REG - JPEL Private Equity - Portfolio Update

JPEL Private EquityAnnouncement

03/05/2022 07:16

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RNS Number : 9480J  JPEL Private Equity Limited  03 May 2022

JPEL Private Equity Limited

Ground Floor

Cambridge House

Le Truchot, St Peter Port

Guernsey, GY1 1WD

www.jpelonline.com (http://www.jpelonline.com)

 

 

portfolio update

 

 

 

GUERNSEY, 3 MAY 2022

 

 

JPEL Private Equity Limited's ("JPEL" or the "Company") Board would like to
update shareholders on its approach to the next phase of the strategic plan
for the Company.

 

The Company recently completed its tenth mandatory redemption of $18 million
or 24.3% of prevailing net asset value ("NAV") on 11 April 2022. Inclusive of
this mandatory redemption, JPEL has returned $517.2 million to US$ Equity
Shareholders, or approximately 108% and 136% of the Company's prevailing NAV
and market capitalization at the time of its first mandatory redemption as at
31 October 2016 NAV.  Since inception, inclusive of the repayment of the
Company's 2013, 2015 and 2017 Zero Dividend Preference Shares as well as all
tender offers and mandatory redemptions, the Company has returned over $865
million to shareholders.

 

Following the latest mandatory redemption, JPEL's private equity portfolio has
an estimated NAV of approximately $56 million, consisting of 7 direct
investments and 41 LP interests.

 

With the goal of maximizing shareholder value, JPEL's Board has worked with
FCF JPEL Management LLC (the "Manager") as well as its, corporate broker and
counsel to explore numerous options for the Company, including the following:

 

·      place the Company into a formal liquidation process;

·   change the listing venue to lower cost option (specifically, the
Specialist Fund Segment of the London Stock Exchange);

·      continue to operate the Company under the existing structure until
ultimate wind down of the private equity portfolio; or

·     sell remaining assets where we believe fair value could be
achieved in the secondary market, noting that based on discussions that the
Manager has had with various agents on a no-names basis, this is currently
only likely at a substantial discount to prevailing NAV.

 

JPEL's Board believes that the best option for the Company in the near term is
to continue to run-off JPEL's portfolio organically, and revisit all options
once JPEL's NAV approaches approximately $30 million.

 

JPEL's Board intends to focus its activities over next two calendar quarters
on the following:

 

·      continue to seek potential one-off exits from direct investment
portfolio and position remainder of portfolio for passive management;

·      work aggressively to address the Company's cost basis and reduce
the Company's Total Expense Ratio from its current annualized run rate of
approximately 3%;

·      discussions with Manager, administrator and the third-party
service providers regarding fee reductions; and

·      revisit liquidation and listing venue options (including
delisting from the London Stock Exchange), both of which require 75%
shareholder approval, once portfolio reaches $30 million of NAV

 

 

LEI Number:  5493005M6GBE3DNJZ894

 

 

 

 

About JPEL Private Equity Limited

 

JPEL Private Equity Limited is a Guernsey registered and incorporated, London
Stock Exchange-listed, closed-ended investment company (LSE: JPEL) designed
primarily to invest in the global private equity market.  The investment
objective of the Company is to achieve both short and long-term capital
appreciation by investing in a well-diversified portfolio of private equity
fund interests and by capitalising on the inefficiencies of the secondary
private equity market.

 

A copy of this announcement will be available on the Company's website at
www.jpelonline.com. Neither the content of the Company's website, nor the
content on any website accessible from hyperlinks on its website for any other
website, is incorporated into, or forms part of, this announcement nor, unless
previously published by means of a recognised information service, should any
such content be relied upon in reaching a decision as to whether or not to
acquire, continue to hold, or dispose of, securities in the Company.

 

This announcement may include "forward-looking statements". All statements
other than statements of historical facts included in this announcement,
including, without limitation, those regarding the Company's financial
position, business strategy, plans and objectives of management for future
operations are forward-looking statements. Forward-looking statements are
subject to risks and uncertainties and accordingly the Company's actual future
financial results and operational performance may differ materially from the
results and performance expressed in, or implied by, the statements. These
forward-looking statements speak only as at the date of this announcement. The
Company expressly disclaims any obligation or undertaking to update or revise
any forward-looking statements contained herein to reflect actual results or
any change in the assumptions, conditions or circumstances on which any such
statements are based unless required to do so by the Financial Services and
Markets Act 2000, the Listing Rules or Prospectus Regulation Rules made under
Part VI of the Financial Services and Markets Act 2000 of the Financial
Conduct Authority, the UK version of the Market Abuse Regulation (2014/596/EU)
or other applicable laws, regulations or rules.

 

ENQUIRIES:

 

FCF JPEL Management LLC

JPELClientService@fortress.com (mailto:JPELClientService@fortress.com)

 

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