Zug, July 17, 2001 - Private Equity Holding AG announces the secondary sale of seven portfolio fund investments for a total cash consideration of CHF 243 million. The divestiture of part of the portfolio achieves two prime objectives. Firstly, it allows to lock in an unrealized value appreciation on certain investments in a volatile market environment thereby underpinning the quality of the private equity portfolio. Secondly, it reduces outstanding commitments to a more prudent level in light of the generally longer harvesting cycle for the portfolio.
The transaction reduces outstanding commitments to private equity funds in the amount of CHF 98 million and lowers total commitments by CHF 366 million. The total price for this secondary sale of funds is in excess of the corresponding net acquisition cost but somewhat below current fair value. As such it will result in a positive contribution to net profit of approx. CHF 20 million and a reduction of fair value of the remaining portfolio by approx. CHF 7 per share.
The transaction is scheduled to close over the next few weeks. It will be reported in the results of the second quarter of the financial year 2001/2002 and considered in the biweekly fair value publication as of 16 July 2001.
Private Equity Holding AG (SWX: PEHN) offers investors the opportunity to invest, within a simple legal and tax optimized structure, in a broadly diversified and professionally managed private equity portfolio. As at March 31, 2001, the company held fund investments in 89 funds and direct investments in 47 companies totaling CHF 1.6 billion. For further information please consult http://www.peh.ch or contact Eva Kalias, Investor Relations and Communications, direct phone +41-1-284 31 23.