Europe  

Standard Life trust boosted by European private equity growth  

Standard Life trust boosted by European private equity growth  

Europe saw a hefty amount of growth and acquisition activity across private equity firms between April and June this year, leading the Standard Life European Private Equity trust to report a jump in its net asset value.  

The £510m trust, which invests in funds which focus on mid to large-cap buyouts where there is “growth potential”, saw its net asset value per share increase by 6.2 per cent to £3.293 for the quarter ended 30 June.

It made a £13.6m gain over this period, helped by the growth in mid, large and mega cap companies which it owns, according to an update published today (29 September).

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The company's net assets stood at £509.7m at the end of June, up from the £480.2m reported at the end of the first quarter of the year. 

The volume of new buy-out transactions rose modestly in the European private equity market in the second quarter of 2016, while the value of total buy-outs increased materially to €27.bn (£23.2bn), from €15.2bn (£13.1bn) in the first quarter of 2016. 

According to the update, this uplift reflected growth in mid-market and particularly large/mega buy-out transactions. 

On 8 July the index tracker funds, having generated income of £1.7m, were sold, generating a gain of £2.3m for the trust.

According to FE, the trust has returned 35.4 per cent over the past six month, nearly doubling the returns seen in the Private Equity sector, which delivered 16.6 per cent over this period.