Standard Life Private Equity Trust

Specialist

Rated Fund 2018-19. Targets growth and income from European private equity

This investment trust aims to achieve long term total returns through a diversified portfolio of private equity funds, the majority of which have a European focus. It therefore offers something different to US-dominated trusts, such as Pantheon International, a long-standing Rated Fund in this space.

Standard Life Private Equity recently made changes to its dividend policy that boost 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.

Roger Pim, deputy head of SL Capital Partners, manages the trust and runs a diversified portfolio of around 50 private equity funds with relatively low company-specific risk. The 10 largest underlying investments accounted for less than 16% of assets at the end of 2018. The fund has a bias towards primary buyout funds, which account for 82% of assets.

Analysts at Winterflood Securities regard the trust as one of the leading listed private equity funds, offering shareholders concentrated exposure to a fund of funds strategy at a competitive cost. ‘The investment team’s experience and expertise in manager selection and ongoing monitoring is attractive in an asset class that sees considerable dispersion of returns, particularly given the fund’s flat management fee of 0.95% of net assets,’ says head of research Simon Elliott.

Given its strong long-term track record and attractive yield, he believes that the current discount offers a value opportunity for long-term investors, especially given the quality of its underlying portfolio.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Standard Life Private Equity Trust
Manager
Aberdeen Standard Investments
Type
Closed Ended Investment Company
ISIN
GB0030474687
Sector
Private Equity
Launched
29/05/2001
OCF
1.14 %
Risk Rating
1
3 Year Sharpe
1.30
3 Year Alpha
9.59
Yield
3.1 %
Fund Size
£ 525.04 million
NAV
407
Gearing
85
Discount Premium
-16
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 %
Nordic Capital Fund Viii Buy-Out 6.89 %
Ik Vii 5.72 %
3i Eurofund V 5.67 %
Exponent Private Equity Partners Ii 4.78 %
Permira V 4.56 %
Advent International GPE VIII Buy-out 4.44 %
Altor Fund Iv Buy-Out 4.33 %
Equistone Partners Europe Fund V Buy-Out 4.01 %
Bridgepoint Europe V 3.84 %
Pai Europe Vi 3.69 %
Name
Aberdeen Standard Investments
Address
EC4M 9HH, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Merrick McKay
Joined 09/30/2018
Alan Gauld
Joined 09/30/2018
Patrick Knechtli
Joined 09/30/2018

Data provided by Morningstar.

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