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About LPEQ
LPEQ is a not-for-profit association of listed private equity investment companies committed to raising awareness and understanding of listed private equity as a way to access private company growth. LPEQ upholds and promotes best practices in the long- term interests of the LPE sector as a whole. Competitive source of capital LPEQ was founded in 2006 as an initiative to raise understanding of private equity investment trusts, primarily in the UK. It has since developed into an international for listed private equity managers organisation with listed private equity members across Europe, and engages with investors and other stakeholders worldwide. Raise capital at net asset value, avoid constraints of debt LPEQ is governed by a board of directors that includes managers of member vehicles, representatives from the executive and a member chairman. fi nancing and keep portfolio-upside.
FLEXIBILITY ALIGNMENT CONSISTENCY PROFESSIONAL
Ability to invest between €5m Fully-aligned partnership 3 funds under management Multinational team of to €300m in concentrated or between the investor backed by prominent 17 highly-experienced LPEQ Limited diversifi ed global portfolios and 17Capital international institutions professionals 5th Floor East, Chancery House 53-64 Chancery Lane London WC2A 1QS CASE STUDIES T +44 (0)20 7492 0480 Listed PE Manager Listed PE Manager Limited Partner VCT
Enquiries to [email protected] Capital for new investments Capital for new investments Balance sheet structure Co-investment for a improved secondary transaction www.LPEQ.com Nordic France Global UK
17Capital.com +44 (0) 20 7493 2462
17 Capital- Advert Amend - 13722 - v2.indd 1 08/04/2015 11:08 LPEQ Summer 2015
Contents
Welcome to the Listed Private Equity Review 2015 3
Coming of Age 5
Overview of Companies in this Report 13
Member Profiles
Altamir SCA 14
Deutsche Beteiligungs AG 16
Dinamia Capital Privado SCR, SA 18
Dunedin Enterprise Investment Trust PLC 20
Electra Private Equity PLC 22
F&C Private Equity Trust plc 24
Gimv NV 26
Graphite Enterprise Trust PLC 28
HarbourVest Global Private Equity Limited 30
HBM Healthcare Investments AG 32
HgCapital Trust plc 34
J.P. Morgan Private Equity Limited 36
JZ Capital Partners Limited 38
NB Private Equity Partners Limited 40
Oakley Capital Investments Limited 42
Pantheon International Participations PLC 44
Princess Private Equity Holding Limited 46
Spice Private Equity Limited 48
Standard Life European Private Equity Trust PLC 50
Directory of Members 53
Disclaimer 60
Contacts:
Andrea Lowe Chief Executive [email protected]
Louisa Symington-Mills Chief Operating Officer [email protected]
Listed Private Equity Review Summer 2015 1 LPEQ Company
Text Investment in private equity ... for the price of a share
Making Private Equity Accessible
2 Listed Private Equity Review Summer 2015 Company LPEQ
Welcome to the Listed Private Equity Review 2015
LPEQ was founded in 2006 with a clear purpose – to increase awareness and understanding of the listed private equity (LPE) sector among public market investors. Today, the commitment of our members to investor engagement and transparency seems more relevant than ever.
Towards the end of 2014, the combined market capitalisation of the global listed private equity sector passed €100 billion for the first time. As a result, a growing number of public market investors across the world own shares in listed private equity companies. Meanwhile, the $2 trillion private equity asset class (including investments made through private limited partnership funds) is playing an ever larger role in the economies of both developed and emerging markets.
Throughout the year, LPEQ publishes information about the LPE sector to contribute to the research that public market investors undertake themselves. We conduct regular sentiment surveys; we publish aggregated Cashflow data semi-annually; we provide educational materials including an LPE Expert Video Series; we act as a conduit for academic and industry research through our various social media channels; and we regularly host investor days and conferences across Europe.
In addition LPEQ publishes best practice guidelines for LPE managers, such as our Investor Reporting guidelines, and we host an annual LPE Award for Investor Reporting Excellence, deliberated upon by a panel of independent investors and analysts.
This ‘Listed Private Equity Review’ is an important addition to our annual output. It provides insight into the investment aim and strategy of each of LPEQ’s members’ vehicles, as well as an overview of recent developments, key portfolio data plus net asset value (NAV) and share price performance figures. It also includes contact information for each member.
In addition to this, our website www.LPEQ.com has a wealth of information about LPE. As always, if you have questions or comments regarding any of these activities, I would be delighted to hear from you.
Andrea Lowe Chief Executive, LPEQ [email protected]
Listed Private Equity Review Summer 2015 3 To be presented at the JUDGES LPEQ Investor Conference 2 June 2015 Charles Armstrong Cazenove Capital Management
The judging panel of investors and analysts will assess annual reports and
investor sections of corporate websites Charles Cade for the quality of investor reporting for Numis Securities both ‘Direct’ and ‘Fund of Funds’ listed private equity companies.
Benjamin Isler For more information about entry and LGT Capital Partners sponsorship opportunities, please email [email protected]
Andrew McHattie The McHattie Group
Innes Urquhart Winterflood Securities
4 Listed Private Equity Review Summer 2014 LPEQ
Coming of Age
Private equity firms invest – as the name suggests – in privately-held businesses, across all major sectors and in all stages of development. Investment targets encompass all forms of company ownership: founder-owned entrepreneurial companies; family businesses; unloved divisions of large corporations; out-of-favour listed companies; state-owned companies that are being privatised; distressed companies; and companies owned by other financial investors. The potential investment universe is far larger than thefew thousand companies that are listed and exhaustively trawled on each of the various stock markets around the world.
In this complex and varied environment, experience as well as a broad array of investment skills and established networks are important. As private equity matures as an industry, private equity firms increasingly have specific areas of expertise – whether by geography, industry sector, stage of a company’s development and/or by investment style. All this means that the opportunity set open to private equity is vast and the sector is extremely varied in terms of its underlying exposures.
By contrast to this huge potential private market, the private equity industry is itself relatively small. This is partly a reflection of the extreme selectivity undertaken by private equity managers. Only a tiny proportion of the companies that go into the investment ‘funnel’ will ultimately receive investment. Managers expend great resource on identifying and conducting due diligence on the most promising ventures.
Private equity funds will commonly make a large and often controlling investment in each investee company, ensuring a powerful say over the company’s strategy. Very often the private equity firm will take board seats and play an active role in setting the strategy of the company. This allows the investor to protect their downside risk while ensuring the company is run for the benefit of the company’s owners – in other words it is a powerful solution to the agency problem suffered by many larger companies.
Successful private equity investment cannot rely on a stock-picking or passive investment approach. Realising the full potential of often young and innovative companies requires an engaged approach to investment, something that is both rare and much more difficult to achieve in a public market context.
This influence also gives private equity investors more control over the timing and method of sale of the business to capture the best value.
Listed Private Equity Review Summer 2015 5 LPEQ
This ownership model affords other important benefits:
Alignment of interests Private equity’s ‘sale-discipline’ provides an unambiguous benchmark around which to incentivise the private equity manager and company management, ensuring very close alignment of interests with its beneficial owners. There is no need for arbitrary bonuses based on irrelevant time periods. Typically these incentives are based on an 8% per annum performance ‘hurdle’.
Patient owners Free from the pressures of continuous public financial disclosures, private equity- backed company managers can do two things: they can provide much more detailed and frequent information to the private equity manager without the fear of damaging their commercial interests; and they can plan for the longer-term. Typically private equity managers will seek an exit within a 3-5 year period, and be able to demonstrate a compelling proposition to the future owners of the business.
Optimal balance sheet As closely held entities, the level of gearing in each investee company can be fitted to its particular circumstances, ensuring optimal capital efficiency.
Access to information In publicly quoted companies, investors must rely upon publicly available information to make their investment decisions. However, in private investment, investors have legitimate access to obtain and review confidential internal documents and plans, to interview and assess managers and employees as well as customers and suppliers, and to develop a real business relationship with management prior to any investment.
Attractive to talent The ability to incentivise management teams based on their tangible performance naturally attracts the most talented and ambitious managers, allowing private equity-backed firms to attract and retain the best talent.
Why don’t we hear more about private equity? While private equity is often in the news relating to specific investee companies, there tends to be much less coverage of it as an investment sector. This is because most private equity investment is carried out through private equity limited partnership funds, which may be unsuitable for, and unavailable to, a great number of institutions, wealth managers and retail investors.
Such limited partnership funds are open only to very large investors who have the financial resources to make very large, long-term commitments, and who have the ability to manage often complicated cashflows.
6 Listed Private Equity Review Summer 2015 Listed private equity vehicles avoid these problems by offering tradable, immediate exposure to private equity, with no minimum investment level or further funding commitments.
LISTED PRIVATE EQUITY
Listed private equity companies are quoted equities that invest in portfolios of private equity assets.
There are two main types of LPE company:
• A listed direct investment company invests directly in a portfolio of private company investments.
• A listed private equity ‘fund of funds’ company provides exposure to private equity funds that in turn invest into privately-held portfolio companies.
In addition, ‘listed private equity’ can be used to refer to listed managers of private equity and other ‘alternative’ assets.
Direct investment companies normally provide exposure to a portfolio of investments managed by a single private equity manager, whereas funds of funds can provide a much broader exposure to the private equity and venture capital market through multiple managers. Asset managers offer exposure to the broader performance dynamics associated with an operating company. A few listed private equity investment companies consist of both the fund manager and the investments in its portfolio.
Like any other public company, listed private equity vehicles offer the investor regular, easy-to-digest information – and this is supplemented by broker research.
In addition to this, LPEQ members strive to improve investor communications and develop best practices for disclosures, within the context of the underlying business activities.
Investors can track lead indicators such as the portfolio valuation basis, the vehicle’s share rating, trading performance and leverage levels, as well as the progression of net asset value (NAV) and balance sheet.
As with the market for listed investment companies in general, share prices may not necessarily track growth in reported net asset values. Share prices are subject to supply and demand influences and may be affected by movements or trends in broader equity markets. As a result, listed private equity share prices can be volatile and trade at periodic discounts to net asset value.
Over the past five years to 31 March 2015, the listed private equity sector has a record of outperformance, with the LPX Europe share index (an index of private equity companies listed in Europe) providing an annualised return in Euros of 15.53% compared with a return of 12.08% for the MSCI Europe.
Listed Private Equity Review Summer 2015 7 LPEQ
Total Return Index Comparison 5 Year Total Return Price Indices Comparison (Euro)
350 LPX Europe MSCI Europe 300 LPX 50 Morningstar IT Private Eq ex 3i S&P 500 Composite
250
200
150
100
50 Apr Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Source: Morningstar and LPX; data rebased to 100 at April 2010.
RECENT TRENDS
€100bn and rising Performance is what counts, but the size of a sector can also be telling. Towards the end of 2014, for the first time, the market capitalisation of the Listed Private Equity sector passed €100 billion and at 31 March 2015 reached €120 billion, according to Swiss data provider LPX Group. There is good reason to believe that the sector will continue its rapid growth, both relative to the wider private equity market and also relative to stock markets.
Market capitalisation of listed private equity worldwide (€ bn) 103
90 84 81
69 71 65 58 55 50 47 44 41
30 32 28 29 24 22 14 14 9
2014201320122011201020092008200720062005200420032002200120001999199819971996199519941993
Source: LPX; data in Euro.
8 Listed Private Equity Review Summer 2015 Firstly, through LPEQ’s engagement with both the public and private equity markets, we have registered growing interest in the raising of new listed private equity funds – to reach investors seeking more liquidity and flexibility than the limited partnership structure affords.
A second and connected reason, is the improvement in pricing across the sector, which means that the launch of new vehicles becomes more viable, further increasing choice among stock market investors for private equity exposure.
Discounts Are Closing In
% 20 Private Equity (LPX Europe) P/D 10
0 Discount at 31.03.2015 -10 (6.27%) -20
-30
-40
-50
-60
-70
-80 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Mar 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
In 2008-2009, for those less familiar with the underlying private equity ownership model, there was genuine fear as to the impact of the global downturn on private equity portfolios. In the event, the performance of the underlying assets has proved much more resilient than many feared immediately post the financial crisis and has proven consistently strong since then. Certainly larger institutional investors have recognised this, given the number of successful fundraisings for private equity limited partnerships over the past year.
Strong realisations Moreover, the level of realisations (sales of portfolio companies) – the proof in the pudding for stock market investors – has been very strong, with net cash inflows into LPEQ member funds of funds in every quarter, save one which was cash neutral, since we began tracking cashflow data in Q1 2010. It is important to note that realised values for portfolio company investments tend to exceed ‘book’ / carrying values by some margin, illustrating how exits can be accretive to NAV.
Listed Private Equity Review Summer 2015 9 LPEQ
Strong balance sheets This LPE Cashflow Compass, produced by LPEQ and Deloitte, also shows the maturity of LPE funds of funds portfolios is at 7.3 years, suggesting that realisation activity still has a long way to run. The macro picture also seems supportive of exits, with a very cash rich corporate sector that is increasingly willing to ‘acquire’ innovation, as well as high levels of ‘dry powder’ or unspent capital among financial investors.
As a consequence of this strong realisation activity, listed private equity company balance sheets have strengthened significantly in recent years and continue on a positive trend.
Given this strong cashflow position, a number of LPE companies have recently sought to return some income to shareholders. In some cases companies have made a formal commitment to pay an annual dividend; in other cases, listed private equity companies have created distribution policies that will see a proportion of portfolio cashflows returned to shareholders. As a result, the sector now offers some interesting opportunities for investors looking for income, as well as those seeking capital growth.
Quantitative Easing and Pricing Clearly there are reasons to be bullish about the sector’s near-term prospects. Looking forward to the prospects for today’s ‘vintage’ of investments, which could be expected to be realised during 2018-2020 and beyond, what are the likely outcomes?
Unprecedented and aggressive central bank policies have pushed asset prices to historical highs. For all the reasons that today’s market is good for realisations, it can be poor for making new investments. In theory, this higher pricing could make it difficult to reap high returns in the years to come.
For several reasons, this is an overly simplistic analysis.
