Edison Review on Princess Private Equity Holding: New Buyback Policy Details

On April 29, 2024, Edison Investment Research Limited released a review of Princess Private Equity Holding (PEY), focusing on the implementation of a new buyback policy. Throughout the twelve months ending in February 2024, PEY reported a modest net asset value (NAV) total return of 0.6%, amid a period characterized by low exit activity in private equity markets. However, a recent uptick in global mergers and acquisitions could potentially enhance PEY’s exit activity, potentially boosting future returns.

Significantly, PEY’s shares are currently trading at a 24% discount to NAV, compared to a ten-year average of 18%. The board has responded by adopting a structured buyback strategy aimed at enhancing shareholder value by purchasing shares when they trade below NAV.

In addition to the buyback policy, PEY continues to deliver a stable annual dividend, which has been maintained at 5% of opening NAV since 2021. The company's financial position remains robust, with sufficient liquidity and contracted exit proceeds that surpass its outstanding investment commitments, thereby supporting its operational and strategic initiatives.