CT Private Equity Trust : Factsheet

CT Private Equity Trust PLC

As at 30 September 2022

Fund manager

Hamish Mair

Manager Commentary

As at 30 September 2022, the net assets of the Company were £518.5m, giving a Net Asset Value ('NAV') per share of 711.75p, which, taking into account dividends paid, gives a 14.0% NAV total return for the first nine months of 2022. The share price total return was -17.2% for the period. At 30 September 2022 the Company had net debt of £23.7m. Outstanding undrawn commitments were £192.8m, including £25.7m to funds where the investment period has expired.

During the quarter two fund commitments, one secondary investment and three co-investments were made.

We have increased our commitment to healthcare specialist Apposite Healthcare III by £5m bringing total committed up to £10m. The fund is half invested and progressing well. We have committed €8m to Volpi III, the second of this Pan-Europeanmid-market specialist's funds we have backed. £2.6m was invested via a secondary purchase in Kurma Biofund, a life sciences fund managed from France. We have co-invested £7.9m alongside The Rohatyn Group in Leader96, the Bulgaria based assembler of e-bikes. We have co-invested £5.1m with Peloton in 123Dentist, a Canada based chain of dental practices. We have also co-invested £2.3m with MVM in Neurolens, a US developer of an innovative prismatic lens technology to diagnose and treat digital vision syndrome. There were two follow-on investments in co-investments this quarter both of which were to fund add-on acquisitions. £0.8m was added to complex care company Orbis and £0.7m was added to payments company Aurora Payment Solutions.

There were a number of new investments made by the funds. In the UK, August Equity V called £1.8m for veterinary chain Medivet, a follow-on for high acuity care provider Orbis and cyber security specialist Cyber

360. FPE Fund III called £0.9m for Dynamic Planner (leading software provider to the UK wealth management sector). Apiary called £0.4m for MediaSense (technology enabled adviser to global corporations) and £0.3m for LearnPro (virtual reality e-learning solutions for emergency services such as police, fire and rescue, health services). In Germany, DBAG VIII and VIIIB have together called £0.7m for Freiheit (agile software development) and an additional £0.7m for Dantherm (climate control solutions), which we previously had exposure to through Procuritas V. In France and Italy, Chequers Capital XVII has been active with £1.3m called for three new investments and one partial reinvestment; My Mobility (transportation for disabled children and adults in France), Somacis (complex printed circuit boards in Italy), Selini (equipment rental in Italy) and reinvestment of part of the proceeds from Serma (electronics testing). Med Platform II called £0.8m for California based Natus Medical (screening and diagnostics for neurological conditions).

Key risks

Stock market movements may cause the value of investments and the income from them to fall as well as rise and investors may not get back the amount originally invested. Changes in rates of exchange may have an adverse effect on the value, price or income of investments.

Smaller companies carry a higher degree of risk and their value can be more sensitive to market movement; their shares may be less liquid and performance may be more volatile. The fund may invest in private equity funds which are not normally available to individual investors, exposing the fund to the performance, liquidity and valuation issues of these funds. Such funds typically have high minimum investment levels and may restrict or suspend redemptions or repayment to investors. The asset value of these shares and its prospects may be more difficult to assess.

If markets fall, financial leverage can magnify the negative impact on performance.

[e-mail] | 0800 136420 | ctprivateequitytrust.com

November 2022

Key facts

Trust aims: The objective is to achieve long-term capital growth through investment in private equity assets.

Trust highlights: Anticipated superior returns relative to the quoted markets. Access to a well diversified portfolio.

Manager's understanding and access to 'up and coming' funds.

Fund type:	Investment Trust
Launch Date1:			2001
Total assets:			£564 million
Share price:			390.00
NAV - per IFRS:			711.75p
Discount/Premium(-/+):		-45.21%2
Dividend payment dates#:	Jan, Apr,
			Jul and Oct
Net dividend yield† :		6.3%
Net gearing/Net cash*:		4.4%
Management fee rate**:		0.9%
Ongoing charges***:		1.2%
Year end:		31 December
Sector:		Private Equity
Currency:			Sterling
Website:	ctprivateequitytrust.com

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CT Private Equity Trust PLC

Continued from previous page

The total of new investment drawn for co-investments and funds in the quarter was £32.5m. Total new investment for the first nine months of the year is £69.8m.

