Princess publishes Half-Year Report 2014

News Release

Guernsey, 13 August 2014

Princess' allocation to direct investments reaches 50% and its NAV grewby 4.7% during the first half of 2014

Princess Private Equity Holding Limited (Princess or the Company) today published its Half-Year Report for 2014. The key items were:

n The direct investment allocation within the portfolio has increased from 39% to 50% since the end of 2013.

n Princess' net asset value (NAV) grew by 4.7% to EUR 8.20 per share in the first six months of 2014, adjusted for the interim dividend of EUR 0.27 per share distributed to shareholders in June.

n Positive underlying company developments were the primary contributor to NAV growth over the period (+5.3%), as the portfolio's underlying companies continued to show strong operational improvements.

n Partners Group as Investment Advisor completed eight new direct investments over the reporting period. The most recent was Permotio International Learning, an investment vehicle formed to give Partners Group clients access to the creation of a leading international schools group.

n Princess deployed EUR 75.6 million in capital to new investments, of which EUR 70.5 million has been used for direct investments and EUR 5.1 million for calls from third party funds.

n Princess received distribution proceeds from exited investments (EUR 32.0 million) and secondary sales (EUR 51.4 million).

Brian Human, Chairman of Princess Private Equity Holding Limited, comments: "We are pleased that Princess' allocation to direct investments now exceeds 50% of the investment portfolio and that direct investments were the main driver of performance over the period. It is our intention to continue paying semi-annual dividends to our shareholders, and anticipating distributions from Princess' mature fund portfolio we are confident that the Company's current high dividend yield of 8.2% (based on the end of June share price), and the repositioning towards becoming primarily a direct investment company, will appeal to new and existing investors alike."

A detailed analysis and commentary on the developments and performance of Princess' portfolio over the first six months of 2014 will be presented in the Half-Year Report published today. The report can be accessed via: http://www.princess-privateequity.net/financialreports.

A copy of the above document has been submitted to the National Storage Mechanism and will shortly be available for inspection at: http://www.Hemscott.com/nsm.do.

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 31 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

E-mail: [email protected]

Media relations contact

Partners Group AG

Alexander von Wolffradt

Phone: +41 41 784 66 45

E-mail: [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 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.