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JZ Capital Ptnrs Ltd: Half-year Report

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 SIX-MONTH PERIOD ENDED

31 AUGUST 2020

LEI: 549300TZCK08Q16HHU44

(Classified Regulated Information, under DTR 6 Annex 1 section 1.2)

05 November 2020

JZ Capital Partners, the London listed fund that invests in US and European
microcap companies and US real estate, announces its interim results for the
six-month period ended 31 August 2020.

Key Highlights

·     NAV per share of $4.60 (FYE 29/2/2020: $6.14)

·     NAV of $356.3 million (FYE 29/2/2020: $475.7 million)

·     US and European Microcap portfolios continued to perform solidly
through COVID-19 delivering a net increase of 6 cents per share and 2 cents
per share respectively

·     The pandemic’s devastating impact on commercial retail real
estate negatively impacted the real estate portfolio during the period,
leading to a write down of c.$110 million

·     Significant progress made towards the stated goal of stabilising
the Company by realizing investments at maximum value to generate cash to pay
debt and return capital to shareholders

o  Total liquidity of $175.7 million realized, including the recently
announced, post period end secondary sale (the “Secondary Sale”) of
certain US microcap assets

o  Total liquidity comprised $141.8 million in cash and the relief of $33.9
million in unfunded and potential commitments

o  Liquidity is being used to pay down a material portion of the Company’s
senior debt with approximately $20 million having been repaid recently and a
further approximately $62.7 million to be repaid upon closing of the Secondary
Sale

o  Agreement reached with its senior lenders post period end to amend the
terms of JZCP’s existing senior facility agreement. The Company has now
secured more advantageous covenant terms for itself, including the asset
coverage covenant being reset at a lower threshold and is now in full
compliance with covenant terms

Portfolio

·     The Board commissioned updated appraisals of the Real Estate
portfolio as of 31 August 2020, which have taken into account the effect of
COVID-19. This led to a further c.$110 million write down given the leveraged
position of the assets and retail tenants being unable to pay rent during the
crisis.

o  The remaining properties with equity value are carried on the Company’s
balance sheet at approximately $47.4 million as of 31 August 2020

o  Given the significant decline in valuation, JZCP agreed an amendment to
its senior loan with Guggenheim following a breach of the asset coverage
covenant, which has been reset at a lower threshold.

·     Resilience and underlying quality of the US and European microcap
portfolios underpinned by solid performance with several assets delivering
record monthly sales and EBITDA

o  Decisive measures taken quickly early in the pandemic to stabilize the
businesses’ liquidity positions and set them on a course to weather the
pandemic

Secondary Sale (post-period end)

·     The Secondary Sale of six US microcap assets (Flex Pack, Flow
Controls, Testing Services, Felix Storch, Peaceable and TierPoint) to a
Secondary Fund which includes investors of certain funds and accounts managed
by Hamilton Lane Advisors, L.L.C.

·     JZCP will receive aggregate consideration of $90 million in cash,
less fees and expenses, and a special limited partner interest in the
Secondary Fund entitling JZCP to certain distributions from the Secondary
Fund 

·     The full potential commitment to the Secondary Fund by its
investors is up to $110 million in aggregate, with its investors committing up
to $20 million to develop the underlying investments.

·     JZCP will continue to benefit from its interest in the new
Secondary Fund, which entitles the Company to participate in the future growth
of the assets

·     Following the Secondary Sale and repayment of approximately $82.7
million of senior debt, the Company’s approximate senior obligations
include: (i) senior debt of $65.8 million (due 12 June 2021), (ii) Convertible
Unsecured Loan Stock (“CULS”) of £38.9m (due 30 July 2021), and (iii)
Zero Dividend Preference Shares (“ZDPs”) of £57.6m (due 1 October 2022).

Outlook

·     The outlook for JZCP is improved - JZCP remains committed to
further progressing the Stabilisation Plan and generating sufficient liquidity
to repay its obligations and return capital to shareholders

·     Having obtained updated real estate appraisals and having continued
to watch the Company’s US and European portfolios navigate well through the
current market, the Board feels confident in the stated values of the
Company’s investments. Accordingly, monthly NAV announcements, which had
been previously suspended, will resume this month

·     The conservatively leveraged microcap portfolios are well
positioned to navigate an economic downturn with limited exposure to cyclical
businesses and below market entry multiples offering significant room for
capital gains

David Macfarlane, Chairman of JZCP, said: “The Company has come a long way
and stands today with a significantly reduced debt position with improved
terms, a resilient microcap portfolio and a plan to further reduce our debt
obligations and return capital to shareholders.

The period has been characterised by further significant and disappointing
losses in the value of the Company’s real estate portfolio, with the full
effects of the pandemic and leverage taking a heavy toll on the portfolio and
the Company’s NAV. In contrast, the Board has been pleased with the solidly
performing microcap portfolios which continue to demonstrate the underlying
quality and resilience of the core part of the business.

While COVID-19 market conditions mean that realisations may be delayed or
become more difficult, the successful sale of certain US microcap assets to
the Secondary Fund marks a turning point for the Company. Clearly, the
achievement of the objective of the stabilisation plan and the new investment
policy depends on realisations, both as to their amount and timing. However,
the Board and the Investment Adviser are optimistic that all the Company’s
obligations will be repaid in full and that capital will be returned to
shareholders.”

__________________________________________________________________________________

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. 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.

Important Notice

This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or comparable
terminology. These forward-looking statements relate to matters that are not
historical facts. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future. Forward-looking statements are not
guarantees of future performance. The Company's actual investment performance,
results of operations, financial condition, liquidity, policies and the
development of its strategies may differ materially from the impression
created by the forward-looking statements contained in this announcement. In
addition, even if the investment performance, result of operations, financial
condition, liquidity and policies of the Company and development of its
strategies, are consistent with the forward-looking statements contained in
this announcement, those results or developments may not be indicative of
results or developments in subsequent periods. These forward-looking
statements speak only as at the date of this announcement. Subject to their
legal and regulatory obligations, each of the Company, the Investment Adviser
and their respective affiliates expressly disclaims any obligations to update,
review or revise any forward-looking statement contained herein whether to
reflect any change in expectations with regard thereto or any change in
events, conditions or circumstances on which any statement is based or as a
result of new information, future developments or otherwise.

For further information:

Ed Berry / Colette La Pointe
                                         
      +44 (0)7703 330 199 / +44 (0)7976 713 690
FTI Consulting

David Zalaznick
                                                                       
+1 212 485 9410
Jordan/Zalaznick Advisers, Inc.

Sam Walden      
                                                                     
+44 (0) 1481 745385
Northern Trust International Fund
Administration Services (Guernsey) Limited

 About JZ Capital Partners

JZ Capital Partners (“JZCP”) is one of the oldest closed-end investment
companies listed on the London Stock Exchange. It seeks to provide
shareholders with a return by investing selectively in US and European
microcap companies and US real estate. JZCP receives investment advice from
Jordan/Zalaznick Advisers, Inc. (“JZAI”) which is led by David Zalaznick
and Jay Jordan. They have worked together for more than 35 years and are
supported by teams of investment professionals in New York, Chicago, London
and Madrid. JZAI’s experts work with the existing management of micro-cap
companies to help build better businesses, create value and deliver strong
returns for investors. For more information please visit www.jzcp.com

Chairman’s Statement

We present the results of the Company for the six-month period ended 31 August
2020. As expected, the last six months have been very challenging for our real
estate portfolio and as foreshadowed in my statement accompanying the results
for the year ended 29 February 2020, the effect of leverage and the COVID-19
crisis have further reduced the value of that portfolio. As announced in
September 2020 and revised in October 2020, this write down has been
quantified at approximately $110 million. As a consequence, I regret to report
that the Company’s NAV fell to $4.60 per share at 31 August 2020 from $6.14
per share at 29 February 2020. The continued difficulties with the real estate
portfolio have offset a robust performance in our traditional private equity
portfolios in the US and Europe. The two portfolios have navigated the
COVID-19 environment well and have, broadly speaking, held their values with
several individual investments outperforming in each portfolio

The recently announced Secondary Sale of certain assets within the US Microcap
portfolio marks steady progress towards the Company’s goal of realising the
maximum value of its current investments and, in accordance with the
Company’s stabilisation plan, generating sufficient liquidity to repay its
obligations and return capital to shareholders. However, we do note that the
enduring effect of COVID-19 market conditions means that realisations may be
delayed or become more difficult

Liquidity

The further write down of the real estate portfolio caused the Company to
breach the asset coverage covenant of its senior loan with Guggenheim
Partners. However, the Investment Manager and the Board have moved quickly and
proactively to agree an amendment to its senior loan, whereby this breach has
been waived by Guggenheim and the Company’s asset coverage covenant has been
reset at a lower threshold. In return, the Company has repaid Guggenheim $20
million (post period-end) and will be obliged to repay a further $62.7 million
on completion of the Secondary Sale, which is anticipated to close following
shareholder approval in December 2020.

Nevertheless, the Board notes that, at this time, the remaining balance of
Guggenheim’s loan will still mature on 12 June 2021 and the Convertible
Unsecured Loan Stock (CULS), which is a subordinate security, will mature
shortly thereafter on 30 July 2021.

Real Estate Portfolio

As previously disclosed, the write down in the Company’s real estate
portfolio as of 29 February 2020 reflected valuations undertaken by a new
independent third-party appraiser, albeit prior to the impact of the COVID-19
crisis. As indicated in the Chairman’s Statement accompanying the year end
results, the Board commissioned updated appraisals as of 31 August 2020, which
have taken into account the effect of COVID-19; this analysis underpins the
further write down of approximately $110 million in the period. Unfortunately,
this comes as no surprise, given the leveraged position of the assets and how
few retail tenants have paid rent during the continuing crisis. In aggregate,
the remaining properties with equity value are carried on the Company’s
balance sheet at $47.4 million as of 31 August 2020. Included in this amount
are the approximate cash proceeds received from the recently announced sale of
the Company’s Greenpoint investment, which had been written down to its
approximate sale value as of 31 August 2020

US and European Microcap Portfolios

At the 2019 full year results, I reported that the Company’s US and European
microcap investments had performed solidly, though the Board expressed concern
regarding the unknown consequences of the lingering COVID-19 crisis. While no
company has escaped fully unscathed, our Investment Adviser and the management
teams of our portfolio companies have worked unremittingly to stabilise our
private equity assets. We believe that the majority of our businesses have
sustained no lasting or fundamental damage, other than that progress towards
maximising and realising value has naturally been delayed. In fact, several of
our assets in both portfolios have outperformed during the six-month period,
in spite of COVID-19, and, in certain instances, are net beneficiaries of the
current environment.

It almost goes without saying how difficult the current market environment can
be to execute transactions. In one form or another, the Secondary Sale with
Hamilton Lane Advisors, L.L.C. ("Hamilton Lane") was under negotiation for
more than a year. Having now agreed this transaction, the Company has unlocked
significant liquidity to repay a material portion of its senior loan and reset
the terms of the loan through maturity. In the coming years, JZCP will
continue to benefit from its special limited partnership interest in the new
Secondary Fund, which entitles the Company to participate in the future growth
of the assets comprising the Secondary portfolio. This growth will be
generated by $20 million in fresh capital contributed by the Secondary Fund to
execute the respective acquisition strategies of the Secondary portfolio
assets.

New Investment Policy and Stabilisation Plan

The Company’s continued intention is to realise the maximum value of its
current investments and, in accordance with the Company’s stabilisation
plan, to generate sufficient liquidity to repay its obligations and return
capital to shareholders. Following the Secondary Sale and ensuing pay down of
senior debt, the Company’s approximate senior obligations will be as
follows: (i) senior debt of $68.5 million (due 12 June 2021), (ii) Convertible
Unsecured Loan Stock (“CULS”) of £38.9m (due 30 July 2021), and (iii)
Zero Dividend Preference Shares (“ZDPs”) of £57.6m (due 1 October 2022).

The achievement of the stabilisation plan depends upon the Company’s ability
to realise assets. As noted above, an enduring effect of COVID-19 market
conditions is that realisations may be delayed or become more difficult. In
addition, a number of the Company’s investments are “co-investments”,
where the Company does not control exit timing. Given this situation, the
Directors’ report accompanying the interim results disclose material
uncertainties as to the Company’s ability to continue as a going concern, as
a result of a potential lack of liquidity to repay the senior debt facility
and redeem its CULS.

Prospects

Having obtained updated real estate appraisals and having continued to watch
the Company’s US and European portfolios navigate well through the current
market, the Board feels confident in the stated values of the Company’s
investments. Accordingly, monthly NAV announcements, which had been previously
suspended, will resume this month. Clearly, the achievement of the objectives
of the stabilisation plan and the new investment policy depends on
realisations, both as to their amount and timing. However, the Board and the
Investment Adviser are optimistic that all the Company’s obligations will be
repaid in full and that a significant amount of capital will be returned to
shareholders.

David Macfarlane
Chairman

4 November 2020

Investment Adviser’s Report

Dear Fellow Shareholders,

During the period, we have made substantial progress towards our stated goal
of realizing investments to generate cash to pay debt, relieve JZCP of
unfunded commitments, selectively support our existing portfolio and return
capital to shareholders; this is all in line with the Company’s new
investment policy approved by shareholders last year.

Our team has executed several significant realizations, as detailed in the
table below, including the recently announced Secondary Sale agreed with
Hamilton Lane. In aggregate, these transactions will generate approximately
$175.7 million in liquidity for JZCP in 2020, comprised of approximately
$141.8 million in cash proceeds to JZCP and the relief of a further
approximately $33.9 million in unfunded and potential commitments. JZCP is
using this liquidity to pay down a material portion of its senior debt
(approximately $82.7 million) and selectively support the Company’s existing
assets to maximize their realizable value in the near term.

As we approach the maturity of the remaining balance of our senior debt and
the CULS in June 2021 and July 2021, respectively, our efforts will continue
to be totally dedicated towards raising cash in order to execute the
aforementioned plan to pay debt in the first instance and ultimately return
capital to shareholders.

Realizations and Further Commitments Relieved Since 1 March 2020

 Asset                         Portfolio     Proceeds  ($ millions)  Further Commitment  ($ millions) 
 Secondary Sale (1)            US                              90.0                              20.0 
 K2 II & ABTB (Taco Bell) (1)  US                              18.6                                 - 
 Greenpoint – Sale (1)         Real Estate                     13.6                                 - 
 Eliantus – Refinancing        Europe                           2.9                                 - 
 Eliantus – Sale (1)           Europe                           6.5                                 - 
 Salter – Refinance (1)        US                               4.4                                 - 
 Orangewood Fund – Sale (1)    US                               3.7                               6.6 
 CERPI – Sale (1)              US                               1.3                               7.3 
 Other & Receipt of Escrows    US                               0.8                                 - 
 Total                                                        141.8                              33.9 

(1) Proceeds received or to be received post period-end

Since our last report, our US and European micro-cap portfolios have continued
to perform solidly through COVID-19. Our portfolio companies’ respective
senior management teams moved quickly to take decisive measures early in the
pandemic to stabilize the businesses’ liquidity positions and set them on a
course to weather the pandemic. We are particularly pleased that several of
our assets in the US and Europe have outperformed in the current climate,
hitting record monthly sales and EBITDA figures, demonstrating the quality of
the underlying companies and the resilience of the portfolio.

In addition, while we are hopeful that the economic downturn will be
relatively short-term in nature, we believe that our assets are prepared to
sustain a longer duration impact for the following reasons: (i) they are not
heavily invested in cyclical businesses; (ii) they are conservatively
leveraged; and, (iii) our entry multiples are below market and offer
significant room for capital gains. Furthermore, having generated significant
liquidity through realizations in 2020, we will be able to selectively support
our existing portfolio, should the unanticipated need arise over the coming
months.

With regards to our real estate portfolio, COVID-19 has been devastating to
commercial retail real estate and has resulted in further write downs in the
value of our real estate assets. Many of our retail tenants have not paid rent
throughout the pandemic. We believe what material equity value remains in the
real estate portfolio is largely concentrated in our properties at 247 Bedford
Avenue in Williamsburg, Brooklyn (where Apple is a tenant), and Esperante, our
office tower in West Palm Beach, Florida.

As of 31 August 2020, our US micro-cap portfolio consisted of 22 businesses,
which includes four ‘verticals’ and 14 co-investments, across seven
industries; this portfolio was valued at 8.5x EBITDA, after applying an
average 18% marketability discount to public comparables. The average
underlying leverage senior to JZCP’s position in our US micro-cap portfolio
is 4.2x EBITDA. Consistent with our value-oriented investment strategy, we
have acquired our current US micro-cap portfolio at an average 5.9x EBITDA.

Our European micro-cap portfolio consisted of 16 companies across six
industries and seven countries. The European micro-cap portfolio has low
leverage senior to JZCP’s position, of under 2.0x EBITDA.

