Princess Private Equity Holding Ltd NAV increases by 1.8% (5095U)

TIDMPEY TIDMPEYS

RNS Number : 5095U

Princess Private Equity Holding Ltd

25 October 2017

News Release

Guernsey, 25 October 2017

NAV increases by 1.8%

-- Princess Private Equity Holding Limited's ("Princess") net asset value increased by 1.8% to EUR 10.90 per share

   --    Currency movements (0.1%) and overall portfolio developments (2.0%) were positive 

-- Princess received distributions of EUR 6.9 million and invested EUR 10.0 million over the reporting period

The direct investments VAT Group AG ("VAT"), Trimco and Dynacast were amongst the largest contributors to NAV growth during September. VAT, the global leader in the production of high-end vacuum valves continued the strong share price performance seen since its IPO in April 2016. Trimco, a leading supplier of garment labels, tags and trimming products, was written up as a result of continued financial and operational strength across the group. EBITDA growth was driven by increased sales volume at Clotex Group and Labelon, while Trimco's EBITDA margin benefitted from a greater volume of higher profit-margin products sold, and savings in marketing and rental expenses following the integration of A-Tex. Partners Group continues to work in close partnership with Trimco's management to realize cross-selling synergies. Dynacast was written up on the back of strong financial performance. The company's EBITDA increased driven by the acquisition of Signicast in March 2017 and strong growth in the European industrial electronics market and automotive industries. Partners Group continues to assist Dynacast with the integration of Signicast and identification of further acquisition targets.

Princess received distributions of EUR 6.9 million during the month, including EUR 1.3 million from the partial sale of shares in Food company 1, a foodservice distributor based in the US and listed on the New York Stock Exchange. The remaining distributions of EUR 5.6 million came predominantly from Princess' mature legacy fund portfolio. During the month, Princess also participated in a placing of shares in VAT. The proceeds of EUR 29.6 million were received shortly after month-end and will be reflected in the company's net liquidity position in the company's October month-end report. Following the transaction, funds managed and/or advised by Partners Group continue to hold 13.1% of the company's share capital.

Princess invested a total of EUR 10.0 million during the month, of which EUR 6.2 million was allocated to STADA Arzneimittel AG, a German-based manufacturer of generic pharmaceuticals and branded over-the-counter ("OTC") products. Partners Group invested alongside Cinven and Bain Capital. The company is currently one of the largest within the European generics sector. Partners Group believes that the asset represents an attractive investment opportunity with potential to increase top-line growth and improve its below market profitability. Princess made an add-on investment of EUR 1.3 million in Partners Group Pacific Restaurant Holdings in support of the company's buy-and-build strategy. To-date Princess has invested EUR 6.2 million in the company, a leading franchisee of Taco Bell and Buffalo Wild Wings restaurants in the US. Since Partners Group's initial investment in October 2015, the company has made seven add-on acquisitions. Princess also added to its debt investment in Caffè Nero, a founder-owned European coffee house chain. Princess acquired EUR 2.3 million of mezzanine debt in a secondary purchase, increasing the amount invested to EUR 9.9 million. Caffè Nero operates more than 800 stores globally, the majority of which are located in the UK.

Princess will hold its quarterly investor conference call on 8 November 2017 10:00 AM GMT and will provide a detailed update on the recent portfolio developments. Please find the dial in details on the company's webpage.

Further information is available in the monthly report which can be accessed via: http://www.princess-privateequity.net/financialreports.

Ends.

About Princess

Princess is an investment holding company founded in 1999 and domiciled in Guernsey. It invests, inter alia, in private equity and private debt investments. Princess is advised in its investment activities by Partners Group, a global private markets investment management firm with EUR 58 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. Princess aims to provide shareholders with long-term capital growth and an attractive dividend yield. Princess is traded on the Main Market of the London Stock Exchange (ticker: PEY for the Euro Quote; PEYS for the Sterling Quote). Further information: www.princess-privateequity.net.

Contacts

Princess Private Equity Holding Limited:

[e-mail]

www.princess-privateequity.net

Registered Number: 35241

LEI: 54930038LU8RDPFFVJ57

Investor relations contact

George Crowe

Phone: [phone]

Email: [e-mail]

Media relations contact

Jenny Blinch

Phone: [phone]

Email: [e-mail]

www.partnersgroup.com

This document does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for any securities and neither is it intended to be an investment advertisement or sales instrument of Princess. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes must inform themselves about, and observe any such restrictions on the distribution of this document. In particular, this document and the information contained therein are not for distribution or publication, neither directly nor indirectly, in or into the United States of America, Canada, Australia or Japan.

This document may have been prepared using financial information contained in the books and records of the product described herein as of the reporting date. This information is believed to be accurate but has not been audited by any third party. This document may describe past performance, which may not be indicative of future results. No liability is accepted for any actions taken on the basis of the information provided in this document. Neither the contents of Princess' website nor the contents of any website accessible from hyperlinks on Princess' website (or any other website) is incorporated into, or forms part of, this announcement.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 25, 2017 02:00 ET (06:00 GMT)