Princess Private Equity Holding - Solid Q121, attractive dividend and well-filled pipeline

Princess Private Equity (PEY) reported a strong c 10% NAV TR from January to end-April 2021 (10% in FY20), largely driven by its in-closing exit from GlobalLogic announced in March 2021, generating a 45% uplift from its end-February 2021 carrying value. This represents a very solid 5.3x multiple on invested capital, despite the short holding period since 2018. PEY’s attractive dividend yield of c 5% is ahead of most of its peers and the manager is confident in its ability to maintain the current dividend policy to distribute c 5% of the opening NAV. PEY has a comfortable liquidity position with a coverage ratio at c 49% at end-April 2021, further supported by proceeds from major exits agreed in 2021 but not yet closed.