Company Announcements

RNS Number : 7088Q
abrdn Private Equity Opp Trst plc
30 June 2022
 

abrdn Private Equity Opportunities Trust plc

Legal Entity Identifier (LEI): 2138004MK7VPTZ99EV13

 

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 MARCH 2022

 

PERFORMANCE & FINANCIAL HIGHLIGHTS TO 31 MARCH 2022

 

·      Continued NAV growth in spite of headwinds in the broader financial markets and the uncertain global economic backdrop. The Company's NAV total return*+ in the six months to 31 March 2022 was 6.8% (31 March 2021: 14.9%) versus 4.7% (31 March 2021: 18.5%) for the FTSE All-Share Index over the same period. 

 

·      Valuation of existing portfolio continues to increase. The valuation of the portfolio increased by 8.7% during the six months to 31 March 2022 on an unrealised constant currency basis.  Net assets were £1,095.3m, up from £1,036.0m at 30 September 2021.

 

·      Over-commitment ratio remains at the lower end of the long-term target range - Total outstanding commitments of £627.1m at 31 March 2022 (30 September 2021: £557.1m). The over-commitment ratio increased to 38.9% at 31 March 2022 (30 September 2021: 32.5%), with the long term target range being between 30% to 75%.

 

·      Disciplined investment activity focused on non-cyclical strategies - The Company continued to selectively deploy capital into new investments. During the six months to 31 March 2022, the Company made commitments totalling £239.7 million (31 March 2021: £88.4 million). Funds were committed to eight new primary investments, nine co-investments, one follow-on investment in an existing co-investment and one secondary investment.

 

·      Portfolio continued to generate strong realisations - The portfolio continued to generate strong realisations during the six month period and received distributions of £120.6 million (31 March 2021: £92.7 million) and made secondary sales equating to £15.7 million (31 March 2021: £nil).

 

* Considered to be an Alternative Performance Measure.

+ A Key Performance Indicator by which the performance of the Manager is measured by the Board.



 

HIGHLIGHTS

 

Net Asset Value ("NAV") Total Return*+

Share Price Total Return*+

Six months ended 31 March 2022


Six months ended 31 March 2022

6.8%

5.8%

Six months ended 31 March 2021

14.9%


Six months ended 31 March 2021

38.8%

Year ended 30 September 2021 

37.9%

Year ended 30 September 2021 

60.6%






FTSE All-Share Index Total Return 


Net Assets

Six months ended 31 March 2022


31 March 2022

4.7%


£1,095.3m

Six months ended 31 March 2021

18.5%


31 March 2021

£873.9m

Year ended 30 September 2021 

27.9%


30 September 2021 

£1,036.0m

Share Price

Expense Ratio*+

31 March 2022


Six months ended 31 March 2022

520.0p

1.06%

31 March 2021

437.0p


Six months ended 31 March 2021

1.10%

30 September 2021

498.0p

Year ended 30 September 2021

1.10%

* Considered to be an Alternative Performance Measure.

+ A Key Performance Indicator by which the performance of the Manager is measured by the Board.

 

 

 



 

Key Features

 

Conviction


Focus


Diversification

13

carefully selected core European managers which represent

68% of portfolio NAV


78%

of underlying portfolio companies with European Headquarters
Mid-market focus since 2001


600+

underlying portfolio companies






Responsible Investment


Evolving Portfolio


Performance

ESG is integrated into
the investment philosophy and process


17%

of portfolio NAV in
co-investments


11.6%

Annualised NAV total return since inception in 2001

 

Conviction

-       A listed private equity fund-of-funds offering that partners with a select group of core managers via primary funds, secondaries and co-investments

-       APEO currently has 13 core European managers representing 68% of portfolio NAV.  Core managers are private equity firms that APEO partners with via their most recent private equity fund and/or through co-investments

-       Successful track record of selecting top performing managers and funds over many years

-       76% of our primary fund investments sit within the top or second quartile when benchmarked against private equity funds from the same vintage year.*

-       Alongside primary fund investments, APEO also acquires more targeted exposure to specific assets and managers via co-investments and secondaries

*Based on private equity fund benchmarking data from Burgiss; data from 1999 - 2017 as at 30 June 2021 and on a Total Value to Paid In ('TVPI') basis.

Over 65% portfolio NAV to 13 core managers…

Focus

-       Core focus on the European mid-market since the Company's inception in 2001, providing deep market intelligence, a long-term track record of performance and exposure to a segment of the market that can be hard to access

-       The European private equity market has high barriers to potential new entrants, given the different languages, cultures, regulation and legislation across the continent. Therefore, accessing the best incumbent European private equity managers is important

-       European headquartered portfolio companies equate to 78% of portfolio NAV, with a tilt towards North Western Europe (56% of portfolio NAV)

-       APEO's portfolio is not reliant on a single country, helping to provide resilience during periods of financial market turmoil

78% of portfolio NAV with European headquartered managers…

 

Diversification

-       Over 600 underlying private companies, well-balanced across different geographic regions, sectors and vintages

-       We have purposefully sought to invest in managers and investments focused on less cyclical sectors and sub-sectors that are subject to long-term growth

-       Technology and Healthcare represent 42% of the portfolio, based on the value of underlying company exposure. When combined with Consumer Staples these less cyclical sectors equate to 53%

-       49% of the portfolio held for four or more years which will drive distributions going forward with value accretion coming from the less mature vintages

Responsible Investment

Environmental, Social and Governance ("ESG") is a key assessment of every investment made:

-       APEO partners with private equity firms that the Manager rates as ESG market leaders and/or culturally committed to ESG improvement

-       abrdn has been a signatory of the Principles for Responsible Investment for over 10 years, obtaining an A+ rating for strategy and governance in the most recent assessment

-       All private equity firms in the Company's portfolio are subject to the Manager's annual Responsible Investment survey. Whilst not all firms respond directly to the survey, it and ongoing questions provide a useful basis for assessing the firm's adherence to Responsible principles

Evolving Portfolio

-       A larger share of APEO's capital is being deployed via co-investments and secondaries, bringing further control over capital deployment, sector exposure and costs of investment

-       In 2019 we refined APEO's investment strategy to include co-investments which we view as complementary to investing in primary and secondary investments

-       Co-investments accounted for 17% of portfolio NAV at 31 March 2022



 

Chair's Statement

Introduction

I am delighted to present the Company's Half-Yearly Report for the six months to 31 March 2022, in what has been an eventful period for APEO. This is also the first time I write to you as the Chair, having succeeded Christina McComb in March 2022. I am excited to be appointed to the role and look forward to working closely with the Company's Manager and the rest of the Board to continue to build on APEO's success.

The period under review has seen several milestones for the Company. Firstly, following shareholder approval at the Annual General Meeting ("AGM") in March, it changed its name to abrdn Private Equity Opportunities Trust plc (from Standard Life Private Equity Trust plc) to align with the rebranding of the Manager. Also in March 2022, APEO was included in the FTSE 250 Index for the first time, following sustained growth. New investment activity has also continued at pace, particularly in relation to co-investment, which now equates to around 17% of NAV (30 September 2021: 11%).

The strong underlying performance of the Company has continued during the period.  I am mindful however, that the geopolitical environment and financial markets have changed materially in 2022, and I expect headwinds ahead which are likely to impact corporate earnings and valuations. The Board and the Manager are actively taking steps to prepare for these more challenging circumstances.

Performance

For the six months to 31 March 2022, the Company's NAV total return ("TR") was 6.8% and the total shareholder return was 5.8%, as the discount at which the Company's shares were trading to NAV widened slightly to 27.0% compared with 26.1% on 30 September 2021. For comparison, the return on the FTSE All Share was 4.7% over the same period. Clearly there has been a recent shift in the sentiment of public markets, with the increase in inflation, interest rate rises and the conflict in Ukraine all weighing heavily on the global economic outlook and listed equity pricing. These factors have also impacted upon the rating of the private equity sector as a whole.

A review of the Company's performance, market background and investment activity during the period under review, as well as the Manager's investment outlook, are provided in the Manager's Review.

Investments and Realisations

During the period, the Company made commitments totalling £239.7 million (31 March 2021: £88.4 million). Funds were committed to eight new primary investments, nine co-investments, one follow-on investment in an existing co-investment and one secondary investment. This increased the number of co-investments in the portfolio to twenty-two and the proportion of co-investments in the portfolio now stands at 17% (30 September 2021: 11%). New underlying investments during the period have been diverse by sector and notable co-investments include NGE (infrastructure services), Suanfarma (active pharmaceutical and nutraceutical ingredients), European Camping Group (camp site operator) and ACT (environmental certification services).

The Company received distributions of £120.6 million (31 March 2021: £92.7 million) and made secondary sales equating to £15.7 million (31 March 2021: £nil). The gross realised return from divestments in the Company's portfolio equated to 2.2 times cost (31 March 2021: 2.6 times). Outstanding commitments at 31 March 2022 were £627.1 million (31 March 2021: £462.9 million).

I have already referred to the increased pace of co-investments made by the Company and the Board have decided that, in light of this, to make a non-material amendment to the Investment Policy, increasing the percentage of Total Assets that can be invested in co-investments from 20% to 25%.  This change has been reflected in the Investment Policy.