 Net Asset Value (“NAV”)                                                                
 JZCP’s NAV per share decreased $1.54 or 25.1%, during the six-month period.            
 NAV per Ordinary share as of 29 February 2020                                    $6.14 
 Change in NAV due to capital gains and accrued income                                  
 + US Micro-cap                                                                    0.06 
 + European Micro-cap                                                              0.02 
 - Real estate                                                                   (1.46) 
 Other increases/(decreases) in NAV                                                     
 + Change in fair value of CULS                                                    0.03 
 + Net foreign exchange effect                                                     0.03 
 - Finance costs                                                                 (0.12) 
 - Expenses and taxation                                                         (0.10) 
 NAV per Ordinary share as of 31 August 2020                                      $4.60 

The US micro-cap portfolio navigated the COVID-19 environment well during the
six-month period, delivering a net increase of 6 cents per share. This was
primarily due to net accrued income of 5 cents, increased earnings at Felix
Storch (10 cents) and co-investments New Vitality (2 cents) and Salter (3
cents) and the write-up at sale of K2 Towers II / ABTB (2 cents). We also
received 1 cent of escrow payments during the period. Offsetting these
increases were decreases at co-investments Igloo  (2 cents) and Suzo Happ (15
cents).

Our JZI Fund III, L.P. (“Fund III”) portfolio also performed well through
COVID-19 during the period, posting a net increase of 2 cents, primarily due
to net accrued income of 1 cent and net write-ups at Fund III portfolio
companies of 1 cent.

The real estate portfolio experienced a net decrease of $1.46, largely due to
the write-off of large portions of our Brooklyn portfolio and a significant
portion of our Wynwood portfolio.

Returns

The chart below summarises cumulative total shareholder returns and total NAV
returns for the most recent six-month, one-year, three-year and five-year
periods.

                                                   31.8.2020       29.2.2020      31.8.2019      31.8.2017      31.8.2015 
 Share price (in GBP)                                  £0.89           £2.58          £4.82          £5.16          £4.34 
 NAV per share (in USD)                                $4.60           $6.14          $9.66          $9.88         $10.67 
 NAV to market price discount                          74.1%           46.3%          39.2%          32.8%          37.4% 
                                                              6 month return  1 year return  3 year return  5 year return 
 Dividends paid (in USD)                                                   -              -              -         $0.465 
 Total Shareholders' return (GBP) (1)                                 -65.5%         -81.5%         -82.7%         -77.8% 
 Total NAV return per share (USD) (1)                                 -25.1%         -52.4%         -53.4%         -54.9% 
 Total Adjusted NAV return per share (USD) (1,2)                      -25.1%         -52.4%         -54.3%         -51.2% 

(1) Total returns are cumulative and assume that dividends were reinvested.

(2) Adjusted NAV returns reflect the return per share before (i) the dilution
resulting from the issue of 18,888,909 ordinary shares at a discount to NAV on
30 September 2015 and (ii) subsequent appreciation from the buyback of
ordinary shares at a discount.

Portfolio Summary

Our portfolio is well-diversified by asset type and geography, with 39 US and
European micro-cap investments across eleven industries. The European
portfolio itself is well-diversified geographically across Spain, Italy,
Portugal, Luxembourg, Scandinavia and the UK.

Below is a summary of JZCP’s assets and liabilities at 31 August 2020 as
compared to 29 February 2020. An explanation of the changes in the portfolio
follows:

 US microcap portfolio              31.8.2020  US$'000 409,502    29.2.2020  US$'000 404,880 
 European microcap portfolio                           111,800                       102,591 
 Real estate portfolio                                  47,362                       158,712 
 Other investments                                      23,443                        22,603 
 Total investments                                     592,107                       688,786 
 Treasury bills                                          3,395                         3,386 
 Cash                                                   35,656                        52,912 
 Total cash equivalents                                 39,051                        56,298 
 Other assets                                              125                           119 
 Total assets                                          631,283                       745,203 
 Zero Dividend Preference shares                        69,354                        64,510 
 Convertible Unsecured Loan Stock                       49,432                        49,886 
 Loans payable                                         150,355                       150,362 
 Other liabilities                                       5,866                         4,711 
 Total liabilities                                     275,007                       269,469 
 Net Asset Value                                       356,276                       475,734 

US microcap portfolio

As you know from previous reports, our US portfolio is grouped into industry
‘verticals’ and co-investments. Our ‘verticals’ strategy focuses on
consolidating businesses under industry executives who can add value via
organic growth and cross company synergies. Our co-investments' strategy
allows for greater diversification of our portfolio by investing in larger
companies alongside well-known private equity groups.

The US micro-cap portfolio navigated the COVID-19 environment well during the
six-month period, delivering a net increase of 6 cents per share. This was
primarily due to net accrued income of 5 cents, increased earnings at Felix
Storch (10 cents) and co-investments New Vitality (2 cents) and Salter (3
cents) and the write-up at sale of K2 Towers II / ABTB (2 cents). We also
received 1 cent of escrow payments during the period. Offsetting these
increases were decreases at co-investments Igloo (2 cents) and Suzo Happ (15
cents).

European microcap portfolio

Our JZI Fund III, L.P. (“Fund III”) portfolio also performed well through
COVID-19 during the period, posting a net increase of  2 cents, primarily due
to net accrued income of 1 cent and net write-ups at Fund III portfolio
companies of 1 cent.

JZCP invests in the European micro-cap sector through its approximately 18.8%
ownership of Fund III. As of 31 August 2020, Fund III held 12 investments:
four in Spain, two in Scandinavia, two in Italy, two in the UK and one each in
Portugal and Luxembourg. JZCP held direct loans to a further three companies
in Spain: Docout, Xacom and Toro Finance.

JZAI has offices in London and Madrid and an outstanding team with over
fifteen years of experience investing together in European micro-cap deals.

During the period and post-period, JZCP received distributions totalling
approximately €8.0 million (approximately $9.4 million) from the refinancing
and sale of Fund III portfolio company Eliantus (see below).

In April 2020, JZCP received €2.7 million in proceeds from the refinancing
of Fund III portfolio company, Eliantus, which issued its second project bond
backed by solar power plants in Spain. In September 2020 (post period), JZCP
received a further €5.3 million in proceeds from the sale of Eliantus to
Sonnedix, an independent solar power producer which develops, builds, owns and
operates solar power plants globally, including in Italy, France, Spain,
USA/Puerto Rico, Chile, South Africa and Japan. Including previously
distributed proceeds and future escrows/earn- outs, Fund III has realized a
gross multiple of invested capital (“MOIC”) of approximately 2.0x.

Real estate portfolio

As discussed in the Chairman’s Statement and several recent announcements,
our real estate portfolio has suffered a further large reduction in value
during the period. COVID-19 has irreparably damaged large portions of the
portfolio, many of which were in a precarious position pre-COVID-19, resulting
in significant write-downs and write- offs of assets in Brooklyn and South
Florida. We expect any material remaining value in the real estate portfolio
to come from our properties at 247 Bedford Avenue, Williamsburg, Brooklyn
(where Apple is a tenant) and Esperante our office tower in West Palm Beach,
Florida.

In October 2020 (post period), JZCP sold its investment in the Greenpoint
property, receiving approximately $13.6 million in sale proceeds.

Other investments

Our asset management business in the US, Spruceview Capital Partners, has
continued to make encouraging progress since our last report to you.
Spruceview addresses the growing demand from corporate pensions, endowments,
family offices and foundations for fiduciary management services through an
Outsourced Chief Investment Officer (“OCIO”) model as well as customized
products/solutions per asset class.

During the period, Spruceview received a commitment of $124 million, the first
tranche of an anticipated total additional commitment of $800 million, for a
portfolio of alternative private equity investments for a Mexican trust (or
“CERPI”). In addition, the firm launched a third private markets fund,
focused on co-investment opportunities in the US, with initial commitments of
$24 million.

During the period, Spruceview also maintained a pipeline of potential client
opportunities and continued to provide investment management oversight to the
pension funds of the Mexican and Canadian subsidiaries of an international
packaged foods company, as well as portfolios for family office clients, a
European private credit fund-of-funds, and a US middle market private equity
fund-of-funds.

As previously reported, Richard Sabo, former Chief Investment Officer of
Global Pension and Retirement Plans at JPMorgan and a member of that firm’s
executive committee, is leading a team of 17 investment, business and product
development, legal and operations professional.

Realisations

Secondary Sale

As announced on October 19, 2020, JZCP signed an agreement to sell its
interests in certain US microcap portfolio companies (the "Secondary Sale") to
a secondary fund which includes investors of certain funds and accounts
managed by Hamilton Lane Advisors, L.L.C, one of the world's largest asset
management firms.

The Secondary Sale marks a significant milestone towards the delivery of the
Company's previously announced strategy of realizing value from its investment
portfolio and paying down debt. Upon completion, the Secondary Sale will
provide the Company with the needed liquidity to repay a substantial portion
of its senior debt.

The US microcap assets to be sold as part of the Secondary Sale include
JZCP’s interests in each of ACW Flex Pack, Flow Control, Testing Services,
Felix Storch, Peaceable Street Capital and TierPoint (together, the "US
Microcap Portfolio Companies"). In return, JZCP will receive aggregate
consideration of: (i) $90 million in cash (less any fees and expenses) and
(ii) a special limited partner interest in the Secondary Fund entitling JZCP
to certain distributions from the Secondary Fund (the "Special LP Interest").

The full potential commitment by the Secondary Investors to the Secondary Fund
is up to US$110 million in aggregate, with a total initial investment of $90
million to be funded at the time of closing of the Secondary Sale to
facilitate the Secondary Fund’s acquisition of the US Microcap Portfolio
Companies from JZCP. In addition to this initial investment amount, up to $20
million of unfunded capital commitments is expected to be contributed to the
Secondary Fund by the Secondary Investors to complete the acquisition
strategies of the US Microcap Portfolio Companies.

JZCP expects that the value of the its Special LP Interest should increase in
the near to medium term as the Secondary Investors fund this additional new
capital required to grow the US Microcap Companies and complete their
respective acquisition strategies.

K2 II and ABTB (Taco Bell)

In June 2020, JZCP sold its interests in K2 II and ABTB at approximately NAV,
receiving approximately $18.6 in net proceeds.

Orangewood Fund

During the period and post-period, JZCP received approximately $3.6 million in
proceeds from selling down $10 million of its $24 million total commitment to
the Orangewood Fund. In addition to having received back its funded cost plus
8.0% interest (i.e., $3.6 million), JZCP was relieved of up to approximately
$6.6 million in unfunded commitments to the Orangewood Fund. JZCP intends to
sell down its remaining commitment to the Orangewood Fund over the coming
months.

CERPI

In August 2020, JZCP received approximately $1.3 million in proceeds from
selling its interest in the CERPI, a fund managed by Spruceview. In addition
to having received back its approximate cost in the CERPI, JZCP was relieved
of up to approximately $7.3 million in unfunded commitments and potential
future commitments to the CERPI.

Eliantus

In April 2020, JZCP received €2.7 million in proceeds from the refinancing
of Fund III portfolio company, Eliantus, which issued its second project bond
backed by solar power plants in Spain. In September 2020 (post period), JZCP
received a further €5.3 million in proceeds from the sale of Eliantus to
Sonnedix, an independent solar power producer which develops, builds, owns and
operates solar power plants globally, including in Italy, France, Spain,
USA/Puerto Rico, Chile, South Africa and Japan. Including previously
distributed proceeds and future escrows/earn- outs, Fund III has realized a
gross multiple of invested capital (“MOIC”) of approximately 2.0x.

Greenpoint

In October 2020 (post period), JZCP sold its investment in the Greenpoint
property, receiving approximately $13.6 million in sale proceeds.

Outlook

While it has clearly been a challenging period for the real estate portfolio
in particular, the outlook for JZCP has significantly improved since we
reported to you at 29 February 2020. In terms of cash generation, as well as
cash conservation, we are well down the road to stabilizing our portfolio.

We see more value to be realized from our US and European microcap portfolio
and will continue to selectively invest in these portfolios to maximize their
values. We believe this is the most effective way for us to be able to return
capital to our common shareholders. Until then, we will continue to pursue
realizations and repay debt.

While the uncertain COVID-19 world in which we are living continues, our focus
remains on the health and wellbeing of our people and partners. We will do
everything we can to manage this portfolio defensively and we remain committed
to maximizing value along the way.

Thank you again for your support of the Company’s revised investment
strategy.

Yours faithfully,
Jordan/Zalaznick Advisers, Inc.

4 November 2020

Board of Directors
David Macfarlane (Chairman)(1)

Mr Macfarlane was appointed to the Board of JZCP in 2008 as Chairman and a
non-executive Director. Until 2002 he was a Senior Corporate Partner at
Ashurst. He was a non-executive director of the Platinum Investment Trust Plc
from 2002 until January 2007.

James Jordan

Mr Jordan is a private investor who was appointed to the Board of JZCP in
2008. He is a director of the First Eagle family of mutual funds, and of Alpha
Andromeda Investment Trust Company, S.A. Until 30 June 2005, he was the
managing director of Arnhold and S. Bleichroeder Advisers, LLC, a privately
owned investment bank and asset management firm; and until 25 July 2013, he
was a non-executive director of Leucadia National Corporation. He is an
Overseer of the Gennadius Library of the American School of Classical Studies
in Athens, and as Director of Pro Natura de Yucatan.

Sharon Parr(2)

Mrs Parr was appointed to the Board of JZCP in June 2018. In 2003 she
completed a private equity backed MBO of the trust and fund administration
division of Deloitte and Touche, called Walbrook, selling it to Barclays
Wealth in 2007. As a Managing Director of Barclays, she ultimately became
global head of their trust and fund administration businesses, comprising over
450 staff in 10 countries. She stepped down from her executive roles in 2011
to focus on other areas and interests but has maintained directorships in
several companies. She is a Fellow of the Institute of Chartered Accountants
in England and Wales and a member of the Society of Trust and Estate
Practitioners, and is a resident of Guernsey.

Ashley Paxton

Mr Paxton was appointed to the board in August 2020. Ashley has more than 25
years of funds and financial services industry experience, with a demonstrable
track record in advising closed-ended London listed boards and their audit
committees on IPOs, capital market transactions, audit and other corporate
governance matters. Ashley was previously C.I. Head of Advisory for KPMG in
the Channel Islands, a position he held from 2008 through to his retirement
from the firm in 2019. Ashley is a Fellow of the Institute of Chartered
Accountants in England and Wales and a resident of Guernsey. Amongst other
appointments he is Chairman of the Youth Commission for Guernsey & Alderney, a
locally based charity whose vision is that all children and young people in
the Guernsey Bailiwick are ambitious to reach their full potential.

Tanja Tibaldi

Ms Tibaldi resigned from the Board on 12 August 2020.

(1)Chairman of the nominations committee of which all Directors are members.

(2)Chairman of the audit committee of which all Directors are members.

Report of the Directors

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Interim Report and Financial
Statements comprising the Half-yearly Interim Report (the "Interim Report")
and the Unaudited Condensed Interim Financial Statements (the "Interim
Financial Statements") in accordance with applicable law and regulations.

·     the Interim Financial Statements have been prepared in accordance
with IAS 34, "Interim Financial Reporting" and give a true and fair view of
the assets, liabilities, financial position and profit or loss of the Company;
and

·     the Chairman’s Statement and Investment Adviser’s Report
include a fair review of the information required by:

i.     DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being
an indication of important events that have occurred during the first six
months of the financial year and their impact on the Interim Financial
Statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and

ii.     DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related party transactions that have taken place in the first six months
of the financial year and that have materially affected the financial position
or the performance of the entity during that period; and any changes in the
related party transactions described in the 2020 Annual Report and Financial
Statements that could do so.

Principal Risks and Uncertainties

The Company's Board believes the principal risks and uncertainties that relate
to an investment in JZCP are as follows:

Portfolio Liquidity

The Company invests predominantly in unquoted companies and real estate.
Therefore, this potential illiquidity means there can be no assurance
investments will be realised at their latest valuation. The Board considers
this illiquidity when planning to meet its future obligations, whether
committed investments or the repayment of the debt facility or the future
repayment of CULS and ZDP shares. On a quarterly basis, the Board reviews a
working capital model produced by the Investment Adviser which highlights the
Company's projected liquidity and financial commitments.

COVID-19

Whilst reporting its annual results for the year ended 29 February 2020 the
Board disclosed in its Going Concern Assessment on Note 3 of the Annual
Report, that the market conditions generated by COVID-19 had resulted in
uncertainties that, at that juncture cast significant doubt on the Company’s
ability to continue as a going concern and that they were unable to estimate
the full extent and duration of the impact on the Company.

The Board are now in a better position to assess how COVID-19 has impacted the
Company’s investment portfolio and to assess the risks and uncertainties
that the pandemic still pose. The Board are pleased that the Company’s
micro-cap portfolios have generally continued to perform well throughout the
interim period and to date. This encouraging performance in the face of
unprecedented circumstances gives the Board confidence in the valuation of the
portfolios and the potential for growth and future valuation uplifts. The Real
Estate portfolio has seen further significant write downs in value in the
interim period which can be contributed in the main to the challenges retail
real estate has faced resulting from the pandemic.

The Board has confidence that the micro-cap portfolios will continue to
perform robustly but are mindful that market conditions means that
realisations may be delayed or become more difficult.

NAV Factors

(i) Macroeconomic Risks

The Company's performance, and underlying NAV, is influenced by economic
factors that affect the demand for products or services supplied by investee
companies and the valuation of Real Estate interests held. Economic factors
will also influence the Company's ability to invest and realise investments
and the level of realised returns. Approximately 19% of the Company's
investments are denominated in non-US dollar currencies, primarily the Euro.
Also the Company has issued debt denominated in non-US dollar currencies,
primarily Sterling. Fluctuations to these exchange rates will affect the NAV
of the Company.

