SLPE.L Regulatory News (SLPE)

Standard Life European Private Equity Trust PLC

Interim management statement for the quarter ended 31 December 2014

Standard Life European Private Equity Trust PLC ("the Company") presents its interim management statement for the period from 1 October 2014 to 31 December 2014. This interim statement summarises information as at 31 December 2014 and any material developments up to 28 January 2015.

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 257.4p at 30 September 2014. The Company's NAV at 31 December 2014 will be announced on or around 19 March 2015. The share price of the Company's ordinary shares was 219.0p at 31 December 2014, compared to 230.0p at 30 September 2014, a fall of 4.8% over the quarter. Over the same period the MSCI Europe Index (in euros) fell by 0.4% and the FTSE All Share Index (in sterling) recorded no change.

Financial position

The quarter ended 31 December 2014 saw an increase in new investment activity in the European private equity market. The value of all new private equity transactions in the European private equity market announced during the quarter was €26.7 billion (quarter ended 30 September 2014 - €22.4 billion), of which €23.8 billion comprised buy-out transactions (quarter ended 30 September 2014 - €19.9 billion).

Distributions received by the Company during the quarter ended 31 December 2014 were £28.7 million (quarter ended 30 September 2014 - £39.5 million) and the Company funded £22.5 million of draw downs (quarter ended 30 September 2014 - £16.6 million).

In line with the Company's investment strategy, a new commitment of €35.0 million was made to PAI Europe VI in November 2014. In addition, the Company acquired through secondary purchases an original commitment of €12.9 million to Advent Global Private Equity VI and an original commitment of €15.0 million to Cinven Fourth Fund in December 2014. Finally, the Company sold its entire fund interest in Apax Europe VII in October 2014.

The fund interest in Advent Global Private Equity VI was acquired at a 3.0% premium to the 30 June 2014 valuation of the fund, adjusted for subsequent cashflows. The purchase price for the fund interest was £11.7 million, equivalent to a discount of 5.6% when based on portfolio performance to the most recent valuation date of 30 September 2014. The Company assumed outstanding commitments of £0.5 million on acquisition. The Company already held an existing original commitment of €12.5 million to Advent Global Private Equity VI.

The fund interest in Cinven Fourth Fund was acquired at par to the 30 June 2014 valuation of the fund, adjusted for subsequent cashflows. The purchase price for the fund interest was £7.3 million, equivalent to a discount of 2.2% when based on portfolio performance to the most recent valuation date of 30 September 2014. The Company assumed outstanding commitments of £1.4 million on acquisition. The Company already held an existing original commitment of €21.0 million to Cinven Fourth Fund.

The fund interest in Apax Europe VII was sold at a 2.5% premium to the 31 March 2014 valuation of the fund, adjusted for subsequent cashflows. The sale proceeds for the fund interest were £21.8 million and the Company was released from outstanding commitments of £3.4 million. The fund interest was valued at 30 September 2014 at the sale proceeds received.

In October 2014 the Company acquired a total of 1.245 million ordinary shares through two share buy-back transactions for £2.8 million. The ordinary shares were acquired at an average price of 225.4p and at a discount to the prevailing NAV of 13.6%, resulting in a gain of £0.4 million. The ordinary shares acquired have been cancelled.

At 31 December 2014 the Company had a cash balance, including holdings in money market funds, of £26.5 million and had £39.2 million invested at value (£39.6 million at cost) in UK and European equity index tracker funds. 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.

At 31 December 2014 the Company had outstanding commitments of £217.1 million to 43 private equity fund interests (30 September 2014 - £214.4 million and 43 fund interests). After undertaking a detailed review, the Manager believes that up to £50 million of the Company's existing outstanding commitments are unlikely to be drawn.

Events and transactions in the subsequent period to 28 January 2015

During the period from 1 January to 27 January 2015 the Company received £1.0 million of distributions and funded £1.8 million of draw downs. At 27 January 2015 the Company had a cash balance, including holdings in money market funds, of £35.7 million and had £30.2 million invested at value (£29.1 million at cost) in UK and European equity index tracker funds.

A new commitment of £28.0 million was made to Exponent Private Equity Partners III in January 2015. At 27 January 2015 the Company had outstanding commitments of £238.1 million.

At the Company's annual general meeting held earlier today shareholders approved a final dividend for the year ended 30 September 2014 of 5.0p per ordinary share. The final dividend will be paid on 30 January 2015. The cash cost of the final dividend is £7.9 million.

There are no other material events or transactions to announce.

Monthly NAV announcements and cessation of interim management statements

The Board has decided that this will be the final interim management statement issued by the Company, following the decision by the Financial Conduct Authority to remove the requirement to publish these statements with effect from 7 November 2014. Further to this decision, the Company will introduce monthly announcements of its estimated NAV from 31 January 2015, while continuing to issue quarterly trading statements. The first monthly NAV announcement will be released in mid-February 2015.

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 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.