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Princess Private Equity Holding Limited

Overview

Princess Private Equity Holding Limited (Princess or the Company) is an investment holding company founded in 1999 and domiciled in Guernsey. Its shares are traded on the main market of the London Stock Exchange (ticker: PEY LN). Princess provides public market investors with exposure to a global portfolio of leading mid-market private companies. It aims to provide shareholders with long-term capital growth and an attractive annual aggregate dividend yield of 5-8% of NAV per share.

The Company is advised in its investment activities by Partners Group, a global private markets investment manager with over EUR 49 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure.

  • Direct manager, London-listed
  • Geographic focus: Global
  • Deal focus: Buyout/Growth Capital/Mezzanine
  • Market cap: € 573 million (as of 30.09.2016)

Key financials

With the ongoing positive trading performance of Princess' portfolio companies the Board remains confident that Princess is well-positioned to continue to create value for shareholders. The Company has enjoyed an exceptional period of exit activity during the first nine months of 2016, generating sufficient liquidity to fund dividend payments and to re-deploy capital in new investments that the Board expects to drive returns for Princess' shareholders in the years to come.

Brian Human, Chairman
Picture Brian new

Manager Overview

Partners Group is a leading global private equity investment manager. We seek to invest in great companies with development potential on behalf of our clients.

Our global private equity team has directly invested in over 110 businesses since inception. By combining strategic insight and a successful investment track record spanning two decades, we create sustainable value in these investments.

Our private equity investment approach is based on a relative value analysis that looks at global sectors, industries and regions from a top-down perspective and identifies opportunities for investment in specific markets. Our local investment teams then work to identify growing companies within those specific markets that would benefit from our involvement.

Our Industry Value Creation team helps to maximize value in portfolio companies by driving forward strategic initiatives and operational improvements. The team has specialist expertise across several sectors, enabling us to offer our portfolio companies outstanding partnership opportunities. We are specialized in the following sectors: healthcare, consumer, media & telecom, information technology, industrials, infrastructure/energy & utilities, financial services and real estate.

Market commentary

The current market environment remains characterized by elevated valuations and sluggish growth. Meanwhile, certain developments including the prospect of rising rates in the US, Brexit negotiations in Europe and a slowdown in China heighten the risk of increased volatility in capital markets. Against this backdrop, Partners Group will maintain a disciplined approach to new investments, focusing on those opportunities that fit within our established overriding strategies: "Platform Companies" which provide a base from which to grow the business via add-on acquisitions or entry into new markets; "Category Winners" with a strong market position in attractive sub-sectors which offer the potential for secular growth; and "Defensive Leaders" where we focus on the identification of companies with stable valuations, recurring revenue streams and visible cash-flows. In this environment, we will continue to curb investment activity in regions which our relative value assessment highlights as less attractive on a risk-adjusted basis and conversely to increase investment activity in those regions where volatility creates opportunities to acquire attractive assets at reasonable valuations.

While we will maintain a disciplined stance towards new investments, we seek to take advantage of the positive exit environment to continue to realize and refinance direct investments where we believe this would create value for our investors. Reflecting the maturity of its underlying investments, we expect Princess' legacy funds portfolio to continue to return capital.

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