(ii) Underlying Investment Performance

The Company is reliant on the Investment Adviser to support the Company's
investment portfolio by executing suitable investment opportunities. The
Investment Adviser provides to the Board an explanation of all investment
decisions and also quarterly investment reports and valuation proposals of
investee companies. The Board reviews investment performance quarterly and
investment decisions are checked to ensure they are consistent with the agreed
investment strategy.

Share Price Trading at Discount to NAV

JZCP's share price is subject to market sentiment and will also reflect any
periods of illiquidity when it may be difficult for shareholders to realise
shares without having a negative impact on share price. The Directors review
the share price in relation to Net Asset Value on a regular basis and
determine whether to take any action to manage the discount. The Directors
with the support of the Investment Adviser work with brokers to maintain
interest in the Company’s shares through market contact and research
reports.

Gearing and Financing Costs in the Real Estate Portfolio

The cost of servicing debt in the underlying real estate structures may impact
the net valuation of the real estate portfolio and subsequently the Company's
NAV. Gearing in the underlying real estate structures will increase any losses
arising from a downturn in property valuations.

Operational and Personnel

Although the Company has no direct employees, the Company considers what
dependence there is on key individuals within the Investment Adviser and
service providers that are key to the Company meeting its operational and
control requirements.

The Board considers the principal risks and uncertainties above are broadly
consistent with those reported at the prior year end, but wish to note the
following:

·     The Board recognises the Company will have an increased exposure to
liquidity risk as future debt obligations near maturity.

·     Gearing and the finance costs within the real estate portfolio have
become less of a future risk to the Company as the current valuation of $47.4
million (29 February 2020: $158.7 million) now reflects the majority of write
downs that could be attributed by the gearing structure and costs incurred.

·     The effect of COVID-19 on market conditions means that there are
challenges to completing corporate transactions and planned realisations may
be delayed. This uncertainty is considered when the Board assess the
Company’s ability to generate sufficient realisation proceeds to meet its
financial obligations.

Going Concern        

A fundamental principle of the preparation of financial statements in
accordance with IFRS is the judgement that an entity will continue in
existence as a going concern for a period of at least 12 months from signing
of the Interim Financial Statements, which contemplates continuity of
operations and the realisation of assets and settlement of liabilities
occurring in the ordinary course of business.

Due to the uncertainties that the Company will not have sufficient liquidity
to repay its senior debt facility (due 12 June 2021) and redeem its CULS (due
30 July 2021) there are material uncertainties which cast significant doubt on
the ability of the Company to continue as a going concern. However the Interim
Financial Statements for the period ended 31 August 2020 have been prepared on
a going concern basis given the Board's assessment of future realisations set
out below and as the Board, with recommendation from the Audit Committee, have
a reasonable expectation that the Company has adequate resources to continue
in operational existence for the foreseeable future.

In reaching its conclusion, the Board have considered the risks that could
impact the Company’s liquidity over the period to 4 November 2021.

As part of their assessment the Audit Committee highlighted the following key
considerations:

1.    Whether the Company can generate sufficient cash through realisations
of its underlying investments to discharge its liabilities over the period to
4 November 2021, including the sale of interests in certain US microcap
portfolio companies (the "Secondary Sale") which is contingent upon 
Shareholder Approval; and

2.    Whether, in the event that sufficient realisation proceeds referenced
above are not generated by the Company before the expiration of the current
loan facilities, whilst remaining within the agreed covenant terms, together
with the scheduled maturity date of the CULS, the Company is able to implement
an alternative plan within the required timeframe to refinance and/or
restructure the loan facility and/or the CULS.

1.    Whether the Company can generate sufficient cash through realisations
of its underlying investments to discharge its liabilities over the period to
4 November 2021, including the Secondary Sale which is contingent upon 
Shareholder Approval.

As at 31 October 2020, the Company had cash, cash equivalents and liquid
investments of approximately $55 million. Post period end, the agreed
Secondary Sale will result in proceeds of approximately $90 million, less fees
and expenses. For the avoidance of doubt, the completion of the Secondary Sale
is subject to pending shareholder approval. The Company has repaid Guggenheim
$20 million (post period-end) and will be obliged to repay a further $62.7
million on completion of the Secondary Sale.

Once the Secondary Sale of U.S. micro-cap investments has completed the
Company will have two major debt obligations to settle within the going
concern period being;

i.     Senior Loan facility totalling approximately $68.5 million due for
settlement on or before 12 June 2021; and

ii.     CULS for settlement value of £38.9 million (approximately $51
million) due for settlement on their scheduled maturity date of 30 July 2021.

Considering the Company’s projected cash position, ongoing operating costs
and the anticipated further investment required to support the Company’s
portfolio the Board anticipate further proceeds of $70 million to $80 million
are required from the realisation of investments to enable the Company to
settle its debts as they fall due.

The investment adviser is working on the realisation of various investments
including a Secondary Sale of its interest in its European micro-cap
investments. Forecast realisations for the period to redemption of the senior
debt are in the range of $85 million to $115 million, in addition to the
proceeds from the completion of the Secondary Sale of U.S. micro-cap
investments mentioned above.

The Board continue to consider the levels of realisation proceeds historically
generated by the Company’s micro- cap portfolios as well as the accuracy of
previous forecasts whilst concluding on the predicted accuracy of forecasts
presented.

The Board have considered the effect of COVID-19 on market conditions which
means that realisations may be delayed or become more difficult.

2.    Whether, in the event that sufficient realisation proceeds referenced
above are not generated by the Company before the expiration of the current
loan facilities, whilst remaining within the agreed covenant terms, together
with the scheduled maturity date of the CULS, the Company is able to implement
an alternative plan within the required timeframe to refinance and/or
restructure the loan facility and/or the CULS.

JZAI personnel manage the relationship with the Company’s lenders, monitor
compliance with loan terms and covenants and report to the Board on matters
arising.

Post period end, the Company reached agreement with Guggenheim to pay down a
significant portion of the debt owed from proceeds from the agreed Secondary
Sale and also for a third party, Cohanzick, to assume $40 million of the
outstanding debt. The terms of the new agreement require the Company to
allocate 90% of future realisation proceeds to the repayment of the balance of
the Guggenheim loan.

Prior to the new agreement, due to the fall in the valuation of the Company's
real estate portfolio, the Company had breached the asset cover covenant terms
of the Guggenheim loan. The Company is now in full compliance with loan
covenant terms having secured more advantageous terms for itself. The current
asset coverage has been reset at 3.25x rising to 3.5x on the earliest of 7
December 2020 or the date of closure of the Secondary Sale of U.S. micro-cap
investments. On completion of the Secondary Sale and further repayment of the
senior loan facility, the Company's asset coverage is expected to increase
from approximately 3.8x to approximately 5.7x. Stress testing performed by the
Company, show investment losses resulting in the reduction of 10% of total
collateral would reduce the current asset coverage ratio from 3.8x to 3.5x
(above the 3.25x threshold) and following the anticipated closure of the
Secondary Sale and further repayment of debt in December 2020, a similar fall
in the Company’s investment value would see the asset coverage ratio fall
from 5.7x to 5.3x (above the 3.5x threshold).

Any changes to the terms of the CULS will require the sanction of CULS holders
by the approval of an extraordinary resolution of CULS holders.  Any such
extraordinary resolution would require the approval of not less than 75% of
the votes cast by CULS holders at a duly convened meeting.

Going Concern Conclusion

After careful consideration and based on our assessment of future
realisations, the Board are satisfied, as of today’s date, that it is
appropriate to adopt the going concern basis in preparing the financial
statements and they have a reasonable expectation that the Company will
continue in existence as a going concern for the period to 4 November 2021.

The Board have determined that there are material uncertainties surrounding
the Company's ability to generate sufficient liquidity to repay its senior
debt facility (due 12 June 2021) and repay its CULS (due 30 July 2021) which
casts significant doubt over the ability of the Company to continue as a Going
Concern, based on the following key considerations:

1.    Whether the Company can generate sufficient cash through realisations
of its underlying investments to discharge its liabilities over the period to
4 November 2021, including the Secondary Sale which is contingent upon 
Shareholder Approval; and

2.    Whether, in the event that sufficient realisation proceeds referenced
above are not generated by the Company before the expiration of the current
loan facilities, whilst remaining within the agreed covenant terms, together
with the scheduled maturity date of the CULS, the Company is able to implement
an alternative plan within the required timeframe to refinance and/or
restructure the loan facility and/or the CULS.

The financial statements do not include any adjustments that might result from
the outcome of these uncertainties.

Approved by the Board of Directors and agreed on behalf of the Board on 4
November 2020.

David Macfarlane
Chairman

Sharon Parr
Director

Investment Portfolio

                                                                                                                                                                                                                                                                            Percentage of Portfolio 
                                                                                                                                                                                                                                                   31 August 2020       
                                                                                                                                                                                                                                               Cost (1)           Value 
                                                                                                                                                                                                                                                US$'000         US$'000                           % 
                                                                                                                                                                                                                                                                                                    
 US Micro-cap portfolio                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                    
 US Micro-cap (Verticals)                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                    
 Industrial Services Solutions (2)                                                                                                                                                                                                                                                                  
 INDUSTRIAL SERVICES SOLUTIONS (“ISS”) Provider of aftermarket maintenance, repair, and field services for critical process equipment throughout the US                                                                                                                                             
 Total Industrial Services Solutions valuation                                                                                                                                                                                                   48,250          95,889                        16.1 
                                                                                                                                                                                                                                                                                                    
 Testing Services Holdings (2,3)                                                                                                                                                                                                                                                                    
 TECHNICAL SOLUTIONS AND SERVICES Provider of safety focused solutions for the industrial, environmental and life science related markets                                                                                                                                                           
 CONTAMINATION CONTROL & CERTIFICATION Provider of testing, certification and validation services for cleanroom, critical environments and containment systems                                                                                                                                      
 Total Technical Solutions and Services Vertical valuation                                                                                                                                                                                       23,771          24,619                         4.1 
                                                                                                                                                                                                                                                                                                    
 Flexible Packaging Vertical (3)                                                                                                                                                                                                                                                                    
 ACW FLEX PACK, LLC Provider of a variety of custom flexible packaging solutions to converters and end-users                                                                                                                                                                                        
 Total Flexible Packaging Vertical valuation                                                                                                                                                                                                     10,032          11,955                         2.0 
                                                                                                                                                                                                                                                                                                    
 Flow Controls (3)                                                                                                                                                                                                                                                                                  
 FLOW CONTROL, LLC Manufacturer and distributor of high-performance, mission-critical flow handling products and components utilized to connect processing line equipment                                                                                                                           
 Total Flow Control Vertical valuation                                                                                                                                                                                                           14,040          16,126                         2.7 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total US Micro-cap (Verticals)                                                                                                                                                                                                                  96,093         148,589                        24.9 
                                                                                                                                                                                                                                                                                                    
 DEFLECTO Deflecto designs, manufactures and sells innovative plastic products to multiple industry segments                                                                                                                                     40,112          39,079                         6.6 
 GEORGE INDUSTRIES Manufacturer of highly engineered, complex and high tolerance products for the aerospace, transportation, military and other industrial markets                                                                               12,179          12,177                         2.0 
 IGLOO (2) Designer, manufacturer and marketer of coolers and outdoor products                                                                                                                                                                    6,040             329                         0.1 
 NEW VITALITY (2) Direct-to-consumer provider of nutritional supplements and personal care products                                                                                                                                               3,354          11,306                         1.9 
 ORANGEWOOD PARTNERS PLATFORM Holds JZCP's proceeds from the sale of ABTB and K2 Towers II                                                                                                                                                       16,722          20,500                         3.4 
 ORANGEWOOD PARTNERS II-A LP Private fund managed by Orangewood Partners currently invested in K2 Towers II and Exer Urgent Care an urgent care operator.                                                                                         8,028           8,028                         1.3 
 ORIZON Manufacturer of high precision machine parts and tools for aerospace and defence industries                                                                                                                                               4,127           7,293                         1.2 
 PEACEABLE STREET CAPITAL (3) Specialty finance platform focused on commercial real estate                                                                                                                                                       28,041          36,541                         6.1 
 SALTER LABS (2) Developer and manufacturer of respiratory medical products and equipment for the homecare, hospital, and sleep disorder markets                                                                                                 16,762          23,845                         4.0 
 SLOAN LED (2) Designer and manufacturer of LED lights and lighting systems                                                                                                                                                                       6,030               -                           - 
 VITALYST (2) Provider of outsourced IT support and training services                                                                                                                                                                             9,020           8,192                         1.4 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total US Micro-cap (Co-investments)                                                                                                                                                                                                            150,415         167,290                        28.0 
                                                                                                                                                                                                                                                                                                    
 US Micro-cap (Other)                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                    
 AVANTE HEALTH SOLUTIONS Provider of new and professionally refurbished healthcare equipment                                                                                                                                                      7,185           9,810                         1.6 
 FELIX STORCH (3) Supplier of specialty, professional, commercial, and medical refrigerators and freezers, and cooking appliances                                                                                                                    50          32,000                         5.4 
 HEALTHCARE PRODUCTS HOLDINGS (4) Designer and manufacturer of motorised vehicles                                                                                                                                                                17,636               -                           - 
 NATIONWIDE STUDIOS Processor of digital photos for pre-schoolers                                                                                                                                                                                26,324           5,000                         0.8 
 TIERPOINT (2,3) Provider of cloud computing and colocation data centre services                                                                                                                                                                 44,313          46,813                         7.9 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total US Micro-cap (Other)                                                                                                                                                                                                                      95,508          93,623                        15.7 
                                                                                                                                                                                                                                                                                                    
 Total US Micro-cap portfolio                                                                                                                                                                                                                   342,016         409,502                        68.6 
                                                                                                                                                                                                                                                                                                    
 European Micro-cap portfolio                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                    
 EUROMICROCAP FUND 2010, L.P. Invested in European Micro-cap entities                                                                                                                                                                               169           2,901                         0.5 
 JZI FUND III, L.P. At 31 August 2020, was invested in twelve companies in the European micro-cap sector: Fincontinuo, S.A.C, Collingwood, My Lender, Alianzas en Aceros, ERSI, Treee, Factor Energia, BlueSites, Luxida, Karium and UFASA       47,120          74,409                        12.5 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total European Micro-cap (measured at Fair Value)                                                                                                                                                                                               47,289          77,310                        13.0 
                                                                                                                                                                                                                                                                                                    
 Direct Investments                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                    
 DOCOUT (6) Provider of digitalisation, document processing and storage services                                                                                                                                                                  2,777           4,166                         0.7 
 OMBUDS (6) Provider of personal security, asset protection and facilities management services                                                                                                                                                   17,198               -                           - 
 TORO FINANCE (6) Provides short term receivables finance to the suppliers of major Spanish companies                                                                                                                                            21,619          25,896                         4.4 
 XACOM (6) Supplier of telecom products and technologies                                                                                                                                                                                          2,055           4,428                         0.8 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total European Micro-cap (Direct Investments)                                                                                                                                                                                                   43,649          34,490                         5.9 
                                                                                                                                                                                                                                                                                                    
 Total European Micro-cap portfolio                                                                                                                                                                                                              90,938         111,800                        18.9 
                                                                                                                                                                                                                                                                                                    
 Real Estate portfolio                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                    
 JZCP REALTY (5) Facilitates JZCP's investment in US real estate                                                                                                                                                                                443,763          47,362                         8.0 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total Real Estate portfolio                                                                                                                                                                                                                    443,763          47,362                         8.0 
                                                                                                                                                                                                                                                                                                    
 Other investments                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                    
 BSM ENGENHARIA Brazilian-based provider of supply chain logistics, infrastructure services and equipment rental                                                                                                                                  6,115             459                         0.1 
 JZ CERPI Blocker Ltd Proceeds from the sale of CERPI the Spruceview managed investment product                                                                                                                                                   1,296           1,296                         0.2 
 JZ INTERNATIONAL (4) Fund of European LBO investments                                                                                                                                                                                                -             750                         0.1 
 SPRUCEVIEW CAPITAL Asset management company focusing primarily on managing endowments and pension funds                                                                                                                                         31,855          20,938                         3.5 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total Other investments                                                                                                                                                                                                                         39,266          23,443                         3.9 
                                                                                                                                                                                                                                                                                                    
 Listed investments                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                    
 U.S. Treasury Bill - Maturity 15 October 2020                                                                                                                                                                                                    3,394           3,395                         0.6 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total Listed investments                                                                                                                                                                                                                         3,394           3,395                         0.6 
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                    
 Total - portfolio                                                                                                                                                                                                                              919,377         595,502                       100.0 
                                                                                                                                                                                                                                                                                                    

   

 1 Original book cost incurred by JZCP adjusted for subsequent transactions. The book cost represents cash outflows and excludes PIK investments. 
 2 Co-investment with Fund A, a Related Party (Note 18). 
 3 Included within the Secondary Sale due to complete in December 2020 (note 21) 
 4 Legacy Investments. Legacy investments are excluded from the calculation of capital and income incentive fees. 
 5 JZCP invests in real estate indirectly through its investments in JZCP Realty Ltd. JZCP owns 100% of the shares and voting rights of JZCP Realty, Ltd. 
 6 Classified as Loans at Amortised Cost.    

