19 Mar 2014 07:00
Standard Life European Private Equity Trust PLC
1. Investment update for the quarter from 1 October to 31 December 2013
· NAV increased 3.4% to 251.7p for the quarter ended 31 December 2013
· Realised gains and income were £19.3 million (5.4% of opening portfolio valuation). The unrealised losses on the portfolio on a constant exchange rate basis were £1.8 million (0.5% of opening portfolio valuation); in addition, there were unrealised foreign exchange losses on the portfolio of £2.4 million (0.7% of opening portfolio valuation)
· 99.5% by value of the portfolio was valued by the respective underlying managers at 31 December 2013
· Outstanding commitments were £192.5 million at 31 December 2013
· Cash balance was £63.2 million at 31 December 2013
For the quarter ended 31 December 2013 the Company's net asset value per ordinary share ("NAV") increased by 3.4% to 251.7p, from 243.4p at 30 September 2013 (undiluted NAV - 244.2p). On 31 December 2013 the final tranche of outstanding founder A shares were converted into ordinary shares in the Company. At 31 December 2013 the Company's net assets were £414.7 million (30 September 2013 - £401.2 million).
The quarter ended 31 December 2013 saw an increase in new investment and realisation 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 €23.6 billion (quarter ended 30 September 2013 - €16.9 billion), of which €21.1 billion comprised buy-out transactions (quarter ended 30 September 2013 - €15.4 billion).
Distributions received by the Company during the quarter ended 31 December 2013 were £39.7 million (quarter ended 30 September 2013 - £24.6 million) and the Company funded £9.4 million of draw downs (quarter ended 30 September 2013 - £11.2 million). The distributions received by the Company generated net realised gains and income of £19.3 million, which was equivalent to a return of 1.9 times the acquisition cost of the realised investments.
The closing value of the Company's portfolio of 41 private equity fund interests was £351.5 million at 31 December 2013 (30 September 2013 - 40 fund interests and £358.5 million). Total net unrealised losses on the portfolio for the quarter were £4.2 million, of which £1.8 million were net unrealised losses on a constant exchange rate basis and £2.4 million were net unrealised foreign exchange losses. During the quarter ended 31 December 2013 sterling appreciated by 0.5% against the euro and by 2.3% against the US dollar.
In line with the Company's investment strategy, a new commitment of €30.0 million was made to Nordic Capital VIII in October 2013. In addition, the Company acquired through a secondary purchase an original commitment of €20.0 million to 3i Eurofund V in December 2013. The fund interest was acquired at a 2.5% discount to the 30 June 2013 valuation of the fund, adjusted for subsequent cashflows. The purchase price for the fund interest was £8.2 million and the Company assumed outstanding commitments of £0.7 million. The Company already held an existing original commitment of €40.0 million to 3i Eurofund V.
On 11 December 2013 the Company acquired 350,000 ordinary shares in the Company, through a share buy-back transaction, for £0.69 million. The ordinary shares were acquired at an average price of 198.0p and at a discount to the prevailing diluted NAV of 18.7%. The ordinary shares acquired have been cancelled.
At 31 December 2013 the Company had aggregate outstanding commitments of £192.5 million (30 September 2013 - £178.5 million).
At 31 December 2013 the Company had a cash balance, including holdings in liquidity funds, of £63.2 million (30 September 2013 - cash balance of £42.3 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. Events and transactions since 1 January 2014
During the period from 1 January to 17 March 2014 the Company received £6.6 million of distributions and funded £5.0 million of draw downs.
During March the Company made a new commitment of €30.0 million to Permira V. In addition, the Company has agreed to acquire through a secondary purchase an original commitment of €6.0 million to IK VII. The fund interest will be acquired at 100% of the 30 September 2013 valuation of the fund, adjusted for subsequent cashflows. The purchase price for the fund interest will be £1.0 million and the Company will assume outstanding commitments of £3.9 million. The Company already holds an existing original commitment of €30.0 million to IK VII.
Over the dates of 24 January, 29 January and 3 February 2014 the Company acquired a total of 4.75 million ordinary shares in the Company, through share buy-back transactions, for £9.39 million. The ordinary shares were acquired at an average price of 197.6p and at an average discount to the prevailing diluted NAV of 18.9%. The ordinary shares acquired have been cancelled.
On 30 January 2014 the Company paid a final dividend for the year ended 30 September 2013 of 5.0p per ordinary share. The cost of the final dividend was £8.2 million.
At 17 March 2014 the Company had a cash balance, including holdings in liquidity funds, of £24.6 million and had £21.2 million invested in UK and European equity index tracker funds. At 17 March 2014 the Company had outstanding commitments of £213.3 million.
It is anticipated that the Company will release its interim announcement for the six months ending 31 March 2014 on or around 30 May 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 section 1158 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.