APEO.L Regulatory News (APEO)

abrdn Private Equity Opportunities Trust plc

Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13

25 September 2023

abrdn Private Equity Opportunities Trust plc ("APEO" or "the Company") announces its estimated net asset value ("NAV") at 31 August 2023

· Estimated NAV at 31 August 2023 was 757.2 pence per share (estimated NAV at 31 July 2023 was 740.2 pence per share), a 2.3% increase from the month of July

· Excluding new investments, 96.7% by value of portfolio dated 30 June 2023 (estimated NAV at 31 July 2023 was 98.5% dated 31 March 2023)

· APEO received £11.2 million of distributions and paid £7.6 million of drawdowns to existing commitments during the month of August

· Outstanding commitments of £652.1 million at 31 August 2023

· Liquid resources (cash balances plus undrawn credit facilities) were £214.6 million as at 31 August 2023

APEO's valuation policy for private equity funds and co-investments is based on the latest valuations reported by the managers of the funds and co-investments in which the Company has interests. In the case of APEO's valuation at 31 August 2023, excluding new investments, 96.7% by value of the portfolio valuations were dated 30 June 2023. The value of the portfolio is therefore generally calculated as the 30 June 2023 valuation, adjusted for subsequent cashflows over the period to 31 August 2023.

This is an update from the estimated NAV at 31 July 2023, whereby 98.5% of the portfolio valuations, excluding new investments, were dated 31 March 2023, adjusted for subsequent cashflows over the period to 31 July 2023.

Estimated NAV

At 31 August 2023, APEO's estimated NAV was 757.2 pence per share (estimated net assets £1,164.2 million), representing a 2.3% per share increase from the estimated NAV at 31 July 2023 of 740.2 pence per share (estimated net assets £1,138.0 million). The 17.0 pence increase in NAV per share reflected gains arising primarily from a 2.1% constant currency uplift in the valuation of investments as at 30 June 2023 received to date and a 1.5% appreciation in the dollar versus sterling during August.

The 2.1% constant currency quarterly uplift in the valuation of investments from the reported estimated NAV at 30 June 2023 was due to a broad increase across the portfolio. APEO's primary fund, secondary and co-investment portfolios increased 2.1%, 1.4% and 2.3% in constant currency respectively over the quarter. In terms of underlying portfolio companies, there was notable quarterly valuation uplifts of Action (non-food discount retailer), NGE (public works concessions group), Uvesco (regional grocer) and Wundex (wound care management business), driven largely by earnings growtth.

Drawdowns and distributions

APEO received £11.2 million of distributions and paid £7.6 million of drawdowns to existing commitments during the month of August.

Drawdowns during the period were across several of APEO's fund investments, primarily to fund new underlying portfolio company investments and management fees.

The distributions received during the month generated realised gains and income of £5.4 million. The largest single distribution was £7.9 million from Advent International Global Private Equity Fund VIII. This related to Advent's full sale of an undisclosed portfolio company which provides reciprocating engines for the conversion of gaseous input fuels and a partial sale of another undisclosed portfolio company which provides omnichannel marketing production services.

Investment activity

There were no new commitments to announce from the month of August.

Commitments

The Company had £652.1 million of outstanding commitments at 31 August 2023. The Manager believes that around £91.9 million of the Company's existing outstanding commitments are unlikely to be drawn.

Credit facility and cash balances

The Company has a £300.0 million syndicated revolving credit facility provided by The Royal Bank of Scotland International Limited, Societe Generale and State Street Bank International GmbH, and it expires in December 2025. The Company repaid a total of £7.0 million to the credit facility during the month of August, reducing the total drawn balance to £101.1 million at 31 August 2023. The remaining undrawn balance of the facility at 31 August 2023 was therefore £198.9 million.

In addition, the Company had cash balances of £15.7 million at 31 August 2023. Liquid resources, calculated as the total of cash balances and the undrawn balance of the credit facility, were therefore £214.6 million as at 31 August 2023.

Outlook from the Manager

"We are delighted with the constant currency growth in the portfolio during the quarter to 30 June 2023. This means that the APEO portfolio has experienced quarter on quarter valuation growth in constant currency across the first three quarters of FY23.

In spite of the relatively low levels of private equity M&A activity in 2023 to date, APEO's cumulative distributions have remained resilient in FY23 at £162.0 million, with one month of the financial year remaining. This compares with £210.2 million in the whole of FY22, which was a record year for APEO distributions.

As we look forward, there are indications in the market that private equity M&A activity could begin to pick up over the next 6 months from the relatively low levels seen in 2023 thus far. If this happens, APEO stands to benefit from increased exit activity in its portfolio, both in terms of distributions and NAV growth (given the valuation uplifts that are typically seen on exits).

However, the Manager remains cautious and continues to plan for a more challenging market backdrop. In that context, we take comfort in APEO's balance sheet position, with liquid resources of £214.6m available to help navigate any adverse market conditions that may lie ahead."

Future announcements

The Company is expecting to announce its estimated NAV at 30 September 2023 on or around 13 October 2023.

Additional detail about APEO's NAV and investment diversification can be found on APEO's website. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website is incorporated into, or forms part of, this announcement.

For further information please contact Alan Gauld at abrdn Capital Partners LLP (0131 528 4424)

Notes:-

abrdn Private Equity Opportunities Trust plc is an investment company managed by abrdn Capital Partners LLP, the ordinary shares of which are admitted to listing by the UK Listing Authority and to trading on the Stock Exchange and which seeks to conduct its affairs so as to qualify as an investment trust under sections 1158-1165 of the Corporation Tax Act 2010. The Board of abrdn Private Equity Opportunities Trust plc is independent of abrdn plc and Phoenix Group Holdings.

The Company intends to release regular estimated NAV updates around ten business days after each month end. A breakdown of APEO's portfolio can be obtained in the latest monthly factsheet, which is published on APEO's website at:

www.abrdnpeot.co.uk