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Standard Life European Private Equity Trust NAV up 18.4 per cent

Standard Life European Private Equity Trust’s undiluted net asset value per ordinary share rose by 18.4 per cent to 195.3p at 30 September 2010 (diluted NAV – 193.3p), from 164.9p at 30 September 2009 (diluted NAV – 163.4p).

The company can now report five consecutive quarterly increases in NAV.

The 30.4p rise in NAV during the year comprised 3.4p of net realised gains and income from the company’s portfolio of 39 private equity fund interests, 37.5p of net unrealised gains on the portfolio on a constant exchange rate basis, 7.8p of negative foreign exchange rate movements on the portfolio and 2.7p of costs and other movements.

The closing mid-market price of the company’s ordinary shares on 30 September 2010 was 113.75p, a rise of 1.3 per cent over the year and a discount of 41.2 per cent to the diluted NAV.

At 30 September 2010 the company’s net assets were GBP315.2m. The company had interests in 39 private equity funds with a value of GBP369.6m. In preparing the company’s year end valuation, 89.8 per cent by value of the portfolio was valued at 30 September 2010.

Reflecting the gradual improvement in the European private equity market, draw downs during the year increased to GBP48.0m and distributions to GBP23.0m. At 30 September 2010 the company’s net indebtedness was GBP54.2m.

The company made no new fund commitments during the year and had GBP150.3m of outstanding commitments at 30 September 2010.

During the period from 30 September 2010 to 2 December 2010 the company funded GBP13.7m of draw downs and received GBP10.8m of distributions. At 2 December 2010 the company’s total outstanding commitments and net indebtedness were GBP134.5m and GBP57.5m respectively.

The board is recommending a final dividend of 0.2p per ordinary share for the financial year.

Scott Dobbie, chairman, Standard Life European Private Equity Trust, says: “The last year has seen a continuing recovery in the European private equity market, with an increasing number and value of new investments and realisations. Positive earnings growth at the underlying investee companies also gives confidence in our investment portfolio. With the company’s funding position and outstanding commitments now in better balance, the board believes that the building blocks for future growth are in place.”

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