Princess Priv E Regulatory News (PEY)

News Release

Guernsey, 25 October 2016

NAV increases by 1.8%

· Princess Private Equity Holding Limited's ("Princess") net asset value ("NAV") increased by 1.8% to EUR 10.16 per share

· Overall portfolio developments (+2.4%) were positive and currency movements (-0.2%) were slightly negative

· Princess received distributions of EUR 9.9 million from exited investments and invested EUR 24.2 million over the reporting period

In September 2016, Princess' NAV benefited from the quarterly revaluation of its direct investment portfolio. Portfolio companies VAT Group AG ("VAT"), Action and KinderCare Education ("KinderCare") were the three largest value drivers. The share price of quoted holding VAT recorded a positive development during September (+10.2% in CHF), closing the month at CHF 82.35 per share compared to CHF 45.00 when the company listed in April 2016. Another material contributor to Princess' performance was the valuation uplift of non-food discount retailer Action which continued its international expansion and now operates more than 750 stores in six countries. KinderCare, the largest for-profit provider of early childhood education and care services in the US, recorded an increase in EBITDA underpinned by robust student enrollment numbers and a reduction in general and administrative expenses.

Princess received EUR 9.9 million, including a EUR 3.8 million dividend from its investment in Trimco International ("Trimco"), a leading Asia-headquartered supplier of garment labels, tags and trimming products to blue chip global apparel companies. This represents Trimco's second dividend payment in two years, with the previous payment having taken place in September 2014. The most recent dividend was financed through a debt recapitalization, supported by the company's prospects from organic growth and additional synergies from the recent acquisition of A-Tex, a global provider of brand identity products including labels, hang-tags and packaging solutions. Partners Group continues to work closely with the management team to integrate A-Tex into Trimco's platform, which is expected to result in further operational synergies and bottom-line growth. Partners Group will also assist the company in the institutionalization of its senior management group and succession plan. The remaining distributions of EUR 6.1 million were predominantly from Princess' mature legacy fund portfolio.

Princess invested a total of EUR 24.2 million during the month, including an investment of EUR 19.6 million in Foncia, the leading French provider of property management services. Founded over 40 years ago and headquartered in Paris, the company provides a range of services to property owners and tenants, including joint-property management, lease management as well as rental and transaction services. It operates a network of over 500 branches, employs more than 8'000 people and manages a portfolio of around 1.8 million properties across France, Belgium, Switzerland and Germany. Princess also deployed EUR 2.9 million to a private debt investment in a French enterprise software provider.

Princess will hold an investor conference call on 2 November 2016 at 10:00 GMT to update interested parties on recent portfolio developments. The information announced will refer to unaudited figures as of 30 September 2016.

Further information is available in the monthly report which can be accessed via: http://www.princess-privateequity.net/financialreports.

Ends.

About Princess

Princess is an investment holding company founded in 1999 and domiciled in Guernsey. It invests, inter alia, in private equity and private debt investments. Princess is advised in its investment activities by Partners Group, a global private markets investment management firm with over EUR 49 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. Princess aims to provide shareholders with long-term capital growth and an attractive dividend yield. Princess is traded on the London Stock Exchange (ticker symbol: PEY). Further information: www.princess-privateequity.net.

Contacts

Princess Private Equity Holding Limited:

princess@partnersgroup.com

www.princess-privateequity.net

Registered Number: 35241

Investor relations contact

George Crowe

Phone: +44 (0)20 7575 2771

Email: george.crowe@partnersgroup.com

Media relations contact

Jenny Blinch

Phone: +41 41 784 65 26

Email: jenny.blinch@partnersgroup.com

www.partnersgroup.com

This document does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for any securities and neither is it intended to be an investment advertisement or sales instrument of Princess. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes must inform themselves about, and observe any such restrictions on the distribution of this document. In particular, this document and the information contained therein are not for distribution or publication, neither directly nor indirectly, in or into the United States of America, Canada, Australia or Japan.

This document may have been prepared using financial information contained in the books and records of the product described herein as of the reporting date. This information is believed to be accurate but has not been audited by any third party. This document may describe past performance, which may not be indicative of future results. No liability is accepted for any actions taken on the basis of the information provided in this document. Neither the contents of Princess' website nor the contents of any website accessible from hyperlinks on Princess' website (or any other website) is incorporated into, or forms part of, this announcement.