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)
ANNUAL
RESULTS FOR THE YEAR ENDED 29 FEBRUARY
2024
LEI:
549300TZCK08Q16HHU44
(Classified
Regulated Information, under DTR 6 Annex 1 section 1.1)
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").
30 May 2024
JZ Capital
Partners Limited, the London
listed fund that has investments in US and European micro-cap
companies and US real estate, announces its results for the year
ended 29 February
2024.
JZCP has
today released its Annual Report and Financial Statements for the
year ended 29 February 2024. The
Report will shortly be available for inspection via the Company's
website www.jzcp.com.
A copy of
the Annual Report and Financial Statements will be submitted to the
National Storage Mechanism and will shortly be available in
unedited full text at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Financial
and Operational Highlights
-
NAV per share of
$4.08 (FYE 28/02/23: $4.06)
-
NAV of $316.1 million (FYE 28/02/23: $314.5 million)
-
Total realisation and
distribution proceeds of $78.4million
(FYE 28/02/23: $184.1 million), which
includes the successful realisation of Felix Storch (held through JZHL Secondary Fund
LP).
-
The US micro-cap portfolio
has continued to perform well during the six-month period,
delivering a net increase of 29 cents
per share.
-
The European portfolio
continues to be challenged by the economic headwinds in
Europe and war in Ukraine. However, the Company
continues to work towards realisations in the
portfolio.
-
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
$460 million and repaid approximately
$270 million of
debt.
-
As at 29 February 2024, the Company is debt free and
had approximately $123.4 million of
cash and treasuries and a reduced but still substantial investment
portfolio of approximately $194
million.
-
On 18 April 2024, the Company announced its
intention to commence the return of capital to shareholders for an
initial amount of approximately $40
million, which is expected to take place by the end of
July 2024 (subject to shareholder
approval).
-
The Company still remains
of the view that the most appropriate form and mechanism to effect
this initial return of capital will be via a Redemption of its
Ordinary Shares. As such, in a separate announcement dated
30 May 2024, the Company is seeking
shareholder approval to make amendments to the Articles to permit
such a Redemption and to change the rights of the Ordinary Shares
to make them redeemable.
-
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 committed
$20.5 million to Follow-on Flex Pack
(through JZHL Secondary Fund LP), which was approved by
shareholders on 8 May
2024.
-
The Company has reserved
the following amounts for certain other existing assets:
approximately $12.5 million for
Esperante; $15 million for
Spruceview; and $20 million for
capital calls from JZI Fund III, L.P., including an anticipated
requirement for further support.
David Macfarlane, Chairman of JZCP, said:
"The
Company is in a strong financial position, enabling it to announce
the commencement of returning capital to shareholders. It will also
allow the Company to maximise the value of and realise in an
orderly manner the remainder of its investment portfolio and, in
due course, return all capital to shareholders. The Board looks
forward to making further returns of capital to shareholders as
soon as circumstances permit."
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.
Matt Smart
+44
(0) 1481 745228
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.