17 Mar 2010 07:00
Standard Life European Private Equity Trust PLC
Investment update for the quarter from 1 October 2009 to 31 December 2009
·; NAV increased by 6.5% to 175.6p for the quarter ended 31 December 2009
·; The increase in NAV during the quarter was driven by £24.2 million (8.5% of NAV) of unrealised gains on the portfolio on a constant exchange rate basis; this was offset by unrealised foreign exchange losses of £6.9 million
·; 100% by value of the portfolio was valued by the respective underlying managers at 31 December 2009
·; For the six months ended 31 December 2009 NAV increased by 16.2%
·; Outstanding commitments down to £194.7 million at 31 December 2009, from a peak of £425.9 million at 31 December 2008
·; Net indebtedness of £37.8 million at 31 December 2009
For the quarter ended 31 December 2009 the Company's net asset value per ordinary share ("NAV") rose 6.5% to 175.6p at 31 December 2009, from 164.9p at 30 September 2009. The principal reason for the uplift in NAV was the rise in comparable listed valuation multiples in the second half of 2009, which was reflected in the 31 December 2009 valuations undertaken by the underlying managers of the Company's fund interests. At 31 December 2009 the Company's net assets were £282.8 million (30 September 2009 - £265.6 million).
The closing value of the Company's portfolio of private equity fund interests was £320.8 million at 31 December 2009 (30 September 2009 - £293.1 million). Total net unrealised gains for the quarter were £17.3 million, of which £24.2 million were net unrealised gains on a constant exchange rate basis and £6.9 million were net unrealised foreign exchange losses. During the quarter ended 31 December 2009 sterling appreciated by 2.9% against the euro and 1.0% against the dollar.
Reflecting the quiet European private equity market, a total of £1.7 million was received by way of distributions from the Company's private equity fund interests in the quarter, of which net realised gains and income were £0.1 million. As for new investment activity, during the quarter the Company's portfolio of private equity fund interests drew down a total of £12.0 million.
At 31 December 2009 the Company had aggregate outstanding commitments to its private equity fund interests of £194.7 million (30 September 2009 - £227.8 million). No new fund commitments were made in the period. A significant proportion of the fall in outstanding commitments during the quarter arose from the sale by the Company of €18.6 million of its €31.5 million of existing outstanding commitments to Apax Europe VII. This transaction was reported in detail in the Company's first interim management statement released on 27 January 2010.
At 31 December 2009 the Company had net indebtedness of £37.8 million (30 September 2009 - net indebtedness of £27.3 million). The Company has a £100 million revolving credit term facility.
Since 31 December 2009 there appears to be have been a slight pick up in transaction activity in the European private equity market, most noticeably in terms of realisations. In the period from 1 January 2010 to 15 March 2010 the Company has received £4.9 million of distributions and funded £2.3 million of draw downs.
Taking account of draw downs, distributions, expenses and other movements since 1 January 2010, the Company's total outstanding commitments and net indebtedness were £193.9 million and £35.1 million respectively as at 15 March 2010.
It is anticipated that the Company will release its interim announcement for the six months ending 31 March 2010 on or around 28 May 2010.
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 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.