21 Sep 2011 07:00
Standard Life European Private Equity Trust PLC
Investment update for the quarter ended 30 June 2011
·; NAV increased by 8.8% to 242.5p for the quarter ended 30 June 2011
·; NAV increased by 24.2% for the first nine months of the current financial year starting 1 October 2010
·; During the quarter the portfolio rose in value by £17.0 million (4.7% of NAV) on a constant exchange rate basis; in addition, unrealised foreign exchange gains on the portfolio were £6.5 million (1.8% of NAV). Realised gains and income were £10.6 million (2.9% of NAV)
·; 100% by value of the portfolio was valued by the respective underlying managers at 30 June 2011
·; Outstanding commitments were £144.5 million at 30 June 2011
·; Net indebtedness was £45.1 million at 30 June 2011
For the quarter ended 30 June 2011 the Company's net asset value per ordinary share ("NAV") rose by 8.8% to 242.5p (diluted - 239.4p), from 222.9p (diluted - 220.3p) at 31 March 2011. At 30 June 2011 the Company's net assets were £391.7 million (31 March 2011 - £360.1 million).
The European private equity market grew in Q2 2011, with the enterprise value of all transactions reported during the quarter rising to €27.3 billion, up from €13.8 billion in Q1 2011 and €14.3 billion in the equivalent Q2 in 2010. Activity was most pronounced in the mid and large market segments of the European buy-out market.
The closing value of the Company's portfolio of 38 private equity fund interests was £436.3 million at 30 June 2011 (31 March 2011 - £410.9 million). Total net unrealised gains for the quarter ended 30 June 2011 were £23.5 million, of which £17.0 million comprised unrealised gains on a constant exchange rate basis and £6.5 million were unrealised foreign exchange gains. The uplift in the portfolio on a constant exchange rate basis continued to reflect strong earnings growth at many underlying investee companies, against a background of broadly flat listed equity markets over the quarter.
The Company funded £7.4 million of draw downs (six months ended 31 March 2011 - £29.0 million) and received £16.1 million of distributions (six months ended 31 March 2011 - £36.9 million) during the quarter. The distributions received generated £10.6 million of realised gains and income, which is equivalent to a return of 2.9 times the acquisition cost of the realised investments.
The Company made one new private equity fund commitment during the quarter, committing €30.0 million to Montagu IV. The Company had total outstanding commitments to its private equity fund interests of £144.5 million at 30 June 2011 (31 March 2011 - £123.0 million).
At 30 June 2011 the Company had net indebtedness of £45.1 million (31 March 2011 - net indebtedness of £51.4 million).
During the period from 30 June 2011 to 20 September 2011 the Company funded £10.3 million of draw downs and received £21.4 million of distributions. At 20 September 2011 the Company's total outstanding commitments and net indebtedness were £130.3 million and £33.8 million respectively. No new fund commitments were made in the period from 30 June 2011 to 20 September 2011.
It is anticipated that the Company will release its preliminary announcement for the financial year ending 30 September 2011 on or around 5 December 2011. In preparing the valuation of the Company's private equity fund interests at 30 September 2011, the Board is mindful of the movement and volatility in listed financial markets since 30 June 2011 and the need to review in detail the valuations received from underlying managers.
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 section 1158-1165 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.