balance | 162,981 | |||||
Purchases including calls | 15,732 | |||||
Sales and returns of capital | (12,077) | |||||
Total gains or losses on investments included in Statement of Comprehensive Income: | ||||||
- on assets sold | (7,769) | |||||
- on assets held at the period end | 12,690 | |||||
_________ | ||||||
171,557 | ||||||
_________ | ||||||
Private Equity | ||||||
Funds | ||||||
Six months ended 30 September 2013 | US'000 | |||||
Opening balance | 156,702 | |||||
Purchases including calls | 5,278 | |||||
Sales and returns of capital | (12,994) | |||||
Total gains or losses on investments included in Statement of Comprehensive Income: | ||||||
- on assets held at the period end | (2,590) | |||||
_________ | ||||||
146,396 | ||||||
_________ | ||||||
Private Equity | ||||||
Funds | ||||||
Year ended 31 March 2014 | US'000 | |||||
Opening balance | 156,702 | |||||
Purchases including calls | 18,991 | |||||
Sales and returns of capital | (21,897) | |||||
Total gains or losses on investments included in Statement of Comprehensive Income: | ||||||
- on assets held at the year end | 9,185 | |||||
_________ | ||||||
162,981 | ||||||
_________ | ||||||
Financial assets and liabilities other than those at fair value through profit or loss are measured at amortised cost. Due to their short-term nature, the carrying values are considered to approximate to their fair values. | ||||||
8. | Net changes in fair value of financial assets at fair value through profit or loss | |||
The net realised and unrealised investment gain or loss from financial assets at fair value through profit or loss shown in the Condensed Statement of Comprehensive Income is analysed as follows: | ||||
Six months ended | Six months ended | Year ended | ||
30 September 2014 | 30 September 2013 | 31 March2014 | ||
US$'000 | US$'000 | US$'000 | ||
Unrealised gains/(losses) on investments | 12,553 | (1,818) | 9,322 | |
Capital calls in relation to investee expenses | (1,801) | (1,219) | (2,509) | |
Realised (losses)/gains on disposal of investments | (7,673) | - | 562 | |
Realised gains on investee distributions | 5,960 | 4,484 | 11,374 | |
Distribution income from investments | 588 | 2,014 | 3,271 | |
_________ | _________ | _________ | ||
9,627 | 3,461 | 22,020 | ||
_________ | _________ | _________ | ||
Capital call expenses relate to management fees and other expenses paid to investees. | ||||
The Company does not experience any seasonality or cyclicality in its investing activities. | ||||
Six months ended | Six months ended | Yearended | ||
30 September 2014 | 30 September 2013 | 31 March2014 | ||
9. | Income | US$'000 | US'000 | US'000 |
Net interest income from cash and cash equivalents | 28 | 41 | 71 | |
_________ | _________ | _________ |
10. | Taxation |
The Company is subject to federal and state tax on effectively connected income ("ECI") received from certain of its underlying portfolio holdings in the US. Such taxes are deducted by the investee from income before being paid to the Company. Upon filing the Company's annual tax return with US authorities the Company will be able to assess whether any ECI tax paid on its behalf may be recoverable. The amount identified as recoverable at 30 September 2014 was US$ nil (30 September 2013 - US$ nil; 31 March 2014 - US$113,000). In certain circumstances, the Company is also in a position to receive recoverable withholding taxes on distribution income from underlying holdings. During the period ended 30 September 2014, the Company incurred withholding tax expenses of US$155,000 and received withholding tax refunds of US$187,000, therefore amounting to a net tax gain for the period of US$32,000. The Company is domiciled and registered for taxation purposes in Guernsey where it pays an annual exempt status fee (which is currently £600) under The Income Tax (Exempt Bodies) (Guernsey) Ordinances 1989 (as amended). Consequently, the Company does not pay income or corporation taxes there and, other than in the US as noted above, does not currently suffer such taxes anywhere else. |
11. | Earnings per share |
The basic earnings per share is calculated by dividing the returns attributable to shareholders by the weighted average number of shares in issue during the period. There were no potentially dilutive shares in issue at 30 September 2014 (30 September 2013 - nil; 31 March 2014 - nil). Whilst the Company has chosen to report basic earnings per share in a currency other than its functional and presentation currency as supplementary information it has complied with the requirements of IFRS including the translation method. |
12. | Net asset value per share |
The net asset value of each share is determined by dividing the net assets of the Company attributable to the shares of £124,806,000 (US$202,835,000) (30 September 2013 - £113,057,000 (US$182,350,000)) (31 March 2014 - £119,753,000 (US$199,174,000)) by 109,131,199 (30 September 2013 - 109,131,199; 31 March 2014 - 109,131,199) shares, being the number of shares in issue at the period end. Whilst the Company has chosen to report net asset value per share in a currency other than its functional and presentation currency as supplementary information it has complied with the requirements of IFRS including the translation method. |
