Private Equity Holding is pleased to report a total comprehensive net gain of EUR 28.4 million for the financial year ending March 31, 2008. The comprehensive net gain per share amounts to EUR 7.13. Since April 1, 2007, the fair value per share in EUR rose by 16%. At the end of the financial year, the final fair value stood at EUR 53.08 (CHF 83.46). One year ago, the discount was 38%; it then declined steadily and reached 20% in the second half of September 2007, but widened again to 39% by the end of March 2008. As a result of the subprime crisis in the United States and the disclosure of large losses by many banks and certain insurance companies, stock markets plummeted rapidly and continuously since the last quarter of 2007 and more and more investors started to reduce their exposure to equities, which led to increased pressure on the share price of Private Equity Holding. At the same time, the portfolio developed well and the fair value per share increased so that the discount widened again to 39% by the end of March 2008.
The objective of the Company's investment strategy is to improve the quality and return potential of the portfolio and increase the fair value per share consistently. Consistent growth should, as soon as investor sentiment improves again, result in a significant and sustainable reduction of the discount between the share price and the fair value per share.
While the Board of Directors is quite pleased with the relative performance of Private Equity Holding, which has significantly outperformed the LPX50-Index (Listed Private Equity Index), it will, together with Alpha Associates, as adviser and manager of the Company, continue to work on identifying and executing investment opportunities with a superior risk/return profile in order to achieve consistent net asset value growth. Long before the market crisis, the Company had increased its allocation to special situation investments, in particular distressed funds, which enjoy excellent investment opportunities in the current market environment. In addition, Private Equity Holding has almost no exposure to leveraged buyout investments from the 2006/07 period when the entry valuations and the levels of leverage deployed in the buyout market reached their peak.
The Chairman's letter to the Company's shareholders as well as a short version of the Annual Report as of March 31, 2008 are available on our website www.peh.ch from April 30, 2008. The complete Annual Report 2007/2008 will be published at the beginning of June 2008.
Private Equity Holding AG (SWX: PEHN), managed by Alpha Associates, offers investors the opportunity to invest, within a simple legal and tax optimized structure, in a broadly diversified and professionally managed private equity portfolio.
For further information, please contact:
Claudine Birbaum, Investor Relations, claudine.birbaum@peh.ch, phone +41 41 726 79 80
or http://www.peh.ch
For further information, please contact:
Claudine Birbaum, Investor Relations, claudine.birbaum@peh.ch, phone +41 41 726 79 80
or http://www.peh.ch
