Interim Results

Bear Stearns Private Equity Limited
26 February 2008


Unaudited Interim Report for period ended 31 December 2007

Chairman's Statement

I am pleased to announce that against a backdrop of economic uncertainty and
market volatility over the past six months, Bear Stearns Private Equity Limited
('BSPEL' or the 'Company') has continued to produce positive results and
increased shareholder value.

For the six-months ended 31 December 2007, Equity Share net asset value ('NAV')
rose 6.3% to $1.70 per share from $1.60 as at 30 June 2007.  Since inception on
30 June 2005, BSPEL has grown its Equity Share NAV by 66.7% and has delivered 10
consecutive quarters of positive net asset value growth.  Moreover, despite a
difficult period in the equity markets, BSPEL's Equity Share price remained
intact. Over the six-month period ending 31 December 2007, BSPEL's Equity Share
price decreased 1.3% to close at $1.49 per share.  This is in contrast to the
performance of the LPX(R) Composite, a leading global listed private equity
index, which declined by 15.3% over the same period.

The NAV of the Zero Dividend Preference Shares ('ZDP Shares') increased 3.6% to
49.54p per share from 47.81p per share as at 30 June 2007, and has increased
19.4% since inception on 30 June 2005.  The ZDP Share price increased 5.1% over
the six month period, closing at 51.75p on 31 December 2007.

BSPEL's high level of investment activity during the six months ended 31
December 2007 resulted in a higher level of capital calls than distributions.
Capital calls for the private equity portfolio totalled approximately $47.8
million, versus $17.4 million for the six months ended 31 December 2006.  The
portfolio produced $28.9 million of distributions over the period versus $14.9
million produced during the six months ended 31 December 2006.

Investment Activity

BSPEL continued to invest at a brisk pace during the first half of the fiscal
year.  The Company committed $196.5 million into a variety of strategies that
the Managers believe will better position the portfolio for the current
difficult economic environment.  The Company purchased interests in 22 private
equity funds and made its largest co-investment to date.  This investment
activity, coupled with performance gains, increased BSPEL's private equity NAV
from $260.0 million at 30 June 2007 to $388.8 million at the end of the period,
while total assets increased from $521.2 million to $542.1 million.  Cash
decreased from $265.4 million as at 30 June 2007 to $153.4 million at the end of
the period.  As at 31 December 2007, private equity comprised approximately 72%
of BSPEL's NAV.

Secondary Commitments

During the six months ended 31 December 2007, BSPEL committed $82.9 million to
secondary interests in 16 private equity funds.  These interests were
well-funded at the time of purchase and are consistent with BSPEL's emphasis on
the distressed, turnaround, and restructuring sectors.  The majority of these
investments were acquired through the purchase of a $63 million portfolio.

Primary Commitments

BSPEL committed $88.4 million to primary interests in six funds during the
period.  These funds represent a broad array of niche investment strategies,
including a sector-specific fund focused on aviation opportunities,
infrastructure funds, and additional lower middle market buyout funds.  These
primary investments also demonstrate a diverse geographical mix with strong
weighting toward pan-European and Asian funds.  Consistent with the Company's
strategy of investing in seasoned assets, four of these primary fund commitments
were 'funded primaries', and one was the result of a 'stapled transaction' in
which a secondary asset was bundled with a primary commitment.

Co-Investments

BSPEL made its seventh co-investment during the six months ended 31 December
2007, investing €17.3 million into one of Germany's largest cable companies.
The interest was acquired from a minority seller and is currently BSPEL's
largest single company interest.  BSPEL continues to examine additional
co-investment opportunities.

Optional Bi-Annual Redemption Facility

In accordance with the Company's bi-annual redemption policy, on 10 August 2007
BSPEL redeemed 3,597,890 Equity Shares and 3,375 ZDP Shares at their respective
unaudited 30 June 2007 NAVs of $1.55 per share and 47.81p per share.

At the Company's 8 October 2007 board meeting, the Board of Directors resolved
to give shareholders the opportunity to redeem up to 15% of the Equity Shares
and 15% of the ZDP Shares in issue on 31 December 2007.

