Standard Life posts five-year gains of more than double indices

Standard Life European Private Equity Trust has seen 185 percent gain in net asset value over the past five years and a 10 percent gain over the last six months.

For the five years ended 31 March 2008, Standard Life European Private Equity Trust’s (SLEPET) net asset value and share price have risen by 185.2 percent and 186.3 percent respectively, compared to rises of 68.6 percent in the FTSE All-Share Index and 96 percent in the MSCI Europe Index.

The London Stock Exchange listed trust’s net assets rose by 10 percent to £424.6 million (€540 million; $838.5 million) in the six months ended 31 March 2008 compared to £385.7 million on 30 September 2007, according to the trust’s interim results.

Net asset value per share rose to £2.66 from £2.41 on 30 September 2007.

A gain in net asset value of £0.023 was derived from favourable exchange rate movement and £0.019 was derived from realized gains and income of private equity fund interests. Gains were offset by £0.015 of an unrealised loss on the portfolio on a constant exchange rate basis and a £0.003 from costs and other movements.

“The company delivered a solid performance for the six months ended on 31 March 2008 against a background of difficult market conditions,” trust chairman Scott Dobbie said in a statement. “In the short term, net asset value growth will be influenced by the rate of realizations, comparable listed valuation multiples and the strength of profitability and cashflow generation at underlying investee companies.”

The firm had unrealised gains during the period of £12.8 million up from £1.6 million the previous six month period. SLEPET funded £73.3 million of draw downs, which the firm called “relatively high” due to the completion of transactions in negotiation prior to and during the early stages of credit market turmoil.

The company had interests in 50 private equity funds with a value of £396.4 million, up from 48 funds with a value of £322.6 million six months ago.