REG-JZ Capital Partners Ltd: Interim results for the period ended 31 August 2024

JZ Capital PartnersAnnouncement

07/11/2024 07:15

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.

 



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