Princess Private Equity, which announced that it would not pay its dividend earlier this month, is holding a webinar today to explain what is going on at the company. However, the situation seems worse than first appeared as the company has also suspended all new investment activity.
It says “underlying conditions such as the challenging debt markets are still limiting the facilitation of asset sales across the industry“. Princess has paused new investments since August 2022 “to strengthen its liquidity position and enable cautious investment in the future.”
All new investments that were committed to before the investment pause are now largely funded and therefore, no material investment outflows are expected imminently. Liquidity, in other words cash and its undrawn credit facility amounts to €88m as of 18 November 2022.
The board says that Princess’ dividend objective to pay 5% of opening NAV remains in place. Absent of a further significant appreciation in the US dollar, and “assuming somewhat normalised exit markets“, the board of Princess expects to pay the next dividend in June 2023. However, the suspended second dividend for 2022 will not be paid.
PEY / PEYS : Princess Private Equity suspends all new investment activity