Estimated NAV at 30 November 2023

abrdn Private Equity Opp Trst plc

19 December 2023

 

abrdn Private Equity Opportunities Trust plc

Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13

19 December 2023

abrdn Private Equity Opportunities Trust plc ("APEO" or "the Company") announces its estimated net asset value ("NAV") at 30 November 2023

·      Estimated NAV at 30 November 2023 was 761.4 pence per share (estimated NAV at 31 October 2023 was 767.6 pence per share), a 0.8% decrease from the month of October

·      Excluding new investments, 95.9% by value of portfolio dated 30 September 2023 (estimated NAV at 31 October 2023 was 100.0% dated 30 June 2023)

·      APEO received £16.2 million of distributions from fund investments and paid £0.8 million of drawdowns to existing commitments during the month of November

·      APEO re-invested into Procemsa, a vitamins and food supplements CDMO, via a new single-asset secondary transaction

·      Outstanding commitments of £661.9 million at 30 November 2023

·      Liquid resources (cash balances plus undrawn credit facilities) were £231.7 million as at 30 November 2023

APEO's valuation policy for private equity funds and co-investments is based on the latest valuations reported by the managers of the funds and co-investments in which the Company has interests. In the case of APEO's valuation at 30 November 2023, excluding new investments, 95.9% by value of the portfolio valuations were dated 30 September 2023. The value of the portfolio is therefore generally calculated as the 30 September 2023 valuation, adjusted for subsequent cashflows over the period to 30 November 2023.

This is an update from the estimated NAV at 31 October 2023, whereby 100.0% of the portfolio valuations, excluding new investments, were dated 30 June 2023, adjusted for subsequent cashflows over the period to 31 October 2023.

Estimated NAV

At 30 November 2023, APEO's estimated NAV was 761.4 pence per share (estimated net assets £1,170.6 million), representing a 0.8% per share decrease from the estimated NAV at 31 October 2023 of 767.6 pence per share (estimated net assets £1,180.1 million). The 6.2 pence decrease in NAV per share reflected losses arising primarily from a 1.1% depreciation in the euro versus sterling and a 4.3% depreciation in the dollar versus sterling during November, partially offset by a 1.1% constant currency uplift in the valuation of investments as at 30 September 2023.

The 1.1% constant currency quarterly uplift in the valuation of investments from the reported estimated NAV at 30 September 2023 was due to a broad increase across the portfolio. APEO's primary fund, secondary and co-investment portfolios increased 0.9%, 0.5% and 2.1% in constant currency respectively over the quarter. In terms of underlying portfolio companies, there was notable quarterly valuation uplifts of Wundex (wound care management business), Uvesco (regional grocer), SportPursuit (Online sports and activity products retailer) and Action (non-food discount retailer) driven largely by earnings growtth.

Drawdowns and distributions

APEO received £16.2 million of distributions from fund investments and paid £0.8 million of drawdowns to existing commitments during the month of November.

Distributions in the month generated realised gains and income of £13.0 million and largely related to the full sales of Messer Industries (industrial gas business) by CVC Capital Partners VII and Nomios (provider of cybersecurity solutions, managed security services and secure networking solutions) by IK Partners Fund VIII. Furthermore, Permira Fund V also sold down its final listed shares in LegalZoom (provider of online legal technology and services), following the IPO of the business in 2021.

Investment activity

APEO re-invested €6.9 million into Procemsa, a vitamins and food supplements CDMO. This investment will be made into a new single-asset vehicle called Procemsa Build-Up SCSp.and includes an undrawn commitment of €1.5 million to fund future inorganic growth. Procemsa was previously held in the APEO portfolio through the fund investment in Investindustrial Growth I.

Commitments

The Company had £661.9 million of outstanding commitments at 30 November 2023. The Manager believes that around £95.8 million of the Company's existing outstanding commitments are unlikely to be drawn.

Credit facility and cash balances

The Company has a £300.0 million syndicated revolving credit facility provided by The Royal Bank of Scotland International Limited, Societe Generale and State Street Bank International GmbH, and it expires in December 2025. The Company drew a total of £6.0 million from the facility during the month of November, increasing the total drawn balance to £99.1 million at 30 November 2023. The remaining undrawn balance of the facility at 30 November 2023 was therefore £200.9 million.

In addition, the Company had cash balances of £30.8 million at 30 November 2023. Liquid resources, calculated as the total of cash balances and the undrawn balance of the credit facility, were therefore £231.7 million as at 30 November 2023.

Update from the Manager

"We are delighted that the portfolio has continued to grow in terms of constant currency valuation during the quarter to 30 September 2023. This means that the APEO portfolio has seen quarter on quarter constant currency valuation growth across all four quarters of the Company's 2023 financial year (to 30 September 2023) and continues APEO's record of providing annual NAV growth to its shareholders in every year since 2010*.

As we look forward, there are indications in the market that private equity M&A activity could begin to pick up in 2024 from the relatively low levels seen in 2023. If this does indeed happen, APEO stands to benefit from increased exit activity in its portfolio, both in terms of distributions and potentially NAV growth (given the valuation uplifts that are typically seen on exits).

However, the Manager continues to employ a cautious approach and plan for a more challenging market backdrop. In that context, we are pleased to see a strong month of net distribution activity from fund investments during November and take comfort in APEO's balance sheet position, with liquid resources of £231.7 million available to help navigate any adverse market conditions that may lie ahead."

*Based on NAV Total Return

Future announcements

The Company is expecting to announce its annual results on or around 31 January 2023. Further details on the valuation of the portfolio as at 30 September 2023 will be provided at that time.

The Company is expecting to announce its estimated NAV at 31 December 2023 on or around 15 January 2024.

Additional detail about APEO's NAV and investment diversification can be found on APEO's website. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website is incorporated into, or forms part of, this announcement.

For further information please contact Alan Gauld at abrdn Capital Partners LLP (0131 528 4424)

Notes:-

abrdn Private Equity Opportunities Trust plc is an investment company managed by abrdn 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 Company intends to release regular estimated NAV updates around ten business days after each month end. A breakdown of APEO's portfolio can be obtained in the latest monthly factsheet, which is published on APEO's website at:

www.abrdnpeot.co.uk

 

END