22 Apr 2021 07:00
Standard Life Private Equity Trust plc
Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13
22 April 2021
1. Investment update for the quarter ended 31 December 2020
· The net asset value ("NAV") per ordinary share of Standard Life Private Equity Trust plc ("the Company") increased by 9.8% to 550.1 pence for the quarter ended 31 December 2020
· Realised gains and income on the portfolio during the quarter ended 31 December 2020 totalled £27.8 million (3.6% of NAV). The unrealised gain on a constant exchange rate basis was £68.1 million (8.8% of NAV). In addition, there were unrealised foreign exchange losses of £11.5 million (1.5% of NAV)
· The third interim dividend for the financial year ended 30 September 2020 of 3.3 pence per share was paid on 30 October 2020
· 100.0% by value of the portfolio was valued by the respective underlying managers at 31 December 2020
· NAV total return was 10.5% for the three months from 1 October 2020 to 31 December 2020
· Outstanding commitments were £440.6 million at 31 December 2020
· Cash and cash equivalents were £50.2 million at 31 December 2020
For the quarter ended 31 December 2020, the Company's NAV increased by 9.8% to 550.1 pence per share from 501.0 pence per share at 30 September 2020. At 31 December 2020, the Company's net assets were £845.8 million (30 September 2020 - £770.3 million). NAV total return was 10.5% for the three months from 1 October 2020 to 31 December 2020. On 30 October 2020, the Company paid the third interim dividend for the year ended 30 September 2020 of 3.3 pence per ordinary share. The cost of the dividend was £5.1 million.
The closing value of the Company's portfolio, which included 68 private equity interests, was £796.0 million at 31 December 2020 (30 September 2020 - £721.7 million and 66 private equity interests). 100.0% by value of the portfolio valuations were dated 31 December 2020.
The total unrealised gain on the portfolio for the quarter ended 31 December 2020 was £56.6 million (7.3%), comprising £68.1 million (8.8%) of unrealised gain on a constant exchange rate basis and £11.5 million (1.5%) of unrealised foreign exchange losses. The capital movement of the FTSE All-Share Index (in sterling) was +11.9% during the quarter. The unrealised foreign exchange losses were driven by the Euro and the US Dollar depreciating by 1.3% and 5.7% respectively relative to sterling over the quarter.
During the quarter ended 31 December 2020, the portfolio generated £45.6 million of distributions (quarter ended 30 September 2020 - £18.5 million). The Company funded £35.7 million of drawdowns (quarter ended 30 September 2020 - £26.1 million) into the portfolio. The portfolio distributions received during the quarter generated £27.8 million (3.6%) of net realised gains and income. This was equivalent to a return of 2.6 times the acquisition cost of the realised investments.
In October 2020, the Company made a new primary commitment of €25.0 million to Triton Smaller Mid-Cap II. In December 2020, a €9.9 million co-investment was made into North American Science Associates, Inc. (NAMSA), a clinical research organisation specialised in providing services to medical device companies. The co-investment was made alongside ArchiMed, NAMSA's lead investor.
The Company had total outstanding commitments to its 68 private equity interests of £440.6 million at 31 December 2020 (30 September 2020 - £471.4 million to 66 private equity interests). The Manager believes that around £48.5 million of the Company's outstanding commitments at 31 December 2020 are unlikely to be drawn.
The Company had cash and cash equivalents of £50.2 million at 31 December 2020 (30 September 2020 - £33.1 million). In addition, the Company has an undrawn £200 million syndicated revolving credit facility, provided by Citi, Societe Generale and State Street Bank International, that expires in December 2024.
2. Activity since 31 December 2020
On 29 January 2021, the Company paid the fourth interim dividend for the year ended 30 September 2020 of 3.3 pence per ordinary share. The cost of the dividend was £5.1 million. In addition, the Company declared the first interim dividend for the year ending 30 September 2021 of 3.4 pence per ordinary share, to be paid on 23 April 2021, to shareholders on the Company's share register as at 19 March 2021.
During the period from 1 January 2021 to 12 April 2021 the Company received £55.1 million of distributions and funded £22.4 million of drawdowns and co-investment funding.
In February 2021, a primary commitment of €25.0 million was made to PAI Mid-Market I. The Company also made a €9.0 million co-investment into Funecap, a vertically integrated funeral services and crematoria provider headquartered in France. The co-investment was made alongside sponsor Latour Capital.
In March 2021, commitments of €25.0 million and €8.5 million were made to IK Small Cap Fund III and Nordic Capital WH1 Beta, L.P. respectively. The Company then acquired through secondary purchase, original commitments of €3.0 million and €8.0 million to Capiton IV and Capiton V respectively in April 2021. The Company assumed outstanding commitments of €0.2 million and €1.2 million on acquisition.
The Company had cash and cash equivalents of £66.8 million at 12 April 2021. In addition, the Company had an undrawn £200 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 £459.4 million. The Manager believes that around £46.6 million of the Company's outstanding commitments are unlikely to be drawn.
3. Update from the Manager
The Manager notes that the impact of COVID-19 on the portfolio continues to evolve and maintains regular communication with the private equity managers of the Company's investments.
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 March 2021 is also being announced today. The Company's estimated NAV at 30 April 2021 is due to be announced on or around 17 May 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 Standard Life Aberdeen plc and Phoenix Group Holdings.