27 Sep 2019 14:44
Standard Life Private Equity Trust PLC
1. Investment update for the quarter ended 30 June 2019
·; The net asset value ("NAV") per ordinary share of Standard Life Private Equity Trust PLC ("the Company") increased by 6.1% to 452.8 pence for the quarter ended 30 June 2019.
·; Realised gains and income on the unquoted portfolio during the quarter ended 30 June 2019 totalled £12.6 million (1.9% of NAV). The unrealised gain on a constant exchange rate basis was £10.9 million (1.7% of NAV). In addition, there were unrealised foreign exchange gains of £20.0 million (3.1% of NAV).
·; The first quarter dividend for the financial year ending 30 September 2019 of 3.2 pence per share was paid on 26 April 2019
·; 100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2019
·; NAV total return was 6.8% for the three months from 1 April 2019 to 30 June 2019
·; Outstanding commitments were £450.2 million at 30 June 2019
·; Resources available for investment were £67.9 million at 30 June 2019
For the quarter ended 30 June 2019, the Company's NAV increased by 6.1% to 452.8 pence per share, from 426.7 pence per share at 31 March 2019. At 30 June 2019, the Company's net assets were £696.2 million (31 March 2019 - £656.1 million). NAV total return was 6.8% for the three months from 1 April 2019 to 30 June 2019.
The closing value of the Company's unquoted portfolio, which, included 62 private equity interests, was £628.0 million at 30 June 2019 (31 March 2019 - £571.2 million and 59 private equity interests). The total unrealised gain on the unquoted portfolio for the quarter ended 30 June 2019 was £30.9 million (5.4%), comprising £10.9 million (1.9%) of unrealised gain on a constant exchange rate basis and £20.0 million (3.5%) of unrealised foreign exchange gains. The MSCI Europe Index (in sterling) and the FTSE All Share Index (in sterling) both increased by 5.4% and 2.0% respectively during the quarter. The unrealised foreign exchange gains were driven by the euro and the US Dollar appreciating by 3.7% and 2.3% respectively, relative to sterling over the quarter.
During the quarter ended 30 June 2019, the unquoted portfolio generated £22.4 million of distributions (quarter ended 31 March 2019 - £20.5 million). The Company funded £29.4 million of drawdowns (quarter ended 31 March 2019 - £24.9 million) into the unquoted portfolio. The unquoted portfolio distributions received during the quarter generated £12.6 million (2.2%) of net realised gains and income. This was equivalent to a return of 2.3 times the acquisition cost of the realised investments.
The Company made new primary fund commitments to Cinven 7 (€25.0 million), Advent International Global Private Equity IX (€25.0m) and Great Hill Partners VII ($12.0m). The Company also acquired, through a secondary purchase, an original commitment of €9.0m to 3i Eurofund V. In addition, as part of active portfolio management and to improve the quality of the Company's exposure by vintage year, the Manager agreed the portfolio sale of 3 older vintage commitments at a modest discount (total 31 December 2018 valuation of £5.0m).
The Company had total outstanding commitments to its 62 private equity interests of £450.2 million at 30 June 2019 (31 March 2019 - £419.6 million to 59 private equity interests). The Manager believes that around £85 million of the Company's outstanding commitments at 30 June 2019 are unlikely to be drawn.
At 30 June 2019, the Company had resources available for investment of £67.9 million (31 March 2019 - £84.6 million). The Company continues to have an undrawn £80 million syndicated revolving credit facility provided by Citibank and Societe Generale that expires in December 2020.
2. Activity since 30 June 2019
On 26 July 2019, the Company paid the second quarter dividend for the year ending 30 September 2019 of 3.2 pence per ordinary share. The cost of the final dividend was £4.9 million. In addition, the Company declared a third quarter dividend for the year ending 30 September 2019 of 3.2 pence per ordinary share, to be paid on 25 October 2019, to shareholders on the Company's share register as at 20 September 2019.
During the period from 1 July 2019 to 13 September 2019 the Company received £27.2 million of distributions and funded £11.6 million of drawdowns.
A new primary fund commitment of €25.0m was made to IK IX in July. Two secondary fund commitments were made/acquired: a €21.5m investment in Vitruvian I CF (a concentrated portfolio of five companies) in August; and a €25.0m investment in a portfolio of European buyout interests (including IK VII and IK VIII) in September.
In early September, as part of active portfolio management and to improve its exposure by vintage year, the Company also agreed the future sale of 14 older vintage commitments. The sale price is equivalent to a 5% discount as at the 31 December 2018 valuation (£44.9m), adjusted for subsequent cash flows. These fund interests held outstanding commitments of £23.4m as at 30 June 2019, and the implied sale price of these interests has been reflected in the Company's 30 June 2019 NAV.
At 13 September, the Company had resources available for investment of £78.3 million. The Company also had total outstanding commitments of £465.4 million. The Manager believes that around £60 million of the Company's outstanding commitments are unlikely to be drawn.
The Company's estimated NAV at 31 August 2019 is also being announced today. It is anticipated that the Company will release its results for the year ending 30 September 2019 on or around 11 December 2019.
For further information please contact:-
Merrick McKay at SL Capital Partners LLP (0131 245 2345)
Note:-
Standard Life 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 Private Equity Trust PLC is independent of Standard Life Aberdeen plc and Phoenix Group Holdings.