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14 October 2016
NB Private Equity Partners Limited ("NBPE" or the "Company"), a closed-end private equity investment company, today announced an updated Net Asset Value ("NAV") for the month ended 30 September 2016.
- Monthly, year to date and LTM NAV development:
|Month||30 Sept 16 YTD||30 Sept 16 LTM|
|Total return NAV development per Share||1.6%||6.4%||6.3%|
|NAV development per Share||1.6%||2.7%||2.6%|
- 30 September 2016 NAV per Share of $14.75, $0.23 increase from $14.52 NAV per Share at 31 August 2016
- NBPE's NAV increase of $11.1 million during the month included:
- $16.1 million increase in NAV attributable to changes in the value of the investment portfolio
- $14.7 million of unrealised gains on public securities, or $0.30 per share
- $2.0 million of accrued cash and payment in kind ("PIK") interest from the income investment portfolio, or $0.04 per share
- $0.9 million of unrealised gains attributable to the receipt of new valuation information, or $0.02 per share
- ($1.6) million of other unrealised and realised losses on investments, or ($0.03) per share
- $5.0 million decrease in NAV attributable to expenses and other liabilities during the month
The value of NBPE's private equity portfolio as of 30 September 2016 was based on the following information:
- 44% of the private equity fair value was valued as of 30 September 2016
- 28% in private direct investments
- 12% in public securities3
- 2% in credit-related fund investments
- 2% in fund investments
- 56% of the private equity fair value was valued as of 30 June 2016
- 40% in private direct investments
- 16% in fund investments
During September, NBPE received $26.3 million of distributions from income investments, of which $22.0 million was the result of full exits from two second lien debt positions. The remaining distributions from the income portfolio consisted of interest and principal payments. In the direct equity portfolio, NBPE received $1.2 million of proceeds from the continuing realisation of its public holding of Commscope. NBPE also received $3.6 million of distributions from its fund portfolio during September. In terms of new investments, NBPE funded $6.0 million into new income investments and $5.5 million to new and follow-on equity investments.
In a notable post reporting period event, on 11 October 2016, Extraction Oil & Gas (previously referred to in NBPE reporting as "Oil & Gas Company") completed an initial public offering. The IPO price has been used in this monthly report to reflect fair value as of September 30th 2016. Following this uplift in valuation, Extraction represents the largest investment in NBPE, comprising 4.4% of September 30th 2016 net asset value and increasing total public equity exposure to 12.3% of net asset value.
A notable capital structure initiative was completed during September, with the issuance of £50 million of 2022 ZDP Shares at a Gross Redemption Yield of 4%. This new issue was substantially completed through a roll over of the existing 2017 ZDP shares. This issuance, together with the new credit facility put in place in June 2016, extends NBPE's financing maturities and positions it with a strong balance sheet and significant capacity for new investments.
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Assumes reinvestment of dividends on the ex-dividend date and reflects cumulative returns over time period shown.
Please refer to the valuation methodology section of the monthly report for a description of the Manager's valuation policy. While some valuation data is as of 30 June 2016, the Manager's analysis and historical experience lead the Manager to believe that this approximates fair value at 30 September 2016.
3 Includes Extraction valued at 11 October 2016 IPO price of $19 per share, based on preliminary share count and subject to adjustments.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NB Private Equity Partners Limited via Globenewswire