Standard Life Private Equity Trust (SLPE), has made its first co-investment – a stake in Mademoiselle Desserts, made alongside IK Investment Partners – with more set to follow (up to 20% of NAV over time)…. Read more
Shareholders approved a change to SLPE’s investment policy in January to permit it to make co-investments. These are direct investments into private companies made alongside a private equity manager. This is an area in which the manager has a successful track record. The manager feels that this broadening of its opportunity set, combined with a stronger US management team, provides a foundation on which the manager can continue to build on SLPE’s record of outperformance. SLPE’s manager (a top 10 private markets manager globally) aims to ensure that 70% of the portfolio continues to be invested with managers whose funds’ performance is ranked in the top half of all funds. It believes that this approach will allow it to generate strong returns over the longer term.
Private equity fund of funds with a European bias
Standard Life Private Equity Trust aims to achieve long-term total returns through a diversified portfolio of private equity funds, and co-investments, the majority of which will have a European focus. Its portfolio is also more concentrated than those of most of its peers; the top 10 underlying private equity fund managers comprise 55.1% of the net asset value as at 31 December 2018. Like many private equity funds, SLPE has no formal benchmark. Historically, the portfolio has been most closely correlated to European small cap indices and we expect this to continue. We have used the MSCI Europe Small Cap Index as a means of comparison.
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