Abrdn Private Equity Opp... Share Discussion Threads

[spangle93] 16/1/2020 08:03

Thanks for taking the time, ram - great insights and much appreciated.

[rambutan2] 15/1/2020 21:30

SLPE has remained a primary investor in mid buyouts, whilst the rest of the sector have retuned their strategies over the last decade, either to having a better mix (ICGT, PIN, HVPE), or to specialise in directs/co invests (PEY, NBPE) which gets rid of commitment issues/cash drag/leverage, which caused such havoc in 2008. And also of course cuts costs. HGT has always just invested direct into its own funds, as has OCI and APAX.

So, currently I'd put SLPE last on the list, due to it having the least control over its destiny and relying on one strategy for returns. Although I'd expect a gradual broadening out of investments now they are part of the greater Aberdeen PE operation. However, I'm not saying it isn't a good vehicle and quite capable of outperformance, but I prefer the greater control, to varying degrees, of the others.

Personally, as a long term hold, I think HVPE is the pick of the fund of funds and HGT of the directs. But imho all of them are very well run, all slightly different, and all worth buying if their discount gets out of line. The sector really took on board lessons from 2008 and I think now offers a classy line up. Of course, the real test will be the next big downturn, but I'd bet that it won't cause the life threatening melt down amongst trusts we saw last time.

[spangle93] 15/1/2020 20:14

Which do you consider to be better, ram? I also hold PIN, but I like the dividend with this stock, so the discount closing is welcome too.

[rambutan2] 15/1/2020 20:06

Hi SKY, well I took your advice and sold out at 392p today for a quick 12%. Not my usual style, but I don't want to hold SLPE long term as I prefer others in the sector.

[skyship] 14/1/2020 07:35

RAM - a well timed purchase - well done; now take the turn at the Apr'19 double top!

[rambutan2] 14/1/2020 04:14

Nice jump up to close at 380p bid, taking it to a mid teens discount more on par with sector comp.

[rambutan2] 09/1/2020 17:44

Solid set of results, and a slight closing of the discount. Having bought in at 340p recently, am happy to hold.

[riverman77] 08/1/2020 20:05

I noticed the relative lag as well and bought in recently - discounts have come in a lot on similar peers (PIN, HVPE, ICGT, etc) - this has similar track record to most these so would expect this to re-rate.

[rambutan2] 08/1/2020 20:01

Expecting results tmrro. On a circa 20% discount this hasn't enjoyed the rerating of the rest of the sector. Perhaps some results info will give it a boost.

[nimbo1] 09/12/2019 14:57

I imagine they will say with results this week?

L2 makes it look like the rug is going to be pulled price wise (sometimes best point top buy!) - may present a nice entry point as someone keen to sell and buyers not queuing up yet...

Not currently holding but am interested once again as a trading buy

[rambutan2] 09/12/2019 14:43

Did they keep Action or take the cash? As it’s 6% of the nav i think they should have said. imho

[nimbo1] 09/12/2019 14:02

a buy again at 320p?

The Nav hasn't really kicked on here (obviously sterling bounce hurts) but now it is one of the PE trusts with the widest discounts.

[nimbo1] 18/7/2019 15:48

finally catching a ride on this one : )

[spangle93] 19/3/2019 11:51

Direct link to Edison note

[nimbo1] 19/3/2019 11:34

well I missed the breakout i thought may happen! moved into HVPE for the sipp.

[nimbo1] 27/2/2019 10:10

you are absolutely right - I've sold for the moment, hope to buy back again in 325 area. Will probably kick on now ; )

[skyship] 14/2/2019 07:22

Unlikely - 350p seems to be a major resistance level; and today's news of a 3.5% fall in the NAV to 411.2p (mainly due to the Euro weakness) will hardly help matters!

At 350p the discount falls to 14.9%, rather out of step with its peers.

[nimbo1] 12/2/2019 11:48

Could this break the 3.50 glass ceiling?

[rambutan2] 28/12/2018 03:19

AR to 30/09/18:

[skyship] 01/1/2018 17:10

Estimated NAV:

At 30 November 2017, SLPET's estimated NAV was 388.4 pence per share (estimated net assets GBP597.2 million), representing a 0.3% per share decrease from the actual NAV at 30 September 2017 of 389.6 pence per share (actual net assets GBP599.0 million).