Dividends

The Company paid the first interim dividend for the current financial year in April 2022 of 3.6 pence per share. The Board has declared a second interim dividend of 3.6 pence per share which will be paid on 30 July 2022 to shareholders on the Company's share register at 25 June 2022. These two payments will make a total for the period of 7.2 pence per share (2021: 6.8 pence per share). The Board also expects that, in the absence of any adverse market event, further interim dividend payments of 3.6 pence per share will be made in October 2022 and January 2023. As in previous years, these dividends will be funded from both income distributions and realised capital returns.

Gearing and Liquidity

The Company has £200.0 million of bank facilities and as at 31 March 2022 had £175.6 million undrawn (30 September 2021: £200.0 million). In addition, at the end of March 2022, the Company had cash and cash equivalents of £26.6 million (30 September 2021: £29.7 million), resulting in an overall net cash position of £2.2 million (30 September 2021: £29.7 million).

Board Change

Christina McComb retired from the Board following the conclusion of the AGM in March 2022. Christina had served on the Board since 2013, the last three years as Chair. On behalf of the Board, I would like to thank her for her considerable contribution to the Company and wish her well for the future.

Outlook

It is clear that the broader financial markets and the outlook for the global economy have shifted materially, with the developed economies of the world moving from a Covid-19 recovery phase in late 2021 to a much more challenging environment in early 2022. Both the Board and the Manager expect these tougher conditions to continue for the remainder of 2022, which will no doubt have an impact on the performance of the Company as inflation impacts the margins of underlying portfolio companies and private equity valuations experience more pressure than we have seen in the recent past.

The Board, myself included, have always viewed private equity as a long-term asset class where new investment decisions are often made with a five year time horizon in mind. Whilst the immediate road ahead appears more uncertain, the governance model of private equity has proved many times in the past, most notably during the global financial crisis of 2008-09, that its hands-on ownership model allows underlying businesses to adapt more quickly to changing market circumstances.  Periods of market dislocation also tend to offer new and different opportunities for active investment, which private equity firms have proved adept at identifying, assessing, and executing sound deals. 

With so much new capital having flowed into private equity in recent years and some recent dramatic shifts in the shape of investor portfolios, it is inevitable that institutional investors will look to re-balance their asset allocations and portfolio weightings over the coming quarters, which in turn is likely to fuel activity in the secondary market. I am pleased to say that the Company is well placed to take advantage of such opportunities. 

The Company was founded 21 years ago and has performed well through multiple market cycles during that period. I believe that the Company's investment strategy, the quality and diversification of the existing portfolio and private equity relationships, and its strong balance sheet will help position it well during the current ever-changing market conditions. Furthermore, abrdn Capital Partners LLP has been the Manager of APEO since inception, bringing a long track record and a well-resourced team of private equity investment professionals which, along with the strong engagement of the Board, further underpins my confidence in the Company's ability to generate attractive long-term returns to shareholders in the future.

 

 

Alan Devine
Chair
29 June 2022



 

Interim Management Report and Directors' Responsibility Statement

Principal Risk and Uncertainties

The Board has an ongoing process for identifying, evaluating and managing the principal risks, emerging risks and uncertainties of the Company.

The principal risks faced by the Company relate to the Company's investment activities and are set out in the Strategic Report contained within the Annual Report for the year ended 30 September 2021 (the "2021 Annual Report").  They comprise the following risk categories:

-       market risk

-       liquidity risk

-       over-commitment risk

-       credit risk

-       investment selection

-       operational risk

At the end of the last financial year, the Board noted that there were also a number of contingent risks associated with the continued Covid-19 pandemic that may impact the performance of the Company.  Although, the rate of infection has slowed since then the Board believes that it is prudent to remain wary of the situation and that this risk is still relevant.

Geopolitical risk has increased since the last financial year, as a result of the conflict in Ukraine. The conflict has further exacerbated inflation and interest rate rises, created additional uncertainty around global economic growth and increased volatility in financial markets. These factors are addressed in the risk categories set out above and further details on how they are managed and mitigated are provided in the 2021 Annual Report. The Board will continue to assess these risks on an ongoing basis.

In all other respects, the Company's principal risks, emerging risks and uncertainties have not changed materially since the date of the 2021 Annual Report.

Going Concern

In accordance with the Financial Reporting Council's Guidance on Risk Management, Internal Control and Related Financial and Business Reporting, the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern as a basis for preparing the financial statements.

The Board has taken into account; the £200.0 million committed, syndicated revolving credit facility which matures in December 2024; the level of liquid resources, including cash and cash equivalents; the future cash flow projection; and the Company's cash flows during the period.  The Directors are also mindful of the principal and emerging risks and uncertainties, as disclosed. 

Having reviewed these matters, the Directors believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future and for at least 12 months from the date of this Half-Yearly Report.  Accordingly, they continue to adopt the going concern basis in preparing the Half-Yearly Report.

Related Party Transactions

There have been no material changes in the related party transactions described in the 2021 Annual Report.

Directors' Responsibility Statement

The Directors are responsible for preparing the Half-Yearly Report, in accordance with applicable laws and regulations. The Directors confirm that, to the best of their knowledge:

-       The condensed set of financial statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting) and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

-       The Interim Management Report, together with the Chair's Statement and Investment Manager's Report, includes a fair review of the information required by DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and

-       The financial statements include a fair review of the information required by DTR 4.28R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Company during that period, and any changes in the related party transactions described in the last Annual Report that could do so.

The Half-Yearly Financial Report was approved by the Board and the above Directors' Responsibility Statement was signed on its behalf by the Chair.

For abrdn Private Equity Opportunities Trust plc
Alan Devine

Chair
29 June 2022



 

Investment Strategy

Investment Objective

The Company's 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 ("co-investments"), a majority of which will have a European focus.

Investment Policy

The Company: (i) commits to private equity funds on a primary basis; (ii) acquires private equity fund interests in the secondary market; and (iii) makes direct investments into private companies via co-investments. Its policy is to maintain a broadly diversified portfolio by country, industry sector, maturity and number of underlying investments.

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. The Company may also invest up to 25%* of its assets in co-investments.

The Company may also hold direct private equity investments or quoted securities as a result of distributions in specie from its portfolio of fund investments. The Company's policy is normally to dispose of such assets where they are held on an unrestricted basis.

To maximise the proportion of invested assets, the Company follows an over-commitment strategy by making commitments which exceed its uninvested capital. In making such commitments, the Manager, together with the Board, will take into account the uninvested capital, the value and timing of expected and projected cashflows to and from the portfolio and, from time to time, may use borrowings to meet drawdowns. The Board has agreed that the over-commitment ratio should sit within the range of 30% to 75% over the long-term.

The Company's maximum borrowing capacity, defined in its articles of association, is an amount equal to the aggregate of the amount paid up on the issued share capital of the Company and the amount standing to the credit of the reserves of the Company. However, it is expected that borrowings would not normally exceed 30% of the Company's net assets at the time of drawdown.

The Company's non-sterling currency exposure is principally to the euro and US dollar. The Company does not seek to hedge this exposure into sterling, although any borrowings in euros and other currencies in which the Company is invested would have such a hedging effect.

Cash held pending investment is invested in short-dated government bonds, money-market instruments, bank deposits or other similar investments. Cash held pending investment may also be invested in other listed investment companies or trusts. The Company will not invest more than 15% of its total assets in such listed equities.

The investment limits described above are all measured at the time of investment.

* non-material amendment, agreed by the Board to increase the percentage of Total Assets that can be invested in co-investments from 20% to 25%.

Portfolio Construction Approach

Through its primary, secondary and co-investments the Company is directly and indirectly invested in a diverse range of underlying companies. At 31 March 2022, the portfolio had exposure to 617 separate underlying companies, 36 fund investments and 9 co-investments (31 March 2021: 486 separate underlying companies).

Investments made by the Company are typically with or alongside private equity firms with whom the Manager has an established relationship of more than 10 years. 

The Company predominantly invests in European mid-market companies. Around 80% of portfolio NAV is invested in European domiciled operating companies and the Board expects this to remain the case over the longer term, with a weighting towards North-western Europe. This has been the geographic focus of the Company since its inception in 2001 and where it has a strong, long-term track record. However, the Company also selectively seeks exposure to North American mid-market companies, as a means to access emerging growth or investment trends that cannot be fully captured by investing in Europe alone.

The Company has a well-balanced portfolio in terms of sector exposure. As at 31 March 2022 the largest sector in terms of the total value of underlying company exposure (being Healthcare) is 22% (30 September 2021: Technology, 21%). It is expected that no single sector will be more than 30% of the portfolio over the longer term. Over time, the Manager anticipates a continuation of the recent shift toward sectors that are experiencing long-term growth (such as Technology and Healthcare) at the expense of more cyclical sectors, such as Industrial and Consumer Discretionary.

ESG is a strategic priority for the Board and the Manager. The Company aims to be an active, long-term responsible investor and ESG is a fundamental component of the Company's investment philosophy and process.

Investment Manager's Review

Summary

The portfolio has shown resilient performance in the first six months of the financial year, in spite of headwinds in the broader financial markets and the uncertain global economic backdrop. APEO's long-term strategy of partnering with a core relationship group of top performing private equity firms, focusing on underlying businesses in the mid-market (enterprise values between £100.0 million and £1.0 billion) and targeting diversification across a range of resilient sectors continues to position the Company well. This has been reflected in continued strong trading in the underlying portfolio and robust realisation activity, helping APEO to deliver a NAV TR of 6.8% during the period, by comparison the FTSE All-Share rose by 4.7%.

