JZ
CAPITAL PARTNERS LIMITED (the "Company" or
"JZCP")
(a
closed-end investment company incorporated with limited liability
under the laws of Guernsey with registered number 48761)
INTERIM
RESULTS FOR THE PERIOD ENDED 31 AUGUST
2024
LEI:
549300TZCK08Q16HHU44
(Classified
Regulated Information, under DTR 6 Annex 1 section 1.2)
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF
THE MARKET ABUSE REGULATION (EU) NO. 596/2014 WHICH FORMS PART OF
UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018
("MAR").
7 November 2024
JZ Capital
Partners, the London listed fund
that has investments in US and European micro-cap companies and US
real estate, announces its interim results for the period ended
31 August 2024.
JZCP has
today released its Interim Report and Financial Statements for the
period ended 31 August 2024. The
Report will shortly be available for inspection via the Company's
website www.jzcp.com.
Financial
and Operational Highlights
-
NAV per
share of $4.15 (FYE 29/02/24:
$4.08)
-
NAV of
$280.6 million (FYE 29/02/24:
$316.1 million)
-
Total
realisation and distribution proceeds of $44.2 million (FYE 29/02/24: $78.4 million), following the successful
realisations of Karium and My Lender (held through JZI Fund III,
L.P.) and, post-period, amongst other smaller realisations, the
realisation of Deflecto.
-
The US and
European micro-cap portfolios showed small gains for the six-month
period, delivering a net increase of six
cents and five cents per
share, respectively. The Company continues to work towards further
realisations in both portfolios.
-
The
Company has two remaining properties with equity value: Esperante,
an office building in West Palm Beach,
Florida, and 247 Bedford Avenue, a retail building with
Apple as the primary tenant, in Williamsburg, Brooklyn.
Investment
Policy and Liquidity
-
Since the
Company adopted its current investment policy in August 2020, the Company has achieved
realisations in excess of $500
million, repaid approximately $270
million of debt and returned $40
million of capital to shareholders.
-
As at
31 August 2024, the Company is debt
free and had approximately $106
million of cash and treasuries and a reduced but still
substantial investment portfolio of more than $175 million.
-
Following
the recent realisations, the Board is pleased to announce that it
intends to make a second return of capital to shareholders in an
amount of approximately $30 million,
which is expected to be implemented in the first calendar quarter
of 2025.
-
In line
with the Company's investment policy, certain assets within the
portfolio will require significant further investment and time to
maximise their value:
-
The
Company has reserved $20.5 million
for Follow-on Flex Pack (through JZHL Secondary Fund LP), of which
$12.3 million has been
invested.
-
The
Company has reserved the following amounts for certain other
existing assets: approximately $12.5
million for Esperante, of which $7.8
million has been invested; $15
million for Spruceview; and $20
million for capital calls from JZI Fund III,
L.P.
-
The
reduction in the size of the gross fund has reduced the base fee
payable to the Investment Adviser. The Board is considering
proposals for appropriate adjustments to be made to the
arrangements for compensating and incentivising the Investment
Adviser's team. Jay Jordan and
David Zalaznick will not themselves
draw any compensation from the revised Investment Adviser's fee
under any such arrangements.
David Macfarlane, Chairman of JZCP, said:
"The
Company is in a strong financial position, and the Board is pleased
to have returned approximately $40
million to shareholders in July. Additionally, the Board is
now proposing a further capital return of approximately
$30 million in the first calendar
quarter of 2025. Consistent with its investment policy, the Company
will strive to maximise the value of its remaining investment
portfolio and proceed with an orderly realisation of these assets.
When cash is not needed to support this process, the Company
intends to return further capital to shareholders."
Market
Abuse Regulation:
The
information contained within this announcement is inside
information as stipulated under MAR. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain. The person responsible for arranging the release
of this announcement on behalf of the Company is David Macfarlane, Chairman.
For
further information:
Kit Dunford
+44
(0)7717 417 038
FTI
Consulting
David Zalaznick
+1 212 485
9410
Jordan/Zalaznick
Advisers, Inc.
Emma-Jayne Wherry +44
(0) 1481 745572
Northern
Trust International Fund
Administration
Services (Guernsey) Limited
About
JZ Capital Partners
JZCP has
investments in US and European micro-cap companies, as well as real
estate properties in the US.
JZCP's
Investment Adviser is Jordan/Zalaznick Advisers, Inc. ("JZAI")
which was founded by David Zalaznick
and Jay Jordan in 1986. JZAI has
investment professionals in New
York, Chicago, London and Madrid.
In
August 2020, the Company's
shareholders approved changes to the Company's investment policy.
Under the new policy, the Company will make no further investments
except in respect of which it has existing obligations and to
continue to selectively supporting the existing portfolio. The
intention is to realise the maximum value of the Company's
investments and, after repayment of all debt, to return capital to
shareholders.
JZCP is a
Guernsey domiciled closed-ended investment company authorised by
the Guernsey Financial Services Commission. JZCP's shares trade on
the Specialist Fund Segment of the London Stock
Exchange.
For more
information please visit www.jzcp.com.