Portfolio repositioning

News Release

Guernsey, 20 October 2010

Princess mandates Investment Advisor to implement portfolio repositioning

The Board of Princess Private Equity Holding Limited (Princess or the Company), together with Partners Group, the Company's Investment Advisor, are committed to closing the current discount to net asset value (NAV) and creating shareholder value. The measures aimed at achieving this goal, and agreed at a recent Board Meeting, include steps to resume dividend payments over the short-term and a gradual redirection of the investment focus of the Company towards direct investments. These measures are being facilitated by a planned secondary sale of select fund commitments which is already the subject of advanced negotiations.

Brian Human, Chairman of Princess' Board of Directors, comments: "We are fully committed to build Princess' shareholder value in cooperation with our Investment Advisor, Partners Group. We believe that the planned secondary sales of select partnerships should enable an earlier resumption of dividend payments, and possible share buy-backs, and assist with the gradual redirection of the investment focus of the Company towards direct investments. The increased dividend visibility, thanks to the strong yield characteristics of direct private debt investments together with the absence of unfunded commitments due to a focus on direct private equity investments, is an additional attraction of the portfolio repositioning. Together these measures should address the discount to NAV."

Urs Wietlisbach, member of Princess' Board of Directors and Executive Vice Chairman of Partners Group, the Investment Advisor, adds: "A study of historic listed private equity discount and premium developments has shown that investment companies with a high and stable dividend yield typically trade at much tighter discounts or even premiums. We are therefore committed to resuming dividend payments with an annual target of 5 to 8% of the NAV. The strategic focus on direct investments should also improve the portfolio transparency for analysts and investors and remove significant unfunded commitments, while at the same time continuing to provide a broad global diversification."

Further details on measures taken will be released on an ad-hoc basis as and when appropriate.

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 AG, a global private markets investment management firm with over EUR 20 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 Frankfurt Stock Exchange (ticker symbol: PEY1) and 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

Media enquiries:

Partners Group AG

Dr. Anna Hollmann

Communications

Tel.: +41 41 768 83 72

[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 Private Equity Holding Limited. 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 is 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.