PRIVATE EQUITY INVESTOR PLCINTERIM MANAGEMENT STATEMENT - FOUR MONTHS TO 31 JULY 2014Investment Objective The objective of the Company has been to provide shareholders with long-term capital growth. The Company is not making investments in new private equity funds but is managing its existing investments with a view to making periodic returns of capital to shareholders. Investment Policy Risk Diversification The Company has invested in and maintains a broad portfolio of US-based venture capital and buyout funds (the "Funds"), managed by a number of different management groups, and focused on various stages of growth so as to obtain exposure to a diversified underlying portfolio of investments primarily in private companies in the technology sector. Through the Funds, the Company has exposure to a diverse portfolio of underlying companies. No New Fund Investments It is the policy of the Company not to make new fund investments. However, the Company will continue to meet existing capital commitments to the Funds and may on occasion support follow-on commitments in existing funds or affiliated annex funds. No Over commitment; Ring-fenced Accounts Over commitment is the practice of making commitments to funds which exceed the cash available for investment. The Company has a policy not to be overcommitted. All amounts required to fund existing capital commitments to the Funds are held in ring-fenced accounts. Distributions received from the Funds The managers of the Funds invest principally in unlisted technology companies based in the US. After the flotation or sale of their investments, the Funds may distribute cash or securities to the Company. As a result, the Company may from time to time hold listed securities. It is the policy of the Company to sell listed securities received as distributions from the Funds within a short period of time unless the stock price has decreased meaningfully, in which case the Company may hold these securities for a longer period of time until favourable selling conditions exist. The listed securities received as distributions from the Funds typically do not represent a significant part of the Company's overall investments. Liquidity The Company may hold substantial cash balances due to existing capital commitments to the Funds, due to the receipt of cash distributions from the Funds, or due to cash realised upon the sale of listed securities received from the Funds as distributions. These cash balances are principally in open-ended investment funds pending capital call requests from the Funds, or used for corporate purposes or for distribution to shareholders. Return of Capital to Shareholders The Company proposes to make periodic returns of capital to shareholders from the proceeds of distributions received from the Funds. As the timing and amount of distributions from the Funds fluctuates and is not known, the Company cannot predict when a return of capital to shareholders may be made, or the amount. Gearing In normal circumstances the Company does not expect to borrow. The Company's Articles of Association limit borrowing to an amount broadly equal to its capital and reserves. Some investments made by the Funds may be geared but the Company does not review the level of gearing of these underlying investments. Derivatives The Company does not make use of financial derivatives and does not hedge against currency fluctuations. Dividends The Funds provide little income. Income may be generated from liquid funds and the Company may be required to pay dividends to continue to qualify as an Investment Trust. Such dividends are, however, likely to be small and irregular. Financial Highlights 31 March 2009= 100% To To To To To To 31 July 31 March 31 March 31 March 31 March 31 March 2014 2014 2013 2012 2011 2010 NAV (£) 105.74% 106.84% 107.97% 112.61% 110.69% 101.08% NAV ($) 124.55% 124.28% 114.36% 125.52% 123.79% 106.97% Share price 171.49% 165.16% 165.61% 153.39% 158.37% 103.62% (£) Share 202.00% 192.10% 175.44% 170.99% 177.11% 109.66% price ($)* NASDAQ 285.87% 274.68% 213.76% 202.25% 181.94% 156.87% Composite ($) Financial Position As at 31 July 2014 As at 31 March 2014 Group*# Group** Net assets and shareholders' funds £33,467,000 £42,699,000 Net assets per Ordinary share ("NAV") 226.04 228.40p Net assets and shareholders' funds in $56,502,000 $71,186,000 US$Net assets per Ordinary Share in US$ 381.62c 380.80c Mid-market price per Ordinary Share 189.50p 182.50p Discount to NAV 16.17% 20.10% Exchange rate (US$/£) 1.68830 1.66715 Number of Ordinary Shares in issue 14,805,508 18,694,757 * As per 31 July 2014NAV, including current period deficit. ** As per 31 March 2014Annual Report. # Following the tender offer completed in May 2014, when £8.5 million was returned to shareholders. LP Portfolio Revaluations As at 31 July 2014the Company's NAV included re-valuations by the Limited Partnerships at the following dates: APV Technology Partners III 31 March 2014 Crescendo IV 31 March 2014 Dawntreader Fund II 31 March 2014 Draper Fisher Jurvetson ePlanet Ventures 31 March 2014 Draper Fisher Jurvetson Fund VI 31 March 2014 Draper Fisher Jurvetson Fund VII 31 March 2014 Draper Fisher Jurvetson Gotham Venture Fund 31 March 2014 Draper Fisher Jurvetson Gotham Venture Fund Expansion 31 March 2014 Unit Focus Ventures II 31 March 2014 Francisco Partners II 31 March 2014 Institutional Venture Partners XII 31 March 2014 New Enterprise Associates 9 * 30 June 2014 New Enterprise Associates 10 30 June 2014 New Enterprise Associates 12 30 June 2014 Oak Investment Partners X 30 June 2014 Sprout Capital IX 31 March 2014 TCV IV 31 March 2014 Vanguard VII 30 June 2014 VantagePoint Venture Partners 2006 31 March 2014 VantagePoint Venture Partners IV 31 March 2014 Vector Capital IV 31 March 2014 Zone Venture Fund II 31 March 2014 Zone Venture Fund II Annex 31 March 2014 * In liquidation Material Events On 29 May 2014, the Company completed a tender offer to shareholders of £8.5 million, with 3,889,249 shares being purchased for cancellation at a price of 218.5455 penceper share. The Company has now made six Tender Offers since December 2007, returning a total of £70.15 million to shareholders. As a result of all share buybacks and tender offers, there are now 14,805,508 shares in issue. The Company will continue its policy of making tender offers as and when cash resources reach an appropriate level. As previously reported in the Company's annual report for the year ended 31 March 2014, in early May the Company received a distribution of 61,380 shares of Twitter, Inc. from Institutional Venture Partners XII, L.P.at a distribution price of $31.75per share. The Company subsequently sold all of these shares in a number of trades at prices ranging from $34.40per share to $42.01per share. Material Transactions During the four months to 31 July 2014the Company received distributions of cash and shares from the Funds totalling £3,737,256 ( $6,297,985). The Funds drew down £336,617 ( $576,667) during the four months. Annual General Meeting The Company's Annual General Meeting will be held on Wednesday 17 September 2014at 10:00amat the offices of SGH Martineau, One America Square, Crosswall, LondonEC3N 2SG. In addition to the Ordinary Business the Board are proposing the following items of Special Business. Resolution 8, an Ordinary Resolution, proposes that the Company continues in existence as an investment trust in accordance with the Company's Articles of Association. Resolution 9, a Special Resolution, proposes a change to the Articles of Association to hold a continuation vote annually rather than once every five years. Resolution 10, a Special Resolution, proposes to renew the Company's authority to make market purchases of up to 14.99% of the issued share capital. The Directors consider that all the resolutions to be put to the meeting are in the best interest of the Company and its shareholders as a whole. The Directors intend to vote in favour of all resolutions with respect to shares owned or controlled by them. Further Information Additional information, including Net Asset Values and Financial Reports can be found on the Company's website: www.peiplc.com. Other than as detailed above, the Board is not aware of any significant events or transactions that have occurred between 31 July 2014and the date of publication of this statement which would have a material impact on the financial position of the Company. Peter Dicks Chairman 15 August 2014 Neither the contents of Private Equity Investorplc's website nor the contents of any website accessible from hyperlinks on the website (or any other website) is incorporated into, or forms part of, this announcement END The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. 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