Initial Sale of Non-Core Assets

RNS Number : 8294Y

J.P. Morgan Private Equity Ltd

27 February 2013

 



JPEL ANNOUNCES INITIAL SALE OF NON-CORE ASSETS

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GUERNSEY, 27 FEBRUARY 2013

Pursuant to J.P. Morgan Private Equity Limited's ("JPEL" or the "Company") announcement of its Strategic Initiatives on 7 November 2012, JPEL entered into a binding agreement to sell interests in four US and European based buyout funds ("Initial Sale Portfolio") with vintages predominantly in the 2005-2006 range.  The secondary sale was completed with three third-party buyers at an aggregate discount of 15% to prevailing NAV.  The transaction will generate cash proceeds of approximately $27.8 million and will also release JPEL from approximately $2.4 million in unfunded commitments.

Proceeds will be used entirely to reduce the Company's leverage.  The sale will be reflected in JPEL's February 2013 NAV as the values for the Initial Sale Portfolio will be adjusted to reflect the agreed sale price.  

The Company will continue to execute its plans as outlined in its Strategic Initiatives announcement in November 2012.  Since making the announcement, JPEL has:

·      Returned $20 million to US$ Equity Shareholders by repurchasing 31,372,548 US$ Equity Shares at a 42.6% discount to prevailing NAV; and

·      Sold approximately $32.9 million of assets, generating $27.8 million of immediate cash proceeds, representing a 15% discount to NAV.

The Company will continue to attempt to capitalise on the disconnect between its US$ Equity Share price and the value of its underlying assets while simultaneously reducing outstanding leverage and cost of capital.  The Company is due to pay the capital entitlement on the Company's 2013 Zero Dividend Preference Shares, which becomes due on 28 April 2013, and is also exploring the sale of several other non-core, pre-credit crisis assets in the secondary market.  JPEL anticipates making further announcements regarding any potential sales in due course.

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This communication does not constitute an offer or invitation or solicitation to make an offer by or on behalf of the Company or any of its affiliates, directors, officers, employees or shareholders to buy, sell or enter into an agreement for the sale or purchase of shares or any of the businesses or assets described herein.

This communication is not and should not be taken as constituting the giving of investment advice by the Company or its managers to any recipient.

Past performance is not a guide to future performance and the value of investments and the income derived from those investments can go down as well as up. Future returns are not guaranteed and a total loss of principal may occur.

Recipients of this communication are recommended to seek their own independent legal, tax, financial and other advice and should rely solely on their own judgment, review and analysis in evaluating the Company, its business and its affairs.

This document includes statements that are, or may be deemed to be, "forward-looking statements".  In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms "targets", "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. 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 performance, results of operations, internal rate of return, financial condition, liquidity, distributions to shareholders and the development of its financing strategies may differ materially from the impression created by the forward-looking statements contained in this document

About J.P. Morgan Private Equity Limited

J.P. Morgan Private Equity Limited is a Guernsey registered and incorporated, London Stock Exchange-listed, closed-ended investment company (LSE: JPEL, JPEZ, JPZZ, JPSZ) designed primarily to invest in the global private equity market.  The investment objective of the Company is to achieve both short and long-term capital appreciation by investing in a well diversified portfolio of private equity fund interests and by capitalising on the inefficiencies of the secondary private equity market.  On 17 August 2009, JPEL issued warrants free of subscription cost to shareholders on record.  The warrants are publicly traded on the London Stock Exchange under the symbol "JPWW."

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For further information please contact:

J.P. Morgan Private Equity Limited

Gregory Getschow  

[phone]

[e-mail]  

Rosemary DeRise / Samantha Ladd

[phone]  / [phone]  

[e-mail] / [e-mail]

 

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