On 9 November 2007, the Board of Directors sent notice to Shareholders that an
Extraordinary General Meeting would be held to, among other things, amend the
Company's Articles to allow the Company to hold Treasury Shares.  This had the
immediate effect of replacing the Redemption Facility with a Share Tender
Facility, and the resolution was passed at the Extraordinary General Meeting
held 28 November 2007.

On 25 January 2008, BSPEL tendered 24,460,438 Equity Shares at the unaudited 31
December 2007 Equity Share NAV of $1.70 per share and 274,822 ZDP Shares at the
31 December 2007 ZDP Share NAV of 49.54p per share.  Immediately following the
Tender Offer, the Company's issued share capital consisted of 260,837,918 Equity
Shares and 59,196,837 ZDP Shares (excluding those shares held in treasury
following the Tender Offer).

Share Buyback

Following approval from the Board of Directors, the Company enacted a share
buyback program from 17 August through 24 August and cancelled 1,130,000 shares
at a total cost of approximately $1.6 million.  Following the conclusion of the
buyback period, there were 285,298,356 Equity Shares outstanding.

Board

On a 12 October 2007 Board of Directors meeting, the Board accepted the
resignation of Mr. Paul Sanabria and appointed Mr. Troy Duncan as an executive
director of the Company.  Mr. Duncan, a US resident, is a Senior Managing
Director at Bear Stearns Asset Management Inc.  I would like to thank Paul for
all of his contributions since BSPEL's inception.

Principal Risks and Uncertainties

The Managers believe that for the remaining six months of the financial year,
BSPEL's principal risks relate to (i) the performance of its existing private
equity portfolio and the ability of the underlying fund managers to source and
invest in new assets, (ii) the competitive nature of the secondary private
equity market for transactions not sought on a proprietary basis, and (iii)
shifts in the global credit and economic markets that may impact M&A and IPO
activity in the short term.

Outlook

BSPEL believes that the current credit market environment and economic
turbulence will provide attractive investment opportunities.  The Company is
experiencing an increase in secondary market deal flow across the globe as
liquidity issues become more pronounced.  In addition, the Managers have
constructed a private equity portfolio that emphasizes lower middle market
buyout and special situations funds - strategies that the Manager believes are
better insulated against negative market factors.  Furthermore, the Company has
avoided exposure to strategies most susceptible to various stresses in the
global credit markets, including large cap US and European buyout and real
estate funds.  BSPEL will continue to deploy capital into conservative
investments with the goal of delivering consistent risk-adjusted returns.

Trevor Ash
Chairman
26 February 2008


Responsibility Statement

The Directors confirm to the best of their knowledge:

a.        The Interim Report includes a fair review of the information required
by the FSA's Disclosure and Transparency Rules 4.2.7R; and

b.        The Interim Report includes a fair review of the information required
by the Disclosure and Transparency Rules 4.2.8R (disclosure of related party
transactions and changes therein).

The Interim Report was approved by the Board on 26 February 2008 and the above
responsibility statement was signed on its behalf by



Trevor Ash
Chairman




Unaudited Consolidated Balance Sheet at 31 December 2007

                                                               31/12/2007       30/6/2007
                                                                    £'000           £'000

Non-current assets
Investments                                                       227,836         150,460

Current assets
Cash and cash equivalents                                          78,243         132,177
Receivables                                                           690             500

                                                                   78,933         132,677
Current liabilities
Payables and accruals                                               (940)         (2,768)

Net current assets                                                 77,993         129,909

Non-current liabilities
Loan                                                             (17,281)        (14,876)
Zero dividend preference shares                                  (29,461)        (28,433)

                                                                 (46,742)        (43,309)

Net assets                                                        259,087         237,060

Represented by:

Share Capital                                                          29              29
Reserves                                                          243,608         230,972

Total equity attributable to equity holders of the Company        243,637         231,001

Minority Interest                                                  15,450           6,059

Total equity                                                      259,087         237,060

NAV per Equity share                                                £0.85           £0.80



Unaudited Consolidated Income Statement for the period ended 31 December 2007

                                                      01/07/2007         01/07/2006
                                                              to                 to
                                                      31/12/2007         31/12/2006

                                                           £'000              £'000
Income
Interest income                                            2,304                598