Independent Review Report to JZ Capital Partners Limited

Introduction

We have been engaged by the Company to review the Unaudited Interim Condensed
Financial Statements (“Interim Financial Statements”) for the six months
ended 31 August 2020 which comprise the Unaudited Statement of Comprehensive
Income, the Unaudited Statement of Financial Position, the Unaudited Statement
of Changes in Equity, the Unaudited Statement of Cash Flows and the related
notes 1 to 21. We have read the other information contained in the Interim
Report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the Interim Financial
Statements.

This report is made solely to the Company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK and
Ireland) "Review of Interim Financial Information Performed by the Independent
Auditor of the Entity" issued by the Auditing Practices Board (“ISRE
2410”). To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our work, for this
report, or for the conclusions we have formed.

Directors' Responsibilities

The Interim Report and Interim Financial Statements are the responsibility of,
and have been approved by, the Directors. The Directors are responsible for
preparing the Interim Report and Interim Financial Statements in accordance
with the Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.

As disclosed in Note 2, the Annual Financial Statements of the Company are
prepared in accordance with IFRSs as adopted by the European Union. The
Interim Financial Statements have been prepared in accordance with
International Accounting Standard 34, "Interim Financial Reporting", as
adopted by the European Union (“IAS 34”).

Our Responsibility

Our responsibility is to express to the Company a conclusion on the Interim
Financial Statements based on our review.

Scope of Review

We conducted our review in accordance with ISRE 2410. A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to
believe that the Interim Financial Statements for the six months ended 31
August 2020 are not prepared, in all material respects, in accordance with IAS
34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.

Emphasis of Matter

We draw your attention to note 3 in the Interim Financial Statements, which
states that there is material uncertainty surrounding the Company's ability to
generate sufficient liquidity to repay its senior debt facility (due 12 June
2021) and repay its CULS (due 30 July 2021) based on the following key
considerations i.) Whether, the Company can generate sufficient cash through
realisations of its underlying investments to discharge its liabilities over
the period to 4 November 2021; and ii.) Whether, in the event that sufficient
realisation proceeds referenced above are not generated by the Company 
before the expiration of the current loan facilities and the scheduled
maturity date of the CULS, the Company is  able to implement an alternative
plan within the required timeframe to refinance and/or restructure the loan 
facility and/or the CULS.

Our conclusion on the Unaudited Interim Condensed Financial Statements based
on our review is not modified in respect of this matter.

Ernst & Young LLP
Guernsey
Channel Islands

4 November 2020

Notes

1.    The Interim Report and Financial Statements are published on websites
maintained by the Investment Adviser.

2.    The maintenance and integrity of these websites are the
responsibility of the Investment Adviser; the work carried out by the Auditors
does not involve consideration of these matters and, accordingly, the Auditor
accepts no responsibility for any changes that may have occurred to the
Condensed Interim Financial Statements since they were initially presented on
the website.

3.    Legislation in Guernsey governing the preparation and dissemination
of Condensed Interim Financial Statements may differ from legislation in other
jurisdictions.

Statement of Comprehensive Income (Unaudited)

For the Period from 1 March 2020 to 31 August 2020

                                                                                      Six Month         Six Month 
                                                                                   Period Ended      Period Ended 
                                                                                 31 August 2020    31 August 2019 
                                                                        Note            US$'000                   
 Income and investment and other gains                                                                            
 Realisations from investments held in escrow accounts                   20                 801             3,923 
 Investment Income                                                        8              12,697            19,984 
 Bank and deposit interest                                                                  124               225 
 Net foreign currency exchange gains                                                          -             3,765 
 Gain on financial liabilities at fair value through profit or loss      13                   -             4,107 
                                                                                         13,622            32,004 
 Expenses and losses                                                                                              
 Net loss on investments at fair value through profit or loss             6           (114,089)          (31,575) 
 Expected credit losses                                                   7               (560)          (14,727) 
 Loss on financial liabilities at fair value through profit or loss      13             (2,836)                 - 
 Net foreign currency exchange losses                                                   (2,035)                 - 
 Investment Adviser's base fee                                           10             (5,359)           (8,301) 
 Administrative expenses                                                                (2,151)           (1,660) 
 Directors' remuneration                                                                  (150)             (230) 
 Investment Adviser's incentive fee                                      10                   -             2,895 
                                                                                      (127,180)          (53,598) 
                                                                                                                  
 Operating loss                                                                       (113,558)          (21,594) 
                                                                                                                  
 Finance costs                                                            9             (9,190)          (10,463) 
 Loss for the period                                                                  (122,748)          (32,057) 
                                                                                                                  
 Other comprehensive income                                                                                       
 Gain on financial liabilities due to change in credit risk              13               3,290                 - 
 Total comprehensive loss for the period                                              (119,458)          (32,057) 
                                                                                                                  
 Weighted average number of Ordinary shares in issue during the period               77,474,175        80,614,784 
 Basic loss per Ordinary share                                                        (158.44)c          (39.77)c 
 Diluted loss per Ordinary share                                                      (158.44)c          (39.84)c 
                                                                                                                  

In accordance with IFRS, the Company has calculated the movement in fair value
due to the change in the credit risk of the CULS which is allocated as Other
Comprehensive Income. The loss/gain on financial liabilities at fair value
through profit or loss comprises the movement in the fair value attributable
to the change in the benchmark interest rate and the movement attributable to
foreign exchange gain/loss on translation. The gain/loss on financial
liabilities due to change in credit risk for the comparative period was deemed
to be immaterial.

The accompanying notes form an integral part of the Interim Financial
Statements.

Statement of Financial Position (Unaudited)

As at 31 August 2020

                                                                                                    
                                                                 31 August 2020    29 February 2020 
                                                        Note            US$'000             US$'000 
 Assets                                                                                             
 Investments at fair value through profit or loss        11             561,012             661,200 
 Loans at amortised cost                                 11              34,490              30,972 
 Other receivables                                                          125                 119 
 Cash at bank                                                            35,656              52,912 
                                                                                                    
 Total assets                                                           631,283             745,203 
                                                                                                    
                                                                                                    
 Liabilities                                                                                        
 Zero Dividend Preference shares                         12              69,354              64,510 
 Convertible Unsecured Loan Stock                        13              49,432              49,886 
 Loan payable                                            14             150,355             150,362 
 Investment Adviser's base fee                           10               4,538               1,179 
 Other payables                                          15               1,328               1,225 
 Investment Adviser's incentive fee                      10                   -               2,307 
 Total liabilities                                                      275,007             269,469 
                                                                                                    
 Equity                                                                                             
 Share capital                                                          216,625             216,625 
 Other reserve                                                          353,528             353,528 
 Retained deficit                                                     (213,877)            (94,419) 
 Total equity                                                           356,276             475,734 
                                                                                                    
 Total liabilities and equity                                           631,283             745,203 
                                                                                                    
                                                                                                    
 Number of Ordinary shares in issue at period/year end   16          77,474,175          77,474,175 
                                                                                                    
 Net asset value per Ordinary share                                       $4.60               $6.14 

These Interim Financial Statements were approved by the Board of Directors and
authorised for issuance on 4 November 2020. They were signed on its behalf by:

David Macfarlane
Chairman

Sharon Parr
Director

The accompanying notes form an integral part of the Interim Financial
Statements.

Statement of Changes in Equity (Unaudited)

For the Period from 1 March 2020 to 31 August 2020

                                                                                                     Share             Other            Retained              
                                                                                                   Capital           Reserve             Deficit        Total 
                                                                        Note                       US$'000           US$'000             US$'000      US$'000 
                                                                                                                                                              
 Balance as at 1 March 2020                                                                        216,625           353,528            (94,419)      475,734 
 Loss for the period                                                                                     -                 -           (122,798)    (122,798) 
 Gain on financial liabilities due to change in credit risk              13                              -                 -               3,290        3,290 
 Balance at 31 August 2020                                                                         216,625           353,528          (213,877)       356,276 
 Comparative for the Period from 1 March 2019 to 31 August 2019                                                                                               
                                                                                                                                                              
                                                                                                     Share             Other            Retained              
                                                                                                   Capital           Reserve            Earnings        Total 
                                                                                                   US$'000           US$'000             US$'000      US$'000 
                                                                                                                                                              
 Balance at 1 March 2019                                                                           246,604           353,528             210,130      810,262 
 Loss for the period                                                                                     -                 -            (32,057)     (32,057) 
 Buy back of Ordinary shares                                             16                       (29,979)                 -                   -     (29,979) 
 Balance at 31 August 2019                                                                         216,625           353,528             178,073      748,226 
                                                                                                                                                              

The accompanying notes form an integral part of the Interim Financial
Statements.

Statement of Cash Flows (Unaudited)

For the Period from 1 March 2020 to 31 August 2020

                                                                                            Six Month         Six Month 
                                                                                         Period Ended      Period Ended 
                                                                                       31 August 2020    31 August 2019 
                                                                 Note                         US$'000           US$'000 
 Cash flows from operating activities                                                                                   
                                                                                                                        
 Cash inflows                                                                                                           
 Realisation of investments (1)                                   11                            3,016           117,341 
 Maturity of treasury bills (2)                                   11                            3,395             3,350 
 Escrow receipts received                                         20                              801             3,923 
 Interest received from unlisted investments                                                      249               677 
 Income distributions received from investments                                                     -             1,192 
 Bank interest received                                                                           124               225 
                                                                                                                        
 Cash outflows                                                                                                          
 Direct investments and capital calls                             11                          (5,714)          (51,228) 
 Purchase of treasury bills                                       11                          (3,394)           (3,321) 
 Investment Adviser's base fee paid                               10                          (2,000)           (8,324) 
 Investment Adviser's incentive fee paid                          10                          (2,307)           (3,000) 
 Other operating expenses paid                                                                (2,204)           (1,865) 
 Foreign exchange gain/(loss) realised                                                             19             (306) 
 Net cash (outflow)/inflow before financing activities                                        (8,015)            58,664 
                                                                                                                        
 Financing activities                                                                                                   
 Finance costs paid:                                                                                                    
 • Convertible Unsecured Loan Stock                                                           (1,445)           (1,515) 
 • Loan payable                                                                               (7,863)           (6,453) 
 Payments to buy back Company's Ordinary shares                                                     -          (29,979) 
 Net cash outflow from financing activities                                                   (9,308)          (37,947) 
 (Decrease)/increase in cash at bank                                                         (17,323)            20,717 
                                                                                                                        
 Reconciliation of net cash flow to movements in cash at bank                                                           
                                                                                              US$'000           US$'000 
 Cash and cash equivalents at 1 March                                                          52,912            50,994 
 (Decrease)/increase in cash at bank                                                         (17,323)            20,717 
 Unrealised foreign exchange movements on cash at bank                                             67              (25) 
                                                                                                                        
 Cash and cash equivalents at period end                                                       35,656            71,686 

(1)Total realisations quoted in the Interim Report of $141.8 million, include
realisations agreed post period end of $138.0 million, and escrow receipts of
$0.8 million.

(2)Includes $10,000 of treasury bill interest received on maturity

The accompanying notes form an integral part of the Interim Financial
Statements.

Notes to the Financial Statements (Unaudited)

1. General Information

JZ Capital Partners Limited ("JZCP" or the "Company") is a Guernsey domiciled
closed-ended investment company which was incorporated in Guernsey on 14 April
2008 under the Companies (Guernsey) Law, 1994. The Company is now subject to
the Companies (Guernsey) Law, 2008. The Company is classified as an authorised
fund under the Protection of Investors (Bailiwick of Guernsey) Law 1987. The
Company's Capital consists of Ordinary shares, Zero Dividend Preference
("ZDP") shares and Convertible Unsecured Loan Stock ("CULS"). The Company's
shares trade on the London Stock Exchange's Specialist Fund Segment ("SFS").

The Company's new investment policy, adopted this year, is for the Company to
make no further investments outside of its existing obligations or to the
extent that investment may be made to support selected existing portfolio
investments. The intention is to realise the maximum value of the Company’s
investments and, after repayment of all debt, to return capital to
shareholders. The Company’s previous Investment Policy was to target
predominantly private investments and back management teams to deliver on
attractive investment propositions. In executing this strategy, the Company
took a long term view. The Company looked to invest directly in its target
investments and was able to invest globally but with a particular focus on
opportunities in the United States and Europe.

The Company is currently mainly focused on supporting its investments in the
following areas:

a)    small or micro-cap buyouts in the form of debt and equity and
preferred stock in both the US and Europe; and

b)    real estate interests.

The Company has no direct employees. For its services the Investment Adviser
receives a management fee and is also entitled to performance related fees
(Note 10). The Company has no ownership interest in the Investment Adviser.
During the period under review the Company was administered by Northern Trust
International Fund Administration Services (Guernsey) Limited.

The Unaudited Condensed Interim Financial Statements (the "Interim Financial
Statements") are presented in US$'000 except where otherwise indicated.

2. Significant Accounting Policies

The accounting policies adopted in the preparation of these Interim Financial
Statements have been consistently applied during the period, unless otherwise
stated.

Statement of Compliance

The Interim Financial Statements of the Company for the period 1 March 2020 to
31 August 2020 have been prepared in accordance with IAS 34, "Interim
Financial Reporting" as adopted in the European Union, together with
applicable legal and regulatory requirements of the Companies (Guernsey) Law,
2008 and the Disclosure Guidance and Transparency Rules. The Interim Financial
Statements do not include all the information and disclosure required in the
Annual Audited Financial Statements and should be read in conjunction with the
Annual Report and Financial Statements for the year ended 29 February 2020.

Basis of Preparation

The Interim Financial Statements have been prepared under the historical cost
basis, modified by the revaluation of financial instruments designated at fair
value through profit or loss ("FVTPL") upon initial recognition. The principal
accounting policies adopted in the preparation of these Interim Financial
Statements are consistent with the accounting policies stated in Note 2 of the
Annual Financial Statements for the year ended 29 February 2020. The
preparation of these Interim Financial Statements are in conformity with IAS
34, "Interim Financial Reporting" as adopted in the European Union, and
requires the Company to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the Interim
Financial Statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could materially differ from those
estimates.

New standards, interpretations and amendments adopted by the Company

The accounting policies adopted in the preparation of the Interim Financial
Statements are consistent with those followed in the preparation of the
Company’s annual financial statements for the year ended 29 February 2020.
There has been no early adoption, by the Company, of any other standard,
interpretation or amendment that has been issued but is not yet effective.

3. Estimates and Judgements

The estimates and judgements made by the Board of Directors are consistent
with those made in the Audited Financial Statements for the year ended 29
February 2020.

Directors’ Assessment of Going Concern

A fundamental principle of the preparation of financial statements in
accordance with IFRS is the judgement that an entity will continue in
existence as a going concern for a period of at least 12 months from signing
of the Interim Financial Statements, which contemplates continuity of
operations and the realisation of assets and settlement of liabilities
occurring in the ordinary course of business.

Due to the uncertainties that the Company will not have sufficient liquidity
to repay its senior debt facility (due 12 June 2021) and redeem its CULS (due
30 July 2021) there are material uncertainties which cast significant doubt on
the ability of the Company to continue as a going concern. However the Interim
Financial Statements for the period ended 31 August 2020 have been prepared on
a going concern basis given the Board's assessment of future realisations set
out below and as the Board, with recommendation from the Audit Committee, have
a reasonable expectation that the Company has adequate resources to continue
in operational existence for the foreseeable future.

In reaching its conclusion, the Board have considered the risks that could
impact the Company’s liquidity over the period to 4 November 2021.

As part of their assessment the Audit Committee highlighted the following key
considerations:

1.    Whether, the Company can generate sufficient cash through
realisations of its underlying investments to discharge its liabilities over
the period to 4 November 2021, including the sale of interests in certain US
microcap portfolio companies (the "Secondary Sale") which is contingent upon 
Shareholder Approval; and

2.    Whether, in the event that sufficient realisation proceeds referenced
above are not generated by the Company before the expiration of the current
loan facilities, whilst remaining within the agreed covenant terms, together
with the scheduled maturity date of the CULS, the Company is able to implement
an alternative plan within the required timeframe to refinance and/or
restructure the loan facility and/or the CULS.

1.    Whether, the Company can generate sufficient cash through
realisations of its underlying investments to discharge its liabilities over
the period to 4 November 2021, including the Secondary Sale which is
contingent upon Shareholder Approval.

As at 31 October 2020, the Company had cash, cash equivalents and liquid
investments of approximately $55 million. Post period end, the agreed
Secondary Sale will result in proceeds of approximately $90 million, less fees
and expenses. For the avoidance of doubt, the completion of the Secondary Sale
is subject to pending shareholder approval. The Company has repaid Guggenheim
$20 million (post period-end) and will be obliged to repay a further $62.7
million on completion of the Secondary Sale.

Once the Secondary Sale of U.S. micro-cap investments has completed the
Company will have two major debt obligations to settle within the going
concern period being;

i.     Senior Loan facility totalling approximately $68.5 million due for
settlement on or before 12 June 2021; and

ii.     CULS for settlement value of £38.9 million (approximately $51
million) due for settlement on their scheduled maturity date of 30 July 2021.