The underlying portfolio continues to see numerous success stories across a range of sectors and the average earnings growth over the last twelve months to 31 March 2022 was 25.7%, helping to underpin valuation growth during the period. Furthermore, a number of exits at above prior carrying values helped drive an uplift in valuation during the six months to 31 March 2021. Notable exits include General Life (European fertility clinic group), Sbanken (Norwegian online bank) and Vizrt (global producer of software for live video production). Portfolio company realisations during the first six months of the financial year were at a 16.1% premium to the valuation two quarters prior.

However, the part of the portfolio that has seen valuation pressure is the publicly listed company exposures. As a reminder, APEO is not a long-term holder of listed shares but has seen strong IPO activity in the portfolio in the last 18 months, with successful listings including Moonpig (UK-based online gifting business), Dr Martens (leading consumer footwear brand) and Inpost (self-service lockers for ecommerce consumers). Listed companies equated to 12.4% of the portfolio at the beginning of the financial year and this cohort of businesses declined in aggregate by 22.1% in the six months to 31 March 2022. Therefore, listed companies now equate to 8.5% of the portfolio and therefore will be a less meaningful part of the Company's portfolio in the second half of the financial year.

The conflict in Ukraine and the second order effects around inflation, monetary policy and global economic growth have so far had a minimal direct impact on the Company. APEO has no Russian, Belarussian or Ukrainian headquartered businesses in its portfolio of 617 separate underlying portfolio companies. In addition, following discussion with the private equity managers in the Company's portfolio, we estimate that revenues from these countries account for less than 1% of aggregate underlying portfolio company revenues. That said, the Manager is fully expecting an indirect impact on the portfolio to materialise in the second half of the year through the elevated inflation and interest rates, and lower global economic growth, which will impact upon the revenue growth and margins of many underlying businesses.

On the new investment side, APEO closed nine new co-investments and a new secondary investment during the period. Activity focused on businesses that have strong growth potential, market leading positions and resilient business models. The Company also committed to eight new primary funds that are led and managed by private equity firms with long established relationships with the Manager. These new fund commitments are aligned with our long-term strategy of backing private equity firms that have a mid-market orientation and have proven expertise within one or more specified sectors.

In terms of cashflows, the aforementioned exit activity has helped drive strong distributions in the period. Distributions received for the six months to 31 March 2022 were £120.6 million. This strong exit activity is continuing the trend seen in the prior financial year, when the £198.7 million of distributions received in the year to 30 September 2021 was the highest annual total for APEO since its inception in 2001. Furthermore, APEO completed the sales of two fund positions, contributing a further £15.7 million in proceeds and meaning that the Company received an aggregate total of £136.3 million in the six months to 31 March 2022.

Whilst the Manager has focused on reinvesting distributions into new investment opportunities during the period, the balance sheet remains in a strong position with £26.6 million of cash and £175.6 million remaining on its £200.0 million revolving credit facility providing APEO with ample firepower for new investments in the months and years ahead.

Performance

The NAV TR for the six months under review was 6.8% versus 4.7% for the FTSE All-Share Index. The valuation of the portfolio at 31 March 2022 increased 8.7% from 30 September 2021 on an unrealised constant currency basis. The value earned from the portfolio on a per share basis was 49.7p. This was principally made up of realised gains and income of 43.2p, and net unrealised gains at constant foreign exchange ("FX") from the portfolio of 13.5p partially offset by net unrealised FX losses from the portfolio of 7.0p.

The unrealised gains in the year are attributable to the strong earnings performance of the underlying portfolio, which has helped to offset weakness in public market comparables. At 31 March 2022 the underlying portfolio exhibited average LTM revenue and EBITDA growth of 17.8% and 25.7%.  Realised gains were derived from full or partial sales of companies during the period. Portfolio company realisations during the first six months were at a 16.1% premium to the valuation two quarters prior.

In the period, there has been a divergence in performance between the privately held assets (91.5% of the portfolio) and listed equities (8.5% of the portfolio). Privately held underlying investments performed well due to the aforementioned strong earnings performance and relatively stable valuation multiples. However, the Company's listed equities portfolio declined on average by 22.1% over the period, as share prices declined as part of the wider trend in public markets.

Drawdowns

 

Uvesco (co-investment)

£8.5m

Vitruvian IV

£8.3m

NGE (co-investment)

£8.2m

ACT (co-investment)

£8.1m

Planet (co-investment)

£7.7m

Other

£104.7m

 

During the period £145.5 million was invested into existing and new underlying companies. Drawdowns were used to invest into a diverse set of predominantly European headquartered companies. Notable new investments included:

-       Uvesco (co-investment) -  food retail operator in the North of Spain;

-       Medison Pharma Group (Vitruvian Fund IV) - global pharma company focused on providing access to highly innovative therapies;

-       NGE (co-investment) - independent player in the construction and public works sector in France;

-       ACT (co-investment) - largest specialist intermediary in the environmental certification market globally, headquartered in the Netherlands; and

-       Planet (co-investment) - provider of integrated digital payment services.

The private equity funds that the Company invests into often use credit facilities to help finance investments prior to drawing the capital from investors. We estimate that the Company had around £91.9 million held on underlying fund credit facilities at 31 March 2022 (30 September 2021: £47.3 million), and we expect that this will all be drawn over the next 12 months. 

Distributions

 

Investindustrial Growth

£20.2m

Equistone VI (secondary sale)

£15.5m

Altor Fund IV

£11.6m

Nordic VIII

£9.6m

Astorg VI

£9.4m

Other

£70.0m

 

£120.6 million of distributions were received during the period. Exit activity from the private equity funds was driven by the strong market appetite for high quality private companies in resilient sectors following the global pandemic. The typical exit routes were via trade buyers and financial buyers (i.e. other private equity firms). The gross realised return from the Company's portfolio equated to 2.2 times cost (31 March 2021: 2.6 times cost). Portfolio company realisations during the year were at a 16.1% premium to the valuation two quarters prior. Notable realisations in the portfolio included:

-       General Life (Investindustrial Growth Fund) -  European fertility clinic group;

-       Sbanken (Altor Fund IV) - Norwegian online bank;

-       Vizrt (Nordic Capital Fund VIII) - global producer of software for live video production;

-       Autoform (Astorg Fund VI) - global supplier of engineering software for the automotive industry;

-       Atos Medical (PAI Fund VI) - global provider of laryngectomy products.

Furthermore, APEO sold its fund positions in Equistone Fund VI and IK Small Cap Fund III contributing a further £15.7m in proceeds and meaning that an aggregate total of £136.3 million was received from distributions and secondary sales during the period.

Commitments

During the first six months of the year, APEO completed eight primary fund commitments, nine co-investments, one follow-on investment in an existing co-investment and a new secondary investment. In total, new commitments in the period equated to £239.7 million and were offset by £145.5 million of investment drawdowns and £33.2 million of remaining outstanding commitments from the secondary sales of Equistone Fund VI and IK Small Cap Fund III. The total outstanding commitments at 31 March 2022 were £627.1 million (30 September 2021: £557.1 million).

The value of outstanding commitments in excess of liquid resources as a percentage of portfolio NAV (over-commitment ratio) increased to 38.9% as at 31 March 2022 (30 September 2021: 32.5%). This is due to the strong new investment activity in the portfolio and is as planned by the Manager, with the figure at the lower end of the long-term target range of 30%-75%. Furthermore, we estimate that £42.7 million of the reported outstanding commitments are unlikely to be drawn down, due to the nature of private equity investing with primary funds not always being fully drawn.

Investment Activity

Primary Funds

£168.6 million was committed to eight new primary funds during the period. As a reminder, the Company's primary fund strategy is to partner with private equity firms, principally in Europe, that have deep sector focus and operational value creation capabilities and have a core mid-market buyout orientation, i.e. focusing on businesses with an enterprise value between £100.0 million and £1.0 billion. The firms that the Company has partnered with during the period fulfil most, if not all, of this criteria and all are relationships with whom the Manager known for many years, often decades.

Fund

Commitment

Description

Hg Saturn 3

£25.8m

European buyout fund focused on Software and B2B Services.

Advent Global Private Equity X

£25.2m

Global buyout fund which focuses on attractive niches within business and financial services, healthcare, industrial, retail and technology sectors.

ArchiMed MP 2

£25.1m

Healthcare specialist fund, focused on European and North American mid-market companies.

PAI VIII

£25.1m

Pan-European upper mid-market fund focused on Food & Consumer, Business Services, General Industrials and Healthcare.

IK Partnership II

£20.8m

Pan-European mid-market fund focused on co-control and minority opportunities in Food & Consumer, Business Services, Healthcare and Financial Services.

Capiton VI

£16.9m

European lower mid-market fund with a focus in Pharma, MedTech, Industrial Automation and Sustainable Consumption.

Windrose Health Investors Fund VI

£15.1m

Mid-market buyout fund based in the United States, that has a specialist focus on the healthcare sector.

Great Hill Equity Partners VIII

£14.6m

Growth-focused private equity fund  based in the United States.

 



 

Primary Fund Case Study 

Capiton

 

Capiton is a high quality private equity firm operating in the attractive German lower mid-cap segment.

 

 

Company overview

capiton is one of the longest established players in the German PE market, with a history spanning more than 30 years. From the mid 1980s, the Founding Partners of the Firm jointly built the private equity business of Gothaer Group, which was subsequently spun out to form capiton in 1999. Following a buy-out in 2004, the Firm is now independent.

 

Today, the firm has 29 employees including 16 investment professionals. Manuel Hertweck and Frank-Markus Winkler lead the firm with additional governance provided by the Supervisory Board.

