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26 Jan 2009 16:20
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 2009 in accordance with rule 4.3 of the UK Listing Authority's Disclosure and Transparency Rules. This interim statement summarises information as at 31 December 2008 and any material developments up to 26 January 2009.
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 audited net asset value per ordinary share ("NAV") was 234.8p as at 30 September 2008 (diluted - 231.4p). The Company's NAV as at 31 December 2008 will be announced on 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. Such a percentage fall was similar to that experienced by most of the London listed private equity investment trusts over that quarter. Over the same quarter the MSCI Europe Index (sterling adjusted) fell 4.8% and the FTSE All Share Index fell 11.0%.
Financial position
Against a background of significant volatility and declines in financial markets generally and a lower level of activity in the European private equity market, the Company received distributions from its private equity fund interests of £14.2 million during the quarter ended 31 December 2008 (quarter ended 31 December 2007 - £21.2 million) and funded £20.4 million of draw downs (quarter ended 31 December 2007 - £43.0 million).
The Company had aggregate outstanding commitments to its private equity fund interests of £425.9 million as at 31 December 2008 (30 September 2008 - £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 at 31 December 2008 the Company had net indebtedness of £47.6 million (30 September 2008 - net indebtedness of £36.4 million). As intimated in the Chairman's Statement and the preliminary announcement for the financial year ended 30 September 2008 the Company entered into a new £100 million three year syndicated revolving credit facility, led by The Royal Bank of Scotland plc, in November 2008.
Material events and transactions
The Company announced on 14 January 2009 that it had agreed the disposal of two of its private equity fund interests, as part of the Company's strategy of managing the quality of its portfolio and the quantum of its outstanding commitments. The Company sold its fund interests in BC European VIII and Towerbrook Investors III to significant institutional investors in the private equity asset class for an aggregate £7.5 million, as compared to the 30 September 2008 valuations of these fund interests, adjusted for subsequent cashflows, of £11.0 million. These two fund interests had aggregate outstanding commitments at the date of disposal of £46.7 million, from which the Company has now been released.
The Company also decided to elect to cap its exposure to Permira IV as part of the recently announced restructuring of that fund. The Company made a £30.3 million commitment to Permira IV in 2006 and as at the date of the election the outstanding commitment was £19.4 million. As part of the restructuring the Company has been released from £16.0 million of this outstanding commitment.
Taking account of the above disposals and election, drawdowns to date and the 15.8% and 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 £374.0 million as at 23 January 2009. As at 23 January 2009 the Company's net indebtedness was £48.9 million; this is before the receipt of £0.9 million of proceeds from the disposal of the fund interest in Towerbrook Investors III.
The Company is in discussions regarding the selective disposal of a limited number of its other private equity fund interests. In so doing, the Board and the Manager are sensitive to the need to ensure that the Company has sufficient outstanding commitments to benefit from future investment opportunities.
During the period from 1 October 2008 to 26 January 2009 the Company made no new private equity fund commitments.
On 26 January 2009 shareholders approved a final dividend for the year ended 30 September 2008 of 0.7p per ordinary share at the Company's annual general meeting. This final dividend will be paid on 30 January 2009.
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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