Standard Life Private Equity – Dividend doubled to 4.0%; Marten& Co published a note on Standard Life Private Equity, a company in the private equity sector

Standard Life Private Equity Trust (SLPE), formerly Standard Life European Private Equity, is implementing a package of measures to refine its strategy that includes a significantly higher dividend, the removal of size and geographic restrictions, increasing flexibility in cash management and a simplified management fee structure. SLPE has provided strong absolute returns in recent years but, despite discount contraction during the last year, it trades at a low-teen discount. The changes are designed to make SLPE more attractive to investors, with the aim of stimulating further discount narrowing.

European-focused private equity fund of funds

Standard Life Private Equity Trust aims to achieve long-term total returns through a diversified portfolio of private equity funds, a majority of which will have a European focus. Historically, SLPE has occupied a unique position within the UK-listed private equity sector as the only fund of funds focused solely on Europe and, while it has refined its strategy, it says it will continue to be the most European-focused fund in its peer group. Its portfolio is also more concentrated than most of its peers; around half of the portfolio accounted for by the top 10 holdings of leading private equity funds raised by leading managers.

Like many private equity funds, SLPE has no formal benchmark. Historically, the portfolio has been most closely correlated to European small cap indices; the MSCI Europe Small Cap Index as a means of comparison.

SLPE : Standard Life Private Equity – Dividend doubled to 4.0%