First, private equity is an extremely heterogeneous sector, encompassing all major sectors and geographies. LPE companies have some common drivers, but the differences between them are great, as are the differences in historical performance.
Second, private equity investors have time on their side. Time to fix problems, to negotiate with suppliers; to reposition strategies; to change senior management. The private equity ownership model is patient, robust and particularly effective during difficult times.
Third, private equity is not a simple play on the economic cycle. While they have the luxury to time their own exits, the period of ownership tends to be one of frenetic activity as businesses are improved away from the distractions that come with other forms of ownership.
Fourth, private equity firms are not buying from a fixed stock of established companies with heavily trawled financial metrics. The target universe is highly opaque to those without the necessary infrastructure and experience. It includes companies currently hidden away as divisions of state or corporate empire. It includes start-up, pre-revenue and early-stage companies for which a price/earnings ratio is an irrelevance. While overall asset prices are clearly a factor, private market investment tends to be less sensitive to such factors.
10 Listed Private Equity Review Summer 2015 This isn’t to say overall economic trends don’t have a bearing on private equity prospects. Of course, they do. But the investor that is willing to look in depth at individual LPE companies may be surprised at how far removed reality is from the general received wisdom.
CONCLUSION Today’s ultra low interest rate environment has sent income yielding securities soaring to a premium. While several listed private equity companies now also have distribution policies, the sector’s structural emphasis on capital growth has contributed to its relatively attractive pricing, even with the strong share price performance in recent years.
For those investors seeking capital gain, this is particularly compelling. With macro uncertainty and a growing belief in ‘secular stagnation’, private equity is a corner of the capital markets that offers real prospect of growth.
Given private equity’s essentially micro and highly selective nature, GDP growth does not equate to private equity returns, and vice versa. By seeking out exceptional companies and pockets of sector growth, and then driving through improvements through engaged ownership, private equity offers investors a compelling alternative to the prevailing and uninspiring market narrative of stagnation.
Listed Private Equity Review Summer 2015 11 We work with companies to improve the effectiveness and efficiency of their communication with the capital markets.
Insightful, Independent advice on...
Investor Pitch Digital Remuneration Communication Training Communication Advice
Working alongside We help significantly Our digital team works h2glenfern’s remuneration you, we’ll ensure you improve your pitch success with clients from initial advisory practice provides deliver the right level rate and secure more concept and content independent and expert of communications mandates. Our approach creation, right through to advice to companies consistently to your comprises a client focused delivery and the tracking which have the ambition investors throughout methodology and a number and reporting of results. and potential to achieve any trading period. This of effective communication For every project our substantial value growth might be when accessing techniques. Properly team supports our client’s over the next three to five capital markets for the applied, they will ensure communications strategy years. Our approach is first time or as part of an you develop an insight and tailors the solution to market orientated drawing ongoing investor relations into your client, thereby the story being told as on practical experience strategy. Alternatively this enabling you to develop well as the target of providing corporate might cover your statutory and deliver a bespoke pitch audience, budget and finance and reporting obligations. focusing on their needs timeframe available. fundraising advice. whilst highlighting your complementary capabilities.
h2glenfern limited Ground Floor, 38 Seymour Street, London, W1H 7BP T/0207 160 0570 E/[email protected] www.h2glenfern.com Overview of Companies in this Report
Investment * Last published We work with companies to improve the Company Type Listing Focus Net Assets €m effectiveness and efficiency of their communication with the capital markets. Altamir SCA Direct Paris Mainly France/Europe €585.8 Deutsche Beteiligungs AG Direct Frankfurt DACH €316.9
Dinamia Capital Privado SCR, SA Direct Madrid Spain/Portugal €174.5
Dunedin Enterprise Investment Trust PLC Direct London UK €148.1
Insightful, Independent advice on... Electra Private Equity PLC Direct London UK & Western Europe €1,659.7
F&C Private Equity Trust plc FoF London Global €282.6
Gimv NV Direct Brussels Belgium/NL/Germany €1,056.0
Graphite Enterprise Trust PLC Hybrid London Europe €704.0
HarbourVest Global Private Equity Limited FoF London / Amsterdam Global €1,190.6
HBM Healthcare Investments AG Direct Switzerland Global €1,032.8
HgCapital Trust plc Direct London Europe €646.1
J.P. Morgan Private Equity Limited FoF London Global €393.6
Investor Pitch Digital Remuneration JZ Capital Partners Limited Direct London US/Europe €610.7 Communication Training Communication Advice NB Private Equity Partners Limited Direct London / Amsterdam Global €650.0
Working alongside We help significantly Our digital team works h2glenfern’s remuneration Oakley Capital Investments Limited Direct London Europe €356.8 you, we’ll ensure you improve your pitch success with clients from initial advisory practice provides Pantheon International Participations PLC FoF London Global €1,379.0 deliver the right level rate and secure more concept and content independent and expert of communications mandates. Our approach creation, right through to advice to companies Princess Private Equity Holding Limited Direct London Global €613.6 consistently to your comprises a client focused delivery and the tracking which have the ambition investors throughout methodology and a number and reporting of results. and potential to achieve Spice Private Equity Limited Hybrid Switzerland Global €190.3 any trading period. This of effective communication For every project our substantial value growth Standard Life European Private Equity Trust PLC FoF London Europe €549.2 might be when accessing techniques. Properly team supports our client’s over the next three to five capital markets for the applied, they will ensure communications strategy years. Our approach is first time or as part of an you develop an insight and tailors the solution to market orientated drawing * Currency conversion on 31 March 2015: €1 = $1.07 / £0.72 / 1.04CHF ongoing investor relations into your client, thereby the story being told as on practical experience strategy. Alternatively this enabling you to develop well as the target of providing corporate FoF: Fund of Funds might cover your statutory and deliver a bespoke pitch audience, budget and finance and DACH: Germany, Austria and Switzerland reporting obligations. focusing on their needs timeframe available. fundraising advice. whilst highlighting your complementary capabilities.
h2glenfern limited Ground Floor, 38 Seymour Street, London, W1H 7BP T/0207 160 0570 E/[email protected] www.h2glenfern.com Listed Private Equity Review Summer 2015 13 LPEQ Altamir SCA
Chairman Jean-Hugues Loyez Investment Aim and Strategy Manager Altamir Gérance Altamir is a listed private equity company with more than €550 million in assets (Maurice Tchenio) under management. The objective of Altamir is to increase its net asset value Fund Type Direct (NAV) per share and to outperform the most relevant indices (CAC Mid & Small, First Listed 1995 and LPX Europe). The company also aims to attain a critical size of €1 billion in assets under management. Altamir seeks to maximise shareholder return via
an annual cash dividend linked to NAV. Altamir invests exclusively with and/or As at 31.03.15 through the funds managed by Apax Partners France and Apax Partners LLP, Share price €11.60 thus providing a means to access Apax Partners’ investments through the stock NAV per Share (last published) €16.04 market. Apax Partners France is a leading private equity firm in French-speaking Discount 28.0% Europe that invests in mid-sized companies with enterprise values in a range of Yield 4.3% €100 million to €1 billion. Apax Partners LLP, one of the world’s leading private equity investment groups, invests in companies with enterprise values of €1 billion
Net Assets (last published) €585.8m to €5 billion throughout North America, Europe, and key emerging markets (China, India, Brazil). Both firms target buyout and growth capital investments in which Market Cap €423.5m they are majority shareholders or lead investors, and help management teams to Outstanding Commitments implement ambitious value creation plans. % of NAV Altamir provides access to a portfolio of fast-growing companies increasingly Outstanding Commitments 25% diversified by size and geography, and spanning Apax’s sectors of specialisation: Total Liquid Resources 12% TMT, Retail & Consumer, Healthcare, and Business & Financial Services.
Background Listing (Euronext) Paris Founded by Maurice Tchenio, a co-founder of Apax Partners, Altamir was created Ticker LTA and listed on the Paris Stock Exchange in 1995 as a means to access the Apax Index inclusion CAC Small 190 / Partners France portfolio through the stock market. The vehicle has grown to include CAC Mid and Small / CAC All Tradable / Stoxx Europe Private Equity 20 / investment in Apax Partners LLP. Altamir’s history and evolution is illustrated by its LPX 50 / LPX Direct / LPX Europe / four successive and concurrent investment mechanisms: (1) Co-investment alongside LPX Composite Apax Partners France (1995 to 2012); (2) Investment in Apax Partners France funds Shares in Issue 36.5m (beginning in 2011 with Apax France VIII); (3) Investment in Apax Partners LLP global funds (beginning in 2012 with Apax VIII LP); (4) Co-investment alongside Apax Partners LLP and Apax Partners France funds as the opportunity arises. Dividend Paid per Share Ordinary: Year to December 2013 €0.45 Recent Developments in 2014 / 2015 Ordinary: Year to December 2014 €0.50 NAV increased 10.9% over 2014 on a total return basis (dividend included). Two- Special: None thirds of NAV growth was driven by good operating performance of the underlying portfolio companies, with EBITDA growth of 9.2% from the Apax France portfolio Announcements and 13.4% from the Apax VIII LP portfolio. The remaining third was derived from Year End 31 December increases in valuation multiples. In line with Altamir’s policy to distribute 2-3% of the year end NAV, a dividend of €0.50 per share is being proposed, 11% higher Full Year Results early March than 2014. Interim Reporting Dates Q1 NAV early May The Investment Case H1 early September Altamir’s strategy is to build on the strengths of the Apax brand. A pioneer and leader Q3 early November in the private equity industry, Apax Partners has a 40+ year track record of making NAV Frequency Quarterly successful investments which have led to consistent outperformance of private equity and global public market benchmarks. The outperformance consistently delivered by the Apax Partners’ funds is driven by a highly focused investment strategy that hinges on: (1) Sector specialisation, with expertise and investments in the sectors mentioned above; (2) Value creation, targeting development of the underlying businesses in which it invests as measured by EBITDA growth; (3) Proprietary deal flow, with limited competition in the acquisition phase; and Sidebar information, text and portfolio distribution data provided by the Manager (4) Well-defined processes and teams with developed sector expertise.
14 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
140 Altamir Share Price Altamir NAV LPX Europe
120
100
80 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
250
200
150
100 Altamir Share Price Altamir NAV LPX Europe 50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
200
150
100
50 Altamir Share Price Altamir NAV LPX Europe 0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on €100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year € % % % %
NAV Per Share (Diluted) 9.64 38.72 52.23 95.88 Share Price 11.25 76.75 118.43 77.58 LPX Europe 23.30 82.68 105.81 79.43 MSCI Europe 22.65 65.14 76.90 107.08
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. Morningstar data reflects estimated performance, based on last published NAVs and adjusted for currency. Consequently this data may differ from actual performance as stated by Managers. Listed Private Equity Review Summer 2015 15 LPEQ Deutsche Beteiligungs AG
Chairman Andrew Richards Investment Aim and Strategy Manager Self-managed Deutsche Beteiligungs AG (“DBAG”) aims to achieve long-term capital growth in (Torsten Grede / Susanne Zeidler) excess of its cost of equity through private equity investments and fund advisory Fund Type Direct services. DBAG reaches this objective as a private equity investor by rigidly First Listed 1985 implementing a strategy of “investing, developing and realising value growth”, and as a fund manager by increasing its managed and advised assets. DBAG
As at 31.03.15 invests in ‘Mittelstand’ companies in Germany, Austria and Switzerland (DACH) that have strong development potential, an entrepreneurially-driven management Share price €30.33 and leading positions in their markets. NAV per Share (last published†) €23.17 Discount (31.0)% Background Yield 6.6% DBAG raises closed-end private equity funds (“DBAG funds”) for investments in non-quoted companies. Employing its own assets, it enters into investments as a
Net Assets (last published†) €316.9m co-investor alongside these private equity funds. Since 1995, DBAG has financed 34 MBOs; 21 of these have been realised. Based on the realisation proceeds and Market Cap €414.8m the current value of the present investments, DBAG achieved an average gross Outstanding Commitments multiple of 2.1x the capital invested. Expansion financings (11 out of 15 realised) % of NAV generated a multiple of 2.3x. Over the past ten-year period DBAG has generated Outstanding Commitments 55% an average annual total return (share price movement, including dividends) of Total Liquid Resources 37% 16.2 per cent for its shareholders.
Listing Frankfurt Recent Developments in 2014 / 2015 Ticker DBAN DBAG has invested €317 million, thereof €66 million from its own balance sheet, in six companies since June 2014: five MBOs were structured alongside DBAG Index inclusion Deutsche Börse: S-Dax Deutsche Börse: Dax All PE & VC Fund VI; one growth financing investment was entered into together with the Stoxx Private Equity 20 DBAG Expansion Capital Fund. Transacting four MBOs in 2014, DBAG again LPX 50 / LPX Europe / LPX Direct was the most active financial investor in the German mid-market segment. Two Shares in Issue 13.7m investments have been exited, including its largest investment so far, Homag Group AG. Furthermore, DBAG has backed add-on acquisitions at nearly half its
Dividend Paid per Share portfolio companies over the last twelve months alone. Ordinary: Year to October 2013 €0.40 DBAG’s recent investments include MBOs of “Unser Heimatbäcker” (fifth largest Special: Year to October 2013 €0.80 bakery chain in Germany), Infiana Group (manufacturer of plastic-based release Ordinary: Year to October 2014 €0.40 liners), Pfaudler Process Solutions Group (manufacturer of glass-lined reactors for Special: Year to October 2014 €1.60 the chemical industries), Gienanth (iron foundry whose products are used in the automotive industry and for engine blocks) and – most recently – Cleanpart, an Announcements engineering services provider to the semi-conductor and related industries. Year End 30 September In February 2015, DBAG acquired a minority stake to provide growth financing Full Year Results Mid December in Oechsler AG, a leader in plastics engineering with a customer focus in the Interim Reporting Dates automotive suppliers industry.