Expenses

Investment management fee                                (1,285)              (306)
Administrative fee                                          (92)               (50)
Audit fee                                                   (15)                (9)
Directors' fees                                             (35)               (12)
Performance fee                                                -              (674)
Other expenses                                             (643)              (664)

Total Expenses                                           (2,070)            (1,715)

Net profit/(loss) before finance costs                       234            (1,117)

Finance costs
Interest payable                                         (1,437)              (980)

Gains from investments
Net gains on investments                                  12,324             14,436

Profit for the period                                     11,121             12,339

Attributable to equity holders of the Company              9,491             12,339
Attributable to minority interests                         1,630                  -

                                                           9,897             12,339

Basic earnings per share                                   3.88p             12.88p


All items in the above statement are derived from continuing operations.



Unaudited Consolidated Statement of Changes in Equity for the period ended 31
December 2007


                Share    Share  Accumulated  Capital    Currency     Capital        Special   Total   Minority    Total
              Capital  Premium       Losses  Reserve Translation  Redemption  Distributable           Interest   
                                                         Reserve     Reserve        Reserve              
                £'000    £'000        £'000    £'000       £'000       £'000          £'000   £'000      £'000    £'000

At 1 July          29  154,329       (6,590)  43,487     (11,546)          1         51,291 231,001      6,059  237,060
2007

Redemption of       -        -            -        -           -           -         (3,385) (3,385)         -   (3,385)
equity shares

Effect of           -        -            -        -       6,530           -              -   6,530        803    7,333
translation
of
presentation
currency

Movement for        -        -       (1,127)  10,618           -           -              -   9,491      1,630   11,121
the period

Issue of            -        -            -        -           -           -              -       -      6,958    6,958
shares in
subsidiary to
minority
interests

At  31             29  154,329       (7,717)  54,105      (5,016)          1         47,906 243,637     15,450  259,087
December 2007


Unaudited Consolidated Statement of Changes in Equity for the period ended 31
December 2006

                        Share          Share     Accumulated         Capital        Currency         Special     Total
                      Capital        Premium          Losses         Reserve     Translation   Distributable
                                                                                     Reserve         Reserve
                        £'000          £'000           £'000          £000's           £'000           £'000     £'000

At 1 July 2006              9              -          (1,273)          7,459          (1,457)         57,260    61,998

Issue of equity             -              -               -               -               -               -         -
shares

Redemption of                              -               -               -               -            (334)     (334)
equity shares

Issue costs                 -              -               -               -               -               -         -

Effect of                   -              -               -               -          (3,202)              -    (3,202)
translation to
presentation
currency

Movement for the            -              -          (2,097)         14,436               -               -    12,339
period

At 31 December              9              -          (3,370)         21,895          -4,659          56,926    70,801
2006

Unaudited Consolidated Statement of Cash Flows for the period ended 31 December 2007

                                                            01/07/2007      01/07/2006
                                                                    to              to
                                                            31/12/2007      31/12/2006

                                                                 £'000           £'000

Operating activities
Profit for the period                                           11,121          12,339
Adjustments for:
Interest income                                                 (2,304)           (598)
Interest expense                                                 1,437             980
Net gains on investments                                       (12,324)        (14,436)

Operating cash flows before changes in working capital          (2,070)           (519)

Decrease/(Increase) in receivables                                  57             (99)
(Decrease)/Increase in payables                                 (1,817)            994

Cash flows from operating activities                            (3,830)            376

Investing activities
Purchase of investments                                        (75,514)        (29,501)
Return of capital from investments                              14,098           7,874
Interest received                                                2,304             598

Cash flows from investing activities                           (59,112)        (21,029)

Financing activities
Equity shares buy back                                          (3,532)           (333)
Zero dividend preference shares buyback                             (2)              -
Loan proceeds received                                           2,172               -
Interest paid                                                     (434)              -
Issue of shares in subsidiary to minority interest               6,790               -
                                                                            
Cash flows from financing activities                             4,994            (333)

Net decrease in cash and cash equivalents                      (57,948)        (22,182)
Cash and cash equivalents at 1 July 2007                       132,177          40,216
Effects of exchange difference arising from cash and cash        4,014            (499)
equivalents
Cash and cash equivalents at 31 December 2007                   78,243          17,535


Bear Stearns Private Equity Limited ('the Company') is a closed-ended investment
fund incorporated as a limited liability company in Guernsey under the Companies
(Guernsey) Law, 1994 on 28 April 2005. The Company's capital structure consists
of two classes of shares, Equity Shares and Zero Dividend Preference Shares,
both listed on the London Stock Exchange.