Considering the Company’s projected cash position, ongoing operating costs
and the anticipated further investment required to support the Company’s
portfolio the Board anticipate further proceeds of $70 million to $80 million
are required from the realisation of investments to enable the Company to
settle its debts as they fall due.

The investment adviser is working on the realisation of various investments
including a Secondary Sale of its interest in its European micro-cap
investments. Forecast realisations for the period to redemption of the senior
debt are in the range of $85 million to $115 million, in addition to the
proceeds from the completion of the Secondary Sale of U.S. micro-cap
investments mentioned above.

The Board continue to consider the levels of realisation proceeds historically
generated by the Company’s micro- cap portfolios as well as the accuracy of
previous forecasts whilst concluding on the predicted accuracy of forecasts
presented.

The Board have considered the effect of COVID-19 on market conditions which
means that realisations may be delayed or become more difficult.

2.    Whether, in the event that sufficient realisation proceeds referenced
above are not generated by the Company before the expiration of the current
loan facilities, whilst remaining within the agreed covenant terms, together
with the scheduled maturity date of the CULS, the Company is able to implement
an alternative plan within the required timeframe to refinance and/or
restructure the loan facility and/or the CULS.

JZAI personnel manage the relationship with the Company’s lenders, monitor
compliance with loan terms and covenants and report to the Board on matters
arising.

Post period end, the Company reached agreement with Guggenheim to pay down a
significant portion of the debt owed from proceeds from the agreed Secondary
Sale and also for a third party, Cohanzick, to assume $40 million of the
outstanding debt. The terms of the new agreement require the Company to
allocate 90% of future realisation proceeds to the repayment of the balance of
the Guggenheim loan.

Prior to the new agreement, due to the fall in the valuation of the Company's
real estate portfolio, the Company had breached the asset cover covenant terms
of the Guggenheim loan. The Company is now in full compliance with loan
covenant terms having secured more advantageous terms for itself. The current
asset coverage has been reset at 3.25x rising to 3.5x on the earliest of 7
December 2020 or the date of closure of the Secondary Sale of U.S. micro-cap
investments. On completion of the Secondary Sale and further repayment of the
senior loan facility, the Company's asset coverage is expected to increase
from approximately 3.8x to approximately 5.7x. Stress testing performed by the
Company, show investment losses resulting in the reduction of 10% of total
collateral would reduce the current asset coverage ratio from 3.8x to 3.5x
(above the 3.25x threshold) and following the anticipated closure of the
Secondary Sale and further repayment of debt in December 2020, a similar fall
in the Company’s investment value would see the asset coverage ratio fall
from 5.7x to 5.3x (above the 3.5x threshold).

Any changes to the terms of the CULS will require the sanction of CULS holders
by the approval of an extraordinary resolution of CULS holders.  Any such
extraordinary resolution would require the approval of not less than 75% of
the votes cast by CULS holders at a duly convened meeting.

Going Concern Conclusion

After careful consideration and based on our assessment of future
realisations, the Board are satisfied, as of today’s date, that it is
appropriate to adopt the going concern basis in preparing the financial
statements and they have a reasonable expectation that the Company will
continue in existence as a going concern for the period to 4 November 2021.

The Board have determined that there are material uncertainties surrounding
the Company's ability to generate sufficient liquidity to repay its senior
debt facility (due 12 June 2021) and repay its CULS (due 30 July 2021) which
casts significant doubt over the ability of the Company to continue as a Going
Concern, based on the following key considerations:

1.    Whether the Company can generate sufficient cash through realisations
of its underlying investments to discharge its liabilities over the period to
4 November 2021, including the Secondary Sale which is contingent upon 
Shareholder Approval; and

2.    Whether, in the event that sufficient realisation proceeds referenced
above are not generated by the Company before the expiration of the current
loan facilities, whilst remaining within the agreed covenant terms, together
with the scheduled maturity date of the CULS, the Company is able to implement
an alternative plan within the required timeframe to refinance and/or
restructure the loan facility and/or the CULS.

4. Segment Information

The Investment Manager is responsible for allocating resources available to
the Company in accordance with the overall business strategies as set out in
the Investment Guidelines of the Company. The Company is organised into the
following segments:

·     Portfolio of US micro-cap investments

·     Portfolio of European micro-cap investments

·     Portfolio of Real estate investments

·     Portfolio of Other investments - (not falling into above
categories)

Investments in treasury bills are not considered as part of the investment
strategy and are therefore excluded from this segmental analysis.

The investment objective of each segment is to achieve consistent medium-term
returns from the investments in each segment while safeguarding capital by
investing in a diversified portfolio.

Segmental operating profit/(loss)

For the period from 1 March 2020 to 31 August 2020

                                                                              US     European         Real          Other              
                                                                       Micro-Cap    Micro-Cap       Estate    Investments        Total 
                                                                        US$ '000     US$ '000     US$ '000       US$ '000     US$ '000 
 Interest revenue                                                         11,443        1,245            -              -       12,688 
 Total segmental revenue                                                  11,443        1,245            -              -       12,688 
                                                                                                                                       
 Net (loss)/gain on investments at FVTPL                                 (8,074)        7,034    (113,049)              -    (114,089) 
 Expected credit losses                                                        -        (560)            -              -        (560) 
 Realisations from investments held in Escrow                                801            -            -              -          801 
 Investment Adviser's base fee                                           (3,087)        (785)        (968)          (175)      (5,015) 
                                                                                                                                       
 Total segmental operating profit/(loss)                                   1,083        6,934    (114,017)          (175)    (106,175) 

For the period from 1 March 2019 to 31 August 2019

                                                                                     US     European        Real          Other             
                                                                              Micro-Cap    Micro-Cap      Estate    Investments       Total 
                                                                               US$ '000     US$ '000    US$ '000       US$ '000    US$ '000 
                                                                                                                                            
 Interest revenue                                                                15,980        2,742          32              -      18,754 
 Dividend revenue                                                                     -        1,192           -              -       1,192 
                                                                                                                                            
                                                                                                                                            
 Total segmental revenue                                                         15,980        3,934          32              -      19,946 
                                                                                                                                            
 Net gain/(loss) on investments at FVTPL                                         29,331        3,097    (64,003)              -    (31,575) 
 Expected credit losses                                                               -     (14,727)           -              -    (14,727) 
 Realisations from investments held in Escrow                                     3,923            -           -              -       3,923 
 Investment Adviser's base fee                                                  (3,420)        (827)     (3,379)          (147)     (7,773) 
 Investment Adviser's capital incentive fee (1)                                (10,074)          240      12,729              -       2,895 
                                                                                                                                            
 Total segmental operating profit/(loss)                                         35,740      (8,283)    (54,621)          (147)    (27,311) 

(1)The capital incentive fee is allocated across segments where a realised or
unrealised gain or loss has occurred. Segments with realised or unrealised
losses are allocated a credit pro rata to the size of the loss and segments
with realised or unrealised gains are allocated a charge pro rata to the size
of the gain. No capital incentive fee was payable for the period ended 31
August 2020.

Certain income and expenditure is not considered part of the performance of an
individual segment. This includes net foreign exchange gains, interest on
cash, finance costs, management fees, custodian and administration fees,
directors’ fees and other general expenses.

The following table provides a reconciliation between total segmental
operating loss and operating loss:

                                                                                                              Period ended    Period ended 
                                                                                                                 31.8.2020       31.8.2019 
                                                                                                                  US$ '000        US$ '000 
 Total segmental operating loss                                                                                  (106,175)        (27,311) 
 Gain on financial liabilities at fair value through profit or loss                                                    454           4,107 
 Net foreign exchange (loss)/gain                                                                                  (2,035)           3,765 
 Bank and deposit interest                                                                                             124             225 
 Expenses not attributable to segments                                                                             (2,301)         (1,890) 
 Fees payable to investment adviser based on non-segmental assets                                                    (344)           (528) 
 Interest on US treasury bills                                                                                           9              38 
 Operating loss                                                                                                  (110,268)        (21,594) 

The following table provides a reconciliation between total segmental revenue
and Company revenue:

                                                                                                                                                                     Period ended    Period ended 
                                                                                                                                                                        31.8.2020       31.8.2019 
                                                                                                                                                                         US$ '000        US$ '000 
 Total segmental revenue                                                                                                                                                   12,688          19,946 
                                                                                                                                                                                                  
 Non-segmental revenue                                                                                                                                                                            
 Bank and deposit interest                                                                                                                                                    124             225 
 Interest on US treasury bills                                                                                                                                                  9              38 
 Total revenue                                                                                                                                                             12,821          20,209 
                                                                                                                                                                                                  
 Segmental Net Assets                                                                                                                                                                             
 At 31 August 2020                                                                                    US                European                    Real                    Other                 
                                                                                               Micro-Cap               Micro-Cap                  Estate              Investments           Total 
                                                                                                US$ '000                US$ '000                US$ '000                 US$ '000        US$ '000 
 Segmental assets                                                                                                                                                                                 
 Investments at FVTPL                                                                     409,502                  77,310                  47,362                          23,443         557,617 
 Loans at amortised cost                                                                        -                  34,490                       -                               -          34,490 
 Other receivables                                                                              -                       -                      80                               -              80 
 Total segmental assets                                                                   409,502                 111,800                  47,442                          23,443         592,187 
                                                                                                                                                                                                  
 Segmental liabilities                                                                                                                                                                            
 Payables and accrued expenses                                                            (3,467)                   (804)                   (340)                           (169)         (4,780) 
 Total segmental liabilities                                                              (3,467)                   (804)                   (340)                           (169)         (4,780) 
                                                                                                                                                                                                  
 Total segmental net assets                                                               406,035                 110,996                  47,102                          23,274         587,407 
                                                                                                                                                                                                  
 At 29 February 2020                                                                           US                European                    Real                           Other                 
                                                                                        Micro-Cap               Micro-Cap                  Estate                     Investments           Total 
                                                                                         US$ '000                US$ '000                US$ '000                        US$ '000        US$ '000 
 Segmental assets                                                                                                                                                                                 
 Investments at FVTPL                                                                     404,880                  71,619                 158,712                          22,603         657,814 
 Loans at amortised cost                                                                        -                  30,972                       -                               -          30,972 
 Other receivables                                                                              -                       -                      80                               -              80 
 Total segmental assets                                                                   404,880                 102,591                 158,792                          22,603         688,866 
                                                                                                                                                                                                  
 Segmental liabilities                                                                                                                                                                            
 Payables and accrued expenses                                                            (3,290)                   (113)                   (501)                            (23)         (3,927) 
 Total segmental liabilities                                                              (3,290)                   (113)                   (501)                            (23)         (3,927) 
                                                                                                                                                                                                  
 Total segmental net assets                                                               401,590                 102,478                 158,291                          22,580         684,939 
                                                                                                                                                                                                  

The following table provides a reconciliation between total segmental assets
and total assets and total segmental liabilities and total liabilities:

                                                                                         31.8.2020    29.2.2020 
                                                                                          US$ '000     US$ '000 
                                                                                                                
 Total segmental assets                                                                    592,187      688,866 
 Non segmental assets                                                                                           
 Treasury Bills                                                                              3,395        3,386 
 Cash at bank                                                                               35,656       52,912 
 Other receivables                                                                              45           39 
 Total assets                                                                              631,283      745,203 
                                                                                                                
 Total segmental liabilities                                                               (4,780)      (3,927) 
 Non segmental liabilities                                                                                      
 Zero Dividend Preference shares                                                          (69,354)     (64,510) 
 Convertible Unsecured Loan Stock                                                         (49,432)     (49,886) 
 Loans payable                                                                           (150,355)    (150,362) 
 Other payables                                                                                  -        (784) 
 Total liabilities                                                                       (273,921)    (269,469) 
                                                                                                                
 Total net assets                                                                          357,362      475,734 
                                                                                                                

5. Fair Value of Financial Instruments

The Company classifies fair value measurements of its financial instruments at
FVTPL using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. The financial instruments valued at
FVTPL are analysed in a fair value hierarchy based on the following levels:

Level 1

Quoted prices (unadjusted) in active markets for identical assets or
liabilities.

Level 2

Those involving inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices). For example, investments
which are valued based on quotes from brokers (intermediary market
participants) are generally indicative of Level 2 when the quotes are
executable and do not contain any waiver notices indicating that they are not
necessarily tradeable. Another example would be when assets/liabilities with
quoted prices, that would normally meet the criteria of Level 1, do not meet
the definition of being traded on an active market. At the period end, the
Company had assessed that the liabilities valued at FVTPL being the CULS and
valued using the quoted ask price, would be classified as level 2 within the
valuation method as they are not regularly traded.

Level 3

Those involving inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs). Investments in JZCP's
portfolio valued using unobservable inputs such as multiples, capitalisation
rates, discount rates (see Note 5) fall within Level 3.

Differentiating between Level 2 and Level 3 fair value measurements i.e.,
assessing whether inputs are observable and whether the unobservable inputs
are significant, may require judgement and a careful analysis of the inputs
used to measure fair value including consideration of factors specific to the
asset or liability.

The following table shows financial instruments recognised at fair value,
analysed between those whose fair value is based on:

 Financial assets at 31 August 2020                                                                             
                                                                    Level 1     Level 2     Level 3       Total 
                                                                   US$ '000    US$ '000    US$ '000    US$ '000 
                                                                                                                
 US micro-cap                                                             -           -     409,502     409,502 
 European micro-cap                                                       -           -      77,310      77,310 
 Real estate                                                              -           -      47,362      47,362 
 Other investments                                                        -           -      23,443      23,443 
 Listed investments                                                   3,395           -           -       3,395 
                                                                      3,395           -     557,617     561,012 
                                                                                                                
 Financial assets at 29 February 2020                                                                           
                                                                    Level 1     Level 2     Level 3       Total 
                                                                   US$ '000    US$ '000    US$ '000    US$ '000 
                                                                                                                
 US micro-cap                                                             -           -     404,880     404,880 
 European micro-cap                                                       -           -      71,619      71,619 
 Real estate                                                              -           -     158,712     158,712 
 Other investments                                                        -           -      22,603      22,603 
 Listed investments                                                   3,386           -           -       3,386 
                                                                      3,386           -     657,814     661,200 

Valuation techniques

The same valuation methodology and process was deployed as for the year ended
29 February 2020.

Financial liabilities designated at fair value through profit or loss at
inception

 Financial liabilities at 31 August 2020                             Level 1     Level 2     Level 3       Total 
                                                                    US$ '000    US$ '000    US$ '000    US$ '000 
 CULS                                                                      -      49,432           -      49,432 
                                                                           -      49,432           -      49,432 
                                                                                                                 
 Financial liabilities at 29 February 2020                           Level 1     Level 2     Level 3       Total 
                                                                    US$ '000    US$ '000    US$ '000    US$ '000 
 CULS                                                                             49,886           -      49,886 
                                                                           -      49,886           -      49,886 

Market transactions for the CULS do not take place with sufficient frequency
and volume to provide adequate pricing information on an ongoing basis and
therefore it is considered the CULS are not traded in an active market and are
therefore categorised at Level 2 as defined by IFRS.

