Standard Life Euro Pri Eqty Tst PLC Quarterly Trading Statement (1267L)

TIDMSEP

RNS Number : 1267L

Standard Life Euro Pri Eqty Tst PLC

29 September 2016

Standard Life European Private Equity Trust PLC

   1.         Investment update for the quarter ended 30 June 2016 
   --          NAV rose by 6.2% to 329.3p for the quarter ended 30 June 2016 

-- Realised gains and income during the quarter ended 30 June 2016 were GBP13.6 million (2.7% of NAV). The unrealised losses on the portfolio on a constant exchange rate basis were GBP3.6 million (0.7% of NAV); in addition, there were unrealised foreign exchange gains of GBP18.8 million (3.7% of NAV)

-- 100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2016

-- NAV total return was 18.2% for the nine months from 1 October 2015 to 30 June 2016. This was after including unrealised foreign exchange gains of GBP42.8 million (8.4% of NAV)

   --          Outstanding commitments were GBP314.3 million at 30 June 2016 
   --          Liquid resources were GBP109.5 million at 30 June 2016 

For the quarter ended 30 June 2016 the Company's net asset value per ordinary share ("NAV") rose by 6.2% to 329.3p, from 310.2p at 31 March 2016. At 30 June 2016 the Company's net assets were GBP509.7 million (31 March 2016 - GBP480.2 million). NAV total return was 18.2% for the nine months from 1 October 2015 to 30 June 2016.

The volume of new buy-out transactions rose modestly in the European private equity market in the second quarter of 2016, while the enterprise value of buy-outs announced increased materially to EUR27.3 billion, from EUR15.2 billion in the first quarter of 2016. The material uplift reflected growth in mid-market and particularly large/mega buy-out transactions. The second quarter also witnessed strong mergers and acquisitions activity in Europe and a continuing flow of exits from private equity controlled investments.

The closing value of the Company's portfolio of 49 private equity fund interests was GBP403.7 million at 30 June 2016 (31 March 2016 - GBP390.6 million). The total unrealised gains on the portfolio for the quarter ended 30 June 2016 were GBP15.2 million, comprising GBP3.6 million of unrealised losses on a constant exchange rate basis and GBP18.8 million of unrealised foreign exchange gains. The MSCI Europe Index (in euros) and the FTSE All Share Index (in sterling) fell by 1.8% and rose 3.5% respectively during the quarter. The unrealised foreign exchange gains were driven by the euro and the US dollar appreciating by 4.6% and 7.0% respectively relative to sterling over the quarter.

During the quarter ended 30 June 2016 the Company funded GBP12.3 million of draw downs (six months ended 31 March 2016 - GBP34.4 million) and received GBP28.0 million of distributions (six months ended 31 March 2016 - GBP80.4 million). The distributions received during the quarter generated GBP13.6 million of realised gains and income, which was equivalent to a return of 2.2 times the acquisition cost of the realised investments. Total draw downs and distributions for the nine months ended 30 June 2016 were GBP46.7 million and GBP108.4 million, respectively.

The Company made two new fund commitments in the quarter, with a commitment of EUR28.1 million to Sixth Cinven Fund and EUR23.0 million to Astorg VI. The Company had total outstanding commitments to its 49 private equity fund interests of GBP314.3 million at 30 June 2016 (31 March 2016 - GBP271.5 million). The Manager continues to believe that around GBP55 million of the Company's existing outstanding commitments are unlikely to be drawn.

At 30 June 2016 the Company had liquid resources of GBP109.5 million, comprising a cash balance of GBP69.0 million and GBP40.5 million invested at value (GBP39.4 million at cost) in UK and European equity index tracker funds (31 March 2016 - liquid resources of GBP94.0 million). The Company continues to have an undrawn GBP80 million syndicated revolving credit facility provided by Citibank and Societe Generale that expires in December 2020.

   2.         Activity since 30 June 2016 

On 15 July 2016 the Company paid an interim dividend for the year ended 30 September 2016 of 1.80p per ordinary share.

During the period from 1 July to 27 September 2016 the Company funded GBP17.1 million of draw downs and received GBP17.6 million of distributions.

On 8 July the index tracker funds, having generated income of GBP1.7 million, were sold generating an overall realised gain of GBP2.3 million. At 27 September 2016 the Company had cash and money market balances of GBP106.6 million. The Company also had total outstanding commitments of GBP307.7 million.

It is anticipated that the Company will release its preliminary announcement for the financial year ending 30 September 2016 on or around 2 December 2016.

For further information please contact:-

Roger Pim or Peter McKellar 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 29, 2016 02:00 ET (06:00 GMT)