Q1 mid February The Investment Case H1 mid May DBAG profits from having a sizeable investment team of 23 investment Q3 mid August professionals, comprising more than 200 years of PE experience. The lower mid- NAV Frequency Quarterly market segment (transaction value €50 million to €250 million) has not seen the same excesses witnessed elsewhere in the PE sector (regarding use of leverage, † Before dividend payment of €2.00 per share on 25 March 2015 for example) and has consistently been one of the most profitable. DBAG’s return on equity per share (NAV) is 15.3% over a ten-year average. DBAG seeks investee businesses in sectors where German companies have traditionally been strong such as mechanical and plant engineering or automotive suppliers.
Sidebar information, text and portfolio distribution data provided by the Manager
16 Listed Private Equity Review Summer 2015 Distribution of Portfolio
Investment Category 31 January 2015 1 YearTotal Retu Totalrn Index Return* Comparison €(rebased to 100) 31 March 2015
180 Deutsche Beteiligungs AG Share Price Deutsche Beteiligungs AG NAV LPX50
140
100
60 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 January 2015 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
250
Deutsche Beteiligungs AG Share Price Deutsche Beteiligungs AG NAV 200 LPX50
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 January 2015 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
600 Deutsche Beteiligungs AG Share Price Deutsche Beteiligungs AG NAV 500 LPX50
400
300
200
100
0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on €100 investment with income reinvested (Total Return) Maturity 31 January 2015
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year € % % % %
NAV Per Share (Diluted) 21.19 59.35 64.91 257.23 Share Price 50.27 99.00 121.65 418.39 LPX 50 27.18 97.47 125.25 79.81 MSCI Europe 22.65 65.14 76.90 107.08
† Value of remaining parts of exited investments (retentions for representations * Source: Morningstar and LPX. Morningstar data reflects estimated performance, and warranties) based on last published NAVs and adjusted for currency. Consequently this data Latest performance data available on www.LPEQ.com may differ from actual performance as stated by Managers. Listed Private Equity Review Summer 2015 17 LPEQ Dinamia Capital Privado SCR, S.A.
Chairman Santiago Bergareche Investment Aim and Strategy Manager N+1 Private Equity Dinamia Capital Privado (“Dinamia”) is an evergreen direct private equity (Federico Pastor) company, investing in unlisted companies across all sectors (except for financial Fund Type Direct and real estate) with the goal of generating capital gains in the medium/long First Listed 1997 term. Its investment strategy is based on buyouts, growth and buy-and-build transactions within the Iberian middle-market and with an increasing focus on As at 31.03.15 internationalisation strategies. Share price €8.18 Background NAV per Share (last published) €10.72 In December 1997 Dinamia became the first listed private equity company in Discount 23.7% Spain. In 2005 and in 2009 it raised €45 million and €40 million respectively in Yield† 10.8% an ordinary shares rights issue. Since 2002 Dinamia has co-invested in all of its investments with N+1 closed-ended funds. Since its inception Dinamia has carried out 46 investments and 34 divestments obtaining 19% IRR on realised Net Assets (last published) €174.5m investments. Market Cap €133.2m Outstanding Commitments Recent Developments in 2014 / 2015 % of NAV 2014 has been very active for Dinamia, closing three full divestments. Firstly, Outstanding Commitments 0% in April 2014 Dinamia completed the sale of Mivisa. In total, the transaction Total Liquid Resources 32% yielded income for Dinamia of €19.8 million, implying an IRR of 37.8% and 2.4x MOIC*. Secondly, Dinamia closed the sale of its investment in Xanit to Spanish healthcare group Vithas on July 2014 for a total amount of €24.1. Thirdly, Colegios Listing Madrid Laude was divested in two stages as the Spanish perimeter was sold in July Ticker E:DIN and the school in UK in December. Total proceeds from Dinamia’s divestment of Index inclusion IBEX SmallCaps / Laude reached €4.2 million. LPX 50 / LPX Europe / LPX Composite / LPX Direct / LPX Buyout Regarding additional dividend stream from investee companies, the refinancing Shares in Issue 16.3m process of EYSA’s balance sheet in July 2014 through the issuance of a €75 million bond in the Spanish alternative market (MARF) allowed a dividend recap of €6.8 million (recouping 50% of its initial investment). In addition, Salto Dividend Paid per Share Systems paid out a dividend on July 2014, generating income for Dinamia of Ordinary: Year to December 2013 €0.70 €0.3 million. Further partial recoveries were made during the last quarter of 2014 Ordinary: Year to December 2014 €0.70 amounting to €1.7 million, as Dinamia received two distributions from Electra Special: None (25% of total investment in the fund). Dinamia had a NAV of 174.5 million at December 2014 (€10.72 per share), Announcements increasing 17% vs. 2013 and the company’s share price gained c.20% in 2014. Year End 31 December Adjusted for dividends (€0.70 per share), Dinamia experienced a 27% NAV Full Year Results late April increase and total return for shareholders stood at 30%. Interim Reporting Dates Q1 early May In December 2014, N+1 (parent company of N+1 Private Equity) and Dinamia, H1 late July announced their merger with the aim to create the first investment bank and Q3 early November alternative asset manager listed on the Spanish stock exchange with a focus NAV Frequency Quarterly on the mid-market segment. The merger process is expected to be completed throughout the first half of 2015.
† Includes Interim dividend from 2014 profits of The Investment Case €0.19 per Ordinary share paid on 23 March 2015 N+1 Private Equity is the largest and most experienced team in the Spanish private equity sector with 15 investment professionals. Together they hold over 150 years of combined experience and a proven track record with 83 investments, 34 add-ons and 37 full divestments. It targets mid-market (EBITDA €10-40mn) top-quartile performing companies with international expansion strategies through the acquisition of mainly controlling stakes. Sidebar information, text and portfolio distribution data provided by the Manager * Multiple of Invested Capital
18 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
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Dinamia Capital Privado SCR Share Price Dinamia Capital Privado SCR NAV LPX 50
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
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Dinamia Capital Privado SCR Share Price 200 Dinamia Capital Privado SCR NAV LPX 50
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0 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 10 YearTotal Retu Totalrn Index ComparisonReturn* €(rebased to 100) 31 March 2015
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Dinamia Capital Privado SCR Share Price Dinamia Capital Privado SCR NAV 200 LPX 50
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0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on €100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year € % % % %
NAV Per Share (Diluted) 23.99 91.65 16.46 9.08 Share Price 19.71 167.84 26.56 4.16 LPX 50 27.18 97.47 125.25 79.81 MSCI Europe 22.65 65.14 76.90 107.08
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX
Listed Private Equity Review Summer 2015 19 LPEQ Dunedin Enterprise Investment Trust PLC
Chairman Duncan Budge Investment Aim and Strategy Manager Dunedin LLP Dunedin Enterprise’s (“DNE”) investment objective is to achieve substantial long- Fund Type Direct term capital growth in its assets through capital gains from its investments. Its First Listed 1987 target is to achieve a rate of return on equity in excess of 8% per annum over the long term. This is achieved primarily by making commitments to limited partnership funds managed by Dunedin LLP (“Dunedin”), the manager of DNE. Funds managed As at 31.03.15 by Dunedin invest in management buyouts in the UK lower mid-market. Share price £3.40 NAV per Share (last published) £5.10 Background Discount 33.4% DNE was listed on the London Stock Exchange in 1987. It invested through its Yield 4.9% manager, Dunedin, directly off the balance sheet until 2001 when it invested via funds managed by Dunedin. Dunedin invests in the UK lower mid-market
Net Assets (last published) £106.6m in companies with an enterprise value of between £20 million and £100 million. DNE has addressed concerns regarding liquidity in its shares and the discount Market Cap £70.9m at which its shares trade to NAV by focusing on its traditional investment policy – Outstanding Commitments investment in lower mid-market UK based management buyouts. Additionally, it % of NAV has a distribution policy under which at least 50% of all future realised gains over Outstanding Commitments 60% cost will be returned to shareholders. Total Liquid Resources 9% Recent Developments in 2014 / 2015 Listing London Within the last twelve months, DNE invested £16 million. This includes the Ticker DNE Dunedin-led MBO of EV Offshore, which designs, manufactures and provides high Index inclusion FTSE All-Share / performance video cameras that are used to diagnose and analyse problems in oil LPX Europe and gas wells; as well as follow-on investments into Hawksford, Premier Hytemp Shares in Issue 20.9m and Red. More broadly, there has been a continued focus on driving value creation across Dividend Paid per Share the investment portfolio through organic and acquisitive growth. In late 2014, Ordinary: Year to December 2013 16.5p CitySprint completed the seventeenth acquisition that it has made since 2010 Ordinary: Year to December 2014 4.7p when DNE initially invested, solidifying its position as the largest privately owned Special: None same day distribution company in the UK and amongst the top five same day distribution companies in the world.
Announcements A tender offer was approved by shareholders in May 2014 for 5% of the issued share capital at a price of 475p per share, representing a 10.3% discount to the net Year End 31 December asset value per share as at 31 December 2013. Under the tender offer, £5.2 million Full Year Results mid March was returned to shareholders under the distribution policy. A total of £44.3 million Interim Reporting Dates Q1 mid May has now been returned to shareholders since the introduction of the distribution H1 late August policy in November 2011. Q3 late November The Investment Case NAV Frequency Quarterly DNE is the only UK listed investment trust with an ongoing mandate to invest exclusively in the UK lower mid-market. It thus represents a unique opportunity to access this part of the private equity market for private investors. Dunedin benefits from having a sizeable and settled team of experienced investment professionals. The lower mid-market segment has consistently been one of the most profitable areas in which to operate. Dunedin researches and leads its own investment opportunities and takes the dominant or controlling stake in its investee companies with its own representative on the company’s board. It can then move quickly to influence change should the company’s performance move from the agreed plan. It focuses on driving value creation across its portfolio through internationalisation,
Sidebar information, text and portfolio as well as organic and acquisitive growth in the following core sectors: Industrials, distribution data provided by the Manager Support Services and Financial Services.
20 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
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Dunedin Enterprise Inv Trust Share Price Dunedin Enterprise Inv Trust NAV LPX Europe
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Dunedin Enterprise Inv Trust Share Price Dunedin Enterprise Inv Trust NAV LPX Europe 150
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50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 10 YearTotal Retu Totalrn Index ComparisonReturn*£ (rebased to 100) 31 March 2015
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50 Dunedin Enterprise Inv Trust Share Price Dunedin Enterprise Inv Trust NAV LPX Europe 0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on £100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share (Diluted) 0.42 (2.17) 29.64 58.22 Share Price (14.48) 5.13 34.47 31.06 FTSE All-Share 6.57 35.41 49.26 110.89 LPX Europe 7.94 58.36 66.97 88.84
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. Morningstar data reflects estimated performance, based on last published NAVs and adjusted for currency. Consequently this data may differ from actual performance as stated by Managers. Listed Private Equity Review Summer 2015 21 LPEQ Electra Private Equity PLC
Chairman Roger Yates Investment Aim and Strategy Manager Electra Partners LLP Electra Private Equity’s (“Electra”) objective is to achieve a rate of return on Fund Type Direct equity of 10-15% per year over the long-term by investing in a portfolio of private First Listed 1976 equity assets. In the 10 years to 30 September 2014, Electra’s annualised return on equity was 14%. As at 31.03.15 The business and affairs of Electra are managed on an exclusive and fully Share price £31.60 discretionary basis by Electra Partners, an independent private equity fund NAV per Share (last published†) £31.74 manager with over 25 years’ experience in the mid-market. Discount 0.0% Electra’s flexible capital allows Electra Partners to invest across all forms of private Yield †† 3.0% equity situations. These are categorised into three groups: 1 Buyouts and Co-investments: Direct investment in high-quality, well-managed
Net Assets (last published†) £1,195.0m businesses that have the potential for profit growth – through organic growth, operational improvement or acquisition. As lead investor, Electra typically Market Cap ††† £1,132.2m invests £40–120 million in UK-centric companies with an enterprise value Outstanding Commitments of up to £300 million. Electra will also co-invest £20–60 million in minority % of NAV positions alongside founders, other private equity firms, corporates or the Outstanding Commitments† 6% public markets. Total Liquid Resources† 14% 2 Secondaries: Secondary purchases of existing investors’ positions in either individual or portfolios of private equity funds, as well as acquisitions of Listing London portfolios of businesses, known as “secondary directs”. Ticker ELTA 3 Debt: Secondary purchases from existing lenders of individual or portfolios Index inclusion FTSE All-Share / of either performing or stretched loans, where “stretched” refers to debt in FTSE 250 / LPX 50 / LPX Europe good businesses with bad balance sheets where Electra can take a role in the Shares in Issue 35.8m restructuring of the capital structure.
Dividend Paid per Share Recent Developments in 2014 Ordinary:†† None In the year to 30 September 2014 Electra announced another record level Special:†† None of investment, investing £410 million, building on a record 2013. Realisations of £352 million were also at a high level. The investment portfolio produced a return
Announcements of £246 million or 25% on the existing portfolio, following effective operational and value creation work. Year End 30 September Full Year Results late Nov / early Dec The Investment Case Interim Reporting Dates Consistent long-term performance: Outperformance of the peer group and Q1 January / February benchmark over the long-term, in the 10 years to 30 September 2014 Electra’s H1 late May diluted NAV per share grew by 262% and the share price increased by 248%. Q3 July / August Fully exploits its flexible investment mandate: Electra has a flexible investment NAV Frequency Half yearly strategy, meaning it has the ability to invest across the full range of private equity opportunities, control and minority, equity and debt, direct and indirect. This † As at 30.09.14 allows Electra Partners to tailor its investment approach to suit changing market †† Electra will commence the payment of conditions and invest where many others cannot. an annual dividend in 2015. The policy is to distribute 3% of NAV (target) through Electra’s structure means it can provide long-term capital to portfolio businesses: buybacks / dividends. It does not face expiring investment periods or exit pressures driven by fundraising ††† Ordinary capital only cycles. It can fully support investee companies with a long-term strategy and access to capital, and exits only when returns are maximised for shareholders. Low risk of overcommitment: Electra invests directly in transactions, not via an LP fund managed in the interest of a range of investors. This means that it can moderate the pace of investment dependent on the level of net liquid resources; Sidebar information, text and portfolio distribution data provided by the Manager as a result, there is a very low risk of over-commitment.
