The quarter ended June 30, 2002 was characterized by continuing corrections both in the public as well as the private markets. In the absence of IPO- and M&A-activity the market remains weak and volatile.
Between April 1 and June 30, 2002, the fair value of Private Equity Holding AG declined from CHF 213.52 per share to CHF 190.01. This decline is predominantly due to the
substantially weaker USD-CHF exchange rate and also related to lower valuations in the underlying portfolio investments, mainly venture and balanced funds. Over the same period, the share price decreased overproportionally from CHF 116 to CHF 72, widening the already substantial trading discount to 62%.
Over the reporting quarter, outstanding commitments decreased by CHF 100 million to CHF 551 million. The ratio of invested capital to total commitments amounted to 0.6.
Between April 1 and June 30, 2002, total assets declined slightly from CHF 1.20 billion to CHF 1.15 billion. The net reduction in fair value reserve of CHF 68 million includes a
change in unrealized depreciation of CHF 98 million and a positive contribution of CHF 30 million from a hedging transaction. Long-term borrowings increased to CHF 300 million.
Portfolio Activities
No new commitments to funds were made in the first quarter of the financial year 2002/2003, nevertheless, the funds held in the portfolio continued to invest with total capital
calls amounting to CHF 49.5 million. Distributions totaled CHF 17.5 million mainly driven by a number of exits which took place from the buyout funds. Follow-on investments of CHF 4 million in total were made to direct investments in the reporting quarter.
Outlook
While we remain confident on the positive long-term outlook, we expect that some sectors will be further affected by continuous adverse market conditions in 2002 and most probably 2003.
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Private Equity Holding AG (SWX: PEHN), managed by Swiss Life Private Equity Partners, 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 of June 30, 2002, the company held fund investments in 84 funds and direct investments in 24
companies.
The full Quarterly Report as of June 30, 2002, is available on our website at www.peh.ch from July 30, 2002.
--> On the following link you will find the press release including tables
