Aberdeen Prv Share Discussion Threads

[elmfield] 11/10/2013 15:43

Sky,
Thank you so much,
will take a look over week end!

[skyship] 11/10/2013 13:18

elmfield - would wait it out - no hurry in my view.

Prefer MTH, FPEO & JPEL:

# the first to buy into the upcoming tender - see thread

# the second for the 4.95% yield. Only a 20.6% discount (& that might fall
a tad because of negative currency headwinds in Q3); but still good value IMO

# the third for the 36% discount after profit-taking over the past 3-4months

Others also like PEY where there is an 8% yield.

[elmfield] 11/10/2013 11:00

Thinking of buying back in, any views?

[skyship] 04/7/2013 10:14

Today's statement confirms that the Continuation Vote will not result in liquidation. So the decision now is, what is the right level for APEF bearing in mind their sub-standard asset performance; and a performance fee structure which rewards the managers with a £1m bonus when it raises the NAV by a paltry 5.8%!

IMO these remain over-priced and they are quite likely to slip further, say to a 30% NAV discount @ 78p, coinciding nicely with the rising 50day MA and the 2012/13 uptrend. Not a disaster, but much of the 18month rise was in anticipation of the liquidation process. Without that price incentive, further consolidation seems a reasonable expectation.

=================================
Continuation
At the time of the Company's tender offer conducted in June 2011 the Company's Articles of Incorporation were amended to introduce a three-yearly continuation vote with the first vote being in 2013. Accordingly, at the Annual General Meeting convened for 25 September 2013 Resolution 7 proposes that the Company continue as an investment company in accordance with Article 126.
Having taken soundings of our larger shareholders the Board believes that it has the support of the majority of shareholders for the continuation of the Company. We believe shareholders would be disadvantaged by voting to discontinue, especially at a time when listed private equity discounts have potential to close further. Accordingly, your Board firmly believes that it is in the best interests of shareholders to vote in favour of the Company's continuation.
===============================

[topvest] 03/6/2013 12:33

I bought a few of these today. A bit late to the party, but looks a better vehicle now that Aberdeen are expanding their private equity interests through the strategic alliance with SVG Advisors. Looks well set to grow NAV over the next decade and still at a reasonable discount. Also like the modest distribution policy. Results in a few weeks.

[elmfield] 24/5/2013 16:08

Nothing Stella, not buying back at that price, would I hold, don\'t know.

[stevenlondon3] 23/4/2013 11:28

The March end NAV was 112.2- up 1.9%. The revaluations that have been coming in since mid feb must be having a positive impact. The discount has gone over 20% again.

[elmfield] 17/4/2013 11:28

Well, not sure I know! Better people than I know the answers or think they do.
In all my time and really that goes back to early 70's The market looks at its most volatile. I think we are more or less fully valued so I seek out where I see asset value high to share price, even if it means waiting a while, to much risk chasing high yields around, looking for global spread with a good bit of inflation linked bills thrown in, try and get the best of both worlds without putting to much capital at risk, two thirds of holdings are ones I can just sit in no matter what.
As they say don't we all want that!

[stevenlondon3] 17/4/2013 10:24

Elmfield. May I ask are you getting out of the PE sector or just switching? It seems to me that over the last few months there has been a game change as the big boy of the sector has moved to an 8% premium (helped by bid hopes) - out performing the rest.

[elmfield] 17/4/2013 10:24

No the victory is yours, without your input i would not have been here!

[skyship] 17/4/2013 09:34

Elmfield - the victory is yours - you stayed the course rather than selling far too early - as I did! Well done you...

[elmfield] 16/4/2013 16:22

Sold today, thank you skyship for pointing this one out, I owe you one!

[elmfield] 04/4/2013 17:02

Best to keep the compliance right, eh?!

[elmfield] 27/3/2013 15:57

And more, enjoy.

[elmfield] 22/3/2013 12:52

Keep it coming!

[elmfield] 20/3/2013 14:24

Anyone out there?
Tick tock.

[rambutan2] 27/2/2013 01:21

elmfield, as well as the general discount tightening across the private equity sector, and the ability of Aberdeen to have marketed APEF to its clients, I think the below paras explain the price rise. The Aberdeen team running APEF were rather lacking, SVG Advisers are much more heavyweight and bring scale and experience to the table. Good for APEF...

