Aberdeen Private Equity has published results for the year ended 31 March 2015 that show it generating a return on net assets of 18.2% and a share price return of 15.5%. A dividend (roughly 10% of distributions received by the fund) is payable, this worked out at 2.2p for the period – 10% up on the previous year.
The Board has negotiated a change to the performance fee which will start from 1 April 2015. The fee will now use a three-year 8% per annum hurdle rate. In order to earn a performance fee all of the following criteria must be met in a performance fee year: the NAV must have risen by more than 8% in the performance fee year; the NAV must exceed the high watermark (at which a fee was last paid); and the NAV must have risen by more than 8% pa compound over the previous three performance fee years. The performance fee itself will now be calculated at 10% of the NAV gain above the hurdle rate in the latest performance fee year, rather than at 10% of the entire NAV gain. Furthermore the total fees payable to the Manager in any performance period will be capped at 3% (previously 4.99%).
The strong US dollar helped returns but Thoma Bravo IX Fund was the Company’s best performing investment over the year, its gains having been driven by both the strong exit market (with their Tripwire sale to Belden Inc) and uplifts from operational improvements that the general partner was able to implement in portfolio companies.
Recent investments including Northzone VI (2010), Lion Capital III (2010), Apax 8 (2012) and the co-investment in Dell (2012) also contributed. At the interim stage Northzone VI had seen a material uplift in its underlying Russian classified advertising business, Avito. Post the publication of the Half Yearly Report, Avito saw a significant reduction in translated value in the year end valuation of Northzone VI owing to pronounced Russian Rouble weakness but, following the publication of Northzone’s Q1 2015 report, the recent strengthening of the Rouble has been reflected in a write back of Avito’s Rouble losses. Avito appears to be continuing to grow, though they say they do not rule out further volatility in the valuation of this investment which remains Aberdeen Private Equity Fund’s largest underlying holding on a look through basis.
APEF : Aberdeen Private Equity reforms performance fee