16 Sep 2015 07:00
Standard Life European Private Equity Trust PLC
1. Investment update for the quarter ended 30 June 2015
· NAV rose by 1.6% to 273.0p for the quarter ended 30 June 2015
· Realised gains and income during the quarter ended 30 June 2015 were £13.0 million (3.1% of NAV). The unrealised gains on the portfolio on a constant exchange rate basis were £5.9 million (1.4% of NAV); in addition, there were unrealised foreign exchange losses of £9.3 million (2.2% of NAV)
· 100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2015
· NAV total return was 7.8% for the nine months from 1 October 2014 to 30 June 2015. This was after including unrealised foreign exchange losses of £31.5 million (7.7% of NAV)
· Outstanding commitments were £249.7 million at 30 June 2015
· Liquid resources were £53.6 million at 30 June 2015
For the quarter ended 30 June 2015 the Company's net asset value per ordinary share ("NAV") rose by 1.6% to 273.0p, from 268.6p at 31 March 2015. At 30 June 2015 the Company's net assets were £427.3 million (31 March 2015 - £422.5 million). NAV total return was 7.8% for the nine months from 1 October 2014 to 30 June 2015.
The volume of new buy-out transactions rose modestly in the European private equity market in the second quarter of 2015, while the enterprise value of buy-outs announced increased materially to €40.8 billion, from €16.7 billion in the first quarter of 2015. The material uplift reflected growth in mid-market and particularly large/mega buy-out transactions. The second quarter also witnessed strong 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 47 private equity fund interests was £373.8 million at 30 June 2015 (31 March 2015 - £375.1 million). The total unrealised losses on the portfolio for the quarter ended 30 June 2015 were £3.4 million, comprising £5.9 million of unrealised gains on a constant exchange rate basis and £9.3 million of unrealised foreign exchange losses. The £5.9 million of gains in the value of the portfolio on a constant exchange rate basis reflected positive earnings growth at many underlying portfolio companies, partially offset by a fall in listed equity markets. The MSCI Europe Index (in euros) and the FTSE All Share Index (in sterling) fell by 4.5% and 2.5% respectively during the quarter. The unrealised foreign exchange losses were driven by the euro and the US dollar depreciating by 2.1% and 5.9% respectively relative to sterling over the quarter.
During the quarter ended 30 June 2015 the Company funded £13.4 million of draw downs (six months ended 31 March 2015 - £37.8 million) and received £24.2 million of distributions (six months ended 31 March 2015 - £47.9 million). The distributions received during the quarter generated £13.0 million of realised gains and income, which was equivalent to a return of 2.2 times the acquisition cost of the realised investments. Total draw downs and distributions for the nine months ended 30 June 2015 were £51.2 million and £72.1 million, respectively.
The Company made one new fund commitment in the quarter, with a commitment of €30.0 million to Equistone Partners Europe Fund V. The Company had total outstanding commitments to its 47 private equity fund interests of £249.7 million at 30 June 2015 (31 March 2015 - £247.4 million). The Manager continues to believe that up to £50 million of the Company's existing outstanding commitments are unlikely to be drawn.
At 30 June 2015 the Company had liquid resources of £53.6 million, comprising a cash balance of £23.1 million and £30.5 million invested at value (£29.5 million at cost) in UK and European equity index tracker funds (31 March 2015 - liquid resources of £47.6 million). 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 2015
On 10 July 2015 the Company paid an interim dividend for the year ended 30 September 2015 of 1.75p per ordinary share.
During the period from 1 July to 15 September 2015 the Company funded £6.7 million of draw downs and received £32.3 million of distributions.
At 15 September 2015 the Company had liquid resources of £73.7 million, comprising a cash balance of £35.8 million and £37.9 million invested at value (£38.5 million at cost) in UK and European equity index tracker funds. The Company also had total outstanding commitments of £249.9 million.
It is anticipated that the Company will release its preliminary announcement for the financial year ending 30 September 2015 on or around 7 December 2015.
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 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.