The 1.2 pence decrease in NAV reflected unrealised foreign exchange losses arising primarily from a 0.9% depreciation in the US dollar versus sterling during October and November.

[robsy2] 04/12/2017 09:55

What a smashing trust this is.
R2

[skyship] 23/6/2017 13:36

Estimated NAV:

At 31 May 2017, SLPET's estimated NAV was 373.7 pence per share (estimated net assets GBP574.6 million), representing a 1.3% per share increase from the actual NAV at 31 March 2017 of 368.9 pence per share (actual net assets GBP567.2 million). The 4.8 pence increase in NAV reflected unrealised foreign exchange gains arising primarily from a 1.8% appreciation in the euro versus sterling during April and May.

SLPE close a great week - UP 7.7% from 311p to 335p...

[rambutan2] 15/6/2017 13:11

May nav sheet:

[skyship] 02/5/2017 14:05

Standard Life Private Equity Trust (SLPE) aims to achieve long-term total returns via investing in a focused, primarily European portfolio of leading private equity buyout funds. The investment policy was revised in January 2017, removing size and geographic restrictions, to enlarge the investment opportunity set without diluting the trust’s strategy and focus. New fee arrangements have been agreed, with a single annual management fee of 0.95% of NAV and no incentive fee. The board has also stated its intention to raise the FY17 dividend to 12.0p, equating to a 3.8% yield, and grow it at least in line with inflation. Returns have been notably strong over one year.

12 months ending Share price
(%) NAV
(%) LPX 50
(%) LPX 50 NAV (%) MSCI World (%) FTSE All-Share (%)
31/12/12 32.0 0.9 25.3 10.1 11.3 12.3
31/12/13 23.2 11.5 38.2 13.6 24.9 20.8
31/12/14 10.0 8.8 4.2 8.8 12.2 1.2
31/12/15 1.1 8.0 5.9 4.9 5.4 1.0
31/12/16 43.0 29.9 29.8 29.3 29.1 16.8
Source: Thomson Datastream, Bloomberg. Note: Twelve-month discrete £-adjusted total return performance up to last published quarter-end NAV.

Investment strategy: Europe-focused fund selection:
SLPE invests via primary commitments and secondary transactions in what the manager views as the leading European private equity buyout funds. The aim is for the portfolio to comprise around 35 to 40 active private equity fund investments, broadly diversified by country, sector and maturity. The manager employs a bottom-up approach to private equity fund selection, with a top-down overlay designed to direct the investment team towards attractive geographies, sectors and strategies. Exposure is managed through the primary and secondary funds markets.

Market outlook: Attractive opportunities exist:
Private equity funds’ uninvested capital is at peak levels, reaching US$869bn globally in H116, but SLPE’s manager notes this remains lower than the expected level of investment over a typical five-year private equity fund investment period, and does not anticipate higher purchase prices leading to significantly depressed returns. While European private equity deal volumes have been volatile, the manager reports fairly steady activity in the mid-market segment on which SLPE is focused. Should an economic downturn or potential market dislocation occur, this could provide an attractive opportunity for tactical investment. In the current pricing environment, the manager sees potential for smaller, region-specific funds – which face less competition for deals – to provide attractive opportunities.

Valuation: Narrowed discount, increased yield:
Having followed a broadly widening trend over the previous two years, SLPE’s share price discount to NAV has narrowed from 36.5% in March 2016 to its current level of 11.1%, which stands as one of the narrowest in the peer group. The board intends to increase the FY17 dividend to 12.0p, equating to a prospective yield of 3.8%, leading the dividend-paying funds in SLPE’s peer group

[skyship] 01/3/2017 17:18

Standard Life Private Equity Trust PLC (SLPE) is an investment company managed by SL Capital Partners LLP; and qualifies as an investment trust under sections 1158-1165 of the Corporation Tax Act 2010. The Board of SLPE is independent of Standard Life plc. The trust changed its name from Standard Life European Private Equity Trust (SEP) in Jan’17.

SLPE is a “Fund of Funds” private equity trust.

Basic stats inc. past performance can be seem on the website using this link:



The Company intends to release regular estimated NAV updates around ten business days after each month end, while continuing to issue quarterly trading statements. A breakdown of SLPET's portfolio can be obtained in the latest monthly factsheet, which is published on the Manager's website at:

www.slcapital.com/IT_European_Private_Equity/getLatest.pdf

Annual Report to 30th Sept’17:



Link to the Private Equity thread: