RCS - abrdn Pvt Equity - Edison update on abrdn Private Equity Opp Trst

Patria Private Equity Trust

28/10/2022 09:42

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RNS Number : 4869E  abrdn Private Equity Opp Trst plc  28 October 2022

 

London, UK, 28 October 2022

 

Edison issues update on abrdn Private Equity Opportunities Trust (APEO)

abrdn Private Equity Opportunities Trust (APEO) has so far successfully
navigated the challenging macro environment, reporting an NAV total return
(TR) from end-2021 to end-September 2022 (based on NAV estimate) of 7.5%.
Distributions from underlying funds remain firm with c £210m in FY22 (ending
September), largely covering APEO's FY22 capital calls (c £250m) and fully
covering them in CY22 year to date. However, APEO recently upsized its credit
facility to £300m (from £200m previously), which improved its commitment
coverage ratio to c 39% and its balance sheet headroom as it sees some
softening in private equity (PE) exit activity. The larger credit facility
also supports APEO's new investments after a solid pace was maintained in FY22
at £338m (ie 33% of opening NAV versus 26% on average in FY17-21). APEO
continues to pay a quarterly dividend, currently 3.6p (up c 6% y-o-y), which
implies an annualised yield of 3.3%.

 

The company's good NAV performance was accompanied by a decline in its share
price by c 23% year to date (in TR terms). Consequently, its discount to NAV
widened from 18% at end-2021 to 42% currently (reflecting a broader trend
across listed PE fund-of-funds). Investors likely anticipate continued
pressure on private company valuations (which may increasingly come from
slowing earnings growth). Having said that, while a further de-rating of APEO
and other listed PE companies (alongside the broader market) cannot be ruled
out, we believe that the current discount to NAV (together with APEO's
strengthened balance sheet) represents a certain degree of downside protection
for long-term investors.

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All reports published by Edison are available to download free of charge from
its website

www.edisongroup.com (http://www.edisongroup.com)

About Edison: Edison is a leading research and investor relations consultancy,
connecting listed companies to the widest pool of global investors. By
focusing on the volume and quality of investors reached - across institutions,
family offices, wealth managers and retail investors - Edison can create and
gauge intent to purchase, even in the darkest pools of capital, and then make
introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100
analysts covering every economic sector. Headquartered in London, Edison also
has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in
Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority
(https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfYL6AAN) .

Edison is not an adviser or broker-dealer and does not provide investment
advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst +44 (0)20 3077 5700 investmenttrusts@edisongroup.com
(mailto:investmenttrusts@edisongroup.com)

Learn more at www.edisongroup.com (http://www.edisongroup.com) and connect
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