There were a number of significant realisations during the quarter. The largest realisation was from European buyout fund Volpi where we received a £7.4m distribution - the proceeds from the sale of Irish IT managed services provider Version 1 (5.9x, 39% IRR). GCP Europe II, managed by Kester Capital, achieved a strong exit of contract research organisation Avania Clinical which specialises in medical devices. £6.7m was received (8.4x, 46% IRR). Our co-investment in RGI, the Italy based provider of software to the Insurance sector, was sold returning £3.6m. This investment was led by Corsair Capital (1.6x, 12% IRR). There is scope for the return to improve through deferred consideration depending on the final exit proceeds when new owner CVC sells. Part of our holding in energy services company Ashtead Technology, which is now listed on AIM, was sold down during the quarter returning £2.8m. From the various Inflexion funds we have received £2.3m from the sale of wealth management company Succession (3.4x, 20% IRR), £1.2m from IT recruitment specialist K2 (5.0x, 36% IRR) and £0.9m from Virgin Experience Days (23.7x, 64% IRR).

In the Nordics, Verdane Edda has returned £1.7m from the sale of vitamin K2 producer Kappa Bioscience (4.3x, 80% IRR). Summa II also sold chemicals management software company EcoOnline returning £0.5m.

In France, Chequers Capital XVII exited electronics testing company Serma returning £0.8m (2.4x, 32% IRR).

In Poland, Avalon MBO Fund II exited engineering and technical building services company Stangl Technik through a sale to Astorg returning £0.5m (5.8x, 50% IRR).

This has been a strong quarter for realisations with a total of £31.9m of proceeds, including associated income, received. Bringing the total for the first nine months of the year to £79.6m.

There have been further realisations following the quarter end most notably the exit of Italian funeral homes company San Siro which was sold by Augens Capital to French Infrastructure fund Antin on 10 November 2022. This exit was at a value of £34.9m for the Company, 75% of this will be received in cash and 25% rolled into the new deal. This represents an uplift of £23.3m on the previous carrying value and a return of 8.9x cost and an IRR of c.90%. The investment thesis of building a chain of funeral homes and adding other facilities, such as crematoria, has been followed very well and this has resulted in this exceptional outcome.

November 2022

There have been numerous valuation changes over the quarter. These are mostly positive but there has been a sizeable minority of downgrades reflecting a range of pressures on the businesses internationally.

The largest uplift as noted above was the £23.3m uplift for San Siro. There was a £3.9m uplift for the holding in F&C European Capital Partners LP, which reflects the removal of the discount on purchase earlier in the year. The Company as the sole remaining LP will hold the assets until realisation and hence a discount to reflect an immediate liquidation value is no longer appropriate. August Equity Partners IV (+£2.7m) is up reflecting an imminent realisation of ISO compliance services company AMTIVO at an excellent 8.0x cost. GCP Europe II (+£3.1m) records a gain reflecting the sale of Avania Clinical. Other good uplifts have been recorded by Coretrax (+£0.9m), Rosa Mexicano (+£0.9m) and Corpfin IV (+£0.8m).

Downgrades include Ambio Holdings (-£1.8m) where despite an exit being widely anticipated in the press, MVM have used a lower valuation. Alessa (formerly known as Tier I CRM) has been reduced by £1.4m as the company has had a major change of focus with the exit of the original CRM business. Amethyst Radiotherapy is down by £0.6m with the manager using a lower valuation multiple. Other downgrades include Agilitas 2015 (-£0.9m), Procuritas IV (-£0.8m) and DBAG VII (-£0.5m).

The Company is currently modestly geared and this will reduce significantly on receipt of the San Siro proceeds. Most of the borrowing facility remains available and the facility is in place until June 2024.

Reports from the funds and co-investments are increasingly reflecting the pressures which many investee companies are facing. These include general inflation, energy price rises and supply chain issues to name a few. Demand in most areas, outside certain consumer facing sectors, remains robust and many companies are continuing to benefit from some post Covid catch up. Confidence levels within the private equity sector and most of their underlying companies remains good and this is manifested in strong deal pipelines. In the tech-enabled area, which has proved very popular with private equity in recent years, there has been a shift in buying interest towards fast growing companies which are already profitable in preference to those with revenue growth but without current profitability. In this regard our portfolio is well positioned. The high degree of diversification across the portfolio, which spans the mid-market sector across Europe and further afield, also continues to be a distinct strength. As we approach the end of 2022, we have confidence that the Company will continue to build value for shareholders over the medium and longer term.

