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Princess Private Equity wraps up challenging year

Princess Private Equity (PEY / PEYS) shares fell 39.9% in 2022, well behind the MSCI World Index which fell 12.7%.  New investment commitments in the second half of the year were also materially reduced and the company did not pay out the second interim dividend in order to conserve cash. NAV total return was much more reasonable, down just -1.6%, however, the discount has widened to almost 40%.

The challenges over the past 12 months have been well-documented, particularly for private equity as transactions decreased by 26.9% year on year while exit activity decreased by 67.7% in Q4. Commenting on the results, Chairman Richard Battey noted that:

“The recalibration of the global investment environment in 2022 resulted in downward pressure on valuations. Despite valuation multiples coming down, Princess’ portfolio was supported by strong underlying operational performance of its portfolio companies, which underscores the high-quality assets as well as emphasizes the investment thesis of long-term sustainable growth in resilient and growing sub-sectors. In 2023 the Investment Manager believes that the demanding market environment can offer potentially strong investment opportunities, particularly given its approach which emphasises hands-on value creation at the portfolio company level. My fellow Directors and I trust that shareholders continue to recognize the potential of Princess and the opportunity to participate in the sustainable long-term growth of leading private market businesses.”

PEY / PEYS : Princess Private Equity wraps up challenging year

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