22 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 30 September 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
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Electra PE PLC Share Price Electra PE PLC NAV LPX Europe
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Electra PE PLC Share Price Electra PE PLC NAV 200 LPX Europe
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Geography 30 September 2014 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
400 Electra PE PLC Share Price 350 Electra PE PLC NAV LPX Europe 300
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0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on £100 investment with income reinvested (Total Return) Maturity 30 September 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share (Diluted) 8.48 33.90 66.33 212.23 Share Price 21.12 83.93 134.25 252.79 FTSE All-Share 6.57 35.41 49.26 110.89 LPX Europe 7.94 58.36 66.97 88.84
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. At the time of going to press Electra’s NAV per share to 31 March 2015 had not been announced. The analysis above shows a roll-forward of September 2014 NAV by Morningstar. Listed Private Equity Review Summer 2015 23 LPEQ F&C Private Equity Trust plc
Chairman Mark Tennant Investment Aim and Strategy Manager F&C Investment Business Ltd F&C Private Equity Trust aims to deliver long-term capital gain through investment (Hamish Mair) in private equity assets, whilst providing shareholders with a predictable and above Fund Type Fund of Funds average level of dividend funded from a combination of the company’s revenue and First Listed 1999 realised capital profits. This is achieved through investing in a broadly diversified portfolio of private equity funds and direct investments in private companies. The As at 31.03.15 majority of the portfolio comprises about 90 funds (managed by about 40 private equity groups). The remainder of the portfolio comprises direct investments, up Share price† £2.29 to a maximum of 33% of the portfolio (AGM resolution to raise the limit to 50%). NAV per Share (last published) £2.78 Directs are mainly co-investments managed by private equity groups well known Discount 17.7% to the manager. The F&C Private Equity team regards the trust as its flagship Yield 4.7% vehicle and it is managed alongside four other F&C limited partnership funds.
Net Assets (last published) £203.5m Background Market Cap £165.2m F&C Private Equity Trust was established in 1999. Initially run as a realisation company, in August 2001 the mandate was changed to create a continuation pool Outstanding Commitments % of NAV of assets. The original realisation mandate was retained for part of the company, Outstanding Commitments 32% represented by the residual restricted voting share pool – the residual restricted voting shares have since been delisted. In 2009 the company increased its financial Total Liquid Resources 28% resources through the issue of £30 million of zero dividend preference shares with a yield to redemption in December 2014 of 8.75% – these have matured. The Listing London company now has, for the first time ever, a simple capital structure with one class Ticker FPEO of ordinary shares representing a permanent pool of capital. Index inclusion LPX UK / LPX Indirect / FTSE All-Share / FTSE Small-Cap Recent Developments in 2014 / 2015 Shares in Issue† 72.3m In December 2014 the company’s zero dividend preference shares matured. In 2013, the company adopted a dividend policy of paying 4% of NAV as dividend,
Dividend Paid per Share resulting in dividends paid totaling 10.29p per share in 2013 and 10.75p in 2014. The company aims to pay semi-annual dividends with an annual yield equivalent Ordinary: Year to December 2013 10.3p Special: Year to December 2013 1.7p to not less than four percent of the average of the published net asset values per ordinary share as at the end of each of its last four financial quarters prior to the Ordinary: Year to December 2014 10.8p Special: Year to December 2014 None announcement of the relevant semi-annual dividend or, if higher, equal (in terms of pence per share) to the highest semi-annual dividend previously paid. This has resulted in a net dividend yield of circa 5%. Announcements Year End 31 December The Investment Case Full Year Results late March The company has delivered strong investment performance over most time Interim Reporting Dates Q1 late May periods. F&C Private Equity Trust is a relatively pure play on mid-market European H1 late August buyouts which account for over 80% of the portfolio. The manager believes that Q3 late November there are innate inefficiencies in this market which provide long-term secular attractions. The focus of European private equity has moved very firmly onto the NAV Frequency Quarterly mid-market in recent years and this provides additional cyclical attractions. The manager believes that the company’s strong performance can also be attributed † Ordinary share pool to its preference for emerging private equity management groups where high †† Ordinary capital only motivation and focus can lead to exceptional results. It actively seeks out such groups and after extensive diligence backs a select group of funds each year. The combination of a mid-market focus, an emerging manager preference, the capability to invest in both primaries and secondaries, as well as a significant co- investment component makes F&C Private Equity Trust a distinctive, yet focused play on the most active and attractive area of the European private equity market. Sidebar information, text and portfolio distribution data provided by the Manager
24 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
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F&C PE Trust plc Share Price F&C PE Trust plc NAV FTSE All-Share 150
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Geography 31 December 2014 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
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F&C PE Trust plc Share Price 50 F&C PE Trust plc NAV FTSE All-Share 0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on £100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share (Diluted) 6.12 23.02 43.13 174.24 Share Price 4.81 73.55 93.59 196.33 FTSE All-Share 6.57 35.41 49.26 110.89 LPX 50 11.33 71.19 82.75 89.25
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX.
Listed Private Equity Review Summer 2015 25 LPEQ Gimv NV
Chairman Urbain Vandeurzen Investment Aim and Strategy Manager Self managed By directly investing in a diversified portfolio of unquoted companies, Gimv aims (Koen Dejonckheere) to provide long term capital growth and an attractive dividend yield. It is Gimv’s Fund Type Direct strategy to identify entrepreneurial and innovative companies with high-growth First Listed 1997 potential and transform them into market leaders. Gimv invests through four well- selected investment platforms: Consumer 2020, Health & Care, Smart Industries As at 31.03.15 and Sustainable Cities. Depending on the companies’ needs, Gimv provides them with the appropriate product, be it buyout, growth capital and venture capital. The Share price €41.89 portfolio is almost exclusively invested in its four home markets (Belgium, France, NAV per Share (last published) €41.53 Germany and the Netherlands). Discount (1.0)% Yield 5.8% Background With over three decades of investment experience, Gimv is an independent Net Assets (last published) €1,056.0m investment company listed on Euronext Brussels. Gimv currently manages Market Cap €1,064.0m a portfolio of around €1.8 billion of assets (including investment partnerships), invested in 55 portfolio companies, which jointly realise a turnover of more than Outstanding Commitments % of NAV €6 billion and employ over 26,000 professionals. Approximately €1 billion is on Outstanding Commitments 24% Gimv’s own balance sheet and €0.8 billion is held in co-investment funds managed by Gimv. Gimv’s dividend policy is to pay an attractive dividend. Total Liquid Resources 20% Gimv’s four investment platforms are: Consumer 2020, Health & Care, Smart Listing (Euronext) Brussels Industries and Sustainable Cities. Each of these platforms works with a skilled Ticker GIMB and dedicated team across Gimv’s home markets of the Benelux, France and Germany and can count on an extended international network of industry experts. Index inclusion Belgian Next 150 / Belgian Mid / Belgian Financials / Outside the aforementioned activities, Gimv performs specific activities through Belgian All Shares / DJ Stoxx Private specialised funds, in collaboration with experienced partners. Examples of this Equity 20 / Private Equity NXT / LPX 50 / are Gimv-XL, Gimv Health & Care Fund, TINC, DG Infra Yield and Gimv Arkiv Tech LPX Europe Fund II. Shares in Issue 25.4m Recent Developments in 2014 / 2015 2014 proved to be an excellent year for exits. Gimv was able to realise some Dividend Paid per Share attractive exits with significant cash generation and a positive contribution to Ordinary: Year to March 2013 €2.45 the results. Along with that, Gimv continued to focus on building tomorrow’s Ordinary: Year to March 2014 €2.45 winners. So far this year Gimv has added seven high-quality and often innovative Special: None investments to its portfolio in each of its target sectors. Gimv is working on continuing to grow the business with the aim of strengthening its international Announcements footprint and structure. Year End 31 March The Investment Case Full Year Results late May Gimv has realised an average net return of 11% since its inception. Gimv’s size Interim Reporting Dates Q1 late July H1 late November enables access to a substantial range of unlisted small to medium-sized growth Q3 late February companies achieving a very high level of portfolio diversification across different NAV Frequency Quarterly sectors, vintages and geographies. Gimv employs a conservative valuation approach, which is reflected in an average uplift of 45% above NAV at realisation.
The capital gains that Gimv realises enable it to offer both a compelling dividend yield to its investors and to grow its portfolio by reinvesting part of the divestment proceeds. Gimv has paid total dividends of €29 per share over the last decade, which provided Gimv’s investors with a substantial cash return, in addition to NAV growth.
Sidebar information, text and portfolio distribution data provided by the Manager
26 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
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Values are based on €100 investment with income reinvested (Total Return) For non-UK professional or institutional investors, returns may be higher than charts depict due to tax treatment of dividends Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year € % % % %
NAV Per Share (Diluted) 8.48 9.13 18.38 51.78 Share Price 18.51 26.71 32.92 91.06 LPX 50 27.18 97.47 125.25 79.81 MSCI Europe 22.65 65.14 76.90 107.08
* Source: Morningstar and LPX. Morningstar data reflects estimated performance, Latest performance data available on www.LPEQ.com based on last published NAVs and adjusted for currency. Consequently this data may differ from actual performance as stated by Managers. Listed Private Equity Review Summer 2015 27 LPEQ Graphite Enterprise Trust PLC
Chairman Mark Fane Investment Aim and Strategy Manager Graphite Capital Graphite Enterprise Trust (“Graphite”) is a specialist private equity investment Management LLP trust which has been listed on the London Stock Exchange since 1981. It aims (Rod Richards) to provide shareholders with long-term capital growth through investment in Fund Type Hybrid: Fund of Funds / unquoted companies. To achieve this, Graphite invests in buy-outs of mature, Direct profitable companies in established European private equity markets, both through First Listed 1981 private equity funds and directly.
Background As at 31.03.15 The company is managed by Graphite Capital, one of the UK’s leading mid- Share price £5.85 market private equity firms with £1.4 billion of funds under management. Graphite NAV per Share (last published) £6.95 Enterprise seeks to provide access to the investment programmes of the best buy- Discount 15.9% out managers across Europe. Investments in UK-based mid-market companies Yield 2.6% are made through funds managed by Graphite Capital. Investments in other UK sectors and in overseas markets are made through funds managed by third party Net Assets (last published) £506.9m managers selected by Graphite Capital. Market Cap £426.5m Recent Developments in 2014 / 2015 Outstanding Commitments Graphite made further progress in the year to January 2015, with a net asset value % of NAV per share total return of 5.0%, despite the adverse effect of currency movements. Outstanding Commitments 46% This continued the recent strong performance with the net asset value increasing Total Liquid Resources 37% by well over 50% over five years (total return). The Board has proposed that the final dividend for the year be increased by 33% to 10.0p, and that a special Listing London dividend of 5.5p also be paid. The total of 15.5p represents a yield of 2.7% on the Ticker GPE year end share price. Index inclusion FTSE All-Share / The performance of the portfolio was strong, driven by continued growth in LPX 50 / LPX Composite / LPX Europe / underlying profits and by a number of successful realisations. In local currency terms LPX UK / LPX Indirect the portfolio grew by 12.3%. The most significant disposal was Graphite Capital’s Shares in Issue 72.9m sale of Education Personnel, a provider of supply teachers and support staff to schools. This generated £14.9 million of cash and a return of 5.8 times its cost.
Dividend Paid per Share The Investment Case Ordinary: Year to January 2014 5.0p By investing in Graphite, shareholders gain exposure to a balanced and well Special: Year to January 2014 None diversified portfolio of around 400 underlying companies. Graphite Capital directly Ordinary: Year to January 2015 7.5p manages 25% of the portfolio by value and a further 28% has been acquired through Special: Year to January 2015 8.0p discretionary purchases of secondary interests in funds and of co-investments.
Graphite Capital has raised and managed funds for over 33 years and the Announcements senior management team has worked together for 17 years. Unusually, the team Year End 31 January that manages the third party fund portfolio also has extensive direct investing Full Year Results late March / early April experience which places them in an ideal position to judge other private equity Interim Reporting Dates Q1 mid June managers and to assess co-investment and secondary opportunities. H1 late September Almost half the portfolio is in companies acquired from 2009 to 2013. These are Q3 early December likely to be the main driver of growth over the next few years and it is encouraging NAV Frequency Quarterly that they are performing well. We would expect many of these investments to be realised in the next three years and the uplifts on these exits to be an important driver of future performance. Competition for private equity investments is high and pricing is increasing. In this environment, we believe that it is important to maintain discipline and to invest only if pricing reflects the quality of the opportunity. If the Company’s cashis
Sidebar information, text and portfolio greater than that required to finance its investment programme, share buy-backs distribution data provided by the Manager will be used to return surplus capital to shareholders.
