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23 Sep 2008 07:00
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 2008 the Company experienced a small decline in net asset value per ordinary share ("NAV"), with the slowdown in the European private equity market resulting in the Company receiving a lower quantum of distributions and realised gains and income from its private equity fund interests. The Company's unaudited NAV fell by 1.5% to 261.5p at 30 June 2008 (diluted NAV - 257.5p), down from 265.5p at 31 March 2008 (diluted NAV - 261.4p). As a result, the Company's NAV for the first nine months of its financial year has increased by 8.4%, up from 241.3p at 30 September 2007 (diluted NAV - 237.7p). The Company's net assets were £418.2 million at 30 June 2008 (31 March 2008 - £424.6 million).
During the quarter ended 30 June 2008 a total of £15.8 million was received by way of distributions (quarter ended 31 March 2008 - £21.5 million) from the Company's 49 private equity fund interests. This comprised total realised gains and income of £7.2 million (quarter ended 31 March 2008 - £14.0 million), which was equivalent to an average return on the Company's acquisition cost of realised investments of 1.8 times (quarter ended 31 March 2008 - 2.9 times). The fall in the quantum of distributions and realised gains and income received reflected the general slowdown in the number and value of realisations in the European private equity market.
The closing value of the Company's portfolio of fund interests was £405.2 million at 30 June 2008 (31 March 2008 - £396.4 million). Total unrealised losses for the quarter ended 30 June 2008 were £12.5 million (quarter ended 31 March 2008 - £9.1 million gain). The closing value of the portfolio incorporated the important semi-annual valuation of around 99% of the Company's fund interests by their managers at 30 June 2008. These managers' valuations were based largely on lower comparable listed company valuation multiples, following the fall in global stock markets, partially offset by positive trading at many underlying investee companies.
As for new investments, during the quarter the Company's portfolio of private equity fund interests drew down a total of £30.0 million (quarter ended 31 March 2008 - £30.2 million). The quantum of drawdowns remained relatively high, notwithstanding the weak European buy-out market, reflecting the higher percentage amount of equity required from managers to fund new transactions.
During the quarter to 30 June 2008 the Company made one new fund commitment of €65.0 million (£51.5 million) to CVC European Equity Partners V Fund. At 30 June 2008 the Company's aggregate outstanding commitments to its existing private equity fund interests were £435.9 million (31 March 2008 - £416.4 million). These commitments can be expected to be drawn down over the next 3-4 years.
The aggregate closing cash and money market holdings of the Company were £13.0 million at 30 June 2008 (31 March 2008 - £28.5 million). At 30 June 2008 the Company's £60 million revolving credit facility was undrawn (31 March 2008 - nil). Since the period end, the Company has started to utilise its bank facility and as at 19 September 2008 the Company had net indebtedness of £24.2 million.
It is anticipated that the Company will release its preliminary announcement for the year ending 30 September 2008 on or around 28 November 2008.
For further information please contact:-
Peter McKellar of SL Capital Partners LLP (0131 245 0055)
Note:-
Standard Life European Private Equity Trust PLC is an investment company managed by 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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