 

capiton remains one of the top names in the German market and is known for its experienced team, conservative approach to portfolio construction and for being a trustworthy partner for entrepreneurs. capiton continues to operate effectively within one of Europe's most attractive markets and remains a safe guardian of capital with conservative structuring, a low loss ratio and a proven ability to recover capital from more difficult situations. In a market where reputation and a long and successful track record are essential, these are capiton's key points of difference.

APEO's relationship with capiton

·      abrdn have been investors with capiton for over a decade having committed to capiton IV and V. We hold Advisory Board seats on capiton IV, V and VI.

·      APEO has exposure to capiton IV and V through a secondary completed in 2021 as well as a co-investment in Wundex and a commitment to a single-asset secondary in capiton IV's star asset, KD Pharma.

·      Wundex is a leading German wound care management business. KD Pharma is a producer of high purity omega-3 fatty acids in pharmaceuticals and nutraceuticals. Both are performing strongly.

Previous / Current investments

 

Cedes, Wundex Die Wundexperten, Axxence

 

 

 

Investment

capiton VI

 

Fundsize

€504 million

 

Geographic focus

German-speaking Europe

 

Sectors

Healthcare, Industrials

 

Investment year

2021

 

APEO Commitment

€20.0 million

 

Target Company Size

Lower mid-market (enterprise values between €100 million -€500 million)

 

Investment strategy

Buyout



 



 

Co-investments

During the period, the Company invested and committed £65.8 million into nine new co-investments, as well as a £0.3 million follow-on investment in an existing co-investment.

Co-investment

Investment

Description

CFC

£9.0m

Tech-led insurance platform, who are a global leader and category innovator in the cyber market. The co-investment was made alongside Vitruvian Partners.

NGE

£8.9m

The leading independent player in the construction and public works sector in France. The co-investment was made alongside Montefiore Investment.

Tropicana

£8.6m

A portfolio of well-known beverage brands, including Tropicana and Naked. The co-investment was made alongside PAI Partners.

ACT

£8.4m

The largest specialist intermediary in the environmental certification market globally, headquartered in the Netherlands. The co-investment was made alongside Bridgepoint.

Uvesco

£8.3m

Leading food retail operator in the North of Spain. The co-investment was made alongside PAI.

European Camping Group

£6.7m

European leader in the premium outdoor vacation accommodation market. The co-investment was made alongside PAI Partners.

SuanFarma

£6.3m

Manufacturer, CDMO and distributor of active pharmaceutical and nutraceutical ingredients. The co-investment was made alongside ArchiMed SaS.

CDL Nuclear Technologies

£5.2m

Provider of turnkey cardiac PET / PET-CT imaging technology solutions and radioisotope delivery to independent cardiology practices and hospitals in the US. The co-investment was made alongside Excellere Partners.

SportPursuit

£4.2m

Flash sale e-commerce business which sells clearance stock from leading sports and outdoor brands. The co-investment was made alongside bd-capital Partners.


At 31 March 2022 there were twenty-two co-investments in the Company's portfolio, equating to 17% of portfolio NAV (30 September 2021: 11%), and the co-investment portfolio is performing well to date. As a reminder, co-investments were introduced to the Company's investment objective in 2019 and bring a number of advantages, most notably greater control over portfolio construction and lower associated costs (and therefore higher return potential). Over the longer term the Manager expects co-investments to equate to around 25% of the portfolio.



 

Co-Investment Case Study

ACT


ACT is a leading global provider of market-based environmental solutions. 

Company overview

·      ACT is the largest specialist intermediary in the environmental
certification market globally, offering 80 products across five core
markets, with its headquarters in the Netherlands and hubs across
Europe, the US and China.

·      ACT intermediates between sellers of certificates / offsets (e.g. renewable energy producers) and buyers (e.g. businesses with a need to prove compliance with a regulatory standard or offset emissions), leveraging
its large network and technical and regulatory know-how to advise companies and trade certificates, often 'making a market' in new areas
as a first mover.

·      Environmental certificates are an increasingly important instrument
in successfully managing climate change and are becoming essential
for organisations that are required to reduce greenhouse gases
 from operations.

·      The company delivered full year EBITDA of over €100 million in the year to March 2022, with strong levels of cash generation.

The opportunity

·       After tracking the company for many years and getting to know the founders, Bridgepoint was successful in agreeing to acquire a large minority shareholding in ACT in Q4 2021 (APEO subsequently invested in early 2022). 

·       Led by one of the original founders and his highly entrepreneurial management team, ACT is well positioned in a highly attractive market, benefitting from megatrend environmental tailwinds, that is forecast to grow at 15%+ per annum.

·       Supported by Bridgepoint, management is planning to develop further its core products (such as guarantee of origin certificates and biomethane) and take them into new geographies; grow recently established products (such as bio certificates) and capture more of the value chain; add new products; and develop digital solutions to increase efficiency and reduce cost of settling trades.

·     There is also potential to pursue targeted M&A.

 

 

 

 

Lead Manager

Bridgepoint

APEO's investment

€10.0 million

Investment year

2022

Company size

Large (enterprise value >€1 billion)

Geographic focus

Global

Sector

Technology/Services

 

Secondary Investments

£5.1 million was invested into a new secondary investment during the period. This investment was part of a larger secondary transaction, Project Concorde and the remainder of the transaction is expected to conclude in the second half of the year.

Portfolio Construction

The underlying portfolio includes 617 separate underlying portfolio companies, largely within the European mid-market and spread across different countries, sectors and vintages. At 31 March 2022, only 9 companies equated to more than 1.0% of portfolio NAV (30 September:2021: 7), with the largest single underlying company exposure equating to 4.5% (Action).

At 31 March 2022, 78% of underlying portfolio companies were headquartered in Europe (30 September 2021: 79%). The Company's underlying portfolio remains largely positioned to North Western Europe, with only 5% of underlying company exposure in Italy and Spain (30 September 2021: 5%).

APEO is well diversified by region across North Western Europe, with the Nordics equating to 17% of theunderlying company exposure (30 September 2021: 18%). North America is the highest exposure at 20% (30 September 2021: 19%).

 

Sector Exposure1

Healthcare

22%

Technology

20%

Industrials

18%

Consumer Discretionary

13%

Consumer Staples

11%

Financials

10%

Materials

4%

Energy

1%

Utilities

1%

1 Based on the latest available information from underlying managers.  This excludes underlying fund and co-investments held through the Company portfolio.

At 31 March 2022 Technology and Healthcare represent a combined 42% of the portfolio (30 September 2021: 41%). When combined with Consumer Staples, these more stable, less cyclical sectors equate to over half of the Company's portfolio at 53% (30 September 2021: 53%). It is worth noting the Company generally invests in Information Technology businesses that are profitable and B2B-focused and therefore has relatively low exposure to higher growth, unprofitable technology businesses that have been particularly out of favour in the public markets during 2022.

The other half of the portfolio is exposed to more cyclical sectors, notably Industrials, Consumer Discretionary and Financials. That said, there are sub-sectors within this areas that provide growth opportunities, such as Fintech, ecommerce and B2B Services, where businesses often have a valuable product or an essential service offering with a strong digital component. Some examples within our top 50 companies by value include Benvic (producer of PVC compounds), Trustly (digital account-to-account payments platform) and Asmodee (games publisher and distributor).

 

Maturity Analysis1

Holding Period


1 year

22%

2 year

11%

3 year

18%

4 year

16%

5 year

9%

>6 year

24%

1 Based on the latest available information from underlying managers.  This excludes underlying fund and co-investments held through the Company portfolio. The holding period is the length of time that an underlying portfolio company has been held since its initial investment date by the Company.

A large proportion of the portfolio is reaching maturity, with 49% being in vintages of four years and older (30 September 2021: 55%). This should underpin consistent distribution activity moving forward. 

Outlook

We are delighted by the Company's recent strong performance, particularly given the disruptive backdrop of the global pandemic. However, we are mindful that the macroeconomic environment and financial markets have changed materially in 2022, with significant headwinds in the form of higher inflation, interest rate rises and the conflict in Ukraine creating a higher degree of uncertainty and volatility in financial markets.  We see a period of lower economic growth and greater uncertainty ahead, and assume that both private equity and the Company's underlying portfolio may not be immune to the increasingly challenging market environment.

Against this outlook, we expect some downward pressure on the valuation of the Company's portfolio in the second half of the year as, (i) the share prices of recently listed businesses experience further pressure; and (ii) the downward trend we are seeing in public market valuations feeds into private valuations. The revenue and earnings growth of the portfolio's underlying businesses have remained relatively strong to date, but we expect slowing economic growth and inflation to begin to have an impact upon the profitability of businesses as we move into the next 6-12 months. That said, we fully expect the private equity managers to be active and managing their investments very closely to defend and maintain profit margins.

It is worth reiterating that the Company has navigated multiple economic cycles over a 21 year period and the strategy has remained consistent since its inception in 2001. We take comfort in the quality of the private equity firms that APEO partners with, verified by the thorough due diligence we undertake prior to the Company's investment. Furthermore, the broad diversification of APEO's underlying portfolio by sector, geography and maturity, and its strong balance sheet position, position it well.

More specifically, the governance model of private equity, through majority control and active ownership, provides the opportunity for hands-on value creation in response to changing market circumstances. The private equity firms that the Company partners with are now far more sector specialised with stronger portfolio management toolkits having learned from the global financial crisis.