28 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 January 2015 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
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Values are based on £100 investment with income reinvested (Total Return) Maturity 31 January 2015
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share (Diluted) 3.67 23.65 52.08 128.78 Share Price (0.88) 61.11 94.37 131.01 FTSE All-Share 6.57 35.41 49.26 110.89 LPX Europe 7.94 58.36 66.97 88.84
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX
Listed Private Equity Review Summer 2015 29 LPEQ HarbourVest Global Private Equity Limited
Chairman Sir Michael Bunbury Investment Aim and Strategy Manager HarbourVest Advisers LP Since 2007, the fund has sought to provide superior, long term capital appreciation (Richard Hickman) while avoiding undue risk by investing in a diversified portfolio of private equity Fund Type Fund of Funds investments. HarbourVest Global Private Equity (“HVPE”) is managed by an affiliate First Listed 2007 of HarbourVest Partners, LLC, a leading private equity fund-of-funds manager. The HarbourVest team has managed private equity investments for more than As at 31.03.15 30 years, gaining invaluable expertise and developing long term relationships with high quality managers. Share price $13.55 NAV per Share (last published) $15.95 Background Discount 15.0% HVPE is a Guernsey-incorporated company listed on the Specialist Fund Market of Yield 0.0% the London Stock Exchange and NYSE Euronext, the regulated market of Euronext Amsterdam. HVPE is a closed-end investment company that is designed to offer
Net Assets (last published) $1,273.9m shareholders long-term capital appreciation by investing in a carefully selected portfolio of private equity investments. HVPE invests in private equity through Market Cap $1,082.1m funds managed by HarbourVest Partners LLC and also through co-investments or Outstanding Commitments opportunistic investments alongside those HarbourVest-managed funds. % of NAV Outstanding Commitments 70% Recent Developments in 2014 / 2015 Total Liquid Resources 32% During the financial year ended 31 January 2015, HVPE committed $375.5 million to newly-created HarbourVest funds, invested $162.2 million in existing HarbourVest Listing London SFM fund commitments, and received $356.0 million in realisations from HarbourVest (NYSE Euronext) Amsterdam funds and co-investments (the proceeds from which can be used to fund the new Ticker HVPE HarbourVest fund commitments). During the financial year, the estimated net asset Index inclusion LPX Indirect value increased by an estimated 8%, driven by realised gains and value changes. Shares in Issue 79.9m HVPE committed additional capital to HarbourVest’s international partnership fund HIPEP VII, a new cross-platform fund product known as the Global Annual Fund, Dividend Paid per Share and two smaller funds: Cleantech II and the Canada Growth Fund. The investment Ordinary: None pipeline of allocated and unallocated commitments totals approximately $734 million at 31 January 2015. HVPE funded capital to a number of its active Special: Year to January 2014 24.0 cents HarbourVest funds during the financial year and received realisations from the Special: Year to January 2015 25.0 cents maturing HarbourVest funds, the largest sources of which included developing U.S. fund-of-funds, a global secondary fund, and the 2011 co-investment in Absolute Announcements and 2012 co-investment in Conversus. These realisations can be used to fund Year End 31 January HVPE’s investment pipeline of allocated and unallocated commitments. Full Year Results late May Interim Reporting Dates Q1 mid June The Investment Case H1 end September HVPE provides a complete private equity solution for investors by managing Q3 end November the portfolio through the four portions of the private equity cycle to create value NAV Frequency Monthly for investors: Commitments, Investments, NAV Growth, and Realisations. This comprehensive solution is designed to deliver top quartile performance over a multi-year investment cycle. HVPE is a publicly-listed fund of private equity funds
that commits to and invests in HarbourVest-managed global fund-of-funds, secondary funds, direct co-investment funds, and co-investments alongside HarbourVest funds. The portfolio comprises buyout, growth equity and venture capital investments and extends across developed and emerging economies. HVPE’s Investment Portfolio is positioned to create value via NAV growth with the ultimate goal of liquidity. As companies in the investment portfolio achieve liquidity, managers return capital to HarbourVest funds, which distribute cash to HVPE (which then funds its commitments to HarbourVest funds). Sidebar information, text and portfolio distribution data provided by the Manager
30 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 March 2015 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison $
150 HarbourVest Global PE Share Price HarbourVest Global PE NAV S&P 500 Composite
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 March 2015 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison $
250
HarbourVest Global PE Share Price HarbourVest Global PE NAV 200 S&P 500 Composite
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 March 2015 Since inception (2008) Total Return* (rebased to 100) Total Return Index Comparison $ 31 March 2015 200 HarbourVest Global PE Share Price HarbourVest Global PE NAV S&P 500 Composite 150
100
50
0 Dec Mar Mar Mar Mar Mar Mar Mar Mar 2007 2008 2009 2010 2011 2012 2013 2014 2015
Maturity 31 March 2015 Values are based on $100 investment with income reinvested (Total Return)
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year $ % % % %
NAV Per Share (Diluted) 8.41 37.01 81.76 – Share Price ** 23.04 93.08 139.05 – S&P 500 Composite 12.73 56.55 96.50 116.10 LPX 50 (0.93) 58.90 78.56 48.75
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. ** Share price data reflects performance on Euronext/SFM. In May 2010 HarbourVest Global Private Equity dual-listed on the LSE’s Specialist Fund Market. Listed Private Equity Review Summer 2015 31 LPEQ HBM Healthcare Investments AG
Chairman Hans Peter Hasler Investment Aim and Strategy Manager HBM Partners AG HBM Healthcare Investments (“HBM”) actively invests in the human medicine, (Dr Andreas Wicki) biotechnology, medical technology and diagnostics sectors and related areas. Fund Type Direct The company holds and manages an international portfolio of some twenty-five First Listed 2008 promising companies. Many of these companies have their lead products already available on the market or at an advanced stage of development. The portfolio As at 31.03.15 companies are closely tracked and actively guided on their strategic directions. This is what makes HBM Healthcare Investments an interesting alternative to Share price CHF108.00 investing in big pharma and biotech companies. HBM Healthcare Investments NAV per Share (last published) CHF140.60 has an international shareholder base and is listed on the SIX Swiss Exchange. Discount 23.2% Yield 4.0% Background HBM Healthcare Investments was founded in 2001, has been listed on the SIX Net Assets (last published) CHF1,074.2m Swiss Exchange since February 2008 and has net assets of around CHF1.1 billion. Market Cap CHF864.1m The company is advised by the dedicated healthcare team of HBM Partners with scientific, industry, operational and financial expertise and a network of industry Outstanding Commitments % of NAV and medical experts worldwide. HBM Partners is among the top five largest Outstanding Commitments 7% investment advisors in Europe exclusively focused on the healthcare sector with more than US$1.3 billion in assets under management. Total Liquid Resources 13% Recent Developments in 2014 / 2015 Listing (SIX) Swiss 2014 was another year with stellar performance for HBM Healthcare Investments. Ticker HBMN Factoring in the cash dividend of CHF3 per share paid in June, the net asset value Index inclusion LPX 50 / LPX Europe / per share climbed by 47% and the share price gained 52%, both outperforming LPX Direct / LPX Venture / Swiss All-Share the MSCI World Healthcare Index which gained 33% during the period.
Shares in Issue 8.0m The performance was largely driven by strong value appreciation of listed portfolio companies Paratek Pharmaceuticals (valuation up +349%), PTC Therapeutics Dividend Paid per Share (+205%), Pacira Pharmaceuticals (+54%), Ophthotech Corporation (+39%) on Ordinary: Year to 31 March 2013 CHF1.50 the back of drug approvals, strong sales growth or favourable corporate deals Ordinary: Year to 31 March 2014 CHF3.00 following their Initial Public Offerings. In addition, London-listed company Special: None Skyepharma (+192%) benefited from a strong launch of asthma drug Flutiform and a capital increase to pay back all of the company’s outstanding debt.
Announcements During 2014 two major new private equity investments were made. A total of Year End 31 March €25 million was invested in French company Advanced Accelerator Applications Full Year Results June (AAA), a market leader in the field of Molecular Nuclear Medicine. A further Interim Reporting Dates Q1 late July US$8 million was committed to US company Vascular Dynamics into a H1 late October US$18 million financing round to complete a pivotal clinical trial for MobiusHDTM, Q3 late January an innovative implant to treat patients with resistant hypertension. NAV Frequency Bi-monthly HBM Healthcare Investments continued its shareholder-friendly distribution policy during 2014. A total of CHF100 million (~10% of net assets) were returned to shareholders through a mix of share buy-backs and cash distributions.
The Investment Case HBM Healthcare Investments aims to focus its investments mainly on later-stage healthcare companies with attractive valuations, good product pipelines, validated technology platforms and experienced management teams. The HBM team has been an active contributor to value creation in the portfolio companies.
Sidebar information, text and portfolio distribution data provided by the Manager
32 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison CHF
200 HBM Healthcare Investments AG Share Price HBM Healthcare Investments NAV LPX Europe
150
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison CHF
250
HBM Healthcare Investments AG Share Price HBM Healthcare Investments NAV 200 LPX Europe
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Currency Area 31 December 2014 Since inception (2008) Total Return* (rebased to 100) Total Return Index Comparison CHF 31 March 2015
200 HBM Healthcare Investments AG Share Price HBM Healthcare Investments NAV LPX Europe 150
100
50
0 Feb Mar Mar Mar Mar Mar Mar Mar Mar 2008 2008 2009 2010 2011 2012 2013 2014 2015 Maturity 31 December 2014 Values are based on CHF100 investment with income reinvested (Total Return)
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year CHF % % % %
NAV Per Share (Diluted) 32.71 147.02 123.56 – Share Price 48.01 176.03 131.39 – LPX Europe 5.67 58.38 50.98 20.75 MSCI World 17.29 54.73 53.28 59.68
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX
Listed Private Equity Review Summer 2015 33 LPEQ HgCapital Trust plc
Chairman Roger Mountford Investment Aim and Strategy Manager HgCapital HgCapital Trust (the ‘Trust’) aims to provide shareholders with long-term capital (Stephen Bough) appreciation in excess of the FTSE All-Share Index by investing in a diversified Fund Type Direct portfolio of unquoted investments primarily in Northern Europe. HgCapital (the First Listed 1989 ‘Manager’), seeks to meet this objective through a deep sector focus primarily targeting middle-market buyouts with enterprise values of between £80 million As at 31.03.15 and £500 million, across the TMT, Services and Industrials sectors and lower mid- market buyouts in the TMT sector between £20 million and £80 million; additionally Share price £11.32 HgCapital invests in specialist infrastructure through renewable energy projects. NAV per Share (last published) £12.46 This strategy offers a high volume of companies with proven financial performance Discount 9.0% and defensible market positions. Yield† 2.6% Background
Net Assets (last published) £465.2m Investing in HgCapital Trust provides exposure to a portfolio of largely fast growing companies, with the top 20 buyout investments (89% of the portfolio) continuing Market Cap £422.5m to see solid sales and EBITDA growth over 2014 of 11% and 9% respectively. Outstanding Commitments These companies have aggregate revenues of £1.9 billion, profits of £410 million % of NAV and margins of 22%. The Trust is the largest client of HgCapital. Outstanding Commitments 40% Total Liquid Resources 11% The Manager has seen strong returns across the cycle since 1990; 123 completed investments, 97 fully or substantially realised at 2.4x cost, 36% p.a. gross IRR. Over the past ten years HgCapital Trust has outperformed the FTSE All-Share Listing London Index by 1.4x. Ticker HGT Index inclusion FTSE All-Share / Recent Developments in 2014 / 2015 FTSE SmallCap / LPX 50 / Over 2014 the NAV per share saw a total return of +12.8% with positive gains LPX Composite / LPX UK / LPX Europe / from both the strong growth in the unrealised portfolio and realisations over Morningstar IT PE ex 3i the period above book value. It was a very active year for investment with £87 Shares in Issue 37.3m million deployed on behalf of the Trust both into four new buyout investments (Ullink, Sequel, Allocate and Relay), re-investment into Visma and in addition, Dividend Paid per Share significant M&A activity within the unrealised portfolio (including £10 million into Ordinary: Year to December 2013 29.0p Zenith Leasedrive). Consistent realisations over the period returned £83 million to Special: Year to December 2013 None the Trust, primarily from the disposal of five buyout companies in addition to re- Ordinary: Year to December 2014 32.0p financings. Portfolio activity has continued into 2015 with a services acquisition Special: Year to December 2014 19.0p deploying a further £15 million on behalf of the Trust.
The Investment Case Announcements HgCapital’s large sector teams operate across Europe combining the domain Year End 31 December knowledge and expertise of a trade buyer – giving them superior credibility and Full Year Results early March the ability to make confident decisions – with the speed of execution and discipline Interim Reporting Dates Q1 mid May of a financial investor; leading to high conversion rates on deals. This deep sector H1 late August focus is channelled through a rigorous, research-based investment process, to Q3 mid October systematically identify the most attractive growth sub-sectors and business models NAV Frequency Monthly of the European mid-market and then repeatedly invest in them, optimising deal flow and improving returns. In 2015 these highly experienced sector teams will continue † Relates to ordinary dividends paid in year to to seek opportunities to selectively deploy capital both into new investments and 31 December 2014 only. Does not include special dividend of 19.0 pence per Ordinary bolt-on acquisitions, building a quality portfolio and a store of value for the future. share paid on 26 September 2014, and dividend Supported by HgCapital’s portfolio management team, these robust companies of 32.0 pence per Ordinary share declared for with strong growth characteristics will drive value in the unrealised portfolio; this, the year ended 31 December 2014, to be paid on 18 May 2015 combined with consistent realisations as demonstrated over 2014, will continue to deliver strong returns to investors. Sidebar information, text and portfolio distribution data provided by the Manager
34 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
150
HgCapital Trust plc Share Price HgCapital Trust plc NAV LPX Europe
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
200
HgCapital Trust plc Share Price HgCapital Trust plc NAV LPX Europe 150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 10 YearTotal Retu Totalrn Index ComparisonReturn*£ (rebased to 100) 31 March 2015
400 HgCapital Trust plc Share Price HgCapital Trust plc NAV LPX Europe 300
200
100
0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on £100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share 10.05 21.68 46.62 204.65 Share Price 12.20 27.58 47.52 183.26 FTSE All-Share 6.57 35.41 49.26 110.89 LPX Europe 7.94 58.36 66.97 88.84
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX
Listed Private Equity Review Summer 2015 35 LPEQ J.P. Morgan Private Equity Limited
Chairman Trevor Ash Investment Aim and Strategy Manager J.P. Morgan Asset In January 2014, J.P. Morgan Private Equity Limited (“JPEL”) announced that it Management would deploy up to $150 million, through December 2015, into mature assets in (Troy Duncan / Gregory Getschow) order to drive NAV growth and reduce leverage. In deploying $150 million, JPEL Fund Type Fund of Funds / has focused on concentrated secondary deals which are direct investments in a Co-investment single company or secondary transactions with 1 to 3 companies. First Listed 2005 Background As at 31.03.15 JPEL is a Guernsey registered investment company that trades on the London Stock Exchange (LSE: JPEL, JPZZ, JPSZ). The company currently has three Share price $0.92 classes of shares: US$ Equity Shares, 2015 Zero Dividend Preference Shares NAV per Share (last published) $1.25 (“ZDP Shares”), and 2017 ZDP Shares. Discount 26.0% Yield 0.0% Recent Developments in 2014 / 2015 JPEL’s managers believe that the standard secondary market for diversified
Net Assets† (last published) $421.1m limited partnership stakes is currently highly competitive with high pricing and Market Cap† $319.6m JPEL is seeking to populate its top investments with companies that have certain attributes. Outstanding Commitments % of NAV The attributes JPEL seeks in companies include: Outstanding Commitments 13% • Existing private equity backed company Total Liquid Resources 17% • Potential for near-term liquidity (2 – 4 years) • Discounted entry value
Listing London • Visible growth in profitability over the next 1 to 2 years • Limited gearing Ticker JPEL • Market leadership Index inclusion LPX UK / LPX Indirect During calendar year 2014, JPEL completed seven secondary direct investments, Shares in Issue† 346.4m deploying approximately $100.4 million of capital. These seven investments currently represent approximately 20.6% of JPEL’s private equity value at Dividend Paid per Share 31 December 2014. Ordinary None The Investment Case Special None JPEL’s Managers believe that JPEL’s mature portfolio will continue to generate Announcements positive net distribution flows to fuel further reduction of debt through the repayment Year End 30 June of JPEL’s 2015 ZDP Shares in October of 2015 as well as the continuation of the $150 million investment program through December 2015. Full Year Results late October Interim Reporting Dates JPEL’s Managers continue to be primarily focused on investing in concentrated Q1 mid November private equity secondaries and secondary direct opportunities. Through the end of H1 late February 2015, the Managers intend to create a more concentrated portfolio by deploying Q3 mid May up to $150 million in 15 - 20 private companies through December 2015. JPEL’s NAV Frequency Monthly Managers expect that JPEL’s top 30 companies will represent a significant portion of private equity value by the end of the stated investment period.
