29 Sep 2021 07:00
Standard Life Private Equity Trust plc
Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13
1. Investment update for the quarter ended 30 June 2021
· The net asset value ("NAV") per ordinary share of Standard Life Private Equity Trust plc ("the Company") increased by 10.9% to 630.6 pence for the quarter ended 30 June 2021
· Realised gains and income from portfolio distributions during the quarter ended 30 June 2021 totalled £31.3 million (3.6% of NAV). The unrealised gain on a constant exchange rate basis from ongoing operations was £66.7 million (7.6% of NAV). In addition, there were unrealised foreign exchange gains of £5.5 million (0.6% of NAV)
· The first interim dividend for the financial year ending 30 September 2021 of 3.4 pence per share was paid on 23 April 2021
· 100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2021
· NAV total return was 11.7% for the three months from 1 April 2021 to 30 June 2021
· Outstanding commitments were £517.1 million at 30 June 2021
· Cash and cash equivalents were £70.1 million at 30 June 2021
For the quarter ended 30 June 2021, the Company's NAV increased by 10.9% to 630.6 pence per share from 568.4 pence per share at 31 March 2021. At 30 June 2021, the Company's net assets were £969.5 million (31 March 2021 - £873.9 million). NAV total return was 11.7% for the three months from 1 April 2021 to 30 June 2021. On 23 April 2021, the Company paid the first interim dividend for the year ending 30 September 2021 of 3.4 pence per ordinary share. The cost of the dividend was £5.2 million.
The closing value of the Company's portfolio, which included 76 private equity interests, was £899.2 million at 30 June 2021 (31 March 2021 - £804.9 million and 72 private equity interests). 100.0% by value of the portfolio valuations were dated 30 June 2021.
The total unrealised gain on the portfolio for the quarter ended 30 June 2021 was £72.2 million (8.2%), comprising £66.7 million (7.6%) of unrealised gain on a constant exchange rate basis and £5.5 million (0.6%) of unrealised foreign exchange gains. The capital movement of the FTSE All-Share Index (in sterling) was an increase of 5.5% during the quarter. The unrealised foreign exchange gains were driven by an appreciation of the Euro by 0.8%, partially offset by the US Dollar depreciating by 0.1% relative to sterling over the quarter.
During the quarter ended 30 June 2021, the portfolio generated £45.4 million of distributions (quarter ended 31 March 2021 - £47.5 million). The Company funded £30.2 million of drawdowns (quarter ended 31 March 2021 - £18.5 million) and paid £7.2 million for secondary purchases (quarter ended 31 March 2021 - £nil) into the portfolio. The portfolio distributions received during the quarter generated £31.3 million (3.6%) of net realised gains and income. This was equivalent to a return of 3.2 times the acquisition cost of the realised investments. Separately to the above, the Company received in July £1.1 million of proceeds following the disposal of investment interests through secondary sale during the quarter.
In April 2021, the Company acquired through secondary purchase, original commitments of €3.0 million and €8.0 million to Capiton IV and Capiton V respectively. The Company assumed outstanding commitments of €0.2 million and €1.2 million on acquisition.
In June 2021, new primary commitments were made to Permira Growth Opportunities II ($35.0 million), Excellere Capital Fund IV ($35.0 million) and Nordic Capital Evolution Fund (€30.0 million) in June. The Company also made a €4.9 million co-investment into KD Pharma, a specialised manufacturer of highly purified Omega-3 fatty acids used as ingredients in the pharmaceuticals and nutraceuticals industries. The co-investment was made alongside sponsor capiton AG.
In that same month, the Company sold interests in Equistone Partners Europe Fund III and Terra Firma Capital Partners III for a combined consideration of €1.3 million. The sales price is equivalent to a 7.0% discount of the 30 September 2020 reference date valuation, adjusted for subsequent cash flows. These fund interests had outstanding commitments of €1.6 million and €0.1 million respectively prior to the date of sale.
The Company had £517.1 million of outstanding commitments at 30 June 2021. The Manager believes that around £49.1 million of the Company's existing outstanding commitments at that date were unlikely to be drawn.
The Company had cash and cash equivalents of £70.1 million at 30 June 2021 (31 March 2021 - £62.5 million). In addition, the Company has an undrawn £200.0 million syndicated revolving credit facility, provided by Citi, Societe Generale and State Street Bank International, that expires in December 2024.
2. Activity since 30 June 2021
On 30 July 2021, the Company paid the second interim dividend for the year ending 30 September 2021 of 3.4 pence per ordinary share. The cost of the dividend was £5.2 million. In addition, the Company declared the third interim dividend for the year ending 30 September 2021 of 3.4 pence per ordinary share, to be paid on 29 October 2021, to shareholders on the Company's share register as at 24 September 2021.
During the period from 1 July 2021 to 15 September 2021 the Company received £44.1 million of distributions and funded £38.0 million of drawdowns and co-investment funding.
New primary commitments were made to Advent Global Technology II ($31.5 million) and ArchiMed MED III (€15.0 million) during the month of July. The Company also at that time made commitments to three co-investments, being Wundex (€10.0 million), Questel (€10.0 million) and a currently undisclosed consumer health business (€10.0 million). Wundex is a leading German wound care management business which was made alongside sponsor capiton AG. Questel is a leading global player in the IP software and services market which was made alongside sponsor IK Investment Partners. Finally, the consumer health business was made alongside sponsor ArchiMed SaS.
In August, the Company made a €10.5 million commitment to Eurazeo Payment Luxembourg Fund SCSp, a single asset vehicle that will invest into Planet, a global integrated payments provider. A $10.0 million co-investment has also made into Insightsoftware, a leading "office of the CFO" software provider. The co-investment was made alongside sponsor Hg.
In September, the Company made a $62.5 million commitment to Structured Solutions IV Primary Holdings, a diversified secondary transaction which comprises a balanced portfolio of recent vintage large cap buyout funds in Europe and North America. A €7.9 million co-investment has also made into Riskalyze, a US sector leader in risk tolerance software for financial advisors. The co-investment was made alongside sponsor Hg.
The Company had cash and cash equivalents of £65.8 million at 15 September 2021. In addition, the Company had an undrawn £200.0 million syndicated revolving credit facility, provided by Citi, Societe Generale and State Street Bank International, that expires in December 2024. The Company also had total outstanding commitments of £603.2 million. The Manager believes that around £50.2 million of the Company's outstanding commitments are unlikely to be drawn.
3. Update from the Manager
The latest update from the Manager is available within the Latest News section of the Company website; www.slpet.co.uk.
4. Future Announcements
The Company's estimated NAV at 31 August 2021 is also being announced today. The Company's estimated NAV at 30 September 2021 is due to be announced on or around 14 October 2021.
For further information please contact:-
Alan Gauld at SL Capital Partners LLP (0131 528 4424)
Note:-
Standard Life 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 sections 1158-1165 of the Corporation Tax Act 2010. The Board of Standard Life Private Equity Trust plc is independent of abrdn plc and Phoenix Group Holdings.