Portfolio Update

RNS Number : 9480J

JPEL Private Equity Limited

03 May 2022

 

JPEL Private Equity Limited

Ground Floor

Cambridge House

Le Truchot, St Peter Port

Guernsey, GY1 1WD

www.jpelonline.com

portfolio update

GUERNSEY, 3 MAY 2022

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

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

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

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

· place the Company into a formal liquidation process;

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

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

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

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

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

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

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

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

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

LEI Number: 5493005M6GBE3DNJZ894

About JPEL Private Equity Limited

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

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

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

ENQUIRIES:

FCF JPEL Management LLC

[e-mail]

 

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