JPEL announced the creation of a Realisation Share Class (“RSC”) which would go † Ordinary US$ Equity share capital only into effect after the 2015 ZDP Shares have been repaid. US$ Equity shareholders will have the option to exchange their US$ Equity Shares for shares in the RSC which will entitle holders to all cash realisations from JPEL’s investment portfolio in proportion to their aggregate holding within the equity of the company.
US$ Equity Shareholders will also have the ability to continue to hold JPEL US$ Equity Shares in order to maintain exposure to JPEL’s unique private equity Sidebar information, text and portfolio distribution data provided by the Manager secondaries and secondary direct investments.
36 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison $
150
J.P. Morgan PE Share Price J.P. Morgan PE NAV MSCI World
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison $
200
J.P. Morgan PE Share Price J.P. Morgan PE NAV MSCI World 150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 Since inception (2005) Total Return* (rebased to 100)
Total Return Index Comparison $ 31 March 2015
250 J.P. Morgan PE Share Price J.P. Morgan PE NAV 200 MSCI World
150
100
50
0 Jun Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Maturity 31 December 2014 Values are based on $100 investment with income reinvested (Total Return)
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year $ % % % %
NAV Per Share (Diluted) 11.02 4.43 (8.04) – Share Price 24.45 2.50 (19.78) – MSCI World 6.60 43.61 65.64 96.29 LPX 50 (0.93) 58.90 78.56 48.75
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. Morningstar data reflects estimated performance, based on last published NAVs and adjusted for currency. Consequently this data may differ from actual performance as stated by Managers. Listed Private Equity Review Summer 2015 37 LPEQ JZ Capital Partners Limited
Chairman David Macfarlane Investment Aim and Strategy Manager Jordan/Zalaznick Advisers Inc JZ Capital Partners (“JZCP”) invests in high-quality US and European micro-cap (David Zalaznick) companies, as well as real estate properties in the US. Its investment objective is Fund Type Direct to provide a superior overall return, comprised of a current yield and significant First Listed 2008 capital appreciation.
Background As at 31.03.15 JZCP’s investment adviser is Jordan/Zalaznick Advisers Inc, which is led by Share price £4.14 David Zalaznick and Jay Jordan. They have worked together for over 30 years NAV per Share (last published) £6.76 and are supported by teams of investment professionals in New York, Chicago, Discount 38.9% London and Madrid. The investment adviser’s team works with the management Yield 5.1% of microcap companies to help build better businesses, create value and deliver strong returns to investors. Real estate investments are typically purchased on off- † Net Assets (last published) £439.7m market terms, and subsequently developed to add significant short and long term † Market Cap £268.9m value. JZCP’s share capital consists of Ordinary shares, Zero Dividend Preference Outstanding Commitments shares and Convertible Unsecured Loan stock. % of NAV Outstanding Commitments 3% Recent Developments in 2014 / 2015 Total Liquid Resources 16% In the first half of the fiscal year ended 28 February 2015, realisations and refinancings totalling $96.4 million were generated primarily from the sale
Listing London SFM of Galson Laboratories ($10.1 million) a provider of analytical air testing services, Amptek ($19.4 million) a designer and manufacturer of weather and timing Ticker JZCP measurement instruments and from the realisation of shares in insurance Index inclusion N/A provider Safety Insurance ($57.3 million). This period also saw the company Shares in Issue† 65.0m invest $128.6 million across the US micro cap ($26.9 million), European micro cap ($35.2 million), real estate portfolios ($12.5 million) and Bright Spruce, an asset Dividend Paid per Share management fund ($50.0 million). Ordinary: Year to February 2014 29.5c A busy start for 2015 has seen the realisation of $41.8 million through the Ordinary: Year to February 2015 31.0c sale of Milestone Aviation the world’s largest helicopter leasing company and Special: None $46.5 million from the sale of Dental Services an operator of dental laboratories.
Announcements The Investment Case Year End 28 February JZCP offers investors unique access to the US and European micro-cap buyout Full Year Results May markets, providing an attractive, progressive dividend policy, and a strong history Interim Reporting Dates Q1 June of NAV and dividend growth. JZCP creates value by buying high quality privately H1 October owned micro-cap companies in non-auction transactions, providing capital and Q3 December actively working with the existing management to grow the businesses before selling to strategic buyers. NAV Frequency Monthly In the US, JZCP has an innovative buy-and-build strategy to acquire controlling † Ordinary Equity share capital only stakes in high margin micro-cap companies in fragmented industries including JZ Capital Partners (“JZCP”) was incorporated testing services, industrial services solutions, water treatment services and in Guernsey in April 2008. In June 2008 the company was launched in connection with a transportation and logistics. scheme of reconstruction and voluntary winding In addition, JZCP has teamed up with a successful real estate team to invest up of JZ Equity Partners Plc (“JZEP”). JZEP’s assets were transferred in specie to JZCP and in commercial and residential properties that are not “fully shopped”, in up-and- JZCP issued to JZEP shareholders one Ordinary coming neighbourhoods. To date these are Brooklyn, New York and Miami, Florida. share for each JZEP Ordinary share and one ZDP The team purchases these properties prudently, and develops them via renovation share for each JZEP ZDP share that they held. JZCP’s 10 year total return performance includes and/or building construction. the performance of JZCP and JZEP. In Europe the investment adviser’s team has worked together for over ten years and has a proprietary network of intermediaries to deliver high quality micro-cap Sidebar information, text and portfolio distribution data provided by the Manager buy-and-build opportunities throughout the continent.
38 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
150
JZ Capital Partners Limited Share Price JZ Capital Partners Limited NAV MSCI World
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
250
JZ Capital Partners Limited Share Price JZ Capital Partners Limited NAV 200 MSCI World
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Currency 31 December 2014 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
300 JZ Capital Partners Limited Share Price
250 JZ Capital Partners Limited NAV MSCI World
200
150
100
50
0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on £100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share 12.10 23.75 62.92 99.90 Share Price (2.58) 31.54 71.85 1.72 MSCI World 19.81 54.72 69.52 149.73 LPX 50 11.33 71.19 82.75 89.25
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX.
Listed Private Equity Review Summer 2015 39 LPEQ NB Private Equity Partners Limited
Chairman Talmai Morgan Investment Aim and Strategy Manager NB Alternatives Advisers LLC NB Private Equity Partners (“NBPE”) seeks to produce attractive returns on capital (Peter Von Lehe) by investing in income investments, equity co-investments and fund investments Fund Type Direct with a focus on capital efficient strategies while managing risk through portfolio First Listed 2007 diversification. NBPE pursues diversification across asset class, vintage year, geography, industry and sponsor. As at 31.03.15 Background Share price† $11.61 NBPE is a closed-end investment company that invests in an actively managed NAV per Share (last published) $14.25 portfolio of private equity investments, including equity co-investments, income Discount 18.5% investments, consisting of corporate private debt and healthcare credit investments, Yield 4.0% and funds. Its ordinary shares trade on both the Euronext Amsterdam and the London Stock Exchange. In 2009 and 2010, the company issued zero dividend Net Assets (last published) $695.5m preferred shares (“ZDP shares”) which trade on the London Stock Exchange and Market Cap $566.6m The Channel Islands Securities Exchange Authority Limited.
Outstanding Commitments Recent Developments in 2014 / 2015 % of NAV During 2014, the company’s NAV per Share (ex div) increased by 11.1% (16.2% Outstanding Commitments 14% including $0.45 per Share paid in dividends), driven by unrealised gains in the Total Liquid Resources 16% equity co-investment portfolio and the income portfolio. NBPE continued to execute on its investment strategy and has built a portfolio of high-quality direct Listing London income investments and equity co-investments, which now comprise 89% of NAV. (NYSE Euronext) Amsterdam 2014 was another strong year of distribution activity across the portfolio. NBPE Ticker NBPE received approximately $200 million of distributions during the year, representing Index inclusion LPX Indirect / over 30% of the company’s NAV at the start of the year. Strong performance in Private Equity NXT the equity co-investment portfolio was driven by the IPO of Sabre, which occurred Shares in Issue 48.8m in April, as well as write-ups of several private companies, as a result of strong operating performance. In addition, the successful exits of Firth Rixson and Digital Dividend Paid per Share Insight, where NBPE held both debt and equity securities, produced strong cash Ordinary: Year to December 2013 41.0c flows and returns for the Company. Ordinary: Year to December 2014 45.0c Even after significant distribution activity, NBPE deployed over $275 million to 42 new direct investments during the year, including $186 million into new income Special: None investments. As a result, a significant portion of the company’s assets are invested in recent vintages and the average age of the portfolio remains young as the Announcements portfolio has been re-deployed into new investment opportunities. Approximately Year End 31 December 47% of NAV is invested in direct income investments with a total estimated yield Full Year Results early March to maturity of 10.3% and a cash yield of 8.7% and the dividend is 131% covered Interim Reporting Dates Q1 mid May by the cash income this portfolio generates. H1 late August Q3 mid November The Investment Case NAV Frequency Monthly NBPE is managed by an experienced investment manager with a strong long term track record. The Neuberger Berman Private Equity Group offers an integrated,
† London Stock Exchange listing global private equity platform and NBPE is able to leverage the resources of Neuberger Berman. The manager believes it has a high quality private equity portfolio and is in a strong financial position with capital available for new investments. The manager believes NBPE offers a compelling investment opportunity in a differentiated portfolio that has the potential for capital appreciation through equity co-investments as well as current income through dividends, supported by the income investment portfolio. Sidebar information, text and portfolio distribution data provided by the Manager
40 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison $
150
NBPE Share Price NBPE NAV S&P 500 Composite
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison $
250
NBPE Share Price NBPE NAV S&P 500 Composite 200
150
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50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 Since inception (2007) Total Return* (rebased to 100) Total Return Index Comparison $ 31 March 2015 200 NBPE Share Price NBPE NAV S&P 500 Composite 150
100
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0 Jul Mar Mar Mar Mar Mar Mar Mar Mar 2007 2008 2009 2010 2011 2012 2013 2014 2015
Maturity 31 December 2014 Values are based on $100 investment with income reinvested (Total Return)
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year $ % % % %
NAV Per Share (Diluted) 13.77 35.87 61.43 – Share Price 13.31 81.23 105.40 – S&P Composite 12.73 56.55 96.50 116.10 LPX 50 (0.93) 58.90 78.56 48.75
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. Morningstar data reflects estimated performance, based on last published NAVs and adjusted for currency. Consequently this data may differ from actual performance as stated by Managers. Listed Private Equity Review Summer 2015 41 LPEQ Oakley Capital Investments Limited
Chairman Christopher Wetherhill Investment Aim and Strategy Portfolio Manager Oakley Capital Oakley Capital Investments Limited (“OCI”) is a Bermudan-based company (Bermuda) Limited listed on AIM. OCI seeks to provide investors with long term capital appreciation, Fund Type Direct through its investment in Oakley Capital Private Equity L.P. ( “Fund I”), Oakley First Listed 2007 Capital Private Equity II (“Fund II”), a successor fund to Fund I (collectively the “Funds”), and over time, through co-investment opportunities. As at 31.03.15 The investment strategy of the Funds is to focus primarily on private mid-market Share price £1.69 UK and European businesses, thereby leveraging the investment experience of
NAV per Share (last published) £2.01 Oakley Capital Limited (the “Investment Adviser”) with the objective of delivering Discount 16.0% long-term capital appreciation within the Funds. Yield 0.0% Background The Funds are unlisted mid-market private equity funds with total commitments Net Assets (last published) £256.9m of approximately €812 million from limited partners, including OCI. The Funds’ Market Cap £330.7m focus is on investments with an enterprise value of approximately £20 million Outstanding Commitments to £150 million per transaction that enable them to secure a controlling position % of NAV in the target company. They seek to invest in companies that have achieved, or Outstanding Commitments 50% have the potential to achieve, a critical scale in their industry or sector, creating a Total Liquid Resources 69% sustainable earnings stream which should command a premium.
Recent Developments in 2014 / 2015 Listing London (AIM) During 2014, Fund I called additional capital from OCI of £18.9 million to fund Ticker OCL follow-on investments in existing portfolio companies and the acquisition of Index inclusion FTSE AIM All-share / Educas Australia. Fund I made distributions to OCI of £58 million relating to the FTSE AIM 100 / FTSE AIM All-share – Financial Services sale of its investments in intergenia and Daisy. Fund II called capital from OCI Shares in Issue 196.3m of £65.5 million to fund the acquisitions of intergenia, North Sails, Facile.it and Educas Europe and made distributions to OCI of £3.5 million during the year.
