24 Mar 2016 14:00
Standard Life European Private Equity Trust PLC
1. Investment update for the quarter from 1 October to 31 December 2015
· NAV increased 3.5% to 291.5p for the quarter ended 31 December 2015
· Realised gains and income were £24.0 million (6.5% of opening portfolio valuation). The unrealised losses on the portfolio on a constant exchange rate basis were £11.1 million (3.0% of opening portfolio valuation); in addition, there were unrealised foreign exchange gains on the portfolio of £1.1 million (0.3% of opening portfolio valuation)
· 100.0% by value of the portfolio was valued by the respective underlying managers at 31 December 2015
· Outstanding commitments were £240.0 million at 31 December 2015
· Cash balance was £40.5 million and £39.3 million was invested in equity index tracker funds at 31 December 2015
For the quarter ended 31 December 2015 the Company's net asset value per ordinary share ("NAV") increased by 3.5% to 291.5p, from 281.6p at 30 September 2015. At 31 December 2015 the Company's net assets were £454.1 million (30 September 2015 - £438.7 million).
In light of the volatile listed financial markets and a weakening global macro-economic environment, the quarter ended 31 December 2015 saw a decrease in new investment activity in the European private equity market. The value of all new private equity transactions in the European private equity market announced during the quarter was €35.8 billion (quarter ended 30 September 2015 - €40.5 billion), of which €29.4 billion comprised buy-out transactions (quarter ended 30 September 2015 - €34.2 billion).
Distributions received by the Company during the quarter ended 31 December 2015 were £45.1 million (quarter ended 30 September 2015 - £34.6 million) and the Company funded £17.0 million of draw downs (quarter ended 30 September 2015 - £12.0 million). The distributions received by the Company generated net realised gains and income of £24.0 million, which was equivalent to a return of 2.1 times the acquisition cost of the realised investments.
The closing value of the Company's portfolio of 47 private equity fund interests was £373.9 million at 31 December 2015 (30 September 2015 - 46 fund interests and £369.0 million). Total net unrealised losses on the portfolio for the quarter were £10.0 million, of which £11.1 million were net unrealised losses on a constant exchange rate basis and £1.1 million were net unrealised foreign exchange gains. During the quarter ended 31 December 2015, sterling was flat against the euro and depreciated by 2.7% against the US dollar.
In line with the Company's investment strategy, the Company acquired through a secondary purchase an original commitment of $60.0 million to TowerBrook Investors III in December 2015. The purchase price for the fund interest was £19.1 million, equivalent to a discount of 6.1% to the most recent valuation at 30 September 2015, adjusted for subsequent cashflows. The Company assumed outstanding commitments of £10.8 million on acquisition. The Company does not have an existing commitment to TowerBrook Investors III, but has existing commitments of $25.0 million and $35.0 million to TowerBrook Investors II and IV respectively.
At 31 December 2015 the Company had a cash balance of £40.5 million and had £39.3 million invested at value (£39.2 million at cost) in UK and European equity index tracker funds. The Company has an undrawn £80 million syndicated revolving credit facility, provided by Citi and Societe Generale, that expires in December 2020.
At 31 December 2015 the Company had total outstanding commitments of £240.0 million to 47 private equity fund interests (30 September 2015 - £245.8 million and 46 fund interests). After undertaking a detailed review, the Manager now believes that up to £55 million of the Company's existing outstanding commitments are unlikely to be drawn (30 September 2015 - £50 million).
2. Events and transactions since 1 January 2016
During the period from 1 January to 23 March 2016 the Company received £29.2 million of distributions and funded £16.0 million of draw downs.
A new commitment of €45.0 million was made to Advent International GPE VIII in February 2016. At 23 March 2016 the Company had total outstanding commitments of £271.4 million.
On 29 January 2016 the Company paid a final dividend for the year ended 30 September 2015 of 3.5p per ordinary share (total for the year of 5.25 pence per share). The cost of the final dividend was £5.5 million.
At 23 March 2016 the Company had a cash balance of £50.1 million and had £39.7 million invested at value (£39.2 million at cost) in UK and European equity index tracker funds.
The Company's estimated NAV at 29 February 2016 is also being announced today. It is anticipated that the Company will release its interim announcement for the six months ending 31 March 2016 on 27 May 2016.
For further information please contact:-
Peter McKellar or Roger Pim at 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 section 1158 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.