28 Jan 2014 14:27
Standard Life European Private Equity Trust PLC
Interim management statement for the quarter ended 31 December 2013
Standard Life European Private Equity Trust PLC ("the Company") presents its interim management statement for the period from 1 October 2013 to 31 December 2013. This announcement constitutes the Company's first interim management statement for the year ending 30 September 2014 in accordance with rule 4.3 of the UK Listing Authority's Disclosure Rules and Transparency Rules. This interim statement summarises information as at 31 December 2013 and any material developments up to 28 January 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 audited net asset value per ordinary share ("NAV") was 244.2p at 30 September 2013 (diluted - 243.4p). The Company's NAV at 31 December 2013 will be announced on or around 18 March 2014. The share price of the Company's ordinary shares was 204.0p at 31 December 2013, compared to 198.0p at 30 September 2013, a rise of 3.0% over the quarter. Over the same period the MSCI Europe Index (in euros) and the FTSE All Share Index (in sterling) rose by 5.6% and 4.8% respectively.
Financial position
The quarter ended 31 December 2013 saw an increase in new investment and realisation 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 €23.6 billion (quarter ended 30 September 2013 - €16.9 billion), of which €21.1 billion comprised buy-out transactions (quarter ended 30 September 2013 - €15.4 billion).
Distributions received by the Company during the quarter ended 31 December 2013 were £39.7 million (quarter ended 30 September 2013 - £24.6 million) and the Company funded £9.4 million of draw downs (quarter ended 30 September 2013 - £11.2 million).
In line with the Company's investment strategy, a new commitment of €30.0 million was made to Nordic Capital VIII in October 2013. In addition, the Company acquired through a secondary purchase an original commitment of €20.0 million to 3i Eurofund V in December 2013. The fund interest was acquired at a 2.5% discount to the 30 June 2013 valuation of the fund, adjusted for subsequent cashflows. The unrealised valuation of the fund rose by 5.1% at the most recent valuation date, being 30 September 2013. The purchase price for the fund interest was £8.2 million and the Company assumed outstanding commitments of £0.7 million. The Company already held an existing original commitment of €40 million to 3i Eurofund V.
At 31 December 2013 the Company had outstanding commitments of £192.6 million to 41 private equity fund interests (30 September 2013 - £178.5 million and 40 fund interests).
On 11 December 2013 the Company acquired 350,000 ordinary shares in the Company, through a share buy-back transaction, for a total of £693,000. The ordinary shares were acquired at an average price of 198.0p and at a discount to the prevailing diluted NAV of 18.7%. The ordinary shares acquired have been cancelled.
At 31 December 2013 the Company had a cash balance, including holdings in liquidity funds, of £63.4 million (30 September 2013 - cash balance of £42.3 million). 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.
Events and transactions in the subsequent period to 28 January 2014
During the period from 1 January to 27 January 2014 the Company received £2.0 million of distributions and funded £1.7 million of draw downs. At 27 January 2014 the Company had a cash balance, including holdings in liquidity funds, of £59.8 million and outstanding commitments of £189.4 million.
On 24 January 2014 the Company acquired 1,250,000 ordinary shares in the Company, through a share buy-back transaction, for a total of £2,475,000. The ordinary shares were acquired at an average price of 198.0p and at a discount to the prevailing diluted NAV of 18.7%. The ordinary shares acquired have been cancelled.
On 31 December 2013 the Company applied to the UK Listing Authority and the Stock Exchange for 100,000 ordinary shares to be admitted to the Official List in relation to the conversion of founder A shares. This represented the final conversion of founder A shares and the new ordinary shares were granted admission on 6 January 2014. The Company currently has 163,597,294 ordinary shares in issue.
At the Company's annual general meeting held earlier today shareholders approved a final dividend for the year ended 30 September 2013 of 5.0p per ordinary share. The final dividend will be paid on 30 January 2014. The cash cost of the final dividend is £8.2 million.
There are no other material events or transactions to announce.
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.