Dividend Paid per Share The Investment Case Ordinary: None The Funds typically invest in sectors that are growing or where consolidation is Special: None taking place. Within their core sector interests, the Funds invest in both performing and under-performing companies, supporting buy-and-build strategies or rapid Announcements growth, or businesses undergoing significant operational or strategic change. Year End 31 December Investing in a diverse range of portfolio companies, the Funds’ objective is to work Full Year Results April proactively with investee management teams, together with other stakeholders, in Interim Reporting Dates H1 September order to create substantial shareholder value.
The Funds generally invest in situations outside of those which appeal to the NAV Frequency Semi-annual mainstream private equity community. Their deals are often particularly challenging or complex and are therefore unlikely to appeal to mainstream investors.
The Funds look for businesses where the Investment Adviser’s team can make a difference. The Funds are relatively sector agnostic but typically invest in sectors that are growing and / or consolidating and have invested across a wide range of sectors to date.
Sidebar information, text and portfolio distribution data provided by the Manager
42 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
150
Oakley Capital Investments Share Price Oakley Capital Investments NAV LPX Europe
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
250
Oakley Capital Investments Share Price Oakley Capital Investments NAV LPX Europe 200
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 Since inception (2007) Total Return* (rebased to 100) Total Return Index Comparison £
250 Oakley Capital Investments Share Price Oakley Capital Investments NAV LPX Europe 200
150
100
50
0 Aug Mar Mar Mar Mar Mar Mar Mar Mar 2007 2008 2009 2010 2011 2012 2013 2014 2015
Maturity 31 December 2014 Values are based on £100 investment with income reinvested (Total Return)
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share (Diluted) (0.01) 16.94 41.83 – Share Price 0.00 23.44 59.71 – FTSE All-Share 6.57 35.41 49.26 110.89 LPX Europe 7.94 58.36 66.97 88.84
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX
Listed Private Equity Review Summer 2015 43 LPEQ Pantheon International Participations PLC
Chairman Tom Bartlam Investment Aim and Strategy Manager Pantheon Ventures (UK) LLP Pantheon International Participation’s (“PIP”) primary investment objective is to (Andrew Lebus) maximise capital growth by investing in a diversified portfolio of private equity Fund Type Fund of Funds funds and directly in private companies. First Listed 1987 The company’s strategy is to invest with leading private equity managers whilst reducing investment risk through diversification of the underlying portfolio by As at 31.03.15 geography, investment stage and sector. This strategy is implemented through Share price† £13.50 PIP’s access to Pantheon’s primary, secondary and co-investment activities. PIP NAV per Share (last published) £15.14 has the flexibility to vary the size and emphasis of its investments depending on Discount 10.8% its available financing. Yield 0.0% Background PIP is the longest established private equity fund-of-funds on the London Stock Net Assets (last published) £992.9m Exchange. Since inception, PIP has generated an average annual NAV per share Market Cap £861.1m return of 11.4%, outperforming the FTSE All-Share by 3.5% and the MSCI World Outstanding Commitments by 4.1% (at 31 December 2014). PIP is managed by Pantheon, one of the world’s % of NAV leading private equity fund-of-funds specialists. Founded in 1982, and with Outstanding Commitments 24% assets under management of $31.4 billion (as at 30 September 2014), Pantheon Total Liquid Resources 23% is a recognised investment leader with a strong and consistent track record over various market cycles. Listing London Recent Developments in 2014 / 2015 Ticker PIN / PINR In the year to 31 December 2014, PIP’s NAV per share grew by 16.1% to 1,513.3p Index inclusion FTSE All-Share / while the ordinary share price increased by 23.2%. PIP’s portfolio continued to FTSE SmallCap / LPX Europe / receive significant distributions, generating £181 million net portfolio cash flows LPX Indirect in 2014. PIP continued to actively redeploy capital during the year, committing Shares in Issue Ordinary 33.3m £182 million mainly focused on secondaries and co-investments in the US. The Redeemable 32.3m company also completed a further £12 million of share buybacks for investment purposes. Dividend Paid per Share Ordinary: None The Investment Case Special: None The spread of performance in private equity is wider than in other asset classes so the selection of managers has a significant influence on investment performance. PIP benefits from Pantheon’s position as one of the leading global specialist Announcements private equity fund investors with a team of over 70 investment professionals*. The Year End 30 June company offers a global, diversified selection of private equity assets, carefully Full Year Results early October selected by Pantheon for their quality. The diversification of PIP’s portfolio, with Interim Reporting Dates H1 late February assets spread across different investment styles and stages including buyout,
venture and growth, and special situations, helps to reduce volatility both of NAV Frequency Monthly returns and cash flows. The maturity profile of the portfolio ensures that PIP is not overly exposed to any one vintage. PIP’s geographical diversification extends its exposure beyond the US and Europe, to regions with higher rates of economic † Ordinary shares growth such as Asia.
PIP’s unleveraged balance sheet and positive net cash flow leave the company well placed to use its cash to make new investments. While PIP’s strategy continues to emphasise opportunities in the secondary market, selective co-investments, together with targeted primary commitments, allow the company to continue to renew its portfolio while maintaining a conservative approach to balance sheet management. Sidebar information, text and portfolio distribution data provided by the Manager * As at 10 March 2015
44 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
130 Pantheon Intl Parcipaons Share Price Pantheon Intl Parcipaons NAV MSCI World
100
70 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
300
Pantheon Intl Parcipaons Share Price 250 Pantheon Intl Parcipaons NAV MSCI World
200
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
300 Pantheon Intl Parcipaons Share Price Pantheon Intl Parcipaons NAV 250 MSCI World
200
150
100
50
0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on £100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share (Diluted) 15.48 36.15 66.73 150.78 Share Price 22.73 73.97 150.46 137.89 FTSE All-Share 6.57 35.41 49.26 110.89 MSCI World 19.81 54.72 69.52 149.73
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. Morningstar data reflects estimated performance, based on last published NAVs and adjusted for currency. Consequently this data may differ from actual performance as stated by Managers. Listed Private Equity Review Summer 2015 45 LPEQ Princess Private Equity Holding Limited
Chairman Brian Human Investment Aim and Strategy Investment Adviser Partners Group Princess Private Equity Holding (“Princess”) is an investment holding company (Urs Wietlisbach) founded in 1999 and domiciled in Guernsey. The company was listed on the LSE Fund Type Direct in 2007 and is advised in its investment activities by Partners Group, a global Founded: 1999 private markets investment manager with over €37 billion (over US$40 billion) in First Listed (London): 2007 investment programmes under management in private equity, private debt, private real estate and private infrastructure.
As at 31.03.15 Princess aims to provide shareholders with long-term capital growth and an Share price €7.78 attractive annual aggregate dividend yield of 5-8% of NAV per share. In 2011, NAV per Share (last published†) €8.87 the company revised its investment policy such that no new third party fund Discount 12.0% commitments would be made and instead shifted its investment focus solely Yield 6.9% towards direct investments, primarily in the equity and debt of unquoted market- leading mid-cap companies, which now represent the largest part of the portfolio.
Net Assets (last published†) €613.6m Princess invests globally, based on Partners Group’s relative value approach and has the following target allocation parameters: 35% – 65% North America, 30% – Market Cap €537.7m 65% Europe and 10% – 40% Asia and Rest of World. Outstanding Commitments % of NAV Recent Developments in 2014 / 2015 † Outstanding Commitments 24% In 2014, Princess showed a strong NAV total return performance (+13.2%), which Total Liquid Resources† 9% was predominantly driven by its direct investments, reflecting continued progress with the repositioning of the portfolio towards direct investments. Princess also Listing London paid investors a total dividend of €0.54 per share via two interim dividends in Ticker PEY 2014, which translated to an annualised dividend yield of 6.3% based on the NAV Index inclusion LPX Composite / per share, or 7.7% based on the share price, as of 31 December 2014. Over the LPX Europe / LPX Indirect / LPX UK course of 2014, Princess deployed €75.2 million to seven new direct private equity Shares in Issue 69.2m and seven new direct private debt investments bringing the allocation to direct investments to 56.1% of the portfolio. Within the first quarter of 2015 Princess invested €21 million in the buyout of Dynacast, a US-headquartered manufacturer Dividend Paid per Share of small, highly complex precision engineered die cast and metal injection moulded Ordinary: Year to 31 December 2013 €0.53 components, with 23 manufacturing plants in 16 countries. The deal fits well into Ordinary: Year to 31 December 2014 €0.54 the strategy of investing in growing mid-market leaders internationally, identifying Special: None investments with strong downside protection and investing in future growth.
Announcements The Investment Case Year End 31 December Following the years of transition, the portfolio is gaining traction with the strong Full Year Results early March performance of underlying portfolio companies feeding through to Princess’ NAV performance in 2014. Going forward, Princess’ Investment Advisor, Partners Group, Interim Reporting Dates Q1 mid May H1 mid August intends to overweight non-cyclical, defensive or niche markets where it expects Q3 mid November to be able to create value by growing acquired assets internationally through its NAV Frequency Monthly global platform and broad relationship network. For its debt investments Partners Group sees relative value in the mid-cap space globally, especially in situations
† As at 28.02.15 such as acquisitions where creative structures are required to support growth strategies. Partners Group employs more than 750 people across 18 offices in Europe, Asia, Australia and the Americas. Thus, the firm’s global presence and broad investment platform enable the comprehensive coverage necessary to execute a true relative value strategy.
Sidebar information, text and portfolio distribution data provided by the Manager
46 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 28 February 2015 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
150
Princess PE Share Price Princess PE NAV LPX Europe
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 28 February 2015 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
250
Princess PE Share Price Princess PE NAV 200 LPX Europe
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 28 February 2015 Since inception (2007) Total Return* (rebased to 100) Total Return Index Comparison € 31 March 2015 150 Princess PE Share Price Princess PE NAV LPX Europe
100
50
0 Oct Mar Mar Mar Mar Mar Mar Mar Mar 2007 2008 2009 2010 2011 2012 2013 2014 2015 Values are based on €100 investment with income reinvested (Total Return) Maturity 28 February 2015
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year € % % % %
NAV Per Share (Diluted) 16.83 21.64 46.28 – Share Price 34.37 51.43 133.75 – LPX Europe 23.30 82.68 105.81 79.43 MSCI Europe 22.65 65.14 76.90 107.08
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX
Listed Private Equity Review Summer 2015 47 LPEQ Spice Private Equity Limited
Chairman Eduardo Leemann Investment Aim and Strategy Manager GP Advisors Spice Private Equity (“Spice PE”) is a Swiss listed investment company with (David Salim / Guido Cornella) $220 million in assets under management. It invests exclusively in private equity Fund Type Hybrid in emerging markets by co-investing with established investors and through First Listed 1999 specialised funds. Fund investments are primarily of a secondary nature, although primary commitments can be made on a selective basis. The geographic focus As at 31.12.14 * of the investments is on emerging markets, with emphasis on Asia Pacific, Sub- Saharan Africa and Latin America. Investments in Eastern Europe and in MENA Share price $22.64 can take place on an opportunistic basis. Most of the underlying investments NAV per Share (last published) $38.02 are of growth capital and buyout nature. The objective of Spice PE is to achieve Discount 40.4% long-term capital growth for shareholders by increasing the net asset value and Yield 0.0% to outperform the LPX50 Index. Spice PE is exclusively managed by GP Advisors, part of GP Investments Group, a leading Latin American alternative investment Net Assets (last published) $203.6m manager listed on the Sao Paulo and on the Luxembourg Stock Exchange. Spice Market Cap $121.5m PE is listed on the SIX Swiss Exchange under the ticker symbol “SPCE” and is Outstanding Commitments traded daily. % of NAV Background Outstanding Commitments 8% Spice PE has been listed on the SIX Stock Exchange since 1999 and previously Total Liquid Resources 30% invested mainly in North American and Western European buyout assets through specialised private equity funds. After a strategy change in May 2013 and the sale Listing (SIX) Swiss of the entire “Legacy Portfolio” at year end 2014, the company assets consist Ticker SPCE exclusively of emerging markets private equity assets and cash / cash equivalents. Index inclusion LPX Indirect / Recent Developments in 2014 / 2015 Swiss All-share At the end of 2014, Spice PE made a decisive step to accelerate its repositioning: Shares in Issue 5.4m it sold the entire “Legacy Portfolio” to Strategic Partners, part of Blackstone Group. With this transaction, all assets and liabilities related to investments made Dividend Paid per Share prior to 2009 have been sold. Several goals were achieved with this $200 million Ordinary: None transaction: a simplified overall group structure and balance sheet, elimination of Special: None the indebtedness, enhancement of the cash flow predictability, and an investment portfolio 100% focused on emerging markets. Announcements Starting from 1 January 2015, Spice PE will report in USD and its shares will be Year End 31 December traded in USD (after publication of the first quarterly results in USD). Current and Full Year Results March future investments are generally linked to USD and this step will avoid unnecessary Interim Reporting Dates Q1 May volatility in the reported Net Asset Value (“NAV”) and in the share price. H1 August The Investment Case Q3 November Spice PE’s strategy going forward is unique in the listed private equity space and NAV Frequency Quarterly permits access to fast growing industries and sectors that are not or only partially represented in stock markets. The company leverages the multi-decade long private equity emerging markets experience and the global network of the GP * As at 31 December 2014: $1 = CHF 0.99365. Investments Group, of its team and of its strategic partners. Long term experience As at 1 January 2015 Spice PE changed its in growth and buyout investments enables a superior approach to sourcing, reporting currency from CHF to USD. assessing and managing of a wide range of opportunities across the targeted regions. By being able to invest at multiple levels, Spice PE is able to choose the most appropriate strategy to achieve outstanding investment results and to cooperate effectively with local partners.
