Princess Private Equity Holding Ltd on Monday reported a net asset value decline over 2023, as lofty interest rates and macroeconomic uncertainty hit private equity transaction volumes.

The Partners Group Holding AG-managed investor in private companies said the net asset value per share at its December 31 year-end declined by 3.1% to €14.16 from €14.62.

Princess has increased its total dividend to €0.73 from €0.38 last year.

Chair Peter McKellar said: ‘Monetary policies aimed at curbing inflation, geopolitical uncertainties and the uncertainty around an economic slowdown have hindered global private equity transaction volumes over the last two years.’

Looking ahead, the fund believes that any significant improvement in lending markets and improvements in the macroeconomic environment could pave the way for increased fund performance in 2024.

Shares in Princess were largely flat at €10.80 each in London on Monday.

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