14 Aug 2020 07:00
Standard Life Private Equity Trust plc
Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13
14 August 2020
Standard Life Private Equity Trust plc ("SLPET" or "the Company") announces its estimated net asset value ("NAV") at 31 July 2020
· Estimated NAV at 31 July 2020 was 421.4 pence per share (estimated NAV at 30 June 2020 was 431.2 pence per share)
· Interim dividend of 3.3 pence per share paid on 31 July 2020
· SLPET received £2.7 million of distributions and paid £2.1million of drawdowns during the month of July
· Outstanding commitments of £456.8 million at 31 July 2020
SLPET'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 SLPET's valuation at 31 July 2020, excluding new investments, 99.7% by value of the portfolio valuations were dated 31 March 2020.
Of the valuations dated 31 March 2020, 89.4% of the portfolio by value accounted for the initial impact of COVID-19. For 10.3% by value of the portfolio, these interests were adjusted downward by the Manager as the underlying managers had not reflected the initial impact of COVID-19 within their 31 March 2020 valuations.
The remaining 0.3% by value of the portfolio has also been adjusted downward by the Manager based on the valuation as at 31 December 2019, adjusted for subsequent cash flows. Valuation adjustments were based on the weighted average movement in the Company's portfolio.
Estimated NAV
At 31 July 2020, SLPET's estimated NAV was 421.4 pence per share (estimated net assets £647.8 million), representing a 2.3% per share decrease from the estimated NAV at 30 June 2020 of 431.2 pence per share (estimated net assets £663.0 million). The 9.8 pence decrease in NAV per share reflected losses arising primarily from a 0.9% depreciation in the euro versus sterling during July and the second interim dividend payment of 3.3 pence per share, which was paid on 31 July 2020. The cash cost of the second interim dividend was £4.9 million.
Drawdowns and distributions
SLPET received £2.7 million of distributions and paid £2.1 million of drawdowns during the month. The distributions received generated realised gains and income of £1.5 million.
Commitments
The Company had £456.8 million of outstanding commitments at 31 July 2020. The Manager believes that around £67.2 million of the Company's existing outstanding commitments are unlikely to be drawn.
Balance sheet and credit facility
The Company had cash and cash equivalents of £45.3 million. In addition, it is due £15.2 million of deferred consideration during the year from investments sold in 2019. It also has an undrawn £100 million syndicated revolving credit facility, provided by Citibank and Societe Generale, that expires in December 2024.
Update on COVID-19
The Manager continues to maintain regular communication with the private equity managers of the Company's investments and is closely monitoring the situation surrounding COVID-19. Whilst the initial impact on the Company has been reflected within the actual NAV at 31 March 2020, we expect COVID-19 to impact private equity valuations negatively during the remainder of the year, which could lead to further reductions in the Company's NAV. We also continue to anticipate a decrease in the level of distributions in the near-term.
The latest update from the Manager, which provides responses to frequently asked questions in relation to COVID-19, is available within the Latest News section of the Company website; www.slpet.co.uk.
Future announcements
The Company is expecting to announce its actual NAV at 30 June 2020 on or around 30 September 2020 and will announce its estimated NAV at 31 August 2020 at the same time.
Additional detail about SLPET's NAV and investment diversification can be found on SLPET'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 SL Capital Partners LLP (0131 372 2200)
Note:-
Standard Life 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 sections 1158-1165 of the Corporation Tax Act 2010. The Board of Standard Life Private Equity Trust plc is independent of Standard Life Aberdeen plc and Phoenix Group Holdings.
Valuation Methodology
Unquoted investments are stated at the directors' estimate of fair value and follow the recommendations of EVCA and BVCA. The estimate of fair value is normally the latest valuation placed on a fund or co-investment by its manager at the balance sheet date. The valuation policies used by the manager in undertaking that valuation will generally be in line with the joint publication from EVCA and BVCA, 'International Private Equity and Venture Capital Valuation guidelines'. Where formal valuations are not completed at the balance sheet date the last available valuation from the fund manager or co-investment lead is adjusted for any subsequent cashflows occurring between the valuation date and the balance sheet date. The Company's Manager may further adjust such valuations to reflect any changes in circumstances from the last manager's formal valuation date to arrive at the estimate of fair value, for example, where sales proceeds are available. Quoted investments are valued based on quoted prices as of the last day of the relevant period.
The Company intends to release regular estimated NAV updates around ten business days after each month end, while continuing to issue quarterly updates. A breakdown of SLPET's portfolio can be obtained in the latest monthly factsheet, which is published on SLPET's website at:
www.slpet.co.uk