Standard Life Private Equity – Loading the portfolio – Marten & Co has publish an update note on a company in the Private Equity sector

Standard Life Private Equity – Loading the portfolio

SL Capital Partners, the manager of Standard Life Private Equity Trust (SLPE), sees the outlook for Europe improving. However, it thinks that some form of market disruption could occur during the next one to two years. This might lead to greater volatility and better prices for those of its underlying funds that wish to make investments. SLPE has been selective with its primary commitments (capital for new funds) and purchases of existing funds, while aiming to be well positioned in advance of any market setback (see page 3).

European-focused private equity fund of funds

Standard Life Private Equity Trust aims to achieve long-term total returns (total returns are adjusted to include the reinvestment of dividends) through a diversified portfolio of private equity funds, the 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; the top 10 private equity fund managers comprise 65% of the net asset value and the top 30 underlying companies represent 30%.

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 has been used as a means of comparison in this report.

You can access information about the trust at the investment manager’s website. Click here.

SLPE : Standard Life Private Equity – Loading the portfolio