13. | Revenue reserves |
The revenue reserves reflected in the Condensed Balance Sheet at 30 September 2014 include unrealised gains of US$46,841,000 (30 September 2013 - US$23,148,000; 31 March 2014 - US$34,288,000) which relate to the revaluation of investments held at the reporting date. |
14. | Transactions with the Manager |
The Company has an agreement with Aberdeen SVG Private Equity Managers Limited ("Aberdeen SVG" or "the Manager") for the provision of management services. The management fee is payable monthly in arrears based on one-twelfth of 1.5% of the net asset value of the Company before deduction of any performance fee but after deducting liabilities (excluding any long-term structured debt) and deducting cash at bank, short-term deposits and value of holdings in money market funds plus one twelfth of 0.75% of the value of cash at bank, short-term deposits and holdings in money market funds. During the period US$1,317,000 of management fees were payable (30 September 2013 - US$1,390,000; 31 March 2014 - US$2,669,000) and US$234,000 (30 September 2013 - US$229,000; 31 March 2014 - US$226,000) was outstanding at the period end. | |
In addition, the Manager is entitled to a performance fee of 10% based on the total increase in the audited NAV - adjusted to remove the contribution to performance from all share purchases for cancellation and to add back the value of any dividends that have been paid to shareholders during the period - over the audited NAV at the end of the performance period (ending 31 March each year) in which a performance fee was last paid. In order for a performance fee to be paid the following two criteria - having adjusted for any buybacks or issues of shares and dividends paid in the period - must be met (i) the Manager must achieve returns in excess of 8% in the performance period over the last audited NAV; and (ii) the audited NAV must exceed the audited NAV at the end of the performance period in respect of which a performance fee was last paid. For the current financial year, the hurdle NAV is 120.67p based on the last audited NAV adjusted for dividends paid during the performance period. As at 30 September 2014 no accrual has been made in respect of a performance fee being payable (30 September 2013 - nil; 31 March 2014 - nil). | |
The basis of payment of a performance fee are; (i) performance fees are only payable in respect of the audited year end NAV as adjusted; (ii) performance fee payments are not crystallised upon the purchase by the Company of its own shares, in the market, for cancellation; and (iii) future audited NAVs used in performance fee calculations will be adjusted to add back the value of any dividends that have been paid during the period to shareholders. Consequently, future audited NAVs used in performance fee calculations will be adjusted to add back the value of any dividends that have been paid and it has also been agreed that the aggregate fees payable by the Company to the Manager pursuant to this Agreement in respect of each financial year will be capped at 4.99% of the audited, unadjusted Net Asset Value of the Company as at 31 March in the immediately preceding calendar year (as reported in the relevant annual financial statements of the Company). | |
The Company also has an agreement with Aberdeen Asset Managers Limited ("AAM") for the provision of promotional activities in relation to the Company's participation in the Aberdeen Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement were £29,000 (30 September 2013 - £43,000; 31 March 2014 - £91,000) and the sum due to AAM at the period end was £6,000 (30 September 2013 - £20,000; 31 March 2014 - £23,000). |
15. | Related Party Transactions |
As at 30 September 2014, the Company had holdings amounting to US$18,869,000 in Aberdeen Liquidity Funds which are managed and administered by Aberdeen Asset Managers Limited, a wholly owned subsidiary of Aberdeen Asset Management PLC. The Company pays a management fee of 0.75% per annum on the value of these holdings but no fee is chargeable at the underlying Fund level. Details of these holdings can be found within the Investment Portfolio below. |
16. | Subsequent events |
There are no material subsequent events to report. |
Independent Review Report to Aberdeen Private Equity Fund Limited
Introduction
We have been engaged by the Company to review the condensed set of interim financial statements in the Half-Yearly Financial Report for the six months ended 30 September 2014, which comprises the Condensed Statement of Comprehensive Income, Condensed Balance Sheet, Condensed Statement of Changes in Equity, Condensed Statement of Cash Flows and related notes. We have read the other information contained in the Half-Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of interim financial statements.
