21 Jul 2014 07:00
Standard Life European Private Equity Trust PLC
Interim management statement for the quarter ended 30 June 2014
Standard Life European Private Equity Trust PLC ("the Company") presents its interim management statement for the period from 1 April 2014 to 30 June 2014. This announcement constitutes the Company's second interim management statement for the financial year ending 30 September 2014 in accordance with rule 4.3 of the UK Listing Authority's Disclosure and Transparency Rules. This interim statement summarises information at 30 June 2014 and any material developments up to 18 July 2014.
Investment objective
To achieve long-term capital gains through holding a diversified portfolio of private equity funds investing predominantly in Europe.
Benchmark
The Company has no defined benchmark.
Performance
The Company's net asset value per ordinary share ("NAV") was 252.2p and its net assets were £401.2 million at 31 March 2014. The Company's NAV at 30 June 2014 will be announced on or around 23 September 2014. The share price of the Company's ordinary shares was 215.0p at 30 June 2014, compared to 204.0p at 31 March 2014, an increase of 5.4% over the quarter.
Over the same quarter the MSCI Europe Index (in euros) rose by 2.6% and the FTSE All Share Index (in sterling) rose by 1.3%.
Financial position
During the quarter ended 30 June 2014 the Company funded £15.3 million of draw downs (six months ended 31 March 2014 - £15.9 million) and received £13.0 million of distributions (six months ended 31 March 2014 - £49.3 million). Draw down activity increased during the quarter as a result of new investment activity by a number of recent fund commitments, notably Permira V where draw downs totalled £5.2 million. While it was a quieter quarter for distributions, the Manager is aware of a number of exits having occurred where the Company is awaiting cash proceeds. As a result of the above, draw downs and distributions for the nine months ended 30 June 2014 were £31.2 million and £62.3 million, respectively.
The Company made no new fund commitments in the quarter ended 30 June 2014. The Company had total outstanding commitments to its 42 private equity fund interests of £192.0 million at 30 June 2014 (31 March 2014 - £213.5 million). The Manager continues to believe that up to £40 million of the Company's existing outstanding commitments are unlikely to be drawn.
At 30 June 2014 the Company had a cash balance, including holdings in money market funds, of £18.1 million and had £22.0 million invested in UK and European equity index tracker funds (31 March 2014 - £22.7 million and £21.9 million, respectively). The Company continues to have an undrawn £80 million syndicated revolving credit facility led by The Royal Bank of Scotland plc that expires in December 2016.
Directorate changes
On 28 May 2014 the Company announced the appointment of Alan Devine to the Board as a non-executive director.
Alternative Investment Fund Managers Directive ("AIFMD" or "the Directive")
The Company is required to comply with the European Union AIFMD. The Directive requires the Company to appoint an Alternative Investment Fund Manager ("AIFM") who will be responsible for portfolio and risk management and will be regulated under the Directive. The Board has agreed to appoint SL Capital Partners LLP as the AIFM. The Directive also requires the Company to appoint a depositary and the Board has appointed BNP Paribas Securities Services to fulfil this function.
Events and transactions in the period to 18 July 2014
During the period from 30 June 2014 to 18 July 2014 the Company funded £5.4 million of draw downs and received £15.0 million of distributions. At 18 July 2014 the Company had a cash balance, including holdings in money market funds, of £26.2 million and had £21.6 million invested in UK and European equity index tracker funds.
The Company has also made a new commitment of €55.0 million to Altor IV, a Nordic mid-market buy-out fund.Accordingly, at 18 July 2014 the Company had outstanding commitments of £227.9 million.
For further information on the statement 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 London Stock Exchange and which seeks to conduct its affairs so as to qualify as an investment trust under Section 1158 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.