Standard Life Private Equity Trust PLC

Specialist

Rated Fund 2018-20. Targets growth and income from European private equity

The value of this investment trust has only edged up over the past year, but it pays a yield of almost 4%, so we are sticking with it for 2020. Its focus on Europe marks it out from US-dominated private equity trusts such as Pantheon International, a longstanding Rated Fund.

Standard Life Private Equity recently made changes to its dividend policy that have boosted its attractiveness to income-seekers. In 2017 it started paying an annual dividend equivalent to a 3.5% yield and in 2018 moved from paying dividends half-yearly to quarterly, to appeal to those looking for a regular income stream from their investments.

The leadership of its management changed in 2018 when Roger Pim moved from SL Capital Partners, where he had worked for 15 years, to another role in parent company Aberdeen Standard Investments. Merrick McKay succeeds him on this trust. He became head of European private equity at SL Capital in 2018, having worked for it for four years previously. He has a wealth of previous experience in private equity markets and has skin in the game – he has 100% of his family’s Isas invested in the fund.

The trust is well-diversified, with its 10 largest underlying investments accounting for just 15% of assets. It has a bias towards primary buyout funds, which account for 85% of assets. Shares in the trust de-rated significantly, from a 9% discount at the start of 2018 to 25% a year later – a level that Winterflood Securities said was hard to justify given the trust’s long-term performance record, the quality of its portfolio and the strength of its balance sheet.

Narrative and ratings content all as of 01 January 2020.

See all Money Observer rated funds
Name
Standard Life Private Equity Trust PLC
Manager
Aberdeen Standard Investments
Type
Closed Ended Investment Company
ISIN
GB0030474687
Sector
Private Equity
Launched
29/05/2001
OCF
1.44 %
Risk Rating
1
3 Year Sharpe
0.17
3 Year Alpha
0.65
Yield
2.7 %
Benchmark
FTSE All Share
Fund Size
£ 455.09 million
NAV
478
Gearing
92
Discount Premium
-38
The investment objective is to achieve long-term total returns through holding a diversified portfolio of private equity funds and direct investments into private companies alongside private equity managers, a majority of which will have a European focus. The principal focus is to invest in leading private equity funds and to manage exposure through the primary and secondary funds markets. To maintain a broadly diversified portfolio by country, industry sector, maturity and number of underlying investments. In terms of geographic exposure, a majority of the portfolio of the company will have a European focus. The objective is for the portfolio to comprise around 50 active private equity fund investments. This excludes funds that have recently been raised, but have not yet started investing, and funds that are close to or being wound up. Company may also invest up to 20% of its TA in co-investments.
Holding %
Ik Fund Viii 11.11 %
3i Eurofund V 7.49 %
Advent Global Private Equity Vii 6.09 %
Permira V 5.34 %
Nordic Capital Viii 5.16 %
Altor Fund Iv 4.58 %
Exponent Private Equity Partners Iii, L.P. 4.57 %
Bridgepoint Europe V 4.31 %
Cvc Vi 3.79 %
Name
Aberdeen Standard Investments
Address
EC4M 9HH, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Mark Nicolson
Joined 01/08/2020
Alan Gauld
Joined 09/30/2018
Patrick Knechtli
Joined 09/30/2018

Data provided by Morningstar.

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