Furthermore, market volatility does invariably provide attractive new investment opportunities and we believe that private equity particularly thrives in these periods. In addition, we also expect interesting opportunities to emerge in the secondary investment market as investors look to rebalance their core portfolios and sell non-core assets. The Company's balance sheet is in a strong position and we therefore believe that the Company is well positioned to take advantage of opportunities through the remainder of 2022 and beyond.

In summary, we believe that private equity is a long-term asset class and we expect it to continue to deliver outperformance on both absolute and relative bases. Whilst the period ahead appears to be more challenging in terms of financial markets and the global economy, we take comfort in the private equity governance model, the quality of the Company's current portfolio and its set of core managers, and the opportunity to make attractive new investments during this period of greater uncertainty.

 

 

Alan Gauld
Lead Portfolio Manager

29 June 2022

Ten Largest Investments

 1

(30 September 2021: 5.4%)

 Advent International Global Private Equity

Fund Size: €13.0bn

Strategy: Mid to large buyouts

Enterprise Value of investments: $200m-$3bn

Geography: Global with a focus on Europe and
North America

Website: www.adventinternational.com


Invests in attractive niches within business & financial services, healthcare, industrial, retail and technology sectors

Advent International
Global Private Equity VIII

31/3/22

30/9/21

Value (£'000)

50,279

55,818

Cost (£'000)

31,652

31,102

Commitment (€'000)

45,000

45,000

Amount Funded

100.0%

95.2%

Income (£'000)

-

-

 

 2

(30 September 2021: 4.0%)

 Action

Co-investment Size: €2.5bn
Sector: Consumer staples
Location: Netherlands
Year of investment: 2020
Private Equity Manager: 3i Group plc
Investment: Co-investment

Website: www.action.nl


Since its establishment in 1993, Benelux-based Action has grown into the leading non-food discount retailer in the region with more than 2,000 stores and over 65,000 employees

3i 2020 Co-investment 1 SCSp

31/3/22

30/9/21

Value (£'000)

48,897

41,454

Cost (£'000)

22,630

22,630

Commitment (€'000)

26,540

26,540

Amount Funded

100.0%

100.0%

Income (£'000)

1,771

-

 

  3

(30 September 2021: 4.9%)

 Altor Funds

Fund size: €2.1bn

Strategy: Mid-market buyouts

Enterprise Value of investments: €50m-€500m

Geography: Northern Europe

Website: www.altor.com


Focuses on investing in and developing medium-sized companies with a Nordic origin that offer potential for value creation through revenue growth, margin expansion, improved capital management and strategic re-positioning 

Altor Fund IV

31/3/22

30/9/21

Value (£'000)

44,507

51,229

Cost (£'000)

27,960

30,679

Commitment (€'000)

55,000

55,000

Amount Funded

71.7%

69.7%

Income (£'000)

794

2,614

 

  4

(30 September 2021: 3.4%)

 IK Investment Partners

Fund Size: €1.9bn

Strategy: Mid-market buyouts

Enterprise Value of investments: €100m-€500m

Geography: Northern Europe

Website: www.ikinvest.com


Invests in growth strategies supporting business transformation. Unique Northern Continental European footprint

IK Fund VIII

31/3/22

30/9/21

Value (£'000)

41,206

35,006

Cost (£'000)

27,953

28,909

Commitment (€'000)

46,000

46,000

Amount Funded

94.7%

94.7%

Income (£'000)

4

391

 

  5

(30 September 2021: 3.4%)

 Nordic Capital

Fund Size: €4.3bn

Strategy: Mid to large buyouts

Enterprise Value of investments: €200m-€800m

Geography: Northern Europe (Global in Healthcare)

Website: www.nordiccapital.com


Invests in medium to large-sized buyout deals in Northern Europe, through five dedicated sector teams, with the ability to invest in healthcare companies on a global basis

Nordic Capital Fund IX

31/3/22

30/9/21

Value (£'000)

41,186

43,119

Cost (£'000)

21,447

21,065

Commitment (€'000)

30,000

30,000

Amount Funded

89.1%

79.3%

Income (£'000)

-

-

 

  6

(30 September 2021: 2.8%)

 CVC Capital Partners

Fund size: €16.4bn

Strategy: Mid to  large buyouts

Enterprise Value of investments: €500m-€5bn

Geography: Europe and North America

Website: www.cvc.com


Undertakes medium and large sized buyout transactions across a range of industries and geographies

CVC Capital Partners VII

31/3/22

30/9/21

Value (£'000)

40,132

28,902

Cost (£'000)

24,960

18,616

Commitment (€'000)

35,000

35,000

Amount Funded

84.1%

64.3%

Income (£'000)

31

101

 

  7

(30 September 2021: 3.5%)

 Towerbrook

Fund Size: $3.6bn

Strategy: Mid-market buyouts

Enterprise Value of investments: $200m-$1bn

Geography: Europe and North America

Website: www.towerbrook.com


Control-oriented private equity investments in mid-market companies in Europe and North America, principally on a proprietary basis and in situations characterized by complexity.

TowerBrook Investors IV

31/3/22

30/9/21

Value (£'000)

38,248

35,816

Cost (£'000)

17,266

16,947

Commitment ($'000)

36,561

36,561

Amount Funded

60.8%

59.9%

Income (£'000)

40

456

 

  8

(30 September 2021: 3.6%)

 Exponent

Fund Size: £1.0bn

Strategy: Mid-market buyouts

Enterprise Value of investments: £75m-£350m

Geography: UK

Website: www.exponentpe.com


Target businesses have strong market positions, evidence of historical constraints and are capable of transformation. Companies often have a significant international footprint

Exponent Private Equity Partners III, LP.

31/3/22

30/9/21

Value (£'000)

35,788

37,704

Cost (£'000)

24,927

25,262

Commitment (£'000)

28,000

28,000

Amount Funded

87.8%

87.8%

Income (£'000)

252

348

 

  9

(30 September 2021: 3.5%)

Cinven

Fund Size: €7.0bn

Strategy: Mid to large buyouts

Enterprise Value of investments: €250m - €6bn

Geography: Europe and North America

Website: www.cinven.com


Targets companies that have the ability to deploy clearly identified sector strategies to accelerate growth in Europe or globally

Sixth Cinven Fund

31/3/22

30/9/21

Value (£'000)

34,482

35,978

Cost (£'000)

19,764

21,477

Commitment (€'000)

26,000

28,100

Amount Funded

89.6%

88.2%

Income (£'000)

622

-

 

  10

(30 September 2021: 2.7%)

Structured Solutions IV Primary Holdings

Fund size: $125m

Strategy: Various

Enterprise Value of investments: $500m - $5bn

Geography: Europe and North America


A diversified secondary transaction comprising large cap buyout funds in Europe and the US

Structured Solutions IV Primary Holdings

31/3/22

30/9/21

Value (£'000)

34,296

28,507

Cost (£'000)

28,139

28,093

Commitment ($'000)

62,500

62,500

Amount Funded

61.5%

61.5%

Income (£'000)

-

-

 

Notes:

Performance information has been prepared by APEO and has not been approved by the General Partners of the funds or any of their Associates.

*Income figures are for the six months ended 31 March 2022 and 31 March 2021 respectively.

The Company's position in Action is held through 3i 2020 Co-investment 1 SCSp (formerly known as 3i Venice SCSp, a special purpose vehicle managed by 3i as co-investment lead.



 

Investment Portfolio

 

Outstanding

Number of

commitments

Cost

Valuation

Net

% of

Vintage

Investment

 investments

£'000

£'000

£'0001

multiple2

NAV

2016

Advent International Global Private Equity VIII

30

-

31,652

50,279

1.9x

4.6

2020

3i 2020 Co-investment 1 SCSp (Action)3,4

1

-

22,630

48,897

2.2x

4.5

2014

Altor Fund IV

16

13,167

27,960

44,507

2.0x

4.1

2016

IK Fund VIII

12

2,070

27,953

41,206

1.7x

3.8

2018

Nordic Capital Fund IX

14

2,752

21,447

41,186

1.9x

3.8

2017

CVC Capital Partners VII

33

4,702

24,960

40,132

1.6x

3.7

2013

TowerBrook Investors IV

13

10,887

17,266

38,248

2.3x

3.5

2015

Exponent Private Equity Partners III, LP.

