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24 Feb 2009 10:15
Standard Life European Private Equity Trust PLC
Disposal of private equity fund interests
The Company announces that it has disposed of all or part of its fund interests in six private equity funds, as part of the Company's strategy of managing the diversification of its portfolio and the quantum of its outstanding commitments.
The Company has sold:-
€15.0 million of its original commitment to Advent International GPE VI;
€17.5 million of its original commitment to CVC Europe IV;
€25.0 million of its original commitment to CVC Tandem;
€15.0 million of its original commitment to CVC Europe V; and
its entire original commitment of €22.5 million to Montagu III
to a significant European institutional investor in the private equity asset class. The sale has been undertaken for an aggregate consideration of £19.7 million, as compared to the 30 September 2008 valuations of these fund interests, adjusted for subsequent cashflows, of £30.8 million. The fund interests had aggregate outstanding commitments of £42.1 million, from which the Company has now been released.
In addition, the Company has separately sold its entire original commitment of €25.0 million to Duke Street Capital V to another significant European institutional investor. This sale was undertaken for a consideration of £4.8 million, as compared to the 30 September 2008 valuation of this fund interest, adjusted for subsequent cashflows, of £7.3 million. This fund interest had outstanding commitments at the date of sale of £0.9 million, from which the Company has now been released.
The above disposals are in addition to the two disposals and the election in respect of Permira IV announced by the Company on 14 January 2009. In aggregate all of the nine disposals and election have been undertaken for a consideration of £32.0 million, as compared to a 30 September 2008 valuation of these fund interests, adjusted for subsequent cashflows, of £49.1 million and have released the Company from £105.8 million of outstanding commitments.
Taking account of the above disposals and election, drawdowns to date and the 9.9% and 18.3% depreciation of sterling compared to the euro and the US dollar respectively from 30 September 2008, the Company's total outstanding commitments were £308.6 million as at 23 February 2009 (30 September 2008 - total outstanding commitments £389.0 million). As at 23 February 2009 the Company's net indebtedness was £41.2 million; this is before the receipt of £20.8 million of cash proceeds from the above disposals.
The Company remains in discussions regarding the selective disposal of a small number of other private equity fund interests. In light of recent macro-economic and private equity market developments, the intention is to reduce the Company's aggregate outstanding commitments to a level more appropriate with the Manager's revised estimates of the Company's projected draw downs and distributions and its liquid resources. In undertaking the existing and any future sales, the Board and the Manager are sensitive to the need to ensure that the Company optimises, so far as possible, the diversification of its portfolio and has sufficient outstanding commitments to benefit from future investment opportunities.
The Company anticipates announcing its NAV as at 31 December 2008 on or around 24 March 2009.
24 February 2009
For further information please contact:-
Peter McKellar 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 842 of the Income and Corporation Taxes Act 1988. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.
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