Quarterly Investment Update at 31 December 2019

Standard Life Private Equity Trust plc

Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13

 

1.         Investment update for the quarter ended 31 December 2019

 

·          The net asset value ("NAV") per ordinary share of Standard Life Private Equity Trust plc ("the Company") increased by 0.6% to 464.5 pence for the quarter ended 31 December 2019

·          Realised gains and income on the unquoted portfolio during the quarter ended 31 December 2019 totalled £14.8 million (2.1% of NAV). The unrealised gain on a constant exchange rate basis was £26.6 million (3.7% of NAV). In addition, there were unrealised foreign exchange losses of £26.4 million (3.7% of NAV)

·          The third quarter dividend for the financial year ended 30 September 2019 of 3.2 pence per share was paid on 25 October 2019

·          100.0% by value of the portfolio was valued by the respective underlying managers at 31 December 2019

·          NAV total return was 1.3% for the three months from 1 October 2019 to 31 December 2019

·          Outstanding commitments were £417.7 million at 31 December 2019

·          Resources available for investment were £57.7 million at 31 December 2019

 

For the quarter ended 31 December 2019, the Company's NAV increased by 0.6% to 464.5 pence per share from 461.9 pence per share at 30 September 2019. At 31 December 2019, the Company's net assets were £714.2 million (30 September 2019 - £710.1 million). NAV total return was 1.3% for the three months from 1 October 2019 to 31 December 2019.

 

The closing value of the Company's unquoted portfolio, which included 58 private equity interests, was £656.1 million at 31 December 2019 (30 September 2019 - £627.3 million and 56 private equity interests). 100.0% by value of the portfolio valuations were dated 31 December 2019. With respect of the valuations as at 31 December 2019, these predate and therefore do not reflect the recent outbreak of COVID-19 and subsequent events related thereto.

 

The total unrealised gain on the unquoted portfolio for the quarter ended 31 December 2019 was £0.2 million (0.0%), comprising £26.6 million (3.7%) of unrealised gain on a constant exchange rate basis and £26.4 million (3.7%) of unrealised foreign exchange losses. The FTSE All-Share Index (in sterling) increased by 3.3% during the quarter. The unrealised foreign exchange losses were driven by the Euro and the US Dollar depreciating by 4.4% and 7.5% respectively relative to sterling over the quarter.

 

During the quarter ended 31 December 2019, the unquoted portfolio generated £29.2 million of distributions (quarter ended 30 September 2019 - £36.3 million). The Company funded £37.4 million of drawdowns (quarter ended 30 September 2019 - £26.0 million) into the unquoted portfolio. The unquoted portfolio distributions received during the quarter generated £14.8 million (2.1%) of net realised gains and income. This was equivalent to a return of 2.0 times the acquisition cost of the realised investments.

 

The Company made commitments during the quarter of €8.0m to PAI Strategic Partnerships SCSp, a continuation fund of PAI V and €26.5m to 3i Venice SCSp, a co-investment in Action. The Company had total outstanding commitments to its 58 private equity interests of £417.7 million at 31 December 2019 (30 September 2019 - £450.3 million to 56 private equity interests). The Manager believes that around £61.9 million of the Company's outstanding commitments at 31 December 2019 are unlikely to be drawn.

 

At 31 December 2019, the Company had resources available for investment of £57.7 million (30 September 2019 - £67.7 million). This comprises £43.2 million of cash and cash equivalents and £14.5 million of deferred consideration due from sold investments.   The Company continues to have an undrawn £100 million syndicated revolving credit facility provided by Citibank and Societe Generale that expires in December 2024.

 

 

2.   Activity since 31 December 2019

 

On 24 January 2020, the Company paid the fourth quarter interim dividend for the year ended 30 September 2019 of 3.2 pence per ordinary share. The cost of the dividend was £4.9 million. In addition, the Company declared the first quarter interim dividend for the year ending 30 September 2020 of 3.3 pence per ordinary share, to be paid on 24 April 2020, to shareholders on the Company's share register as at 20 March 2020.

 

During the period from 1 January 2020 to 9 April 2020 the Company received £54.6 million of distributions and funded £34.5 million of drawdowns. The Company also rolled £22.6 million of additional proceeds from 3i Eurofund V into 3i Venice SCSp, funding the commitment made to the new vehicle in Q4 2019.

 

A new primary fund commitment was made to Hg Saturn 2 ($15.6 million) in February, followed by new commitments to Hg Genesis 9 (€15.0 million), Hg Mercury 3 (€12.4 million) and Seidler Equity Partners VII L.P. ($20.0 million) in March.

 

At 9 April 2020, the Company had resources available for investment of £72.9 million, comprising £57.9 million of cash and cash equivalents and £15.0 million of deferred consideration due from sold investments. The Company also had total outstanding commitments of £438.1 million. The Manager believes that around £64.4 million of the Company's outstanding commitments are unlikely to be drawn.

 

3.   Update on COVID-19

 

The Manager continues to maintain regular communication with the private equity managers of the Company's investments and is closely monitoring the situation as events surrounding COVID-19 escalate. Whilst it remains too early to quantify the potential impact on the Company with any certainty, we are prepared for an adverse impact on NAV and a decrease in the level of distributions in the near term.

 

An update from the Manager, which provides responses to frequently asked questions following the outbreak of COVID-19, is available within the Latest News section of the Company website; www.slpet.co.uk.

 

4.   Future Announcements

 

The Company's estimated NAV at 31 March 2020 is also being announced today. It is anticipated that the Company will release its results for the six months ending 31 March 2020 on or around 17 June 2020.

 

For further information please contact:-

 

Alan Gauld at SL Capital Partners LLP (0131 372 2200)

 

Note:-

Standard Life 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 Private Equity Trust PLC is independent of Standard Life Aberdeen plc and Phoenix Group Holdings.