10

3,426

24,927

35,788

1.7x

3.3

2016

Sixth Cinven Fund

15

2,280

19,764

34,482

1.9x

3.1

2021

Structured Solutions IV Primary Holdings*

45

18,276

28,139

34,296

1.2x

3.1

2017

HgCapital 8

12

7,435

10,900

33,626

2.4x

3.1

2014

CVC VI

23

2,614

16,345

33,374

2.2x

3.0

2014

Permira V

12

712

14,252

32,344

3.5x

3.0

2019

Advent International Global Private Equity IX

31

6,458

14,506

28,913

2.0x

2.6

2013

Nordic Capital VIII

14

3,914

18,385

27,300

1.8x

2.5

2014

PAI Europe VI*

13

2,244

16,422

25,792

1.9x

2.4

2015

Bridgepoint Europe V

10

2,456

14,978

22,723

2.0x

2.1

2018

Bridgepoint Europe VI

16

8,050

17,223

22,375

1.4x

2.0

2018

Investindustrial Growth

5

6,051

14,201

22,328

2.4x

2.0

2015

Equistone Partners Europe Fund V

16

2,264

18,442

19,419

1.6x

1.8

2018

Triton Fund V

16

11,382

14,361

18,156

1.3x

1.7

2018

PAI Europe VII*

14

12,495

13,459

16,035

1.4x

1.5

2019

Altor Fund V

15

19,507

10,077

15,679

1.6x

1.4

2015

Nordic Capital VII

4

1,840

13,838

14,505

1.4x

1.3

2020

MPI-COI-NAMSA SLP (NAMSA)3

1

2,518

4,863

14,393

2.5x

1.3

2019

Cinven 7

12

8,933

12,362

13,812

1.1x

1.3

2016

Astorg VI

7

3,884

2,047

13,249

1.7x

1.2

2019

IK IX

9

10,147

11,095

12,221

1.1x

1.1

2019

Vitruvian I CF LP

5

7,986

9,119

12,188

1.3x

1.1

2019

American Industrial Partners VII

10

4,584

10,493

11,852

1.1x

1.1

2017

Onex Partners IV LP

9

969

10,982

11,635

1.4x

1.0

2020

Vitruvian IV

22

11,115

9,961

11,096

1.1x

1.0

2012

IK Fund VII

4

1,689

10,130

10,419

2.1x

1.0

2021

Arbor Co-Investment LP (ACT)3

1

271

8,058

10,222

1.3x

0.9

2021

IK Co-invest Questel (Questel)3

1

-

8,554

9,813

1.1x

0.9

2021

Hg Isaac Co-Invest LP (Insightsoftware)3

1

147

7,452

8,873

1.2x

0.8

2018

MSouth Equity Partners IV

8

7,531

8,767

8,811

1.0x

0.8

2019

PAI Strategic Partnerships SCSp

2

260

6,516

8,501

1.3x

0.8

2022

Uvesco Co-invest SCSp (Uvesco)*3

1

-

8,451

8,476

1.0x

0.8

2019

Investindustrial VII

11

13,965

7,839

8,209

1.1x

0.7

2021

Capiton VI Wundex Co-Investment (Wundex)3

1

3,142

5,352

8,069

1.5x

0.7

2021

MI NGE S.L.P. (NGE)3

1

816

8,153

8,046

1.0x

0.7

2021

Hg Riley Co-Invest LP (Riskalyze)3

1

-

6,836

7,969

1.2x

0.7

2020

Hg Vardos Co-invest L.P. (Visma)3

1

-

4,871

7,951

1.6x

0.7

2020

Hg Saturn 2

6

7,859

4,080

7,881

1.7x

0.7

2020

Vitruvian III

28

1,840

4,701

7,753

1.8x

0.7

2021

Eurazeo Payment Luxembourg Fund SCSp (Planet)3

1

1,155

7,702

7,671

1.0x

0.7

2021

MPI-COI-PROLLENIUM SLP (Prollenium)3

1

1,403

7,124

7,470

1.0x

0.7

2011

Montagu IV

5

991

5,388

7,253

1.9x

0.7

2015

Capiton V

10

896

6,929

7,209

1.0x

0.7

2012

Equistone Partners Europe Fund IV

8

624

9,393

7,060

2.2x

0.6

2020

Capiton VI

9

11,173

5,802

6,999

1.2x

0.6

2020

Nordic Capital X

13

16,657

4,523

6,992

1.5x

0.6

2021

Bengal Co-Invest SCSp (Tropicana Brands Group)*3

1

2,330

6,198

6,405

1.0x

0.6

2020

Hg Genesis 9

10

8,170

4,580

6,259

1.3x

0.6

2019

Great Hill Partners VII

18

4,010

4,427

5,701

1.6x

0.5

2021

ECG Co-invest SLP (European Camping Group)*3

1

1,336

5,485

5,408

1.0x

0.5

2021

MPI-COI-SUAN SLP (Suanfarma)3

1

976

5,428

5,360

1.0x

0.5

2021

CDL Coinvestment SPV (CDL)3

1

-

5,294

5,337

1.0x

0.5

2021

Latour Co-invest Funecap (Funecap)3

1

2,080

4,287

4,760

1.1x

0.4

2012

Advent International Global Private Equity VII

19

1,183

5,115

4,324

2.2x

0.4

2020

PAI Mid-Market I*

3

16,164

4,987

4,310

0.9x

0.4

2021

bd-capital Partners Chase (Sport Pursuit)3

1

-

4,279

4,250

1.0x

0.4

2019

Alphaone International S.à.r.l. (Mademoiselle Desserts)3

1

1,675

3,522

3,595

1.0x

0.3

2020

Hg Mercury 3

7

7,630

2,846

3,236

1.1x

0.3

2021

Nordic Capital WH1 Beta, L.P. (Boost.ai)3

1

1,832

1,841

2,606

1.2x

0.2

2020

Seidler Equity Partners VII L.P.

3

12,294

2,757

2,554

1.0x

0.2

2021

Advent Technology II

6

21,532

2,319

2,172

0.9x

0.2

2020

Triton Smaller Mid-Cap Fund II

3

18,162

2,955

2,093

0.7x

0.2

2001

CVC III*

1

395

4,283

1,926

2.7x

0.2

2022

AV Invest B3

1

3,307

1,803

1,806

1.0x

0.2

2019

ASI Omega Holdco Limited (KD Pharma)3

1

2,727

1,462

1,726

1.2x

0.2

2013

Bridgepoint Europe IV

5

764

2,920

1,668

1.6x

0.2

2008

CVC V*

1

421

4,411

1,593

2.4x

0.1

2021

WindRose Health Investors Fund VI

1

13,632

1,556

1,518

1.0x

0.1

2006

3i Eurofund V

1

-

11,308

769

2.7x

0.1

2019

Gilde Buy-Out Fund IV

2

-

2,262

408

1.2x

0.0

2007

Industri Kapital 2007 Fund

0

1,467

5,545

69

1.4x

0.0

2009

Capiton IV GmbH & Co. Beteiligungs KG

5

144

241

65

1.1x

0.0

2019

Borromin Capital Fund III L.P

0

204

808

8

1.6x

0.0

2006

HgCapital 5

1

-

5,958

7

1.6x

0.0

2022

Advent International Global Private Equity X

0

25,352

-

-

0.0x

0.0

2022

ArchiMed - Med Platform 2

0

25,352

-

-

0.0x

0.0

2021

ArchiMed III

1

12,635

42

-

0.0x

0.0

2022

VIP SIV I LP (CFC)3

1

9,000

-

-

0.0x

0.0

2021

Excellere Partners Fund IV

2

26,583

-

-

0.0x

0.0

2021

Great Hill Equity Partners VIII

0

15,190

-

-

0.0x

0.0

2022

Hg Saturn 3

0

26,583

-

-

0.0x

0.0

2021

IK Partnership II

0

21,126

-

-

0.0x

0.0

2021

Nordic Capital Evolution Fund

4

25,352

-

-

0.0x

0.0

2022

PAI Europe VIII

0

25,352

-

-

0.0x

0.0

2021

Permira Growth Opportunities II

7

26,583

-

-

0.0x

0.0

Total investments5

690

627,080

780,549

1,093,616

99.8

Non-portfolio assets less liabilities

1,676

0.2

Total shareholders' funds

1,095,292

100.0

1 All funds are valued by the manager of the relevant fund or co-investment as at 31 March 2022, with the exception of those funds suffixed with an * which were valued as at 31 December 2021 or initial funding amount paid

2 The net multiple has been calculated by the Manager in sterling on the basis of the total realised and unrealised return for the interest held in each fund and co-investments. These figures have not been reviewed or approved by the relevant fund or its manager.

3 Co-investment position. The name of the underlying co-investment which is indirectly held by the Company has been included within the bracketed text.

4 Formerly known as 3i Venice SCSp.

5 The 690 underlying investments represent holdings in 617 separate companies as well as 36 fund investments and 9 co-investments which are held through Structured Solutions IV Primary Holdings .



 

Condensed Statement of Comprehensive Income (unaudited)

 

For the six months ended 31 March 2022

For the six months ended 31 March 2021

Notes

Revenue

Capital

Total

Revenue

Capital

Total

£'000

£'000

£'000

£'000

£'000

£'000

Total capital gains on investments

-

71,998

71,998

-

117,485

117,485

Currency gains / (losses)

-

131

131

-

(2,852)

(2,852)

Income

4

4,750

-

4,750

4,760

-

4,760

Investment management fee

5

(516)

(4,646)

(5,162)

(407)

(3,665)

(4,072)

Administrative expenses

(520)

-

(520)

(499)

-

(499)

Profit before finance costs and taxation

3,714

67,483

71,197

3,854

110,968

114,822

Finance costs

(153)

(875)

(1,028)

(153)

(783)

(936)

Profit before taxation

3,561

66,608

70,169

3,701

110,185

113,886

Taxation

(544)

154

(390)

(605)

520

(85)

Profit after taxation

3,017

66,762

69,779

3,096

110,705

113,801

Earnings per share - basic and diluted

7

1.96p

43.42p

45.38p

2.01p

72.00p

74.01p

The Total column of this statement represents the profit and loss account of the Company.

There are no items of other comprehensive income, therefore this statement is the single statement of comprehensive income of the Company.

All revenue and capital items in the above statement are derived from continuing operations.

No operations were acquired or discontinued in the period.



