abrdn Private Equity Opp Trst plc Edison update on abrdn Private Equity Opp Trst

TIDMAPEO

abrdn Private Equity Opp Trst plc

28 October 2022

London, UK, 28 October 2022

Edison issues update on abrdn Private Equity Opportunities Trust (APEO)

abrdn Private Equity Opportunities Trust (APEO) has so far successfully navigated the challenging macro environment, reporting an NAV total return (TR) from end-2021 to end-September 2022 (based on NAV estimate) of 7.5%. Distributions from underlying funds remain firm with c GBP210m in FY22 (ending September), largely covering APEO's FY22 capital calls (c GBP250m) and fully covering them in CY22 year to date. However, APEO recently upsized its credit facility to GBP300m (from GBP200m previously), which improved its commitment coverage ratio to c 39% and its balance sheet headroom as it sees some softening in private equity (PE) exit activity. The larger credit facility also supports APEO's new investments after a solid pace was maintained in FY22 at GBP338m (ie 33% of opening NAV versus 26% on average in FY17-21). APEO continues to pay a quarterly dividend, currently 3.6p (up c 6% y-o-y), which implies an annualised yield of 3.3%.

The company's good NAV performance was accompanied by a decline in its share price by c 23% year to date (in TR terms). Consequently, its discount to NAV widened from 18% at end-2021 to 42% currently (reflecting a broader trend across listed PE fund-of-funds). Investors likely anticipate continued pressure on private company valuations (which may increasingly come from slowing earnings growth). Having said that, while a further de-rating of APEO and other listed PE companies (alongside the broader market) cannot be ruled out, we believe that the current discount to NAV (together with APEO's strengthened balance sheet) represents a certain degree of downside protection for long-term investors.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst [phone] [e-mail]

Learn more at www.edisongroup.com and connect with Edison on:

   LinkedIn           www.linkedin.com/company/edison-group-/ 
   Twitter             www.twitter.com/Edison_Inv_Res 
   YouTube          www.youtube.com/edisonitv 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word "Reach" in the source column of the News Explorer pages of London Stock Exchange's website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

NRAFELSAAEESEDS

(END) Dow Jones Newswires

October 28, 2022 04:42 ET (08:42 GMT)