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23 Sep 2008 07:00
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Standard Life European Private Equity Trust PLC
Investment update for the period from 31 March 2008 to 30 June 2008
For the quarter ended 30 June 2008Β the Company experienced a small decline in net asset value per ordinary share ("NAV"), with theΒ slowdown in theΒ European private equity market resulting in theΒ Company receivingΒ a lower quantum ofΒ distributions and realised gainsΒ and incomeΒ from its private equity fund interests.Β TheΒ Company's unauditedΒ NAV fellΒ byΒ 1.5% to 261.5p atΒ 30 June 2008 (diluted NAV - 257.5p),Β downΒ fromΒ 265.5p at 31 March 2008Β (diluted NAVΒ -Β 261.4p). As a result, the Company's NAV for theΒ firstΒ nine monthsΒ of its financial yearΒ has increased by 8.4%, up fromΒ 241.3p at 30 September 2007Β (diluted NAVΒ - 237.7p). The Company's net assets were Β£418.2Β million at 30 June 2008 (31 March 2008 - Β£424.6Β million).
During the quarter ended 30 June 2008Β a total of Β£15.8Β million was received by way of distributions (quarter ended 31 March 2008 - Β£21.5Β million) from the Company'sΒ 49Β private equity fund interests. This comprised total realised gains and income of Β£7.2Β million (quarter ended 31 March 2008Β - Β£14.0Β million), which was equivalent toΒ an average return on the Company's acquisition cost of realised investments of 1.8Β timesΒ (quarter ended 31 March 2008 - 2.9 times).Β The fall in the quantum of distributions and realised gains and income received reflectedΒ the general slowdown inΒ the numberΒ and valueΒ ofΒ realisationsΒ in the European private equity market.
The closing value of the Company's portfolio of fund interests was Β£405.2Β million at 30 June 2008 (31 March 2008 - Β£396.4Β million). Total unrealised lossesΒ for the quarter ended 30 June 2008 were Β£12.5Β million (quarter ended 31 March 2008 - Β£9.1Β millionΒ gain). TheΒ closing value of the portfolio incorporatedΒ the important semi-annualΒ valuation ofΒ around 99%Β ofΒ the Company's fund interests by their managers at 30 June 2008.Β TheseΒ managers' valuations were basedΒ largelyΒ onΒ lower comparable listed company valuation multiples, followingΒ the fallΒ in global stock markets, partially offset by positiveΒ trading at manyΒ underlying investee companies.Β
As for new investments, during the quarter the Company's portfolio of private equity fund interests drew down a total of Β£30.0Β million (quarter ended 31 March 2008 - Β£30.2Β million).Β The quantum of drawdowns remained relativelyΒ high,Β notwithstanding theΒ weakΒ EuropeanΒ buy-outΒ market,Β reflectingΒ theΒ higher percentageΒ amount of equityΒ requiredΒ from managersΒ to fundΒ new transactions.Β
During the quarter to 30 June 2008Β the Company madeΒ one new fund commitment of β¬65.0Β million (Β£51.5Β million) toΒ CVC European Equity Partners V Fund.Β At 30 June 2008Β the Company's aggregate outstanding commitments to its existing private equity fund interestsΒ were Β£435.9 million (31 March 2008 - Β£416.4Β million). These commitments can be expected to be drawn down over the next 3-4 years.Β
The aggregate closing cash and money market holdings of the Company were Β£13.0Β million at 30 June 2008 (31 March 2008 - Β£28.5Β million).Β Β At 30 June 2008 the Company's Β£60 million revolving credit facility was undrawn (31 March 2008 - nil). Since the period end,Β the Company has started to utilise its bank facility and as at 19 September 2008 the Company had net indebtedness of Β£24.2 million.
It is anticipated that the Company will release its preliminary announcement for the year ending 30 September 2008Β on or aroundΒ 28Β November 2008.Β
For further information please contact:-
Peter McKellar ofΒ SL Capital Partners LLPΒ (0131 245 0055)
Note:-
Standard Life European Private Equity Trust PLC is an investment company managed byΒ SL 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 section 842 of the Income and Corporation Taxes Act 1988. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.
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