Directors' Responsibilities
The Half-Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in Note 2, the annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards. The condensed set of interim financial statements included in this Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting'.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of interim financial statements in the Half-Yearly Financial Report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the International Auditing and Assurance Standards Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of interim financial statements in the Half-Yearly Financial Report for the six months ended 30 September 2014 is not prepared, in all material respects, in accordance with International Accounting Standard 34 and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
PricewaterhouseCoopers CI LLP
Chartered Accountants
Guernsey, Channel Islands
21 November 2014
Publication of Interim Financial Report
(i) The maintenance and integrity of the Company's website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
(ii) Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Schedule of Investments
As at 30 September 2014
Investments | Total Commitments | Investmentcalled/cost{C} | Fair Value | % of |
Private Equity Portfolio{A} | US$'000{B} | US$'000 | US$'000 | NAV |
Apax 8 (A8-A(feeder)) L.P. | € 10,000 | 2,924 | 3,271 | 1.6 |
CCMP Capital Investors III L.P. | € 15,000 | 3,522 | 3,542 | 1.8 |
Coller International Partners V L.P. | 15,000 | 380 | 6,704 | 3.3 |
CVC Capital Partners Asia Pacific IV L.P. | 10,000 | 354 | 385 | 0.2 |
Goldman Sachs Capital Partners VI L.P. | 15,000 | 5,820 | 5,603 | 2.8 |
Gores Capital Partners III L.P. | 10,000 | 5,225 | 7,443 | 3.7 |
HIG Bayside Debt & LBO Fund II L.P. | 15,000 | 6,639 | 7,583 | 3.7 |
Lion Capital Fund III L.P. | € 10,000 | 7,111 | 11,526 | 5.7 |
Longreach Capital Partners Ireland 1, L.P. | 7,425 | 2,128 | 2,145 | 1.1 |
Longreach Capital Partners 2 - USD, L.P. | 7,500 | 8,508 | 5,755 | 2.8 |
MatlinPatterson Global Opportunities Partners III L.P. | 10,000 | 7,388 | 6,753 | 3.3 |
Northzone VI L.P. | € 10,000 | 7,341 | 18,821 | 9.3 |
Oaktree OCM Opportunities Fund VIIb L.P. | 15,000 | - | 2,974 | 1.5 |
Pangaea Two Parallel L.P. | 5,000 | 1,969 | 2,464 | 1.2 |
Pine Brook Capital Partners L.P. | 10,000 | 6,289 | 8,883 | 4.4 |
Resolute Fund III L.P. | 15,000 | 2,556 | 2,622 | 1.3 |
Resonant Music 1 L.P. | 5,453 | 4,511 | 4,466 | 2.2 |
RHO Ventures VI L.P. | 10,000 | 9,309 | 9,342 | 4.6 |
Silver Lake Partners III L.P. | 15,000 | 7,903 | 11,733 | 5.8 |
StepStone International Investors III L.P. (formerly Greenpark International Investors III L.P.) | € 14,600 | 8,314 | 7,182 | 3.5 |
Tenaya Capital V L.P. | 12,500 | 7,645 | 9,515 | 4.7 |
Tenaya Capital VI L.P. | 5,000 | 2,941 | 3,261 | 1.6 |
Thoma Bravo IX Fund L.P. | 10,000 | 4,031 | 10,155 | 5.0 |
Thomas H Lee Parallel Fund VI L.P. | 15,000 | 6,684 | 13,459 | 6.6 |
Co-investments{D} | 4,880 | 5,224 | 5,970 | 2.9 |
124,716 | 171,557 | 84.6 | ||
