NAV increases by 1.8%

News Release

Guernsey, 25 January 2017

NAV increases by 1.8%

· Princess Private Equity Holding Limited's ("Princess") net asset value ("NAV") increased by 1.8% to EUR 10.16 per share

· Currency movements (-0.1%) were slightly negative while overall portfolio developments (+2.5%) were positive

· Princess received distributions of EUR 16.1 million and invested EUR 8.3 million over the reporting period

In December 2016, Princess' NAV benefitted from the quarterly revaluation of its direct investment portfolio. One of the largest value drivers was VAT Group AG. The global leader in the production of high-end vacuum valves continued the strong share price performance seen since its IPO in April 2016, resulting in an 88.6% increase in the share price as of 31 December 2016. Another value driver was Princess' investment in US early childhood care provider KinderCare Education where value creation initiatives focused on further increasing occupancy rates have led to an increase in EBITDA.

During the month of December, Princess invested a total of EUR 8.3 million. EUR 4.4 million was invested in the senior debt of Springer Science and Business Media (Springer), a Germany-based publishing group that specializes in the publication of scientific, technological and medicinal content. Springer's product range comprises books, journals, newsletters, databases, online services, conferences and seminars. It has operations in 20 European countries, as well as in the United States and Asia. The debt was acquired in the secondary market for liquidity management purposes, reducing Princess' net liquidity position and providing a superior return to the low rates available on bank deposits. EUR 3.4 million was invested in the senior debt financing of a Global vet business (name withheld due to confidentiality restrictions), in support of the company's expansion. Headquartered in France, the business is a global animal healthcare company with a presence in over 42 countries and more than 3'500 employees. 

Distributions during December amounted to EUR 16.1 million of which EUR 6.4 million stemmed from the recapitalization of Action, a European non-food discount retailer. This represents the fourth dividend payment by Action since Princess' initial investment in November 2011, the prior payment having taken place in February 2016. The recent dividend was financed by a EUR 1.7 billion all-senior debt refinancing and supported by Action's robust earnings growth and deleveraging. Princess also received proceeds of EUR 1.5 million from the full exit of its investment in Direct marketing and sales company (name withheld due to confidentiality restrictions), a Mexico-based seller focused on beauty, personal care and home products. Since Princess' investment in the company in 2007, the investment has generated a gross multiple of 2.15x cost. The remaining distributions of EUR 8.2 million came mainly from Princess' mature legacy fund portfolio.

Further information is available in the monthly report which can be accessed via: http://www.princess-privateequity.net/financialreports.

Ends.

About Princess

Princess is an investment holding company founded in 1999 and domiciled in Guernsey. It invests, inter alia, in private equity and private debt investments. Princess is advised in its investment activities by Partners Group, a global private markets investment management firm with over EUR 54.2 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. Princess aims to provide shareholders with long-term capital growth and an attractive dividend yield. Princess is traded on the London Stock Exchange (ticker symbol: PEY). Further information: www.princess-privateequity.net.

Contacts

Princess Private Equity Holding Limited:

[email protected]

www.princess-privateequity.net

Registered Number: 35241

Investor relations contact

George Crowe

Phone: +44 (0)20 7575 2771

Email: [email protected]

Media relations contact

Jenny Blinch

Phone: +41 41 784 65 26

Email: [email protected]

www.partnersgroup.com

This document does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for any securities and neither is it intended to be an investment advertisement or sales instrument of Princess. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes must inform themselves about, and observe any such restrictions on the distribution of this document. In particular, this document and the information contained therein are not for distribution or publication, neither directly nor indirectly, in or into the United States of America, Canada, Australia or Japan.

This document may have been prepared using financial information contained in the books and records of the product described herein as of the reporting date. This information is believed to be accurate but has not been audited by any third party. This document may describe past performance, which may not be indicative of future results. No liability is accepted for any actions taken on the basis of the information provided in this document. Neither the contents of Princess' website nor the contents of any website accessible from hyperlinks on Princess' website (or any other website) is incorporated into, or forms part of, this announcement.