22 Sep 2010 07:00
Standard Life European Private Equity Trust PLC
Investment update for the quarter from 31 March to 30 June 2010
·; NAV increased by 0.5% to 183.6p for the quarter ended 30 June 2010
·; The portfolio rose by £18.4 million (6.2% of NAV) on a constant exchange rate basis; this was offset by unrealised foreign exchange losses on the portfolio of £20.8 million (7.0% of NAV). Realised gains, income and other movements were £4.0 million (1.3% of NAV)
·; 100% by value of the portfolio was valued by the respective underlying managers at 30 June 2010
·; Outstanding commitments were down to £167.0 million at 30 June 2010 from £187.2 million at 31 March 2010
·; Net indebtedness was £36.3 million at 30 June 2010
For the quarter ended 30 June 2010 the Company's net asset value per ordinary share ("NAV") rose by 0.5% to 183.6p (diluted - 181.7p), from 182.6p (diluted - 180.7p) at 31 March 2010. At 30 June 2010 the Company's net assets were £295.9 million (31 March 2010 - £294.4 million).
The European private equity market grew in Q2 2010, with the enterprise value of transactions reported rising during the quarter to €13.9 billion, up from €11.4 billion in Q1 2010 and €4.6 billion in Q2 2009. The increase in activity was most pronounced in the €100 million - €1.0 billion mid-market segment of the European buy-out market. The overall increase in market activity appears to have continued into Q3 2010.
The closing value of the Company's portfolio of 40 private equity fund interests was £322.3 million at 30 June 2010 (31 March 2010 - £328.7 million). Total net unrealised losses for the quarter ended 30 June 2010 were £2.4 million, of which £18.4 million were net unrealised gains on a constant exchange rate basis and £20.8 million were net unrealised foreign exchange losses. The uplift in the portfolio on a constant exchange rate basis reflected strong earnings growth at many underlying investee companies. During the quarter, however, sterling appreciated by 9.0% against the euro and depreciated 1.4% against the US dollar, creating the net unrealised foreign exchange losses.
The Company funded £7.6 million of draw downs (six months ended 31 March 2010 - £17.5 million) and received £3.9 million of distributions (six months ended 31 March 2010 - £10.4 million) during the quarter. The distributions received comprised £2.2 million of realised gains and income.
The Company made no new private equity fund commitments during the quarter. The Company had total outstanding commitments to its 40 private equity fund interests of £167.0 million at 30 June 2010 (31 March 2010 - £187.2 million). The principal reasons for the fall in outstanding commitments during the quarter were the funding of the above draw downs and the 9.0% appreciation in sterling relative to the euro.
At 30 June 2010 the Company had net indebtedness of £36.3 million (31 March 2010 - net indebtedness of £34.2 million).
During the period from 30 June 2010 to 20 September 2010 the Company funded £17.7 million of draw downs and received £4.9 million of distributions. The draw downs arose principally from a number of larger transactions completed in the period. At 20 September 2010 the Company's total outstanding commitments and net indebtedness were £151.8 million and £51.1 million respectively.
It is anticipated that the Company will release its preliminary announcement for the year ending 30 September 2010 on or around 6 December 2010.
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.