 

Condensed Statement of Financial Position (unaudited)

 

As at

As at

31 March 2022

30 September 2021

Notes

£'000

£'000

£'000

£'000

Non-current assets

Investments

8

1,093,616

1,007,843

1,093,616

1,007,843

Current assets

Receivables

3,094

1,144

Cash and cash equivalents

26,605

29,714

29,699

30,858

Creditors: amounts falling due within one year

Payables

(3,622)

(2,734)

Revolving credit facility

10

(24,401)

-

Net current assets

1,676

28,124

Total assets less current liabilities

1,095,292

1,035,967

Capital and reserves

Called-up share capital

307

307

Share premium account

86,485

86,485

Special reserve

51,503

51,503

Capital redemption reserve

94

94

Capital reserves

956,903

897,578

Revenue reserve

-

-

Total shareholders' funds

1,095,292

1,035,967

Net asset value per equity share

9

712.4p

673.8p

The Financial Statements of abrdn Private Equity Opportunities Trust plc, registered number SC216638 were approved and authorised for issue by the Board of Directors on 29 June 2022 and were signed on its behalf by Alan Devine, Chair.

Alan Devine

Chair

29 June 2022



 

Condensed Statement of Changes in Equity (unaudited)

 

For the six months ended 31 March 2022 

Called-up

 Share

 Capital

 share

 premium

 Special

 redemption

Capital

 Revenue

 capital

 account

 reserve

 reserve

reserves

 reserve

 Total

 Notes

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

Balance at 1 October 2021

307

86,485

51,503

94

897,578

-

1,035,967

Profit after taxation

-

-

-

-

66,762

3,017

69,779

Dividends paid

6

-

-

-

-

(7,437)

(3,017)

(10,454)

Balance at 31 March 2022

307

86,485

51,503

94

956,903

-

1,095,292

For the six months ended 31 March 2021

Called-up

Share

Capital

 share

premium

Special

redemption

Capital

Revenue

capital

account

reserve

reserve

reserves

reserve

Total

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

Balance at 1 October 2020

307

86,485

51,503

94

631,904

-

770,293

Profit after taxation

-

-

-

-

110,705

3,096

113,801

Dividends paid

6

-

-

-

-

(7,051)

(3,096)

(10,147)

Balance at 31 March 2021

307

86,485

51,503

94

735,558

-

873,947



 

Condensed Statement of Cash Flows (unaudited)

 

For the six months ended

For the six months ended

31 March 2022

31 March 2021

Note

£'000

£'000

£'000

£'000

Cashflows from operating activities

Profit before taxation

70,169

113,886

Adjusted for:

Finance costs

1,028

936

Gains on disposal of investments

8

(63,774)

(53,272)

Revaluation of investments

(8,438)

(64,325)

Currency (gains) / losses

(131)

2,852

(Increase) / decrease in debtors

(308)

202

Increase in creditors

840

520

Tax deducted from non-UK income

(390)

(85)

Interest paid and arrangement fees

(797)

(734)

Net cash outflow from operating activities

(1,801)

(20)

Investing activities

Purchase of investments

8

(145,453)

(63,248)

Distributions of capital proceeds by investments

8

116,178

88,247

Distributions receivable from investments

(1,825)

-

Disposal of quoted investments

-

2,193

Receipt of proceeds from disposal of unquoted investments

8

15,714

15,148

Net cash (outflow) / inflow from investing activities

(15,386)

42,340

Financing activities

Revolving credit facility

10

24,401

-

Ordinary dividends paid

6

(10,454)

(10,147)

Net cash inflow / (outflow) from financing activities

13,947

(10,147)

Net (decrease) / increase in cash and cash equivalents

(3,240)

32,173

Cash and cash equivalents at the beginning of the period

29,714

33,135

Currency gains / (losses) on cash and cash equivalents

131

(2,852)

Cash and cash equivalents at the end of the period

26,605

62,456

Cash and cash equivalents consist of:

Money-market funds

-

42,019

Cash

26,605

20,437

Cash and cash equivalents

26,605

62,456



 

Notes to the Financial Statements (unaudited)

For the six months ended 30 March 2022

 

1

Financial Information

The financial information for the year ended 30 September 2021 within the report is considered non-statutory as defined in sections 434-436 of the Companies Act 2006. The financial information for the six months ended 31 March 2022 and 31 March 2021 has not been audited. The financial information for the year ended 30 September 2021 has been extracted from the published accounts that have been delivered to the Registrar of Companies and on which the report of the auditor was unqualified under section 498 of the Companies Act 2006.

 

2

 Basis of preparation and going concern

The condensed financial statements for the six months ended 31 March 2022  have been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting) and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'.

The condensed financial statements for the six months ended 31 March 2022 have been prepared using the same accounting policies as the preceding annual financial statements. This is available at www.abrdnpeot.co.uk or on request from the Company Secretary.

The Board have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has the resources to continue in business for a period of at least 12 months from the date of these condensed financial statements. In preparing these condensed financial statements, the Board have considered:

- the remaining undrawn balance of the £200.0 million committed, syndicated revolving credit facility with a maturity date in December 2024;

- the level of cash balances. The Manager regularly monitors the Company's cash position to ensure sufficient cash is held to meet liabilities as they fall due;

- the future cash flow projections (including the level of expected realisation proceeds, the expected future profile of investment commitments and the terms of the revolving credit facility); and

- the Company's cash flows during the period.

Based on a review of the above, the Board are satisfied that the Company has, and will maintain, sufficient resources to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the condensed financial statements. Accordingly, the condensed financial statements have been prepared on a going concern basis.

 

3

Exchange rates

Rates of exchange to sterling were:

As at

As at

31 March 2022

30 September 2021

Euro

1.1834

1.1635

US dollar

1.3167

1.3484

Canadian dollar

1.6446

1.7082

 

4

Income

Six months ended

Six months ended

31 March 2022

31 March 2021

£'000

£'000

Income from fund investments

4,748

4,756

Interest from cash balances and money-market funds

2

4

Total income

4,750

4,760

 

5

Investment management fee

Six months ended 31 March 2022

Six months ended 31 March 2021

Revenue

Capital

Total

Revenue

Capital

Total

£'000

£'000

£'000

£'000

£'000

£'000

Investment management fee

516

4,646

5,162

407

3,665

4,072

The Manager of the Company is abrdn Capital Partners LLP. In order to comply with the Alternative Investment Fund Managers Directive, the Company appointed abrdn Capital Partners LLP as its Alternative Investment Fund Manager from 1 July 2014. The Manager was renamed as abrdn Capital Partners LLP as of 29 November 2021.

The investment management fee payable to the Manager is 0.95% per annum of the NAV of the Company. The investment management fee is allocated 90% to the realised capital reserve - gains/(losses) on disposal and 10% to the revenue account.  The management agreement between the Company and the Manager is terminable by either party on twelve months written notice.

Investment management fees due to the Manager as at 31 March 2022 amounted to £3,037,000 (30 September 2021: £2,227,000).

 

6

Dividend on ordinary shares

In respect of the year ended 30 September 2021, the third quarterly dividend of 3.4p per ordinary share was paid on 29 October 2021 (2020: dividend of 3.3p per ordinary share paid on 30 October 2020). The fourth quarterly dividend of 3.4p per ordinary share was then paid on 25 January 2022 (2020: dividend of 3.3p per ordinary share paid on 29 January 2021).

For the financial period ending 31 March 2022, the first quarterly dividend of 3.6p per ordinary share was paid on 23 April 2022 (2021: dividend of 3.4p was paid on 23 April 2021). A proposed dividend of 3.6p per share is due to be paid on 30 July 2022 (2021: dividend of 3.4p was paid on 30 July 2021).

 

7

Earnings per share - basic and diluted

Six months ended

Six months ended

31 March 2021

p

£'000

p

£'000

The net return per ordinary share is based on the following figures:

Revenue net return

1.96

3,017

2.01

3,096

Capital net return

43.42

66,762

72.00

110,705

Total net return

45.38

69,779

74.01

113,801

Weighted average number of ordinary shares in issue:

153,746,294

153,746,294

There are no diluting elements to the earnings per share calculation in the six months ended 31 March 2022 (2021: none).

 

8

Investments

Six months ended 31 March 2022

Year ended 30 September 2021

Quoted

Unquoted

Quoted

Unquoted

Investments

Investments

Total

Investments

Investments

Total

£'000

£'000

£'000

£'000

£'000

£'000

Fair value through profit or loss:

Opening market value

-

1,007,843 

1,007,843 

-

721,650 

721,650 

Opening investment holding gains

-

(304,629)

(304,629)

-

(108,790)

(108,790)

Opening book cost

-

703,214 

703,214 

-

612,860 

612,860 

Movements in the period / year:

Additions at cost

-

143,650

143,650

2,422

147,656

150,078

Secondary purchases

-

1,803

1,803

-

35,260

35,260

Distribution of capital proceeds

-

(116,178)

(116,178)

-

(187,772)

(187,772)

Disposal of quoted investments

-

-

-

(2,193)

-

(2,193)

Secondary sales

-

(15,714)

(15,714)

-

(1,084)

(1,084)

-

716,775

716,775

229 

606,920 

607,149 

Gains on disposal of underlying investments

-

63,774 

63,774 

-

96,294

96,294

Losses on disposal of quoted investments

-

-

-

(229)

-

(229)

Closing book cost

-

780,549

780,549

-

703,214 

703,214 

Closing investment holding gains

-

313,067

313,067

-

304,629 

304,629 

Closing market value

-

1,093,616

1,093,616

-

1,007,843 

1,007,843 

The total capital gain on investments of £71,998,000 (2021: £117,485,000) per the Condensed Statement of Comprehensive Income for the six months ended 31 March 2022 also includes transaction costs of £214,000 (2021: £112,000).