The various funds managed by our fund management business, SVG Advisers, continued to perform well, however, the fundraising market for private equity remains challenging. In light of this, during the year we conducted a strategic review of the business and it became clear that if we wanted to grow SVG Advisers, it would need to partner with another asset management business that had a significant distribution platform. We are therefore pleased to announce that we have entered into a strategic alliance with Aberdeen.

We established SVG Advisers in 2001 and its funds have since gone on to commit over €7.5 billion to private equity funds globally, developing a long and strong track record in private equity fund selection. We believe that the strategic alliance is a good balance of crystallising some of the value in SVG Advisers for our shareholders, whilst still retaining influence and access to a skill set that we can leverage from for SVG Capital's investment programme.

Aberdeen will pay a cash consideration of £17.5 million for the acquisition of a 50.1% interest in SVG Advisers[6], as well as on-going income from certain Aberdeen private equity management contracts which are intended to be transferred to the combined business. In addition, we believe that the strategic alliance will enable SVG Advisers to grow its investment platform and enter new markets faster, at lower cost and with more diversification than it could currently achieve on its own. SVG Capital will continue to benefit from its share of the profit stream from this business during the period of the strategic alliance.

All of the staff within SVG Advisers and the private equity team from Aberdeen will work for the strategic alliance. The SVG Capital investment committee will continue to advise the Board of SVG Capital on its investment portfolio and new commitments. SVG Investment Managers, which manages approximately £200 million of public equity funds will not form part of the strategic alliance and will remain an asset of SVG Capital.

The combined business will be branded Aberdeen SVG Private Equity and will be led by Lynn Fordham who will also remain Chief Executive of SVG Capital. SVG Capital is proposing to enter into a new advisory contract with Aberdeen SVG Private Equity. The advisory fee of 0.5% of gross assets will remain unchanged. SVG Capital retains the freedom to tender its advisory contract, should it so wish, on 12 months' notice.

The terms of the transaction are that at the end of the three year term Aberdeen has the option to acquire, and SVG Capital the option to sell the remaining 49.9% stake, at a price based on a valuation of the business at the time the option is exercised, with minimum and maximum prices set for the stake at £20 million and £35 million respectively. The proceeds of the transaction will be used for general corporate purposes. The transaction is subject to regulatory consent, certain other customary matters and is expected to be completed in the first half of 2013. The value of SVG Capital's cash consideration and investment in the combined business, measured at fair value, will be included in the net asset value at that point. This is expected to add a minimum of £37.5 million (13.7p per share[7]) to the net assets of the business.

The strategic alliance with Aberdeen crystallises value for shareholders and combines SVG Advisers private equity expertise with Aberdeen's distribution platform, creating a leading private equity fund management business with significant growth potential. We have laid the foundations for the next phase in the Company's development aided by the continued strong performance of the portfolio and the significant strengthening of the balance sheet. The Company is well positioned to take advantage of new investment opportunities and has made its first new commitment, which is €100 million to the Fifth Cinven fund. Cinven is a leading European private equity firm with a strong and consistent track record of private equity investment dating back to 1977. We expect to announce other new investments during 2013.

[elmfield] 20/2/2013 13:43

It s very surmising but very nice!

[elmfield] 15/2/2013 18:02

There must be a good reason for the good run,from what I have learnt it pays to sit tight tillwe know more, could wrong though, LM did the same run then wind up news.

[lionheart79] 14/2/2013 11:15

Yes congrats to holders. The extra 10p since I sold would have been tasty but I can't complain with what I got.

[stevenlondon3] 14/2/2013 10:12

Always looking for a good reason to sell but the average discount of the stocks you list (excluding JPEL and the two wind ups as special cases) I think is 22.2%. I am happy with that extra 0.3% premium because of its active management.

[skyship] 13/2/2013 09:29

Could it be that the buyer believes Aberdeen won't defend the Continuation Vote?

Can't see that personally, hence my decision to bank my profit some 14% lower than where we are now! With hindsight a poor decision...

APEF are now at a lower NAV discount (21.9%) than most of their peers:

# DNE - 22.7%
# FPEO - 20.7%
# GPE - 24.6%
# HVPE - 26.2%
# JPEL - 39.7%
# MTH - 18.5% (in wind-up mode)
# NBPE - 23.7%
# NRI - 14.2% (in wind-up mode)
# PEQ - 19.9%
# PIN - 22.9%
# SEP - 16.9%

[elmfield] 12/2/2013 18:42

Why is this so strong?