Princess Private Equity H1 Earnings Call Highlights

Princess Private Equity (LON:PEY) reported an 8.6% decline in net asset value on a total-return basis for the first half of 2026, as a small group of portfolio holdings weighed on performance amid geopolitical uncertainty, market volatility and shifting expectations for growth, inflation and interest rates. Andreea Mateescu, Head of Investor Relations at Partners Group Private Equity, said the NAV decline was primarily driven by portfolio developments, partly offset by favorable currency movements. USIC, Emeria and Pharmathen were the largest detractors in the period, while approximately two-thirds of the portfolio’s decline over the past 12 months was attributable to four assets: Pharmathen, USIC, Emeria and Ammega. Despite the performance pressure, the company generated approximately €111 million of distributions during the first half, equivalent to about 14% of net assets, while deploying €13 million into new investments. Princess Private Equity ended the period with €51 million in cash and cash equivalents and a fully undrawn €150 million revolving credit facility.

Capital Returns and Realizations The company returned almost €36 million to shareholders in the first half, consisting of a €22 million first interim dividend paid in June and more than €13 million in share buybacks. Since the period ended, it has deployed a further €5 million under its buyback program, with repurchased shares held in treasury. Federica Cazzaniga, Senior Portfolio Manager, said Clario was the largest contributor to distributions after Princess Private Equity completed its sale of the U.S. healthcare technology business to Thermo Fisher Scientific. The transaction valued Clario at more than $9 billion in enterprise value and generated approximately €23 million for Princess Private Equity. Cazzaniga said the portfolio’s exits over the past 12 months had achieved a multiple on invested capital close to three times. The company also fully exited its listed Galderma position during the first half, realizing a money multiple exceeding 3.5 times, and further reduced its holding in Indian value retailer Vishal Mega Mart, monetizing more than €15 million while retaining exposure. Vishal Mega Mart experienced share-price volatility in the first quarter but subsequently recovered, according to Cazzaniga. The investment was marked at more than 8.5 times money multiple, while its distributions to paid-in capital were close to five times. Looking forward, Cazzaniga said she expected distribution activity to remain strong, potentially trending toward the “high teens” as a percentage of NAV over the next six to 12 months. Listed holdings represented 9% of the portfolio at the end of the period, down from the mid-teens, and the company expects them to remain a source of liquidity. She said listed assets could remain within a 5% to 10% range of the portfolio.

Pressure Concentrated in Four Holdings USIC, a U.S. underground utility locating-services provider, was the largest performance detractor in the first half. Cazzaniga said the company faced customer insourcing trends and operational headwinds, prompting a lower valuation. Partners Group is pursuing cost actions, productivity improvements, a shift toward higher-growth segments and expanded digital and AI-enabled operations. Emeria, a European residential real estate services provider, faced lower real estate transaction volumes and higher financing costs that limited its M&A and platform-expansion plans. The company is focusing on accelerating organic growth and implementing AI initiatives across customer service, property management, accounting, legal and administration functions. Ammega, a provider of conveyor and power-transmission belting, was affected by an industrial downturn, cost inflation and competitive pressures. Its...