Edison issues review on Princess Private Equity Holding (PEY) 105 0 Kommentare Introducing a well-defined buyback policy

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PEY's 12-month NAV total return was 0.6% due to low exit activity in PE markets.
PEY trades at a 24% discount to NAV, offering a solid 5% annual dividend.
PEY introduced a buyback policy to allocate free cash flow to share repurchases.

Edison Investment Research Limited
Edison issues review on Princess Private Equity Holding (PEY): Introducing a well-defined buyback policy

29-Apr-2024 / 10:50 GMT/BST
The issuer is solely responsible for the content of this announcement.

London, UK, 29 April 2024

Edison issues review on Princess Private Equity Holding (PEY): Introducing a well-defined buyback policy

Princess Private Equity Holding’s (PEY’s) 12-month NAV total return (TR) to end-February 2024 was a modest 0.6% amid low exit activity across private equity (PE) markets. That said, if the pick-up in global M&A volumes witnessed earlier in 2024 continues, it should support PEY’s exit activity. This in turn would translate into improved returns if PEY delivers sizeable uplifts to previous carrying values upon exits, as it has done historically. In this context, we note that PEY has a good pipeline of mature investments that are potentially ripe for sale. PEY’s shares now trade at a 24% discount to NAV versus a 10-year average of 18%.

PEY offers a solid annual dividend payment of 5% of opening NAV, which it has been able to successfully deliver since 2021 with few exceptions. Furthermore, PEY’s board recently introduced a well-structured framework for conducting NAV-accretive buybacks. This is designed to ensure a significant part of PEY’s free cash flow will be allocated to share repurchases in the event its shares trade at a wide discount to NAV. In this context, we highlight PEY’s good balance sheet headroom, with available liquidity and contracted exit proceeds exceeding all its outstanding investment commitments.

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1891823 29-Apr-2024

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The Princess Private Equity Holding Stock at the time of publication of the news with a raise of 0,00 % to 10,80EUR on Tradegate stock exchange (29. April 2024, 10:18 Uhr).