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26 Jan 2009 16:20
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Standard Life European Private Equity Trust PLC
Interim management statement for the quarter ended 31 December 2008
Standard Life European Private Equity Trust PLC ("the Company") presents its interim management statement for the period from 1 October 2008 to 31 December 2008. This announcement constitutes the Company's first interim management statement for the year ending 30 September 2009Β in accordance with rule 4.3 of the UK Listing Authority's Disclosure and Transparency Rules.Β This interim statement summarisesΒ information as at 31 December 2008Β and any material developments up to 26 January 2009.Β
Investment objective
To achieve long-term capital gains throughΒ holdingΒ a diversified portfolio of private equity funds investing predominantly inΒ Europe.
Benchmark
The Company has no defined benchmark.
Performance
The Company's audited net asset value per ordinary shareΒ ("NAV")Β wasΒ 234.8p as atΒ 30 September 2008 (diluted - 231.4p).Β The Company's NAV as at 31 December 2008Β will be announced onΒ or around 24 March 2009. The share price of the Company's ordinary shares was 66.0p as at 31 December 2008, compared to 161.0p as at 30 September 2008, a decline of 59.0% over the quarter.Β Such aΒ percentageΒ fall was similar to that experienced byΒ mostΒ of theΒ LondonΒ listed private equityΒ investment trusts over thatΒ quarter.Β Over the sameΒ quarterΒ the MSCI Europe Index (sterling adjusted)Β fellΒ 4.8% and the FTSE All Share Index fellΒ 11.0%.
Financial positionΒ
Against a background of significant volatilityΒ and declinesΒ in financial marketsΒ generallyΒ and a lower level of activity in the European private equity market,Β the Company received distributions from its private equity fundΒ interests of Β£14.2Β millionΒ during the quarter ended 31 December 2008Β (quarter endedΒ 31 December 2007Β - Β£21.2Β million) and fundedΒ Β£20.4Β million of draw downs (quarterΒ endedΒ 31 December 2007Β - Β£43.0Β million).Β
The Company had aggregate outstanding commitments to its private equity fund interests of Β£425.9 million as at 31 December 2008 (30 September 2008 - Β£389.2 million). The Company's outstanding fund commitments as at 31 December 2008 were positively impacted over the quarter by some of the material transactions referred to below and were negatively impacted by foreign exchange movements. Over the quarter to 31 December 2008 sterling depreciated by 18.5% and 19.3% against the euro and the US dollar respectively; these foreign exchange movements are unrealised.
As atΒ 31 December 2008Β the CompanyΒ had net indebtedness of Β£47.6Β millionΒ (30 September 2008Β -Β net indebtedness ofΒ Β£36.4Β million). AsΒ intimated in the Chairman's Statement andΒ theΒ preliminary announcement for the financial year ended 30 September 2008 the Company entered into a new Β£100 million three year syndicated revolving credit facility, led by The Royal Bank of Scotland plc, in November 2008.Β
Material events and transactionsΒ
The Company announced onΒ 14Β January 2009 that it had agreed the disposal of two of its private equity fund interests,Β as part of the Company's strategy of managing the quality of its portfolio and the quantum of its outstanding commitments. The Company sold itsΒ fundΒ interests in BC European VIII and Towerbrook Investors III to significant institutional investors in the private equity asset class for an aggregate Β£7.5Β million, as compared to the 30 September 2008 valuations of these fund interests, adjusted for subsequent cashflows, of Β£11.0Β million.Β TheseΒ twoΒ fund interests had aggregate outstanding commitments at the date of disposal of Β£46.7Β million, from which the Company has now been released.
The CompanyΒ alsoΒ decided to elect to cap its exposure to Permira IV as part of the recently announced restructuring of that fund. The Company made a Β£30.3Β million commitment to Permira IV in 2006Β and as at the date of the election the outstanding commitment was Β£19.4Β million. As part of the restructuring the Company has been released from Β£16.0Β million of this outstanding commitment.
Taking account of the above disposals and election, drawdowns to date and theΒ 15.8% andΒ 23.3% depreciation of sterling compared to the euro and the US dollar respectively from 1 October 2008, the Company's total outstanding commitments were Β£374.0Β million as at 23 January 2009. As at 23 January 2009 the Company's net indebtedness was Β£48.9Β million; this is before the receipt ofΒ Β£0.9Β million ofΒ proceeds from the disposal of theΒ fundΒ interest in Towerbrook Investors III.Β
The Company is in discussions regarding the selective disposal of a limited number of its other private equity fund interests.Β In so doing, the Board and the Manager are sensitive toΒ the need to ensureΒ that the Company has sufficient outstanding commitments to benefit from future investment opportunities.
During the period from 1 October 2008 toΒ 26 January 2009 the CompanyΒ made no new private equity fund commitments.Β Β
On 26 January 2009Β shareholders approvedΒ a final dividend forΒ the year ended 30 September 2008 of 0.7p per ordinary shareΒ at the Company's annual general meeting. ThisΒ final dividend will be paid on 30 January 2009.
For further information please contact:-
Peter McKellar of SL Capital PartnersΒ LLPΒ (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 anΒ 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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