Estimated NAV at 31 December 2015

RNS Number : 4862M

Standard Life Euro Pri Eqty Tst PLC

20 January 2016

 

20 January 2016

STANDARD LIFE EUROPEAN PRIVATE EQUITY TRUST PLC ("SLEPET" OR "THE COMPANY") ANNOUNCES ITS ESTIMATED NET ASSET VALUE ("NAV") AT 31 DECEMBER 2015

·      ESTIMATED NAV AT 31 DECEMBER 2015 WAS 282.8 PENCE PER SHARE (ESTIMATED NAV AT 30 NOVEMBER 2015 WAS 271.7 PENCE PER SHARE)

·      SLEPET RECEIVED £25.0 MILLION OF DISTRIBUTIONS AND PAID £15.1 MILLION OF DRAW DOWNS DURING THE MONTH OF DECEMBER

·      SLEPET PAID £19.1 MILLION TO ACQUIRE AN EXISTING FUND INTEREST IN TOWERBROOK INVESTORS III

·      OUTSTANDING COMMITMENTS OF £240.4 MILLION AT 31 DECEMBER 2015

SLEPET's valuation policy for private equity funds is based on the latest valuations reported by the managers of the funds in which the Company has holdings.  In the case of SLEPET's valuation at 31 December 2015, 100% of the reported portfolio valuations were dated 30 September 2015.

Estimated NAV

At 31 December 2015, SLEPET's estimated NAV was 282.8 pence per share (estimated net assets £440.6 million), representing a 4.1% per share increase from the estimated NAV at 30 November 2015 of 271.7 pence per share (net assets £423.3 million).  The 11.1 pence movement in NAV primarily reflected unrealised foreign exchange gains arising from a 4.8 % appreciation in the euro versus sterling during December.

Draw downs and distributions

SLEPET received £25.0 million of distributions and paid £15.1 million of draw downs during the month. The distributions received generated net realised gains and income of £14.8 million.

Secondary activity

The Company acquired through a secondary purchase an original commitment of $60.0 million to TowerBrook Investors III. The purchase price for the fund interest was £19.1 million, equivalent to a discount of 6.1% to the most recent valuation date of 30 September 2015, adjusted for subsequent cashflows.  The Company assumed outstanding commitments of £10.8 million on acquisition. The Company does not have an existing commitment to TowerBrook Investors III, but has existing commitments of $25.0 million and $35.0 million to TowerBrook Investors II and IV respectively.

Commitments

The Company had £240.4 million of outstanding commitments at 31 December 2015. After undertaking a detailed review, the Manager now believes that up to £55 million of the Company's existing outstanding commitments are unlikely to be drawn (previously - £50 million).

Balance sheet and credit facility

The Company had liquid resources of £80.0 million at 31 December 2015, comprising a cash balance of £40.7 million and £39.3 million invested at value (£39.2 million at cost) in UK and European equity index tracker funds.  The Company has an undrawn £80 million syndicated revolving credit facility, provided by Citi and Societe Generale, that expires in December 2020.

Future announcements

The Company is expecting to announce its estimated NAV at 31 January 2016 on 12 February 2016.

Additional detail about SLEPET's NAV and investment diversification can be found on SLEPET'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 Peter McKellar or Roger Pim at SL Capital Partners LLP (0131 245 0055)

Note:-

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.

Valuation Methodology

Unquoted investments are stated at the directors' estimate of fair value and follow the recommendations of EVCA and BVCA. The estimate of fair value is normally the latest valuation placed on a fund by its manager at the balance sheet date. The valuation policies used by the manager in undertaking that valuation will generally be in line with the joint publication from EVCA and BVCA, 'International Private Equity and Venture Capital Valuation guidelines'. Where formal valuations are not completed at the balance sheet date the last available valuation from the fund manager is adjusted for any subsequent cashflows occurring between the valuation date and the balance sheet date. The Company's Manager may further adjust such valuations to reflect any changes in circumstances from the last manager's formal valuation date to arrive at the estimate of fair value. Quoted investments are valued based on quoted prices as of the last day of the relevant period.

The Company intends to release regular estimated NAV updates around ten business days after each month end, while continuing to issue quarterly trading statements. A breakdown of SLEPET's portfolio can be obtained in the latest monthly factsheet, which is published on the Manager's website at www.slcapital.com/IT_European_Private_Equity/getLatest.pdf

 

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