 

9

Net asset value per equity share

As at

As at

31 March 2022

30 September 2021

Basic and diluted:

Ordinary shareholders' funds

£1,095,291,766

£1,035,967,006

Number of ordinary shares in issue

153,746,294

153,746,294

Net asset value per ordinary share

712.4p

673.8p

The net asset value per ordinary share and the ordinary shareholders' funds are calculated in accordance with the Company's articles of association.   

There are no diluting elements to the net asset value per equity share calculation in the six months ended 31 March 2022 (2021: none).

 

10

Revolving credit facility

As at

As at

31 March 2022

30 September 2021

£'000

£'000

Revolving credit facility

24,401 

-

As at 31 March 2022, the Company had a £200.0 million (30 September 2021: £200.0 million) committed, multi-currency syndicated revolving credit facility. The facility is provided by Citi, Société Générale and State Street Bank International. The facility expires on 6 December 2024.

The interest rate on this facility is calculated as the defined reference rate of the currency drawn plus 1.625%, rising to 2.0% depending on the level of facility utilisation. The commitment fee rate payable on non-utilisation is 0.7% per annum.

 

11

Commitments and contingent liabilities

As at

As at

31 March 2022

30 September 2021

£'000

£'000

Outstanding calls on investments

627,080

557,051 

This represents commitments made to fund and co-investment interests remaining undrawn.

 

12

Fair Value hierarchy

FRS 104 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following classifications:

- Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

- Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e., developed using market data) for the asset or liability, either directly or indirectly.

- Level 3: Inputs are unobservable (i.e., for which market data is unavailable) for the asset or liability.

The Company's financial assets and liabilities, measured at fair value in the Condensed Statement of Financial Position, are grouped into the following fair value hierarchy at 31 March 2022:

Level 1

Level 2

Level 3

Total

Financial assets at fair value through profit or loss

£'000

£'000

£'000

£'000

Unquoted investments

-

-

1,093,616

1,093,616

Net fair value

-

-

1,093,616

1,093,616

As at 30 September 2021

Level 1

Level 2

Level 3

Total

Financial assets at fair value through profit or loss

£'000

£'000

£'000

£'000

Unquoted investments

-

-

1,007,843

1,007,843

Net fair value

-

-

1,007,843

1,007,843

Unquoted investments

Unquoted investments are stated at the directors' estimate of fair value and follow the recommendations of the EVCA and the BVCA (European Private Equity & Venture Capital Association and British Private Equity & Venture Capital Association). The estimate of fair value is normally the latest valuation placed on an investment by its manager as at the Condensed Statement of Financial Position date. The valuation policies used by the manager in undertaking that valuation will generally be in line with the joint publication from the EVCA and the BVCA, 'International Private Equity and Venture Capital Valuation guidelines'. Fair value can be calculated by the manager of the investment in a number of ways. In general, the managers with whom the Company invests adopt a valuation approach which applies an appropriate comparable listed company multiple to a private company's earnings or by reference to recent transactions. Where formal valuations are not completed as at the Condensed Statement of Financial Position date, the last available valuation from the manager is adjusted for any subsequent cash flows occurring between the valuation date and the Condensed Statement of Financial Position date. The Company's Manager may further adjust such valuations to reflect any changes in circumstances from the last manager's formal valuation date to arrive at the estimate of fair value.

 

13

Parent undertaking, related party transactions and transactions with the Manager

The ultimate parent undertaking of the Company is Phoenix Group Holdings. The results for the period from 1 October 2021 to 31 March 2022 are incorporated into the group financial statements of Phoenix Group Holdings, which will be available to download from the website www.thephoenixgroup.com.

Standard Life Assurance Limited ("SLAL", which is 100% owned by Phoenix Group Holdings), and the Company have entered into a relationship agreement which provides that, for so long as SLAL and its Associates exercise, or control the exercise, of 30% or more of the voting rights of the Company, SLAL and its Associates, will not seek to enter into any transaction or arrangement with the Company which is not conducted at arm's length and on normal commercial terms, take any action that would have the effect of preventing the Company from carrying on an independent business as its main activity or from complying with its obligations under the Listing Rules or purpose or procure the proposal of any shareholder resolution which is intended or appears to be intended to circumvent the proper application of the Listing Rules. During the period ended 31 March 2022, SLAL received dividends from the Company totalling £5,855,000 (31 March 2021: £5,683,000).

During the period ended 31 March 2022, the Manager charged management fees totalling £5,162,000 (31 March 2021: £3,987,000) to the Company in the normal course of business. The balance of management fees outstanding at 31 March 2022 was £3,037,000 (30 September 2021: £2,227,000).

abrdn Investment Management Limited (formerly Standard Life Investments Limited), which shares the same ultimate parent as the Manager, received fees for the provision of promotional activities of £60,000 (31 March 2021: £60,000) during the period. The balance of promotional fees outstanding at 31 March 2022 was a payable of £300,000 (30 September 2021: £180,000).

The Company Secretarial services for the Company are provided by Aberdeen Asset Management PLC, which shares the same ultimate parent as the Manager. During the period ended 31 March 2022, the Company incurred secretarial fees of £35,000 (31 March 2021: £36,000). The balance of secretarial fees outstanding at 31 March 2022 was £70,000 (30 September 2021: £35,000)

The Company previously invested in liquidity funds managed by Aberdeen Standard Investments (Lux), which share the same ultimate parent as the Manager. During the period ended 31 March 2022, the Company received interest amounting to £2,000 (31 March 2021: £4,000) on sterling denominated positions. There was no interest on euro denominated positions (31 March 2021: £nil). The Company realised its holding in the liquidity funds in November 2021.

No other related party transactions were undertaken during the six months ended 31 March 2022.



Alternative Performance Measures

Alternative performance measures ("APMs") are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable

financial framework. The Company's applicable financial framework includes FRS 102 and the AIC SORP. The directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies.

Discount

The amount by which the market price per share is lower than the net asset value per share of an investment trust. The discount is normally expressed as a percentage of the net asset value per share.


As at
31 March
2022

As at
30 September 2021

Share price (p)

520.0

498.0

Net Asset Value per share (p)

712.4

673.8

Discount (%)

27.0

26.1

Dividend yield

The total dividend per ordinary share in respect of the financial year divided by the share price, expressed as a percentage, calculated at the year end date of the Company:


Year ended 30 September


2021

2020

Dividend per share (p)

13.6

13.2

Share price (p)

498.0

320.0

Dividend yield (%)

2.7

4.1

 

NAV total return

NAV total return shows how the NAV has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. This involves reinvesting the net dividend into the NAV at the end of the quarter in which the shares go ex-dividend. Returns are calculated to each quarter end in the year and then the total return for the year is derived from the product of these individual returns.


NAV per share (p)

Dividend pershare (p)

30 September 2021

673.8


31 December 2021

705.2

3.4

31 March 2022

712.4

3.6

NAV total return

6.8%


 

Ongoing charges ratio/expense ratio

The ongoing charges ratio is calculated as management fees and all other recurring operating expenses that are payable by the Company, excluding the costs of purchasing and selling investments, performance fees, finance costs, taxation, non-recurring costs, and the costs of any share buy-back transactions,  expressed as a percentage of the average NAV during the period.  The ratio also includes an allocation of the look- through expenses of the Company's underlying investments, excluding performance-related fees.

 The ongoing charges ratio has been calculated in accordance with the applicable guidance issued by the Association of Investment Companies ("AIC"), which was last updated in  October 2020.


Six months ended 31 March 2022
£'000

Year ended
30 September 2021
£'000

Investment management fee

5,162

8,843

Administrative expenses

520

1,020

Ongoing charges+

11,364

9,863

Average net assets

1,071,833

899,097

Expense ratio

1.06%

1.10%

Look-through expenses

1.69%

1.69%

Ongoing charges ratio

2.75%

2.79%

+ As at 31 March 2022.  The 2022 interim ongoing charges figure is calculated using actual costs and charges to 31 March 2022, annualised for the full financial year, divided by average net assets.

The look-through expenses represent an allocation of the management fees and other expenses charged by the underlying investments held in the portfolio of the Company. Performance related fees, such as carried interest, are excluded from this figure. This is calculated over a five year historic average, and is recalculated on an annual basis based on the previous  calendar year.

Over-commitment ratio

Outstanding commitments less cash and cash equivalents and the value of undrawn loan facilities divided by portfolio NAV.


As at
31 March 2022
£000s

As at
30 September 2021
£000s

Undrawn commitments

627,080

557,051

Less undrawn loan facility

(175,599)

(200,000)

Less cash and cash equivalents

(26,605)

(29,714)

Net outstanding commitments

424,876

327,337

Portfolio NAV

1,093,616

1,007,843

Over-commitment ratio

38.9%

32.5%

Total shareholder return

The theoretical return derived from reinvesting each dividend in additional shares in the Company on the day that the share price goes ex-dividend.

Date

Share price (p)

Dividend per share (p)

30 September 2021

498.0


23 December 2021

548.0

3.4

17 March 2022

520.0

3.6

31 March 2022

520.0


Total shareholder return

5.8%


 

The Half Yearly Report will be printed and issued to shareholders and further copies will be available on the Company's website abrdnpeot.co.uk.

 

Neither the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

 

For abrdn Private Equity Opportunities Trust plc

Aberdeen Asset Management PLC, Company Secretary

 

For further information please contact:

 

Alan Gauld,

Lead Portfolio Manager, SL Capital Partners LLP

Tel: 0131 528 4424

 

 

END

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