Edison Investment Research Limited
London, UK, 4 März 2024
Edison issues update on abrdn Private Equity Opportunities Trust (APEO): Returns and buyback help narrow the discount abrdn Private Equity Opportunities Trust (APEO) achieved a 5.4% NAV total return (TR) in FY23 (to end-September 2023) despite muted private equity (PE) deal activity and foreign exchange headwinds (its portfolio value was up 9.4% excluding fx). We believe that APEO's expansion into direct investments since 2019 has shown promising results so far, with a rise in value by a strong 18.5% in FY23. APEO's balance sheet remains solid with a coverage ratio of c 35% at end-January 2024, as net capital calls from its fund investments were offset by the partial exit of Action (at 100% of NAV). APEO recently launched a buyback programme, which was well received by the market (share price up c 10% since the announcement). Still, APEO trades at a 29% discount to NAV versus a 10-year average of 23%. APEO offers quality exposure to the PE mid-market through a portfolio of investments managed by carefully selected, top-tier European general partners (GPs) with solid sector expertise (the 12 'core' GPs make up 57% of APEO's NAV). This strategy has proved successful, with APEO's five- and 10-year NAV TR to end-January 2024 at c 15% pa, ahead of both the MSCI Europe Small Cap Index and the UK All-Share index, and broadly in line with its close PE peers. Moreover, its combined 51% exposure to less cyclical sectors such as technology (typically profitable B2B software), healthcare and consumer staples, together with the wide discount to NAV, may offer some downside protection in the current environment. Click here to view the full report. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: As a content-led investor-relations business, Edison helps companies stand out and meet the right shareholders. Edison's integrated investor relations solution combines expert analyst content, digital targeting and active investor engagement. This drives liquidity and valuations by building bigger, better informed and more engaged investor audiences globally. Edison has a proven history of increasing liquidity and valuations for its clients. Edison's content can be viewed by all investors, anywhere in the world. Edison is authorised and regulated by the Financial Conduct Authority. 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 5720 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ Twitterwww.twitter.com/Edison_Inv_Res YouTube http://www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1850861 04-March-2024
