The Standard Life European Private Equity Trust’s (SLEPET) net asset value per ordinary share (NAV) rose by 5.8% to 257.4p during the year ended 30 September 2014. The NAV total return to shareholders was 7.7%.
The Company’s portfolio, including net realised gains and income, generated a return of 9.7% during the year. This was after taking account of unrealised foreign exchange losses of 6.3%.
The closing mid-market price of the Company’s ordinary shares on 30 September 2014 was 230.0p, a rise of 16.2% over the year and a discount of 10.6% to NAV.
Recommended final dividend of 5.0p per ordinary share, reflecting the continuing strong level of income received (year ended 30 September 2013 – 5.0p). The Board’s intention in future is to seek to maintain, at least, the real value of this year's proposed 5.0p final dividend.
At the year end the Company’s net assets were GBP409.1 million. In preparing the Company’s year end valuation, 94.6% by value of the portfolio was valued by the relevant fund manager at 30 September 2014.
Distributions received and draw downs from the portfolio during the year rose materially to GBP101.8 million and GBP47.8 million respectively. In addition, the Company acquired through the secondary market fund interests in 3i Eurofund V and IK VII for GBP9.2 million in aggregate.
During the year the Company acquired a total of 6.275 million ordinary shares through a series of share buy-back transactions for GBP12.5 million. The ordinary shares were acquired at an average price of 199.0p and at an average discount to the prevailing NAV of 18.9%, resulting in a gain of GBP2.9 million.
The Company had liquid resources of GBP60.8 million at 30 September 2014, comprising a cash balance, including holdings in money market funds, of GBP21.6 million and GBP39.2 million invested at value (GBP39.0 million at cost) in UK and European equity index tracker funds. The Company has an undrawn GBP80 million syndicated revolving credit facility led by The Royal Bank of Scotland plc that expires in December 2016.
The Company made three new fund commitments during the year with commitments of EUR30.0 million to Nordic Capital VIII, EUR30.0 million to Permira V and EUR55.0 million to Altor Fund IV.
The Company had GBP214.4 million of outstanding commitments at 30 September 2014. After undertaking a detailed review, the Manager now believes that up to GBP50 million of the Company’s existing outstanding commitments are unlikely to be drawn (previously – GBP45 million).
During the period from 30 September 2014 to 4 December 2014 the Company funded GBP5.2 million of draw downs and received GBP10.0 million of distributions. The Company also agreed to acquire fund interests in Advent Global Private Equity VI and Cinven Fourth Fund for GBP19.4 million in aggregate and sold its fund interest in Apax Europe VII for GBP21.8 million. The interest in Apax Europe VII was valued at 30 September 2014 at the sale proceeds received. In addition, the Company made a new commitment of EUR35.0 million to PAI Europe VI.
At 4 December 2014 the Company had a cash balance, including holdings in money market funds, of GBP44.9 million and had GBP40.4 million at value (GBP39.0 million at cost) invested in UK and European equity index tracker funds. At 4 December 2014 the Company had outstanding commitments of GBP236.1 million.