Quantitative information of significant unobservable inputs and sensitivity
analysis to significant changes in unobservable inputs within Level 3
hierarchy

The significant unobservable inputs used in fair value measurement categorised
within Level 3 of the fair value hierarchy together with a quantitative
sensitivity as at 31 August 2020 and 29 February 2020 are shown below:

                                        Value                      Valuation                                          Unobservable                                 Range (weighted average)                  Sensitivity             Approx. Impact on  
                                     31.8.2020                                                                                                                                                                                               Fair Value 
                                       US$'000                     Technique                                                 input                                                                                  used                        US$'000 
                                                                                                                                                                                                                                                        
 US micro-cap investments              409,502               EBITDA Multiple                      Average EBITDA Multiple of Peers                                      6.5x - 16.3x (9.0x)                 -0.5x /+0.5x     (34,447)            34,295 
                                                                                                      Discount to Average Multiple                                          10% - 30% (18%)                    +5% / -5%     (45,609)            44,964 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
 European micro-cap investments         77,310               EBITDA Multiple                      Average EBITDA Multiple of Peers                                        6.6x-13.8x (9.3x)                 -0.5x /+0.5x      (4,457)             4,430 
                                                                                                      Discount to Average Multiple                                           7% - 56% (25%)                    +5% / -5%      (3,842)             3,811 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
 Real estate (1,2)                      24,271              Comparable Sales                          Market Value Per Square Foot                             $200 - $826 per sq ft ($340)                  -10% / +10%     (10,057)            10,134 
                                                                                                                                                                                                                                                        
                                           610    DCF Model /Income Approach                     Capitalisation Rate Discount Rate                                               5.5%  6.5%               +50bps/ -50bps        (610)               842 
                                                                                                                                                                                                                                                        
                                        22,481     Cap Rate/ Income Approach                                   Capitalisation Rate                                      5.25% - 6.5% (5.9%)               +50bps/ -50bps      (7,925)            14,146 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
 Other investments                      20,938                  AUM Approach                                                   AUM                                        $3.0 Bn - $4.0 Bn                    -10%/+10%      (4,744)             4,744 
                                                                                                                  % Applied to AUM                                                     2.4%                    -10%/+10%      (2,090)             2,090 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
                                        Value                      Valuation                                          Unobservable                                 Range (weighted average)                  Sensitivity             Approx. Impact on  
                                     29.2.2020                                                                                                                                                                                               Fair Value 
                                       US$'000                     Technique                                                 input                                                                                  used                        US$'000 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
 US micro-cap investments              404,880               EBITDA Multiple                      Average EBITDA Multiple of Peers                                      6.5% - 16.3% (8.7%)                  -0.5x/+0.5x     (32,240)            33,918 
                                                                                                      Discount to Average Multiple                                          10% - 30% (17%)                      +5%/-5%     (39,497)            40,898 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
 European micro-cap investments         71,619               EBITDA Multiple                      Average EBITDA Multiple of Peers                                     6.7x - 14.0x (10.0x)                 -0.5x /+0.5x      (4,210)             4,210 
                                                                                                      Discount to Average Multiple                                           3% - 58% (16%)                     +5% /-5%      (4,380)             4,380 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
 Real estate (2)                        73,126              Comparable Sales                          Market Value Per Square Foot                           $286 - $1,964 ($795) per sq ft                    -10%/+10%     (21,188)            22,717 
                                        45,283    DCF Model /Income Approach                     Capitalisation Rate Discount Rate                    5.25%-5.75% (5.5%) 6.25%-7.50% (6.5%)      +50bps/ -50bps              (19,797)            27,497 
                                                                                                                                                                                                                                                        
                                        32,518     Cap Rate/ Income Approach                                   Capitalisation Rate                                       4.75%-6.0% (5.75%)               +50bps/ -50bps     (13,671)            16,084 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        
 Other investments                      20,338                  AUM Approach                                                   AUM                                                  $3.2 Bn                    -10%/+10%      (4,065)             4,065 
                                                                                                                  % Applied to AUM                                                     2.6%                    -10%/+10%      (2,034)             2,034 
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                        

(1)The real estate portfolio recorded losses during the period of $113.0
million. Fair value losses are also attributable to the cost of servicing debt
and the foreclosure or likely foreclosure of properties as well as the changes
in appraisal metrics (shown above).

(2)Sensitivity is applied to the property value and then the debt associated
to the property is deducted before the impact to JZCP's equity value is
calculated. Due to gearing levels in the property structures an increase in
the sensitivity of measurement metrics at property level will result in a
significantly greater impact at JZCP's equity level.

The following table shows a reconciliation of all movements in the fair value
of financial instruments categorised within Level 3 between the beginning and
the end of the reporting period.

Period ended 31 August 2020

                                                                        US     European         Real          Other              
                                                                 Micro-Cap    Micro-Cap       Estate    Investments        Total 
                                                                  US$ '000     US$ '000     US$ '000       US$ '000     US$ '000 
                                                                                                                                 
 At 1 March 2020                                                   404,880       71,619      158,712         22,603      657,814 
 Investments in year including capital calls                         1,574        1,601        1,699            840        5,714 
 Payment in kind ("PIK")                                             1,755            -            -              -        1,755 
 Proceeds from investments realised                                   (72)      (2,944)            -              -      (3,016) 
 Net (loss)/gain on investments                                    (8,074)        7,034    (113,049)              -    (114,089) 
 Movement in accrued interest                                        9,439            -            -              -        9,439 
 At 31 August 2020                                                 409,502       77,310       47,362         23,443      557,617 

Year ended 29 February 2020

                                                                          US     European         Real          Other              
                                                                   Micro-Cap    Micro-Cap       Estate    Investments        Total 
                                                                    US$ '000     US$ '000     US$ '000       US$ '000     US$ '000 
                                                                                                                                   
 At 1 March 2019                                                     478,970       70,686      443,044         18,302    1,011,002 
 Investments in year including capital calls                           9,678       12,635       51,196          4,301       77,810 
 Payment in kind ("PIK")                                              26,205            -            -              -       26,205 
 Proceeds from investments realised                                (122,031)     (13,643)      (4,622)              -    (140,296) 
 Net gain/(loss) on investments                                       12,459        1,941    (330,906)              -    (316,506) 
 Movement in accrued interest                                          (401)            -            -              -        (401) 
 At 29 February 2020                                                 404,880       71,619      158,712         22,603      657,814 

Fair value of Zero Dividend Preference ("ZDP") shares

The fair value of the ZDP shares is deemed to be their quoted market price. As
at 31 August 2020 the ask price for the ZDP (2022) shares was £3.00 (29
February 2020: £4.34 per share) the total fair value of the ZDP shares was
$47,832,000

(29 February 2020: $66,010,000) which is $21,522,000 lower (29 February 2020:
$1,500,000 higher) lower than the liability recorded in the Statement of
Financial Position

ZDP shares are recorded at amortised cost and would fall in to the Level 2
hierarchy if valued at FVTPL.

6. Net Loss on Investments at Fair Value Through Profit or Loss

                                                                                                              Period       Period  
                                                                                                                ended        ended 
                                                                                                            31.8.2020    31.8.2019 
                                                                                                             US$ '000     US$ '000 
 Loss on investments held in investment portfolio at period end                                                                    
 Net movement in period end unrealised gain position                                                        (111,517)     (55,727) 
 Unrealised gains in prior periods now realised                                                                 9,128       13,259 
 Net unrealised losses in the period                                                                        (102,389)     (42,468) 
                                                                                                                                   
 Net gains/(losses)on investments realised in the period                                                                           
 Proceeds from investments realised                                                                             6,411      120,691 
 Cost of investments realised                                                                                 (8,983)     (96,539) 
 Unrealised gains in prior periods now realised                                                               (9,128)     (13,259) 
 Total net (loss)/gain in the period on investments realised in the period                                   (11,700)       10,893 
                                                                                                                                   
 Net loss on investments in the period                                                                      (114,089)     (31,575) 

7. Expected Credit Losses

                                                              Period ended    Period ended 
                                                                 31.8.2020       31.8.2019 
                                                                  US$ '000        US$ '000 
                                                                                           
 Impairment on loans during period                                     560          14,727 
                                                                                           

Expected Credit Losses ("ECLs") are recognised in three stages. Stage one
being for credit exposures for which there has not been a significant increase
in credit risk since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the next 12-months (a
12-month ECL). Stage two being for those credit exposures for which there has
been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of
the exposure, irrespective of the timing of the default (a lifetime ECL).
Stage three being credit exposures which are considered credit-impaired,
interest revenue is calculated based on the amortised cost (i.e. the gross
carrying amount less the loss allowance). Financial assets in this stage will
generally be assessed individually. Lifetime expected credit losses are
recognised on these financial assets.

As from 1 December 2019, the Company provided for ECLs to write down the value
of the Ombuds loans to nil as no recovery is expected. Following the default
event, the loan is now classified as Level 3 stage, consequently no further
interest is being recognised on the loan. ECLs recognised on other direct loan
investments are done per the stage one methodology being the recognition of
expected losses over a 12 month period (or to maturity date if earlier).

8. Investment Income

                                                                                                31.8.2020    31.8.2019 
                                                                                                 US$ '000     US$ '000 
 Interest calculated using the effective interest rate method                                       1,245        2,742 
 Other interest and similar income                                                                 11,452       17,242 
                                                                                                   12,697       19,984 

Income for the period ended 31 August 2020

                        Preferred             Loan note Interest                   Other             
                         Interest         PIK               Cash    Dividend    Interest       Total 
                         US$ '000    US$ '000           US$ '000    US$ '000    US$ '000    US$ '000 
 US micro-cap              11,035         154                254           -           -      11,443 
 European micro-cap             -       1,245                  -           -           -       1,245 
 Listed investments             -           -                  -           -           9           9 
                           11,035       1,399                254           -           9      12,697 

Income for the period ended 31 August 2019

                        Preferred            Loan note Interest                           Other             
 Portfolio               Interest         PIK                     Cash     Dividend    Interest       Total 
                         US$ '000    US$ '000                 US$ '000     US$ '000    US$ '000    US$ '000 
                                                                                  -                         
 US micro-cap              15,231         104               645                   -           -      15,980 
 European micro-cap             -       2,742                 -               1,192           -       3,934 
 Real estate                    -           -                 -                   -          32          32 
 Listed investments             -           -                 -                   -          38          38 
                           15,231       2,846               645               1,192          70      19,984 
                                                                                                            

9. Finance Costs

                                                                                                 Period ended    Period ended 
                                                                                                    31.8.2020       31.8.2019 
                                                                                                     US$ '000        US$ '000 
 Interest expense calculated using the effective interest method                                                              
 ZDP shares (Note 12)                                                                                   1,636           1,563 
 Loan payable - (Note 14)                                                                               6,109           7,385 
                                                                                                        7,745           8,948 
 Other interest and similar expense                                                                                           
 CULS interest paid (Note 13)                                                                           1,445           1,515 
                                                                                                        9,190          10,463 

10. Fees Payable to the Investment Adviser

Investment Advisory and Performance fees

The Company entered into the amended and restated investment advisory and
management agreement with Jordan/Zalaznick Advisers, Inc. (the "Investment
Adviser") on 23 December 2010 (the ”Advisory Agreement”).

Pursuant to the Advisory Agreement, the Investment Adviser is entitled to a
base management fee and to an incentive fee. The base management fee is an
amount equal to 1.5 per cent per annum of the average total assets under
management of the Company less those assets identified by the Company as being
excluded from the base management fee, under the terms of the agreement. The
base management fee is payable quarterly in arrears; the agreement provides
that payments in advance on account of the base management fee will be made.

For the six-month period ended 31 August 2020, total investment advisory and
management expenses, based on the average total assets of the Company, were
included in the Statement of Comprehensive Income of $5,359,000 (period ended
31 August 2019: $8,301,000). Of this amount $4,538,000 (29 February
2020:$1,179,000) was due and payable at the period end.

The incentive fee has two parts. The first part is calculated by reference to
the net investment income of the Company ("Income Incentive fee") and is
payable quarterly in arrears provided that the net investment income for the
quarter exceeds 2 per cent of the average of the net asset value of the
Company for that quarter (the "hurdle") (8 per cent. annualised). The fee is
an amount equal to (a) 100 per cent of that proportion of the net investment
income for the quarter as exceeds the hurdle, up to an amount equal to a
hurdle of 2.5%, and (b) 20 per cent of the net investment income of the
Company above a hurdle of 2.5% in any quarter. Investments categorised as
legacy investments and other assets identified by the Company as being
excluded are excluded from the calculation of the fee. A true-up calculation
is also prepared at the end of each financial year to determine if further
fees are payable to the Investment Adviser or if any amounts are recoverable
from future income incentive fees

For the periods ended 31 August 2020 and 31 August 2019 there was no income
incentive fee payable.

The second part of the incentive fee is calculated by reference to the net
realised capital gains ("Capital Gains Incentive fee") of the Company and is
equal to: (a) 20 per cent. of the realised capital gains of the Company for
each financial year less all realised capital losses of the Company for the
year less (b) the aggregate of all previous capital gains incentive fees paid
by the Company to the Investment Adviser. The capital gains incentive is
payable in arrears within 90 days of the fiscal year end. Investments
categorised as legacy investments are excluded from the calculation of the
fee. Assets of JZI Fund III and EuroMicrocap Fund 2010, L.P. are also excluded
from the Capital Gains Incentive fee ("CGIF"). Carried interest, of an amount
equivalent to the CGIF payable under the Advisory Agreement, is payable by the
funds to an affiliate of JZAI.

For the purpose of calculating incentive fees cumulative preferred dividends
received on the disposal of an investment are treated as a capital return
rather than a receipt of income

During the year ended 29 February 2020, the Investment Adviser agreed to waive
fees payable by the Company relating to realised gains in the years ended
February 2019 and 2020. No further incentive fees will be paid to the
Investment Adviser until the Company and Investment Adviser have mutually
agreed to reinstate such payments.

The Company also provides for a CGIF based on unrealised gains, calculated on
the same basis as that of the fee on realised gains/losses. As the Company's
investments are in a net loss position, no provision is included for the
period ended 31 August 2020 and no provision was included at the prior year
end of 29 February 2020.

                                                                  Provision At    Provision At    Paid during period      Expense for the period ended 
                                                                     31.8.2020       29.2.2020             31.8.2020                         31.8.2020 
                                                                      US$ '000        US$ '000              US$ '000                          US$ '000 
 CGIF on realised investments                                                -           2,307               (2,307)                                 - 
 Provision for CGIF on unrealised investments                                -               -                   n/a                                 - 
                                                                             -           2,307               (2,307)                                 - 
                                                                                                                                                       
                                                                  Provision At    Provision At    Paid during period      Expense for the period ended 
                                                                     31.8.2019       28.2.2019             31.8.2019                         31.8.2019 
                                                                      US$ '000        US$ '000              US$ '000                          US$ '000 
 CGIF on realised investments                                           27,444          21,429               (3,000)                             9,015 
 Provision for CGIF on unrealised investments                            9,432          21,342                   n/a                          (11,910) 
                                                                        36,876          42,771               (3,000)                           (2,895) 

11. Investments

                                                                                       Listed     Unlisted     Unlisted    Carrying Value 
                                                                                        FVTPL        FVTPL        Loans             Total 
                                                                                    31.8.2020    31.8.2020    31.8.2020         31.8.2020 
                                                                                     US$ '000     US$ '000     US$ '000          US$ '000 
 Book cost at 1 March 2020                                                              3,385      970,184       71,939         1,045,508 
 Investments in period including capital calls                                          3,394        5,714            -             9,108 
 Payment in kind ("PIK")                                                                    -        1,755          531             2,286 
 Proceeds from investments matured/realised                                           (3,395)      (3,016)            -           (6,411) 
 Income received on maturity                                                               10            -            -                10 
 Net realised loss                                                                          -      (2,572)            -           (2,572) 
 Book cost at 31 August 2020                                                            3,394      972,065       72,470         1,047,929 
 Unrealised investment and foreign exchange loss                                            -    (427,666)      (8,348)         (436,014) 
 Impairment on loans at amortised cost                                                      -            -     (30,821)          (30,821) 
 Accrued interest                                                                           1       13,218        1,189            14,408 
 Carrying value at 31 August 2020                                                       3,395      557,617       34,490           595,502 

   

                                                                                       Listed     Unlisted     Unlisted    Carrying Value 
                                                                                        FVTPL        FVTPL        Loans             Total 
                                                                                    29.2.2020    29.2.2020    29.2.2020         29.2.2020 
                                                                                     US$ '000     US$ '000     US$ '000          US$ '000 
 Book cost at 1 March 2019                                                              3,312      980,120       66,849         1,050,281 
 Investments in year including capital calls                                            6,706       77,810            -            84,516 
 Payment in kind ("PIK")                                                                    -       26,205        5,090            31,295 
 Proceeds from investments matured/realised                                           (6,700)    (140,296)            -         (146,996) 
 Interest received on maturity                                                             67            -            -                67 
 Net realised investment and foreign exchange gain                                          -       26,345            -            26,345 
 Book cost at 29 February 2020                                                          3,385      970,184       71,939         1,045,508 
 Unrealised investment and foreign exchange loss                                            -    (316,149)     (11,077)         (327,226) 
 Impairment on loans at amortised cost                                                      -            -     (30,261)          (30,261) 
 Accrued interest                                                                           1        3,779          371             4,151 
 Carrying value at 29 February 2020                                                     3,386      657,814       30,972           692,172 

The cost of PIK investments is deemed to be interest not received in cash but
settled by the issue of further securities when that interest has been
recognised in the Statement of Comprehensive Income.

Loans at amortised cost

Interest on the loans accrues at the following rates:

 As At 31 August 2020                                              As At 29 February 2020                         
                                    8%      10%      14%     Total              8%             10%    14%   Total 
 Loans at amortised cost        25,896    2,038    6,556    34,490           5,289           1,616  4,067  30,972 

Maturity dates are as follows:

 As At 31 August 2020                                                            As At 29 February 2020                                      
                                0-6 months    7-12 months    1-2 years     Total          0-6 months          7-12 months  1-2 years   Total 
                                     $'000          $'000        $'000     $'000               $'000                $'000      $'000   $'000 
 Loans at amortised cost            30,324          4,166            -    34,490               3,827               27,145          -  30,972 

12. Zero Dividend Preference ("ZDP") shares

On 1 October 2015, the Company rolled over 11,907,720 existing ZDP (2016)
shares into new ZDP shares with a 2022 maturity date. The new ZDP shares (ZDP
2022) have a gross redemption yield of 4.75% and a total redemption value of
£57,598,000 (approximately $77,121,000 using the period end exchange rate).

ZDP shares are designed to provide a pre-determined final capital entitlement
which ranks behind the Company's creditors but in priority to the capital
entitlements of the Ordinary shares. The ZDP shares carry no entitlement to
income and the whole of their return will therefore take the form of capital.
In certain circumstances, ZDP shares carry the right to vote at general
meetings of the Company as detailed in the Company's Memorandum and Articles
of Incorporation. Issue costs are deducted from the cost of the liability and
allocated to the Statement of Comprehensive Income over the life of the ZDP
shares.

