8 Mar 2018 11:00
Standard Life Private Equity Trust plc: New research
08/03/2018
Standard Life Private Equity Trust is a 'pure' private equity play (with no co-investments) and the only one of its kind without a performance fee...
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Highlights:
· A "pure" fund of funds (with no co-investments) representing SL Capital's highest conviction private equity manager selections in Europe and increasingly in North America, and is the only such trust with no performance fee
· Standard Life Private Equity Trust plc (SLPE) has a more concentrated portfolio relative to Pantheon or HarbourVest's very diversified funds, although in our view, slightly less concentrated when compared to a fund of funds (FoF) such as ICG Enterprise and F&C Private Equity
· The company expects the exposure to North America to gradually increase, and will continue to target secondary investments to take advantage of attractive investment opportunities and help reduce cash drag. SLPE currently has c.15% of NAV in cash, and on a commitment-cover basis registers at 0.6x, (according to JPMorgan Cazenove) which is very much in-line with the FoF peers
· strong performance over recent years and the "enhanced" dividend, (paid from a combination of income and capital) which currently yields 3.6%, has helped narrow the discount to 11%, slightly narrower than the peer group
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