23 Sep 2014 07:00
Standard Life European Private Equity Trust PLC
1. Investment update for the quarter ended 30 June 2014
· NAV rose by 3.4% to 260.9p for the quarter ended 30 June 2014
· NAV total return was up 9.1% for the nine months from 1 October 2013
· Realised gains and income during the quarter ended 30 June 2014 were £5.3 million (1.3% of NAV). The unrealised gains on the portfolio on a constant exchange rate basis were £21.8 million (5.4% of NAV); in addition, there were unrealised foreign exchange losses of £11.2 million (2.8% of NAV)
· 100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2014
· Outstanding commitments were £191.1 million at 30 June 2014
· Cash balance was £18.1 million and £22.0 million was invested in equity index tracker funds at 30 June 2014
For the quarter ended 30 June 2014 the Company's net asset value per ordinary share ("NAV") rose by 3.4% to 260.9p, from 252.2p at 31 March 2014. At 30 June 2014 the Company's net assets were £415.1 million (31 March 2014 - £401.2 million).
The volume of new buy-out transactions rose modestly in the European private equity market in the second quarter of 2014, while the enterprise value of buy-outs announced increased to €21.1 billion, from €14.0 billion in the first quarter of 2014. The second quarter also witnessed increasing mergers and acquisitions activity in Europe and a continuing flow of exits from private equity controlled investments.
The closing value of the Company's portfolio of 42 private equity fund interests was £374.5 million at 30 June 2014 (31 March 2014 - £356.4 million). The total unrealised gains on the portfolio for the quarter ended 30 June 2014 were £10.6 million, of which £21.8 million were unrealised gains on a constant exchange rate basis and £11.2 million were unrealised foreign exchange losses. The £21.8 million of gains in the value of the portfolio on a constant exchange rate basis reflected positive earnings growth at many underlying portfolio companies and a small rise in listed equity markets. The MSCI Europe Index (in euros) and the FTSE All Share Index (in sterling) rose by 2.6% and 1.3% respectively during the quarter. The unrealised foreign exchange losses were driven by the euro and, to a lesser extent, the US dollar depreciating by 3.2% and 2.6% respectively relative to sterling over the quarter.
During the quarter ended 30 June 2014 the Company funded £15.3 million of draw downs (six months ended 31 March 2014 - £15.9 million) and received £13.0 million of distributions (six months ended 31 March 2014 - £49.3 million). Draw down activity increased during the quarter as a result of new investment activity by a number of recent fund commitments, notably Permira V where draw downs totalled £5.2 million. While it was a quieter quarter for distributions, the Manager was aware of a number of exits where the Company was awaiting cash proceeds. The Company has received significant distributions subsequent to the period end. The distributions received during the quarter generated £5.3 million of realised gains and income, which was equivalent to a return of 1.7 times the acquisition cost of the realised investments. Total draw downs and distributions for the nine months ended 30 June 2014 were £31.2 million and £62.3 million, respectively.
The Company made no new fund commitments in the quarter ended 30 June 2014. The Company had total outstanding commitments to its 42 private equity fund interests of £191.1 million at 30 June 2014 (31 March 2014 - £213.5 million). The Manager now believes that up to £45 million of the Company's existing outstanding commitments are unlikely to be drawn.
At 30 June 2014 the Company had a cash balance, including holdings in money market funds,
of £18.1 million and had £22.0 million (£21.1 million at cost) invested in UK and European equity index tracker funds (31 March 2014 - £22.7 million and £21.9 million, respectively). 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.
2. Activity since 30 June 2014
During the period from 1 July to 22 September 2014 the Company funded £13.3 million of draw downs and received £33.6 million of distributions. The Company also made a new commitment of €55.0 million to Altor IV, a Nordic mid-market buy-out fund, in July 2014.
At 22 September 2014 the Company had a cash balance, including holdings in money market funds, of £28.7 million and had £31.2 million (£30.1 million at cost) invested in UK and European equity index tracker funds. The Company also had total outstanding commitments of £219.5 million.
It is anticipated that the Company will release its preliminary announcement for the financial year ending 30 September 2014 on or around 8 December 2014.
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 sections 1158-1165 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.