5 year Fund performance

140

120

100

80

60

40

20

-

(20)

Sep-17	Sep-18	Sep-19	Sep-20	Sep-21	Sep-22
		Share price total return		NAV total return

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CT Private Equity Trust PLC

November 2022

Cumulative performance as at 30.09.22 (%)

	3 Months	Year to date	1 Year	3 Years	5 Years
NAV	9.3	14.0	25.1	101.9	138.3
Share price	-9.7	-17.2	-13.5	24.0	42.9

Standardised annual performance year to 30 September (%)

	2022	2021	2020	2019	2018
NAV	25.1	56.1	3.4	10.1	7.2
Share price		-13.5	83.5	-21.8	8.6	6.2

Past performance is not a guide to future performance. Source: Datastream and Columbia Threadneedle Investments. Basis: Percentage growth, total return, bid to bid price with net income reinvested in Sterling as at 30 September 2022.

Trust codes

Stock Exchange Code	Sedol
CTPE	3073827
Geographical breakdown as at 30.09.22 (%)
		UK	42
		Europe	39
		USA	15
		RoW	4

Top 10 holdings (%)∞

San Siro	6.7
Inflexion Strategic Partners	3.7
Sigma	3.5
TWMA	2.7
Coretrax	2.5
Aliante Equity 3	2.2
Weird Fish	2.1
August Equity Partners IV	2.1
Bencis V	2.0
Aurora Payment Solutions	1.9
Total	29.3

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CT Private Equity Trust PLC

November 2022

To find out more visit columbiathreadneedle.com

All data as at 30.09.2022 unless otherwise stated.

All information is sourced from Columbia Threadneedle Investments, unless otherwise stated. All percentages are based on gross assets unless otherwise stated.

#The Company pays quarterly dividends in January, April, July and October. † The yield is calculated by annualising dividends declared for the Company's current financial year. 1The Company was launched in March 1999 and the current ordinary shares were created as a share class (continuation shares) in 2001. 2Calculated using share price and net asset value at the period ended 30 September 2022. *Borrowings less cash/total assets less current liabilities (excluding borrowings and cash). **Please refer to the latest annual report as to how the fee is structured. ***Ongoing charges as at 31 December 2021. Please refer to the latest Annual Report as to how the figure is calculated. ∞As a percentage of net assets at the period ended 30 September 2022. The share price may either be below (at a discount) or above (at a premium) the NAV. Discounts and premiums vary continuously. Performance information excludes any product charges which can be found in the Key Investor Document ("KID") for the relevant product.

© 2022 Columbia Threadneedle Investments. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. This financial promotion is issued for marketing and information purposes only by Columbia Threadneedle Investments in the UK.

CT Private Equity Trust PLC is an investment trust and its Ordinary Shares are traded on the main market of the London Stock Exchange.

English language copies of the key information document (KID) can be obtained from Columbia Threadneedle Investments, Exchange House, Primrose Street, London EC2A 2NY, telephone: Client Services on 0044 (0)20 7011 4444, email: [e-mail] or electronically at www.columbiathreadneedle.com. Please read before taking any investment decision.

The information provided in the marketing material does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell or otherwise transact in the fund. The manager has the right to terminate the arrangements made for marketing.

Financial promotions are issued for marketing and information purposes; in the United Kingdom by Columbia Threadneedle Management Limited, which is authorised and regulated by the Financial Conduct Authority; in the EEA by Columbia Threadneedle Netherlands B.V., which is regulated by the Dutch Authority for the Financial Markets (AFM); and in Switzerland by Columbia Threadneedle Management (Swiss) GmbH, acting as representative office of Columbia Threadneedle Management Limited. In the Middle East: This document is distributed by Columbia Threadneedle Investments (ME) Limited, which is regulated by the Dubai Financial Services Authority (DFSA). For Distributors: This document is intended to provide distributors with information about Group products and services and is not for further distribution. For Institutional Clients: The information in this document is not intended as financial advice and is only intended for persons with appropriate investment knowledge and who meet the regulatory criteria to be classified as a Professional Client or Market Counterparties and no other Person should act upon it. (11/22)

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