15 May 2020 07:00
Standard Life Private Equity Trust PLC
Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13
15 May 2020
Standard Life Private Equity Trust plc ("SLPET" or "the Company") announces its estimated net asset value ("NAV") at 30 April 2020
· Estimated NAV at 30 April 2020 was 465.8 pence per share (estimated NAV at 31 March 2020 was 477.6 pence per share)
· First interim dividend of 3.3 pence per share paid on 24 April 2020
· SLPET paid £16.6 million of drawdowns and received £15.7 million of distributions during the month of April
· Outstanding commitments of £427.9 million at 30 April 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 30 April 2020, excluding new investments, 100.0% by value of the portfolio valuations were dated 31 December 2019. With respect of the valuations as at 31 December 2019 within the Company portfolio, these valuations predate and therefore do not reflect the financial impact on valuations of the recent outbreak of COVID-19 and subsequent events related thereto.
Estimated NAV
At 30 April 2020, SLPET's estimated NAV was 465.8 pence per share (estimated net assets £716.1 million), representing a 2.5% per share decrease from the estimated NAV at 31 March 2020 of 477.6 pence per share (estimated net assets £734.3 million). The 11.8 pence decrease in NAV per share is due to losses arising primarily from a 1.9% depreciation in the euro versus sterling during April and the first interim dividend payment of 3.3 pence per share, which was paid on 24 April 2020. The cash cost of the first interim dividend was £4.9 million.
Draw downs and distributions
SLPET paid £16.6 million of drawdowns and received £15.7 million of distributions during the month of April. The distributions received generated realised gains and income of £8.3 million.
Commitments
The Company had £427.9 million of outstanding commitments at 30 April 2020. The Manager believes that around £63.2 million of the Company's existing outstanding commitments are unlikely to be drawn.
Balance sheet and credit facility
The Company had resources available for investment of £66.6 million at 30 April 2020, comprising £51.7 million of cash and cash equivalents and £14.9 million of deferred consideration due from sold investments. In addition, the Company 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 as events surrounding COVID-19 develop. Whilst it remains too early to quantify the potential impact on the Company with any certainty, we are prepared for an adverse impact on NAV and a decrease in the level of distributions in the near term.
An update from the Manager, which provides responses to frequently asked questions following the outbreak of COVID-19, is available within the Latest News section of the Company website; www.slpet.co.uk.
Whilst the emergence of COVID-19 predates the valuation of the Company's private equity funds and co-investments as at 31 December 2019, subsequent valuations received as at 31 March 2020 will reflect the initial financial impact of the outbreak on the Company's portfolio and NAV.
Future announcements
The Company is expecting to announce its results for the six months ending 31 March 2020 on or around 17 June 2020 and will announce its estimated NAV at 31 May 2020 at the same time. This will be the first time that the Company's NAV will reflect the early financial impacts of COVID-19.
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