{A} Includes direct investments and co-investments. | ||||
{B} All commitments are in US$ unless otherwise stated. | ||||
{C} Investments called/cost represents commitments drawn down less net distributions. | ||||
{D} Co-investment made in four co-investment vehicles. | ||||
Fair Value | % of | |||
US$'000 | NAV | |||
Fixed term deposits | ||||
Standard Chartered | 7,009 | 3.5 | ||
Aberdeen Liquidity Funds | ||||
Euro Fund Income (€) | 2,317 | 1.1 | ||
Sterling Fund Income (£) | 900 | 0.5 | ||
US Dollar Fund Income | 15,652 | 7.7 | ||
18,869 | 9.3 | |||
Cash | 5,763 | 2.8 | ||
Cash and cash equivalents{E} | 31,641 | 15.6 | ||
Other liabilities less assets | (363) | (0.2) | ||
Net current assets | 31,278 | 15.4 | ||
Net assets | 202,835 | 100.0 | ||
{E} Represents sum of fixed term deposits, Aberdeen liquidity funds and cash. | ||||
The Half Yearly Report will shortly be available from the Company's website (www.aberdeenprivateequityfund.co.uk) and will be posted to shareholders in early December 2014.
Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.
[1] NAV increase over the period is net of the 2p dividend paid in September 2014
[2] Excludes holdings in Secondary investment vehicles (Coller V, StepStone III) and the royalty streams from Resonant Music. It also excludes non-material sub-portfolios in the HIG Bayside and Oaktree portfolios.
[3] This figure includes performance from existing investments and from any new investments made during the year. It also is inclusive of fees charged by underlying managers during the year, including accruals for General Partners' performance fees ("carried interest") but does not include management and/or any performance fees charged by the Manager.
[4] For the purposes of this analysis, income from investments has been capitalised into the distributions figure.
[5] Fair Market Value.
[6] Source Aberdeen SVG / AAM / IPEs, inclusive of income distribution.
[7] Source: Vostok Nafta press release August 28 2014. Avito is Vostok Nafta's largest shareholding.
[8] In addition the Company also paid calls for this period of $1.8m in relation to GPs fees and expenses.
[9] Original Equipment Manufacturers.
[10] The Company received a net refund of $0.03m of withholding tax on these distributions.
[11] The Wall Street Journal, 'IMF Cuts U.S. 2014 Growth Forecast to 2%', 16 June 2014.
[12] IMF World Economic Outlook update, 'An Uneven Global Recovery Continues', 24 July 2014
[13] The Guardian, 'US adds 209,000 jobs in July as unemployment rate rises to 6.2%', 1 August 2014.
[14] MarketWatch, 'Fed plans to end bond purchases in October', 9 July 2014.
[15] The Economist, 'The euro-zone economy - Cyclical Stagnation', 16 August 2014.
[16] BBC News, 'IMF: UK economic growth to reach 2.9% in 2014', 8 April 2014.
[17] Trading Economics, ' UK Unemployment Rate falls to 6.4%', 13 August 2014.
[18] Reuters, 'UK Q2 GDP estimated +0.9% quarter-on-quarter - NIESR', 9 July 2014.
[19] CNBC, 'Few-strings-attached loans at record levels', 13 July 2014.
[20] Private Equity General Partners.