Quarterly Investment Update at 30 June 2020

Standard Life Private Equity Trust plc

Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13

1.         Investment update for the quarter ended 30 June 2020

·          The net asset value ("NAV") per ordinary share of Standard Life Private Equity Trust plc ("the Company") increased by 11.1% to 473.9 pence for the quarter ended 30 June 2020

·          Realised gains and income on the portfolio during the quarter ended 30 June 2020 totalled £18.2 million (2.8% of NAV). The unrealised gain on a constant exchange rate basis was £46.3 million (7.1% of NAV). In addition, there were unrealised foreign exchange gains of £14.8 million (2.2% of NAV)

·          The first interim dividend for the financial year ending 30 September 2020 of 3.3 pence per share was paid on 24 April 2020

·          100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2020

·          NAV total return was 11.9% for the three months from 1 April 2020 to 30 June 2020

·          Outstanding commitments were £465.5 million at 30 June 2020

·          Cash and cash equivalents were £52.0 million at 30 June 2020

For the quarter ended 30 June 2020, the Company's NAV increased by 11.1% to 473.9 pence per share from 426.4 pence per share at 31 March 2020. At 30 June 2020, the Company's net assets were £728.6 million (31 March 2020 - £655.6 million). NAV total return was 11.9% for the three months from 1 April 2020 to 30 June 2020.

The closing value of the Company's portfolio, which included 63 private equity interests, was £660.9 million at 30 June 2020 (31 March 2020 - £580.3 million and 62 private equity interests). 100.0% by value of the portfolio valuations were dated 30 June 2020. The valuations by the underlying managers as at 30 June 2020 have not been adjusted by the Manager.

The total unrealised gain on the portfolio for the quarter ended 30 June 2020 was £61.1 million (9.3%), comprising £46.3 million (7.1%) of unrealised gain on a constant exchange rate basis and £14.8 million (2.2%) of unrealised foreign exchange gains. The capital movement of the FTSE All-Share Index (in sterling) was + 9.8% during the quarter. The unrealised foreign exchange gains were driven by the Euro and the US Dollar appreciating by 2.7% and 0.4% respectively relative to sterling over the quarter.

During the quarter ended 30 June 2020, the portfolio generated £30.0 million of distributions (quarter ended 31 March 2020 - £64.6 million). The Company funded £31.2 million of drawdowns (quarter ended 31 March 2020 - £44.0 million) into the portfolio. The portfolio distributions received during the quarter generated £18.2 million (2.8%) of net realised gains and income. This was equivalent to a return of 2.5 times the acquisition cost of the realised investments.

The Company made a new primary commitment during the quarter of €25.0 million to Vitruvian IV.  The Company had total outstanding commitments to its 63 private equity interests of £465.5 million at 30 June 2020 (31 March 2020 - £451.2 million to 62 private equity interests). The Manager believes that around £68.3 million of the Company's outstanding commitments at 30 June 2020 are unlikely to be drawn.

The Company had cash and cash equivalents of £52.0 million at 30 June 2020 (31 March 2020 - £59.6 million). In addition, it is due £15.5 million  (31 March 2020 - £15.2 million) of deferred consideration during the year from investments sold in 2019. The Company also had an undrawn £100.0 million syndicated revolving credit facility provided by Citi and Societe Generale, expiring in December 2024.

2.   Activity since 30 June 2020        

On 31 July 2020, the Company paid the second interim dividend for the year ending 30 September 2020 of 3.3 pence per ordinary share. The cost of the dividend was £4.9 million. In addition, the Company declared a third quarter dividend for the year ending 30 September 2020 of 3.3 pence per ordinary share, to be paid on 30 October, to shareholders on the Company's share register as at 25 September 2020.

During the period from 1 July 2020 to 14 September 2020 the Company received £16.4 million of distributions and funded £18.4 million of drawdowns and co-investment funding.

In August 2020, the Company made a $7.0 million  co-investment into Visma, a leading provider of mission critical enterprise resource planning software in the Nordics and the Netherlands. The co-investment was made alongside Hg, Visma's lead investor.

The Company had cash and cash equivalents of £43.1 million at 14 September 2020. In addition, it is due £15.5 million of deferred consideration during the year from investments sold in 2019. The Company also had total outstanding commitments of £440.1 million. The Manager believes that around £66.3 million of the Company's outstanding commitments are unlikely to be drawn.

In September 2020, the syndicated revolving credit facility was expanded to £200.0 million from £100.0 million. This expansion of the existing facility includes the introduction of State Street Bank International as a new lender to the Company alongside long-term lenders Citi and Societe Generale. The expiry date of the facility remains as December 2024.  

3.   Update on COVID-19

The Manager continues to be mindful of the impact of COVID-19 and maintains regular communication with the private equity managers of the Company's investments.  Whilst the Company's NAV has recovered strongly this quarter following a decline of 8.2% in Company NAV in March, the Manager remains cautious in respect of the valuation of the Company's portfolio in the coming quarters.

An update from the Manager, which provides responses to frequently asked questions in relation to 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 August 2020 is also being announced today. The Company is expecting to announce its estimated NAV at 30 September 2020 on 14 October 2020.

It is anticipated that the Company will release its results for the year ending 30 September 2020 on or around 25 January 2021. 

For further information please contact:-

Alan Gauld at SL Capital Partners LLP (0131 528 4424)

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.