 ZDP (2022) shares                                                                     
                                                                 31.8.2020   29.2.2020 
                                                                  US$ '000    US$ '000 
 Amortised cost at 1 March                                          64,510      63,838 
 Finance costs allocated to Statement of Comprehensive Income        1,636       3,211 
 Unrealised currency loss/(gain) on translation                      3,208     (2,539) 
 Amortised cost at period/year end                                  69,354      64,510 
 Total number of ZDP shares in issue                            11,907,720  11,907,720 

13. Convertible Subordinated Unsecured Loan Stock ("CULS")

On 30 July 2014, JZCP issued £38,861,140 6% CULS. Holders of CULS may convert
the whole or part (being an integral multiple of £10 in nominal amount) of
their CULS into Ordinary Shares. The initial conversion price was £6.0373 per
Ordinary Share, which shall be subject to adjustment to deal with certain
events which would otherwise dilute the conversion of the CULS.

CULS bear interest on their nominal amount at the rate of 6.00 per cent. per
annum, payable semi-annually in arrears. During the six-month period ended 31
August 2020: $1,445,000 (31 August 2019: $1,515,000) of interest was paid to
holders of CULS and is shown as a finance cost in the Statement of
Comprehensive Income.

In accordance with IFRS, the Company has calculated the movement in fair value
due to the change in the credit risk of the CULS which is allocated as Other
Comprehensive Income in the Statement of Comprehensive Income.

                                                                                                                                            31.8.2020    29.2.2020 
                                                                                                                                             US$ '000     US$ '000 
                                                                                                                                                                   
 Fair Value of CULS at 1 March                                                                                                                 49,886       54,274 
 Unrealised movement in value of CULS due to change in Company's Credit Risk                                                                  (3,290)            - 
 Unrealised movement in the fair value of CULS allocated to change in observed (benchmark) interest rate                                          560      (2,326) 
 Unrealised currency loss/(gain) on translation during the period/year                                                                          2,276      (2,062) 
 Loss/(gain) to the Company on movement in the fair value of CULS                                                                               2,836      (4,388) 
                                                                                                                                                                   
                                                                                                                                                                   
 Fair Value of CULS based on offer price                                                                                                       49,432       49,886 

14. Loan Payable

Guggenheim Partners Limited

On 12 June 2015, JZCP entered into a loan agreement with Guggenheim Partners
Limited ("Guggenheim"). The agreement was structured so that part of the
proceeds €18 million were received and will be repaid in Euros and the
remainder of the facility $80 million was received in US dollars. During April
2017, JZCP increased its credit facility with Guggenheim by a further $50
million.

The loan matures on 12 June 2021 (6 year term) and interest is payable at
5.75% + LIBOR((1)). There is an interest rate floor that stipulates LIBOR will
not be lower than 1%. In this agreement, the presence of the floor does not
significantly alter the amortised cost of the instrument, therefore separation
is not required and the loan is valued at amortised cost using the effective
interest rate method.

Post period end, the Company announced that it has reached agreement to amend
the terms of its existing loan agreement with Guggenheim. Under the terms of
the Amended Senior Loan Facility, approximately $40 million of the outstanding
principal amount has been assigned to clients and funds advised by Cohanzick
Management, LLC and CrossingBridge Advisors, LLC ("Cohanzick"). The Company
has subsequently repaid $20.0 million to Guggenheim and has agreed to repay a
further $62.7 million on the completion of the Secondary Sale of certain U.S
micro-cap investments. Cohanzick have agreed, pursuant to an agreement among
lenders, to be subordinated to Guggenheim and it has been agreed under the
Amended Senior Facility that the interest rate payable by the Company for the
loans funded by the new lender willl accrue interest at a rate of LIBOR +
11.00%. Prior to the new agreement, due to the fall in the valuation of the
Company's real estate portfolio, the Company had breached the asset cover
covenant terms of the Guggenheim loan. The Company has now secured more
advantageous covenant terms for itself including the asset coverage covenant
being reset at a lower threshold and is now in full compliance with covenant
terms. The terms of the new agreement require the Company allocate 90% of
future realisation proceeds to the repayment of the Guggenheim balance.

                                                                                                      31.8.2020    29.2.2020 
                                                                                                       US$ '000     US$ '000 
 Amortised cost (US$ drawdown) - 1 March                                                                130,523      128,838 
 Amortised cost (Euro drawdown) - 1 March                                                                19,839       20,389 
 Finance costs charged to Statement of Comprehensive Income                                               6,109       14,293 
 Interest and finance costs paid                                                                        (7,863)     (12,436) 
 Unrealised currency (loss)/gain on translation of Euro drawdown                                          1,747        (722) 
 Amortised cost at period/year end                                                                      150,355      150,362 
 Amortised cost (US$ drawdown)                                                                          128,999      130,523 
 Amortised cost (Euro drawdown)                                                                          21,356       19,839 
                                                                                                        150,355      150,362 

The carrying value of the loans approximates to fair value.

((1)) LIBOR rates applied are the US dollar 3 month rate ($130 million) and
the Euro 3-month rate (€18 million).

15. Other Payables

                                                                                       31.8.2020    29.2.2020 
                                                                                        US$ '000     US$ '000 
 Provision for tax on dividends received not withheld at source                              523          523 
 Audit fees                                                                                  268          190 
 Legal fees provision                                                                        250          250 
 Directors' remuneration                                                                      50           58 
 Other expenses                                                                              237          204 
                                                                                           1,328        1,225 

16. Ordinary shares - Issued Capital

                                                     31.8.2020           29.2.2020 
                                              Number of shares    Number of shares 
 Total Ordinary shares in issue                     77,474,175          77,474,175 

The Company's shares trade on the London Stock Exchange's Specialist Fund
Segment.

During the comparative period ended 31 August 2019, the Company bought back
3,192,663 of its own Ordinary shares as part of a tender offer. The total cost
of the repurchase of the shares was $29.979 million.

17. Commitments

At 31 August 2020 and 29 February 2020, JZCP had the following financial
commitments outstanding in relation to fund investments:

                                                                  Expected date  31.8.2020  29.2.2020 
                                                                        of Call   US$ '000   US$ '000 
 JZI Fund III GP, L.P. €26,580,957 (29.2.2020: €23,617,789)           < 2 years     31,789     25,943 
 Orangewood Partners II-A LP (1)                                   Over 3 years     15,404     17,247 
 Spruceview Capital Partners, LLC (2)                                  < 1 year      1,900        220 
 Igloo Products Corp                                               Over 3 years        240        240 
 CERPI                                                                                   -      3,080 
 Suzo Happ Group                                                                         -      2,039 
                                                                                    49,333     48,769 

(1)Post period end, the Company was relieved of $9.25 million of its total
commitment to the Orangewood Fund. Of the commitments relieved $6.128 million
were outstanding at the period end. As at the date of this report, JZCP’s
outstanding commitment to the Orangewood Fund was $9.275 million.

(2)As approved by a shareholder vote on 12 August 2020, JZCP has the ability
to make up to approximately $4.1 million in further commitments to Spruceview,
above the $1.9 million unfunded commitments as at 31 August 2020.

18. Related Party Transactions

JZAI is a US based company founded by David Zalaznick and John ("Jay") Jordan
II, that provides advisory services to the Company in exchange for management
fees, paid quarterly. Fees paid by the Company to the Investment Adviser are
detailed in Note 10. JZAI and various affiliates provide services to certain
JZCP portfolio companies and may receive fees for providing these services
pursuant to the Advisory Agreement.

JZCP invests in European micro-cap companies through JZI Fund III, L.P.
(“Fund III”). Previously investments were made via the EuroMicrocap Fund
2010, L.P. ("EMC 2010"). Fund III and EMC 2010 are managed by an affiliate of
JZAI. At 31 August 2020, JZCP's investment in Fund III was valued at $74.4
million (29 February 2020: $68.9 million). JZCP's investment in EMC 2010 was
valued at $2.9 million (29 February 2020: $2.7 million).

JZCP has invested in Spruceview Capital Partners, LLC on a 50:50 basis with
Jay Jordan and David Zalaznick (or their respective affiliates). The total
amount committed by JZCP to this investment at 31 August 2020, was $33.5
million with $1.9 million of this amount remaining unfunded and outstanding.
As approved by a shareholder vote on 12 August 2020, JZCP has the ability to
make up to approximately $4.1 million in further commitments to Spruceview,
above the $33.5 million committed as of 31 August 2020. Should this approved
capital be committed to Spruceview, it would be committed on the same 50:50
basis with Jay Jordan and David Zalaznick (or their respective affiliates).

JZCP has co-invested with Fund A, Fund A Parallel I, II and III Limited
Partnerships in a number of US micro-cap buyouts. These Limited Partnerships
are managed by an affiliate of JZAI. JZCP invested in a ratio of 82%/18% with
the Fund A entities. At 31 August 2020, the total value of JZCP's investment
in these co-investments was $211.0 million (29 February 2020: $218.7 million).
Fund A, Fund A Parallel I, II and III Limited Partnerships are no longer
making platform investments alongside JZCP and, in the case of Testing
Services Holdings, LLC, these entities have failed to make certain preferred
ownership investments alongside JZCP. As a consequence, the common ownership
interest of the Fund A Partnerships in Testing Services has been diluted.

Total Directors' remuneration for the six-month period ended 31 August 2020
was $150,000 (31 August 2019: $230,000).

Post period end, following shareholder approval, JZAI Founders Jay Jordan and
David Zalaznick relieved the Company of $4.25 million of its commitments to
the Orangewood Fund and also a further $8.64 million being the Company’s
maximum potential commitment to CERPI (the investment fund managed by
Spruceview Capital Partners).

Post period end, the Company announced that it has agreed pending shareholder
approval to sell its interests in certain US microcap portfolio companies (the
"Secondary Sale") to a secondary fund led by Hamilton Lane Advisors, L.L.C.
The Secondary Sale will be structured as a sale and contribution to a newly
formed fund, JZHL Secondary Fund LP, managed by an affiliate of JZAI.

19. Basic and Diluted Earnings Loss per Share

Basic loss per share are calculated by dividing the loss for the period by the
weighted average number of Ordinary shares outstanding during the period.

For the period ended 31 August 2020 the weighted average number of Ordinary
shares outstanding during the period was 77,474,175 (31 August 2019:
80,614,784).

The diluted earnings per share are calculated by considering adjustments
required to the earnings and weighted average number of shares for the effects
of potential dilutive Ordinary shares. The weighted average of the number of
Ordinary shares is adjusted assuming the conversion of the CULS ("If-converted
method"). Conversion is assumed even though at 31 August 2020 and 31 August
2019 the exercise price of the CULS is higher than the market price of the
Company's Ordinary shares and are therefore deemed 'out of the money'.
Earnings are adjusted to remove the fair value loss recorded of $2,836,000 (31
August 2019: gain of $4,107,000) and finance cost attributable to CULS
$1,445,000 (31 August 2019: $1,515,000).

For the period ended 31 August 2020, the potential conversion of the CULS
would have been anti-dilutive to the total loss per share, therefore the
diluted loss per share is presented as per the basic loss per share
calculation.

20. Contingent Assets

Amounts held in escrow accounts

When investments have been disposed of by the Company, proceeds may reflect
contractual terms requiring that a percentage is held in an escrow account
pending resolution of any indemnifiable claims that may arise.

At 31 August 2020 and 29 February 2020, the Company has assessed that the
likelihood of the recovery of these escrow accounts cannot be determined and
has therefore disclosed the escrow accounts as a contingent asset.

As at 31 August 2020 and 29 February 2020, the Company had the following
contingent assets held in escrow accounts which had not been recognised as
assets of the Company:

                                                                   Amount in Escrow 
                                                       31.8.2020          29.2.2020 
                                                         US$'000            US$'000 
 Bolder Healthcare Solutions                                  50                343 
 Triwater Holdings                                           309                644 
 Xpress Logistics (AKA Priority Express)                      19                153 
                                                             378              1,140 

During the period ended 31 August 2020, proceeds of $801,000 (31 August 2019:
$3,923,000) were realised and recorded in the Statement of Comprehensive
Income. The prior year end position has been adjusted for additional potential
escrow proceeds of $39,000 that are now recognised.

21. Subsequent Events

These interim financial statements were approved by the Board on 4 November
2020. Events subsequent to the period end 31 August 2020 have been evaluated
until this date.

Post period end, the Company announced that it has agreed pending shareholder
approval to sell its interests in certain US micro-cap portfolio companies
(the "Secondary Sale") to a secondary fund led by Hamilton Lane Advisors,
L.L.C. The Secondary Sale will be structured as a sale and contribution to a
newly formed fund, JZHL Secondary Fund LP, managed by an affiliate of JZAI.

The Company will receive consideration for the Secondary Sale comprised of:
(i) Cash Consideration, being $90 million (less any fees and expenses),
subject to certain adjustments; and (ii) a special limited partner interest in
JZHL Secondary Fund LP.

The value of the Special LP Interest to the Company, following the execution
of the Sale Agreement, should be approximately $40.0 million. Adding this
figure to the cash consideration of $90 million (less any fees and expenses)
would indicate a write down to the Company’s net asset value of
approximately $38.0 million, when compared against the aggregate net asset
value of the US micro-cap companies at 31 August 2020 of $168.0 million.

Post period end, the Company announced that it has reached agreement to amend
the terms of its existing loan agreement with Guggenheim. Under the terms of
the Amended Senior Loan Facility, approximately $40 million of the outstanding
principal amount has been assigned to clients and funds advised by Cohanzick
Management, LLC and CrossingBridge Advisors, LLC. The Company has subsequently
repaid $20.1 million to Guggenheim and agreed to repay a further $67.2 million
on the completion of the Secondary Sale of certain U.S micro-cap investments.

The new lenders have agreed, pursuant to an agreement among lenders, to be
subordinated to Guggenheim and it has been agreed under the Amended Senior
Facility that the interest rate payable by the Company for the loans funded by
the new lender will accrue interest at a rate of Libor + 11.00%.The Company
has secured more advantageous covenant terms for itself including the asset
coverage covenant being reset at a lower threshold of 3.5x and is now fully
compliant with all covenants. The terms of the new agreement require the
Company allocate 90% of future realisation proceeds to the repayment of the
Guggenheim balance.

Post period end, the Company completed on the sale of its Greenpoint property
located in Brooklyn, New York. The Company received approximately $13.6
million for its interest in the site which approximately corresponds to the
carrying value at

31 August 2020.

Company Advisers

Investment Adviser

The Investment Adviser to JZ Capital Partners Limited (“JZCP”) is
Jordan/Zalaznick Advisers, Inc., (“JZAI”) a company beneficially owned by
John (Jay) W Jordan II and David W Zalaznick. The company offers investment
advice to the Board of JZCP. JZAI has offices in New York and Chicago.

Jordan/Zalaznick Advisers, Inc.
9 West, 57th Street
New York NY 10019

Registered Office
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3QL

JZ Capital Partners Limited is registered in Guernsey Number 48761
Administrator, Registrar and Secretary
Northern Trust International Fund Administration
Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3QL

UK Transfer and Paying Agent
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA

US Bankers
HSBC Bank USA NA
452 Fifth Avenue
New York NY 10018
(Also provides custodian services to JZ Capital Partners
Limited under the terms of a Custody Agreement

Guernsey Bankers
Northern Trust (Guernsey) Limited
PO Box 71
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3DA

Independent Auditor
Ernst & Young LLP
PO Box 9
Royal Chambers
St Julian's Avenue
St Peter Port
Guernsey GY1 4AF

UK Solicitors
Ashurst LLP
London Fruit & Wool Exchange
1 Duval Square
London E1 6PW

US Lawyers
Monge Law Firm, PLLC
333 West Trade Street
Charlotte, NC 28202
Mayer Brown LLP
214 North Tryon Street
Suite 3800
Charlotte NC 28202
Winston & Strawn LLP
35 West Wacker Drive
Chicago IL 60601-9703

Guernsey Lawyers
Mourant
Royal Chambers
St Julian's Avenue
St Peter Port
Guernsey GY1 4HP

Financial Adviser and Broker
JP Morgan Cazenove Limited
20 Moorgate
London EC2R 6DA

Useful Information for Shareholders

Listing

JZCP Ordinary, Zero Dividend Preference ("ZDP") shares and Convertible
Unsecured Loan Stock ("CULS") are listed on the Official List of the Financial
Services Authority of the UK, and are admitted to trading on the London Stock
Exchange

Specialist Fund Segment for listed securities.

The price of the Ordinary shares are shown in the Financial Times under
"Conventional Private Equity" and can also be found at https://markets.ft.com
along with the prices of the ZDP shares and CULS.

ISIN/SEDOL numbers

                     Ticker Symbo l     ISIN Code  Sedol Number 
 Ordinary shares               JZCP  GG00B403HK58       B403HK5 
 ZDP (2022) shares             JZCZ  GG00BZ0RY036       BZ0RY03 
 CULS                          JZCC  GG00BP46PR08       BP46PR0 

Key Information Documents

JZCP (http://www.jzcp.com/investor-relations/key-information-documents)
produces (http://www.jzcp.com/investor-relations/key-information-documents)
Key (http://www.jzcp.com/investor-relations/key-information-documents)
Information (http://www.jzcp.com/investor-relations/key-information-documents)
Documents (http://www.jzcp.com/investor-relations/key-information-documents)
to (http://www.jzcp.com/investor-relations/key-information-documents) assist
investors' understanding of the Company's securities and to
(http://www.jzcp.com/investor-relations/key-information-documents) enable
comparison (http://www.jzcp.com/investor-relations/key-information-documents)
with (http://www.jzcp.com/investor-relations/key-information-documents) other
(http://www.jzcp.com/investor-relations/key-information-documents) investment
(http://www.jzcp.com/investor-relations/key-information-documents) pr
(http://www.jzcp.com/investor-relations/key-information-documents)oducts.
These documents are found on the Company's website
(http://www.jzcp.com/investor-relations/key-information-documents) -
www.jzcp.com/investor-relations/key-information-doc
(http://www.jzcp.com/investor-relations/key-information-documents)uments.

