Standard Life European Private Equity Trust PLC
1. Investment update for the quarter ended 30 June 2016
· NAV rose by 6.2% to 329.3p for the quarter ended 30 June 2016
· Realised gains and income during the quarter ended 30 June 2016 were £13.6 million (2.7% of NAV). The unrealised losses on the portfolio on a constant exchange rate basis were £3.6 million (0.7% of NAV); in addition, there were unrealised foreign exchange gains of £18.8 million (3.7% of NAV)
· 100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2016
· NAV total return was 18.2% for the nine months from 1 October 2015 to 30 June 2016. This was after including unrealised foreign exchange gains of £42.8 million (8.4% of NAV)
· Outstanding commitments were £314.3 million at 30 June 2016
· Liquid resources were £109.5 million at 30 June 2016
For the quarter ended 30 June 2016 the Company's net asset value per ordinary share ("NAV") rose by 6.2% to 329.3p, from 310.2p at 31 March 2016. At 30 June 2016 the Company's net assets were £509.7 million (31 March 2016 - £480.2 million). NAV total return was 18.2% for the nine months from 1 October 2015 to 30 June 2016.
The volume of new buy-out transactions rose modestly in the European private equity market in the second quarter of 2016, while the enterprise value of buy-outs announced increased materially to €27.3 billion, from €15.2 billion in the first quarter of 2016. The material uplift reflected growth in mid-market and particularly large/mega buy-out transactions. The second quarter also witnessed strong mergers and acquisitions activity in Europe and a continuing flow of exits from private equity controlled investments.
The closing value of the Company's portfolio of 49 private equity fund interests was £403.7 million at 30 June 2016 (31 March 2016 - £390.6 million). The total unrealised gains on the portfolio for the quarter ended 30 June 2016 were £15.2 million, comprising £3.6 million of unrealised losses on a constant exchange rate basis and £18.8 million of unrealised foreign exchange gains. The MSCI Europe Index (in euros) and the FTSE All Share Index (in sterling) fell by 1.8% and rose 3.5% respectively during the quarter. The unrealised foreign exchange gains were driven by the euro and the US dollar appreciating by 4.6% and 7.0% respectively relative to sterling over the quarter.
During the quarter ended 30 June 2016 the Company funded £12.3 million of draw downs (six months ended 31 March 2016 - £34.4 million) and received £28.0 million of distributions (six months ended 31 March 2016 - £80.4 million). The distributions received during the quarter generated £13.6 million of realised gains and income, which was equivalent to a return of 2.2 times the acquisition cost of the realised investments. Total draw downs and distributions for the nine months ended 30 June 2016 were £46.7 million and £108.4 million, respectively.
The Company made two new fund commitments in the quarter, with a commitment of €28.1 million to Sixth Cinven Fund and €23.0 million to Astorg VI. The Company had total outstanding commitments to its 49 private equity fund interests of £314.3 million at 30 June 2016 (31 March 2016 - £271.5 million). The Manager continues to believe that around £55 million of the Company's existing outstanding commitments are unlikely to be drawn.
At 30 June 2016 the Company had liquid resources of £109.5 million, comprising a cash balance of £69.0 million and £40.5 million invested at value (£39.4 million at cost) in UK and European equity index tracker funds (31 March 2016 - liquid resources of £94.0 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 2016
On 15 July 2016 the Company paid an interim dividend for the year ended 30 September 2016 of 1.80p per ordinary share.
During the period from 1 July to 27 September 2016 the Company funded £17.1 million of draw downs and received £17.6 million of distributions.
On 8 July the index tracker funds, having generated income of £1.7 million, were sold generating an overall realised gain of £2.3 million. At 27 September 2016 the Company had cash and money market balances of £106.6 million. The Company also had total outstanding commitments of £307.7 million.
It is anticipated that the Company will release its preliminary announcement for the financial year ending 30 September 2016 on or around 2 December 2016.
For further information please contact:-
Roger Pim or Peter McKellar at SL Capital Partners LLP (0131 245 0055)
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 sections 1158-1165 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.
This information is provided by RNS