Sidebar information, text and portfolio distribution data provided by the Manager
48 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 31 December 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
150
Spice PE Share Price Spice PE NAV LPX 50
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 31 December 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
200
Spice PE Share Price Spice PE NAV LPX 50 150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 31 December 2014 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison CHF
200
150
100
50 Spice PE Share Price Spice PE NAV LPX 50 0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on CHF100 investment with income reinvested (Total Return) Maturity 31 December 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year CHF % % % %
NAV Per Share (Diluted) (13.38) (42.15) (41.25) (70.57) Share Price 4.50 22.58 39.33 (82.51) LPX 50 8.99 71.20 65.24 21.01 MSCI World 17.29 54.73 53.28 59.68
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX. Decrease of NAV per share in May 2013 is due to implementation of required changes in accounting policies.
Listed Private Equity Review Summer 2015 49 Standard Life European LPEQ Private Equity Trust PLC
Chairman Edmond Warner Investment Aim and Strategy Manager SL Capital Partners LLP The objective of Standard Life European Private Equity Trust (“SLEPET”) is to (Peter McKellar & Roger Pim) achieve long-term capital gains through holding a diversified portfolio of private Fund Type Fund of Funds equity funds investing predominantly in Europe. The principal focus of SLEPET First Listed 2001 is to invest in the leading European private equity funds investing in mid to large sized buyouts, which can be categorised as transactions with enterprise values
As at 31.03.15 ranging between €200 million and €2 billion.
Share price £2.22 Background NAV per Share (last published) £2.51 The Manager of the company, SL Capital Partners (“SL Capital”), is headquartered Discount 11.6% in Edinburgh, United Kingdom and comprises a team of 23 investment Yield 2.3% professionals with 297 years of combined relevant private equity and investment experience. The Manager has raised approximately £6.7 billion of private equity Net Assets (last published) £395.4m funds on behalf of over 190 clients worldwide. Market Cap £349.2m SL Capital is a limited liability partnership and is 60% owned by Standard Life plc Outstanding Commitments and 40% by seven executive partners. SL Capital has acted as Manager to the % of NAV company since its inception in 2001. Outstanding Commitments 62% Recent Developments in 2014 / 2015 Total Liquid Resources 32% The Board and the Manager have noted the pick-up in economic activity, monetary indicators and business and consumer sentiment in Europe in early 2015. This Listing London contrasts with a weaker macroeconomic environment in H2 2014. The pick-up Ticker SEP in Europe is expected to be beneficial to many underlying portfolio companies. Index inclusion FTSE All-Share / Draw down and distribution activity remain healthy and, given the maturity of the MSCI Europe / LPX Europe company’s portfolio and the quantum of exit activity being undertaken by private Shares in Issue 157.3m equity managers, the portfolio is expected to continue to generate strong cash flow. Dividend Paid per Share SLEPET remains flexible in the use of its capital resources and the Manager Ordinary: Year to September 2013 5.0p continues to take advantage of opportunities in the secondary market for Ordinary: Year to September 2014 5.0p European private equity fund interests. The Manager believes that the private Special: None equity secondary market can provide the company with the opportunity to enhance returns from its portfolio. Announcements Year End 30 September At 31 March 2015 SLEPET had outstanding commitments of £246.3 million to 46 private equity fund interests. The company had liquid resources of £47.6 million Full Year Results early December at 31 March 2015, comprising a cash balance of £15.9 million and £31.7 million Interim Reporting Dates Q1 mid March invested at value (£29.4 million at cost) in UK and European equity index tracker H1 late May Q3 mid September funds. The company has an undrawn £80 million credit facility that expires in December 2016. NAV Frequency Monthly The Investment Case SL Capital benefits from having a large team of experienced investment professionals. Since its inception, SLEPET has maintained a focus on its core strategy of fund investments in quality private equity managers investing in buyouts of mid to large companies in Europe. As well as a bottom-up analysis in selecting such managers, a top-down macro-economic approach is also used, with portfolio construction weighted towards northern European countries. As a product of this discipline and consistency, SLEPET has delivered strong historical returns. Sidebar information, text and portfolio distribution data provided by the Manager
50 Listed Private Equity Review Summer 2015 Distribution of Portfolio Investment Category 30 September 2014 1 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison €
150
Standard Life European PE Share Price Standard Life European PE NAV LPX Europe
100
50 Mar Jun Sep Dec Mar 2014 2014 2014 2014 2015
Sector 30 September 2014 5 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
250
Standard Life European PE Share Price Standard Life European PE NAV 200 LPX Europe
150
100
50 Mar Mar Mar Mar Mar Mar 2010 2011 2012 2013 2014 2015
Geography 30 September 2014 10 Year Total Return* (rebased to 100) 31 March 2015 Total Return Index Comparison £
250
200
150
100
50 Standard Life European PE Share Price Standard Life European PE NAV LPX Europe 0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Values are based on £100 investment with income reinvested (Total Return) Maturity 30 September 2014
Total Return Performance to period ending* 31 March 2015
1 Year 3 Year 5 Year 10 Year £ % % % %
NAV Per Share (Diluted) 2.06 14.04 47.61 129.68 Share Price 11.37 61.38 103.69 98.05 LPX Europe 7.94 58.36 66.97 88.84 MSCI Europe 7.37 43.16 43.52 117.95
Latest performance data available on www.LPEQ.com * Source: Morningstar and LPX
Listed Private Equity Review Summer 2015 51 Travers Smith has been at the heart of private equity since the phrase was coined.
Its listed funds team is dedicated to serving the listed fund community.
For further information please contact Aaron Stocks, Partner, Investment Funds [email protected] +44 (0)20 7295 3319
www.traverssmith.com
930_TS_Listed Private Equity Advert_Stg1_v2_AW.indd 1 16/04/2015 14:55 Directory of Members
Altamir SCA www.altamir.fr Travers Smith has been at the heart of private equity since the phrase was coined. Chairman* Jean-Hugues Loyez Manager Maurice Tchenio
Its listed funds team is dedicated to serving Management company the listed fund community. Altamir Gérance 1 rue Paul Cézanne 75008 Paris Contact France [email protected]
* Chairman of Supervisory Board
Deutsche Beteiligungs AG www.deutsche-beteiligung.de
Chairman* Andrew Richards Manager Torsten Grede Susanne Zeidler
Management company (self managed) Deutsche Beteiligungs AG Börsenstraße 1 60313 Frankfurt am Main Contact Germany [email protected]
* Chairman of the Supervisory Board
Dinamia Capital Privado SCR, SA www.dinamia.es
For further information please contact Chairman Santiago Bergareche Manager Federico Pastor
Aaron Stocks, Partner, Investment Funds Management company [email protected] N+ 1 Private Equity +44 (0)20 7295 3319 Padilla, 17 28006 Madrid Contact www.traverssmith.com Spain [email protected]
Listed Private Equity Review Summer 2015 53
930_TS_Listed Private Equity Advert_Stg1_v2_AW.indd 1 16/04/2015 14:55 LPEQ
Dunedin Enterprise Investment Trust PLC www.dunedinenterprise.com
Chairman Duncan Budge Manager Shaun Middleton
Management company Dunedin LLP Saltire Court 20 Castle Terrace Contact Edinburgh EH1 2EN [email protected]
Electra Private Equity PLC www.electraequity.com
Chairman Roger Yates Manager Hugh Mumford Alex Fortescue
Management company Electra Partners LLP Paternoster House 65 St Paul’s Churchyard Contact London EC4M 8AB [email protected]
F&C Private Equity Trust plc www.fcpet.co.uk
Chairman Mark Tennant Manager Hamish Mair
Management company F&C Investment Business Limited 80 George Street Contact Edinburgh EH2 3BU [email protected]
54 Listed Private Equity Review Summer 2015 Gimv NV www.gimv.com
Chairman Urbain Vandeurzen Manager Koen Dejonckheere
Management company Gimv NV Karel Oomsstraat 37 2018 Antwerpen Contact Belgium [email protected]
Graphite Enterprise Trust PLC www.graphite-enterprise.com
Chairman Mark Fane Manager Rod Richards
Management company Graphite Capital Management LLP Berkeley Square House Berkeley Square Contact London W1J 6BQ [email protected]
HarbourVest Global Private Equity Limited www.hvgpe.com
Chairman Sir Michael Bunbury Manager Richard Hickman
Management company HarbourVest Partners LLC One Financial Center Boston MA 02111 Contact USA [email protected]
Listed Private Equity Review Summer 2015 55 LPEQ
HBM Healthcare Investments AG www.hbmhealthcare.com
Chairman Hans Peter Hasler Manager Dr Andreas Wicki
Management company HBM Partners AG Bundesplatz 1 CH-6300 Zug Contact Switzerland [email protected]
HgCapital Trust plc www.hgcapitaltrust.com
Chairman Roger Mountford Manager Stephen Bough
Management company HgCapital 2 More London Riverside Contact London SE1 2AP [email protected]
JP Morgan Private Equity Limited www.jpelonline.com
Chairman Trevor Ash Manager Troy Duncan / Gregory Getschow
Management company J.P. Morgan Asset Management Contact 60 Victoria Embankment [email protected] London EC4Y 0JP [email protected]
56 Listed Private Equity Review Summer 2015 JZ Capital Partners Limited www.jzcp.com
Chairman David Macfarlane Manager David Zalaznick
Management company Jordan / Zalaznick Advisers, Inc 9 West 57th Street, 33rd Floor New York NY 10153 Contact USA [email protected]
NB Private Equity Partners Limited www.nbprivateequitypartners.com
Chairman Talmai Morgan Manager Peter Von Lehe
Management company NB Alternatives Advisers LLC 325 North St. Paul Street Suite 4900 Contact Dallas TX 75201 USA [email protected]
Oakley Capital Investments Limited www.oakleycapitalinvestments.com
Chairman Christopher Wetherhill Adviser Peter Dubens
Management company Oakley Capital (Bermuda) Limited Mintflower Place, 3rd Floor 8 Par-la-Ville Road Contact Hamilton HM08, Bermuda [email protected]
Listed Private Equity Review Summer 2015 57 LPEQ
Pantheon International Participations PLC www.pipplc.com
Chairman Tom Bartlam Manager Andrew Lebus
Management company Pantheon Ventures (UK) LLP Norfolk House 31 St. James’s Square Contact London SW1Y 4JR [email protected]
Princess Private Equity Holding Limited www.princess-privateequity.net
Corporate & Commercial Supporting your ambitions
Chairman Brian Human Lead Adviser Urs Wietlisbach
Management company Princess Management Limited Tudor House We’ve been working with alternative funds and asset managers in the Le Bordage, St Peter Port Contact UK and across Europe for over 15 years. Relationships lead everything Guernsey GY1 1BT [email protected] Channel Islands we do; we use our experience and expertise to develop products and services that focus on you. Spice Private Equity Limited Our customers come from such broad sectors as listed private equity, www.spice-private-equity.com infrastructure, real estate, debt, secondary funds, and more. Because we have a presence in all the key European fund domiciles, we can combine personal, local coverage with the full strength of our network. If you’d like to find out more about what we can do for your business, please contact: Spencer Goss Chairman Eduardo Leemann Manager David Salim Guido Cornella Telephone 020 7672 3711 Management company GP Advisors Mobile 07825 434216 Löwenstrasse 29 Email [email protected] 8001 Zürich Contact Switzerland [email protected]
58 Listed Private Equity Review Summer 2015 Standard Life European Private Equity Trust PLC www.slcapital.com
Chairman Edmond Warner OBE Manager Peter McKellar Roger Pim
Management company SL Capital Partners LLP 1 George Street Contact Edinburgh EH2 2LL [email protected]
Corporate & Commercial Supporting your ambitions
We’ve been working with alternative funds and asset managers in the UK and across Europe for over 15 years. Relationships lead everything we do; we use our experience and expertise to develop products and services that focus on you. Our customers come from such broad sectors as listed private equity, infrastructure, real estate, debt, secondary funds, and more. Because we have a presence in all the key European fund domiciles, we can combine personal, local coverage with the full strength of our network. If you’d like to find out more about what we can do for your business, please contact: Spencer Goss Telephone 020 7672 3711 Mobile 07825 434216 Email [email protected]
Listed Private Equity Review Summer 2015 59 LPEQ
Disclaimer
This report has been prepared by LPEQ Limited to provide background information about its members. It should not be construed as investment research. While all reasonable care has been taken to ensure that the facts stated herein are accurate and that any forecasts, opinions and expectations contained herein are fair and reasonable, LPEQ Limited has not verified the contents hereof and, accordingly, neither LPEQ Limited, members of LPEQ Limited, nor any of their respective directors, officers or employees, shall be in any way responsible for the contents hereof, and no reliance should be placed on the accuracy, fairness or completeness of the information contained in this document. This information is subject to change without notice and its accuracy is not guaranteed. Potential investors should consider the need to seek personal advice from an appropriately qualified, authorised and regulated financial adviser. Any person making an investment in any member of LPEQ Limited must be able to bear the risks involved and must meet the suitability requirements relating to such investments.
This document is not an invitation or inducement to invest in any private equity share or any other investment. This communication is intended for professional clients as defined in the FCA’s Conduct of Business rules (COBS 3.5). LPEQ Limited is neither regulated nor authorised to provide investment advice.
Past performance is not a reliable guide to future returns and investors may lose some or all of their investment in any listed shares. The value of investments and the share prices of listed funds will vary on a daily basis. The views and opinions of the contributors quoted are theirs alone and are not attributable to LPEQ Limited.
Copyright 2015 LPEQ Limited. All rights reserved.
LPEQ Limited, Registered in England no. 6022383 Registered Offices: Ground Floor, 17-19 Rochester Row, London SW1P 1QT, United Kingdom
60 Listed Private Equity Review Summer 2015 Innovation beyond secondaries
About LPEQ
LPEQ is a not-for-profit association of listed private equity investment companies committed to raising awareness and understanding of listed private equity as a way to access private company growth. LPEQ upholds and promotes best practices in the long- term interests of the LPE sector as a whole. Competitive source of capital LPEQ was founded in 2006 as an initiative to raise understanding of private equity investment trusts, primarily in the UK. It has since developed into an international for listed private equity managers organisation with listed private equity members across Europe, and engages with investors and other stakeholders worldwide. Raise capital at net asset value, avoid constraints of debt LPEQ is governed by a board of directors that includes managers of member vehicles, representatives from the executive and a member chairman. fi nancing and keep portfolio-upside.
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