Alternative Performance Measures

In accordance with ESMA Guidelines on Alternative Performance Measures
("APMs") the Board has considered what APMs are included in the Interim Report
and Financial Statements which require further clarification. An APM is
defined as a financial measure of historical or future financial performance,
financial position, or cash flows, other than a financial measure defined or
specified in the applicable financial reporting framework. APMs included in
the Interim Report and Financial Statements, which are unaudited and outside
the scope of IFRS, are deemed to be as follows:

Total NAV Return

The Total NAV Return measures how the net asset value ("NAV") per share has
performed over a period of time, taking into account both capital returns and
dividends paid to shareholders. JZCP quotes NAV total return as a percentage
change from the start of the period (one year) and also three-month,
three-year, five-year and seven year periods. It assumes that dividends paid
to shareholders are reinvested back into the Company therefore future NAV
gains are not diminished by the paying of dividends. JZCP also produces an
adjusted Total NAV Return which excludes the effect of the
appreciation/dilution per share caused by the buy back/issue of shares at a
discount to NAV, the result of the adjusted Total NAV return is to provide a
measurement of how the Company's Investment portfolio contributed to NAV
growth adjusted for the Company's expenses and finance costs. The Total NAV
Return for the period ended 31 August 2020 was-25.1%, which only reflects the
change in NAV as no dividends were paid during the year. The Total NAV Return
for the year ended 29 February 2020 was -38.8%.

Total Shareholder Return (Ordinary shares)

A measure showing how the share price has performed over a period of time,
taking into account both capital returns and dividends paid to shareholders.
JZCP quotes shareholder price total return as a percentage change from the
start of the period (one year) and also three-month, three-year, five-year and
seven-year periods. It assumes that dividends paid to shareholders are
reinvested in the shares at the time the shares are quoted ex dividend. The
Shareholder Return for the period ended 31 August 2020 was -65.5%, which only
reflects the change in share price as no dividends were paid during the year.
The Shareholder Return for the year ended 29 February 2020 was -40.7%.

NAV to market price discount

The NAV per share is the value of all the company’s assets, less any
liabilities it has, divided by the number of shares. However, because JZCP
shares are traded on the London Stock Exchange's Specialist Fund Segment, the
share price may be higher or lower than the NAV. The difference is known as a
discount or premium. JZCP's discount is calculated by expressing the
difference between the period end dollar equivalent share price and the period
end NAV per share as a percentage of the NAV per share.

At 31 August 2020, JZCP's Ordinary shares traded at £0.89 (29 February 2020:
£2.58) or $1.19 (29 February 2020: $3.30) being the dollar equivalent using
the year end exchange rate of £1: $1.34 (29 February 2020 £1: $1.28). The
shares traded at a 74% (29 February 2020: 46%) discount to the NAV per share
of $4.60 (29 February 2020: $6.14).

Criminal Facilitation of Tax Evasion

The Board has approved a policy of zero tolerance towards the criminal
facilitation of tax evasion, in compliance with the Criminal Finances Act 2017

Non-Mainstream Pooled Investments

From 1 January 2014, the FCA rules relating to the restrictions on the retail
distribution of unregulated collective investment schemes and close
substitutes came into effect. JZCP's Ordinary shares qualify as an ‘excluded
security’ under these rules and will therefore be excluded from the FCA’s
restrictions which apply to non-mainstream investment products. Therefore
Ordinary shares issued by JZ Capital Partners can continue to be recommended
by financial advisers as an

investment for UK retail investors

Internet Address

The Company: www.jzcp.com

Financial Diary

 Results for the year ended 28 February 2021                                              May 2021 (date to be confirmed)        
 Annual General Meeting                                                                   June/July 2021 (date to be confirmed)  
 Interim report for the six months ended 31 August 2021                                   November 2021 (date to be confirmed)   

Payment of Dividends

In the event of a cash dividend being paid, the dividend will be sent by
cheque to the first-named shareholder on the register of members at their
registered address, together with a tax voucher. At shareholders' request,
where they have elected to receive dividend proceeds in Sterling, the dividend
may instead be paid direct into the shareholder's bank account through the
Bankers' Automated Clearing System. Payments will be paid in US dollars unless
the shareholder elects to receive the dividend in Sterling. Existing elections
can be changed by contacting the Company's Transfer and Paying Agent, Equiniti
Limited on +44 (0) 121 415 7047.

Share Dealing

Investors wishing to buy or sell shares in the Company may do so through a
stockbroker. Most banks also offer this service.

Foreign Account Tax Compliance Act

The Company is registered (with a Global Intermediary Identification Number
CAVBUD.999999.SL.831) under The Foreign Account Tax Compliance Act ("FATCA").

Share Register Enquiries

The Company's UK Transfer and Paying Agent, Equiniti Limited, maintains the
share registers. In event of queries regarding your holding, please contact
the Registrar on 0871 384 2265, calls to this number cost 8p per minute from a
BT landline, other providers' costs may vary. Lines are open 8.30 a.m. to 5.30
p.m., Monday to Friday, If calling from overseas+44 (0) 121 415 7047 or access
their website at www.equiniti.com. Changes of name or address must be notified
in writing to the Transfer and Paying Agent.

Nominee Share Code

Where notification has been provided in advance, the Company will arrange for
copies of shareholder communications to be provided to the operators of
nominee accounts. Nominee investors may attend general meetings and speak at
meetings when invited to do so by the Chairman.

Documents Available for Inspection

The following documents will be available at the registered office of the
Company during usual business hours on any weekday until the date of the
Annual General Meeting and at the place of the meeting for a period of fifteen
minutes prior to and during the meeting:

(a) the Register of Directors' Interests in the stated capital of the Company;

(b) the Articles of Incorporation of the Company; and

(c) the terms of appointment of the Directors.

Warning to Shareholders – Boiler Room Scams

In recent years, many companies have become aware that their shareholders have
been targeted by unauthorised overseas-based brokers selling what turn out to
be non-existent or high risk shares, or expressing a wish to buy their shares.
If you are offered, for example, unsolicited investment advice, discounted
JZCP shares or a premium price for the JZCP shares you own, you should take
these steps before handing over any money.

·     Make sure you get the correct name of the person or organisation

·     Check that they are properly authorised by the FCA before getting
involved by visiting http://www.fca.org.uk/firms/systems-reporting/register

·     Report the matter to the FCA by calling 0800 111 6768

·     If the calls persist, hang up

·     More detailed information on this can be found on the Money Advice
Service website www.moneyadviceservice.org.uk

US Investors

General

The Company's Articles contain provisions allowing the Directors to decline to
register a person as a holder of any class of ordinary shares or other
securities of the Company or to require the transfer of those securities
(including by way of a disposal effected by the Company itself) if they
believe that the person

(a) is a "US person" (as defined in Regulation S under the US Securities Act
of 1933, as amended) and not a "qualified purchaser" (as defined in the US
Investment Company Act of 1940, as amended, and the related rules thereunder);

(b) is a "Benefit Plan Investor" (as described under "Prohibition on Benefit
Plan Investors and Restrictions on Non-ERISA Plans" below); or

(c) is, or is related to, a citizen or resident of the United States, a US
partnership, a US corporation or a certain type of estate or trust and that
ownership of any class of ordinary shares or any other equity securities of
the Company by the person would materially increase the risk that the Company
could be or become a "controlled foreign corporation" (as described under "US
Tax Matters" below).

In addition, the Directors may require any holder of any class of ordinary
shares or other securities of the Company to show to their satisfaction
whether or not the holder is a person described in paragraphs (A), (B) or (C)
above.

US Securities Laws

The Company (a) is not subject to the reporting requirements of the US
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and does not
intend to become subject to such reporting requirements and (b) is not
registered as an investment company under the US Investment Company Act of
1940, as amended (the "1940 Act"), and investors in the

Company are not entitled to the protections provided by the 1940 Act

Prohibition on Benefit Plan Investors and Restrictions on Non-ERISA Plans

Investment in the Company by "Benefit Plan Investors" is prohibited so that
the assets of the Company will not be deemed to constitute "plan assets" of a
"Benefit Plan Investor". The term "Benefit Plan Investor" shall have the
meaning contained in 29 C.F.R. Section 2510.3-101, as modified by Section
3(42) of the US Employee Retirement Income Security Act of 1974, as amended
("ERISA"), and includes (a) an "employee benefit plan" as defined in Section
3(3) of ERISA that is subject to Part 4 of Title I of ERISA; (b) a "plan"
described in Section 4975(e)(1) of the US Internal Revenue Code of 1986, as
amended (the "Code"), that is subject to Section 4975 of the Code; and (c) an
entity whose underlying assets include "plan assets" by reason of an employee
benefit plan's or a plan's investment in such entity. For purposes of the
foregoing, a "Benefit Plan Investor" does not include a governmental plan (as
defined in Section 3(32) of ERISA), a non-US plan (as defined in Section
4(b)(4) of ERISA) or a church plan (as defined in Section 3(33) of ERISA) that
has not elected to be subject to ERISA.

Each purchaser and subsequent transferee of any class of ordinary shares (or
any other class of equity interest in the Company) will be required to
represent, warrant and covenant, or will be deemed to have represented,
warranted and covenanted, that it is not, and is not acting on behalf of or
with the assets of, a Benefit Plan Investor to acquire such ordinary shares
(or any other class of equity interest in the Company).

Under the Articles, the directors have the power to require the sale or
transfer of the Company's securities in order to avoid the assets of the
Company being treated as "plan assets" for the purposes of ERISA.

The fiduciary provisions of laws applicable to governmental plans, non-US
plans or other employee benefit plans or retirement arrangements that are not
subject to ERISA (collectively, "Non-ERISA Plans") may impose limitations on
investment in the Company. Fiduciaries of Non-ERISA Plans, in consultation
with their advisers, should consider, to the extent applicable, the impact of
such fiduciary rules and regulations on an investment in the Company.

Among other considerations, the fiduciary of a Non-ERISA Plan should take into
account the composition of the Non- ERISA Plan's portfolio with respect to
diversification; the cash flow needs of the Non-ERISA Plan and the effects
thereon of the illiquidity of the investment; the economic terms of the
Non-ERISA Plan's investment in the Company; the Non- ERISA Plan’s funding
objectives; the tax effects of the investment and the tax and other risks
associated with the investment; the fact that the investors in the Company are
expected to consist of a diverse group of investors (including taxable,
tax-exempt, domestic and foreign entities) and the fact that the management of
the Company will not take the particular objectives of any investors or class
of investors into account.

Non-ERISA Plan fiduciaries should also take into account the fact that, while
the Company's board of directors and its investment adviser will have certain
general fiduciary duties to the Company, the board and the investment adviser
will not have any direct fiduciary relationship with or duty to any investor,
either with respect to its investment in Shares or with respect to the
management and investment of the assets of the Company. Similarly, it is
intended that the assets of the Company will not be considered plan assets of
any Non-ERISA Plan or be subject to any fiduciary or investment restrictions
that may exist under laws specifically applicable to such Non-ERISA Plans.
Each Non-ERISA Plan will be required to acknowledge and agree in connection
with its investment in any securities to the foregoing status of the Company,
the board and the investment adviser that there is no rule, regulation or
requirement applicable to such investor that is inconsistent with the
foregoing description of the Company, the board and the investment adviser.

Each purchaser or transferee that is a Non-ERISA Plan will be deemed to have
represented, warranted and covenanted as follows:

(a) The Non-ERISA Plan is not a Benefit Plan Investor;

(b) The decision to commit assets of the Non-ERISA Plan for investment in the
Company was made by fiduciaries independent of the Company, the Board, the
Investment adviser and any of their respective agents, representatives or
affiliates, which fiduciaries (i) are duly authorized to make such investment
decision and have not relied on any advice or recommendations of the Company,
the Board, the Investment adviser or any of their respective agents,
representatives or affiliates and (ii) in consultation with their advisers,
have carefully considered the impact of any applicable federal, state or local
law on an investment in the Company;

(c) The Non-ERISA Plan’s investment in the Company will not result in a
non-exempt violation of any applicable federal, state or local law;

(d) None of the Company, the Board, the Investment adviser or any of their
respective agents, representatives or affiliates has exercised any
discretionary authority or control with respect to the Non-ERISA Plan’s
investment in the Company, nor has the Company, the Board, the Investment
adviser or any of their respective agents, representatives or affiliates
rendered individualized investment advice to the Non-ERISA Plan based upon the
Non-ERISA Plan’s investment policies or strategies, overall portfolio
composition or diversification with respect to its commitment to invest in the
Company and the investment program thereunder; and

(e) It acknowledges and agrees that it is intended that the Company will not
hold plan assets of the Non-ERISA Plan and that none of the Company, the
Board, the Investment adviser or any of their respective agents,
representatives or affiliates will be acting as a fiduciary to the Non-ERISA
Plan under any applicable federal, state or local law governing the Non- ERISA
Plan, with respect to either (i) the Non-ERISA Plan’s purchase or retention
of its investment in the Company or (ii) the management or operation of the
business or assets of the Company. It also confirms that there is no rule,
regulation, or requirement applicable to such purchaser or transferee that is
inconsistent with the foregoing description of the Company, the Board and the
Investment adviser.

US Tax Matters

This discussion does not constitute tax advice and is not intended to be a
substitute for tax advice and planning. Prospective holders of the Company's
securities must consult their own tax advisers concerning the US federal,
state and local income tax and estate tax consequences in their particular
situations of the acquisition, ownership and disposition of any of the
Company's securities, as well as any consequences under the laws of any other
taxing jurisdiction.

The Board may decline to register a person as, or to require such person to
cease to be, a holder of any class of ordinary shares or other equity
securities of the Company because of, among other reasons, certain US
ownership and transfer restrictions that relate to “controlled foreign
corporations” contained in the Articles of the Company. A Shareholder of the
Company may be subject to forced sale provisions contained in the Articles in
which case such shareholder could be forced to dispose of its securities if
the Company’s directors believe that such shareholder is, or is related to,
a citizen or resident of the United States, a US partnership, a US corporation
or a certain type of estate or trust and that ownership of any class of
ordinary shares or any other equity securities of the Company by such
shareholder would materially increase the risk that the Company could be or
become a "controlled foreign corporation" within the meaning of the Code (a
"CFC"). Shareholders of the Company may also be restricted by such provisions
with respect to the persons to whom they are permitted to transfer their
securities.

In general, a foreign corporation is treated as a CFC if, on any date of its
taxable year, its "10% US Shareholders" collectively own (directly, indirectly
or constructively within the meaning of Section 958 of the Code) more than 50%
of the total combined voting power or total value of the corporation's stock.
For this purpose, a "10% US Shareholder" means any US person who owns
(directly, indirectly or constructively within the meaning of Section 958 of
the Code) 10% or more of the total combined voting power of all classes of
stock of a foreign corporation or 10% or more of the total value of shares of
all classes of stock of a foreign corporation. The Tax Cuts and Jobs Act (the
“Tax Act”) eliminated the prohibition on “downward attribution” from
non-US persons to US persons under Section 958(b)(4) of the Code for purposes
of determining constructive stock ownership under the CFC rules. As a result,
the Company’s US subsidiary will be deemed to own all of the stock of the
Company’s non-US subsidiaries held by the Company for purposes of
determining such foreign subsidiaries’ CFC status. The legislative history
under the Tax Act indicates that this change was not intended to cause the
Company’s non-US subsidiaries to be treated as CFCs with respect to a 10% US
Shareholder that is not related to the Company’s US subsidiary. However, the
IRS has not yet issued any guidance confirming this intent and it is not clear
whether the IRS or a court would interpret the change made by the Tax Act in a
manner consistent with such indicated intent. The Company's treatment as a CFC
as well as its foreign subsidiaries’ treatment as CFCs could have

adverse tax consequences for 10% US Shareholders.

The Company has been advised that it is NOT a passive foreign investment
company ("PFIC") for the fiscal years ended February 2019 and 2018. An
analysis for the financial year ended 29 February 2020 will be undertaken this
year. A classification as a PFIC would likely have adverse tax consequences
for US taxpayers.

The taxation of a US taxpayer's investment in the Company's securities is
highly complex. Prospective holders of the Company's securities must consult
their own tax advisers concerning the US federal, state and local income tax
and estate tax consequences in their particular situations of the acquisition,
ownership and disposition of any of the Company's securities, as well as any
consequences under the laws of any other taxing jurisdiction.

Investment Adviser's ADV Form

Shareholders and state securities authorities wishing to view the Investment
Adviser's ADV form can do so by following the link below:

https://adviserinfo.sec.gov/firm/summary/160932



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