The primary objective of the Company and its subsidiaries ('the Group') is to
achieve capital growth, with income as secondary objective, from a diversified
portfolio consisting predominantly of private equity limited partnership
interests, whilst also employing an enhanced cash management strategy, including
diversified investment in, amongst other things, funds of hedge funds and hedge
funds. The Group may also invest directly in private equity investments.

STATEMENT OF COMPLIANCE

These condensed consolidated interim financial statements have been prepared in
accordance with International Financial Reporting (IFRS) IAS 34 Interim
Financial Reporting. They do not include all of the information required for
full annual financial statements, and should be read in conjunction with the
consolidated financial statements of the Group as at and for the year ended 30
June 2007.

These condensed consolidated interim financial statements were approved by the
Board of Directors on 26 February 2008.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied by the Group in these condensed consolidated
interim financial statements are the same as those applied by the Group in its
consolidated financial statements as at and for the year ended 30 June 2007.

RELATED PARTY TRANSACTIONS

Mr. Sanabria was until the date of his retirement on 12 October 2007, the
managing director of Bear Stearns Asset Management Inc., the Manager (as to the
Private Equity Portfolio and as to the Enhanced Cash Management Strategy) to the
Group.

Mr. Duncan, who was appointed as a Director on 12 October 2007 is the Managing
Director Principal of Bear Stearns Asset Management Inc., the Manager (as to the
Private Equity Portfolio and as to the Enhanced Cash Management Strategy) to the
Group.

The Directors do not hold directly or indirectly shares in the Group.

From 1 January 2007 Mr. Ash is entitled to receive Directors fees of £25,000 per
annum (previously £20,000), Mr. Loudon and Mr. Spencer are each entitled to
receive Directors fees of £20,000 per annum (previously £15,000).

The Manager, Bear Stearns Asset Management Inc., is entitled to a base
management fee, payable monthly in arrears of 1.00 per cent. per annum of the
aggregate Net Asset Value of the Equity Shares and the ZDP Shares The management
fee due payable at 31 December 2007 was £449,724 (2006: £147,109). The Manager
is also entitled to a performance fee if the aggregate Net Asset Value of the
Equity Shares and the ZDP Shares at the end of the performance period exceeds
the aggregate Net Assets at the start of the performance period by more than 8
per cent.  The amount of such performance fee will be 7.5 per cent of the total
increase in aggregate Net Asset Value above the performance hurdle. The
performance fee accrued at 31 December 2007 was £nil (2006: £836,815).

The Administrator is entitled to an annual fee in respect of administration and
company secretarial services calculated on the Total Assets of the Company of
0.125 per cent. on the first $100 million, 0.1 per cent on the next $50 million,
0.075 per cent. on the next $50 million and 0.05 per cent on the balance subject
to a minimum of $125,000.  The fee is payable monthly in arrears. The
administration fee due payable at 31 December 2007 was £49,167 (2006: £40,503).

LOANS

The Group has entered into a Revolving Loan Facility with the Bank of Scotland.
The facility is for €35,000,000 and may be drawn down in Euros, Sterling or US
Dollars. Borrowed funds bear interest at a rate of LIBOR, or if the loan is in
Euro EURIBOR, plus 1.75%. The maturity date of the facility is 2 May 2012. The
loan is secured over the Group's interest in the BoS Mezzanine Partners Fund, LP
and its rights under the related limited partnership agreement.

SUBSIDIARIES

Name                                                   Country of          % Holding
                                                       Incorporation

BSPEL Mezzanine Funding Limited                        Guernsey                 100%

BSPEL/MIGDAL Mezzanine Limited                         Guernsey                  80%

Hunter Acquisition Limited  (acquired September 2007)  Guernsey                65.3%



All subsidiaries were incorporated by the Company.




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