20 Mar 2013 07:00
Standard Life European Private Equity Trust PLC
1. Investment update for the quarter from 1 October to 31 December 2012
·; NAV increased 1.3% to 230.5p for the quarter ended 31 December 2012
·; Net realised gains/income and unrealised gains on a constant exchange rate basis rose 0.3%, while there was an unrealised foreign exchange gain of 1.4%
·; 100% by value of the portfolio was valued by the respective underlying managers at 31 December 2012
·; Outstanding commitments were £154.7 million at 31 December 2012
·; Net cash balance was £3.1 million at 31 December 2012
For the quarter ended 31 December 2012 the Company's net asset value per ordinary share ("NAV") increased by 1.3% to 230.5p (diluted NAV - 227.7p), from 227.6p at 30 September 2012 (diluted NAV - 224.9p). At 31 December 2012 the Company's net assets were £374.0 million (30 September 2012 - £369.7 million).
The quarter ended 31 December 2012 saw an increase in new investment and realisation activity in the European private equity market, notably for transactions with an enterprise value over €1 billion. The value of all new private equity transactions in the European private equity market announced during the quarter was €24.6 billion (quarter ended 30 September 2012 - €13.5 billion), of which €22.8 billion comprised buy-out transactions (quarter ended 30 September 2012 - €12.3 billion).
Distributions received by the Company during the quarter ended 31 December 2012 were £17.3 million (quarter ended 30 September 2012 - £32.0 million) and the Company funded £15.4 million of draw downs (quarter ended 30 September 2012 - £15.9 million). The distributions received by the Company generated net realised gains and income of £9.3 million. In addition, the Company incurred a book loss of £6.5 million on the commencement of the liquidation process for two older funds, Alchemy Investment Plan and the Candover 1997 Fund, where all of the underlying investments have been realised. Importantly, the book loss had previously been provided for in the Company's valuation of the respective fund interests.
The closing value of the Company's portfolio of 39 private equity fund interests was £370.4 million at 31 December 2012 (30 September 2012 - 37 fund interests and £365.9 million). Total net unrealised gains on the portfolio for the quarter were £3.6 million, of which £1.6 million were net unrealised losses on a constant exchange rate basis and £5.2 million were net unrealised foreign exchange gains. During the quarter ended 31 December 2012 sterling depreciated by 1.8% against the euro and appreciated by 0.7% against the US dollar.
In line with the Company's investment strategy, a new commitment of €20.0 million was made to Advent Global Private Equity VII in November 2012 and one of €30.0 million was made to IK VII in December 2012. The Company has invested in prior funds of each of the respective managers. At 31 December 2012 the Company had aggregate outstanding commitments of £154.7 million (30 September 2012 - £129.0 million).
At 31 December 2012 the Company had a net cash balance of £3.1 million (30 September 2012 - net cash balance of £3.5 million).
On 31 December 2012 the Company announced that it had entered into a new £80 million revolving credit facility, led by The Royal Bank of Scotland plc, replacing the Company's existing debt facility. The new debt facility expires on 31 December 2016.
2. Events and transactions since 1 January 2013
During January 2013 the Company completed the purchase of an original commitment of €7.0 million to Charterhouse Capital Partners IX, a fund the Company was not able to commit to when it was raised in 2009. The fund interest was acquired at a 5% discount to the 30 June 2012 valuation of the fund, adjusted for subsequent cashflows. The purchase price for the interest was £2.8 million and the Company assumed £2.8 million of outstanding commitments.
As part of a portfolio rebalancing exercise, and given the significant exposure to the fund and its underlying investments, the Company also completed the sale of 50% of its original commitment to Charterhouse VIII in February 2013. The fund interest was sold at an 11% discount to the 30 September 2012 valuation of the fund, adjusted for subsequent cashflows. The sale price for the interest was £16.3 million and the Company was released from £3.5 million of outstanding commitments. Adjusting the NAV at 31 December 2012 disclosed in section 1 above for the disposal of the interest in Charterhouse VIII would have reduced the NAV by 1.2p, or 0.5%.
Excluding the above secondary transactions, during the period from 1 January to 18 March 2013 the Company received £4.5 million of distributions and funded £2.3 million of draw downs. At 18 March 2013 the Company had a net cash balance of £16.0 million.
Finally, the Company made a new commitment of $35 million to TowerBrook Investors IV in February 2013. Again the Company has invested in prior funds of the manager. Accordingly, at 18 March 2013 the Company had aggregate outstanding commitments of £182.9 million.
It is anticipated that the Company will release its interim announcement for the six months ending 31 March 2013 on or around 30 May 2013.
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 1148 - 1165 of the Corporation Taxes Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.