Jpel Private Equity Share Discussion Threads

[skyship] 10/6/2016 07:29

Suddenly the May NAV storms ahead by 5.6% to $1.32!

[tiltonboy] 26/5/2016 15:04

Remembering that 60% of their portfolio was valued at December, it is not totally surprising to see little movement.

Hopefully we will see an EGM notice in the next couple of weeks, in order to call a meeting in June.

[skyship] 26/5/2016 14:16

April NAV freeze-framed at $1.25 - again!.........yawn......

[westcountryboy] 02/5/2016 17:58

Ah yes, many thanks both. I didn't quite take on board the details about the EGM, as I had already read this:

'The realization proceeds not distributed will be used to reduce liabilities and pay costs and expenses, fund portfolio follow-on investments and undrawn capital commitments'

and I got carried away by the phrase 'follow-on investments'. But I now realise this probably just means dribbling a bit more money into specific existing situations where this would pay returns in the short term.

[skyship] 02/5/2016 17:11

WCB - this extract from the 22nd April Strategic Update seems pretty clearcut surely. Obviously matters will be clarified in June:
=====================================================

The Board will also convene an extraordinary general meeting ("EGM") of the Company in June 2016 at which shareholders will be asked to consider proposals which will allow the Company to effect an orderly realisation of its portfolio following repayment to the 2017 ZDP Shareholders of their final capital entitlement ("Realisation Proposals").

At the EGM, an ordinary resolution will be put forward to approve a change to the investment policy of the Company following the repayment of the 2017 ZDP Shares in October 2017. If the ordinary resolution is passed, US$ Equity Shareholders will be asked, at a separate class meeting of such shareholders convened for the same day as the EGM, to vote on a special resolution which, if passed, will sanction such change to the Company's investment policy. Following the passing of the ordinary resolution and the special resolution, the change to the investment policy, which will take effect after the 2017 ZDP Shares are repaid their final capital entitlement, will allow the Company to effect an orderly realisation of its portfolio as follows:

-- Realisation of portfolio assets to maximize returns to shareholders

-- Explore the private equity secondary market for JPEL's portfolio of legacy fund interests within three years if it is determined that market pricing is favourable

-- Direct investment portfolio to be held until maturity

[tiltonboy] 02/5/2016 16:35

wcb,

I think your last sentence sums it up.

There will be no new investments, and funds will be distributed on any sales. Once the 2017 Zero's have been paid off, returns should increase.

[westcountryboy] 02/5/2016 15:54

I'm just looking at these, and like the recent strategy as well as the discount.

I'm probably being naive, and I'm certainly new to the company, but I'm wondering why you see this as necessarily a wind-up situation. The tender will be voluntary, whenever cash is over $10m, and not less than 50% of realisation proceeds will be up for tender. The rest of the cash will be available for follow-on investments. Since 2013 they have pursued a strategy which makes sense to me, of investing directly in situations where they have stronger control rights, and where there is discounted entry, limited gearing and the prospect of liquid returns within four years. This strategy seems prudent and attractive and what's to say that it will not generate decent returns? If holders like it, they don't need to tender. Clearly, if they do, the money available for new investments will fall off to the point where the company loses its raison d'etre, but my reading is that at the moment the guys in charge are willing to let things go either way. Or do you see this as merely a face-saving exercise by them which is a wind-up in all but name?

[skyship] 26/4/2016 15:04

I am again now. Sold in February; but yesterday and today bought back in at 94.8c. Because of the stronger £ the cost was almost exactly the same as the February proceeds.

Interesting to run the GRY numbers.

Assuming a conservative no NAV change, ie a 125c distribution, then for 30th Jun'19 the GRY = 9.02%

Assuming a more realistic but still very conservative NAV growth to 140c, then for 30th Jun'19 the GRY = 12.98%

The liquidation may well take another year into 2020; but of course by Jun'19 we should already have received repayments well in excess of 50%

[badtime] 26/4/2016 14:54

Took a few ..but late but never mind

[tiltonboy] 22/4/2016 18:08

Skyship,

That's how I read it. I also think your 5 year time horizon is probably about right. Once the 2017 Zero's are retired I think returns will start to crank up. I would be happy with:

2016 - 10%
2017 - 25%
2018 - 30%
2019 - 25%
2020 - 10%

Liberum had forecast 25% growth in the NAV over the next two years.

It will be interesting to see broker comments on Monday.

I thought you was still a holder!

[skyship] 22/4/2016 17:57

Apologies to budsman - he read it right whereas, as I don't currently hold, I merely skimmed.

So, looks as though JPEL is joining the long list of liquidating PE Trusts, or at least they are in the waiting room to do so. CDI, DNE, HPEQ, LMS, MTH, NRI....& now JPEL in the offing.

HPEQ has gone; NRI nearly so. CDI a bit of a basket case; so pleased to have another one with which to play the numbers and Tenders.

Perhaps could be a 5yr timeframe in total, so need to see some good growth coming through to make the Gross Redemption Yield calculations a little more interesting.

Is that how you read it Tilts?

[tiltonboy] 22/4/2016 16:16

SKYSHIP,

I'm wondering if the potential take-up of the Realisation Class was particularly large, and would have rendered an ongoing vehicle as unviable. I spoke to a couple of funds that were electing for the RR.

I view this as good news, as they haven't tried to wriggle out of it completely. We now have a rough time frame, and it will be interesting to see whether the semi-annual tender will be compulsory.

I've bought more on this news.

[skyship] 22/4/2016 15:33

That's not how I read it at all.

Looks like a bit of a climbdown from the well-supported Realisation class proposal. Not sure of the practical effect; but seems retrograde.

Tilts - what is your take on this?

[budsman] 22/4/2016 14:01

Strategic update has been issued. Looks like the proposal is for a wind down and return of funds to the shareholders. Time frame may be the issue.

Bud

[skyship] 24/3/2016 08:02

Price hasn't moved in £Sterling terms - the small drop in the share price is fully offset by £ weakness...

[tiltonboy] 23/3/2016 21:14

Still buying. Not certain why they are falling, other than the general sell-off in the sector.

[badtime] 23/3/2016 19:53

Off a bit recently ....Tilts u still in?

[badtime] 12/2/2016 10:29

Toying with buying back in

[tiltonboy] 29/1/2016 08:18

Only just spotted it, but there's a Shareholder Presentation on the website, dated 12th January. Looks like the RSC will come into effect on 1st April.

[skyship] 07/1/2016 15:03

Steady at 93-94c after the October NAV showed a decline of 1c to 125c. NAV discount @ 94c = 24.8%. Price slightly better in £Sterling terms over the past week.

BT - Yes, I believe these to be a BUY once again; especially as we'll soon be receiving details of the Realisation Class proposals.

[badtime] 07/1/2016 12:15

Time to consider a purchase

[skyship] 04/1/2016 09:22

Have emailed JPEL re the missing October NAV.

As a reminder, herewith the upcoming programme for the RSC issue:

Realisation Share Class (“RSC”) – 1Q 2016
=========================================
– Discussions with US$ Equity Shareholders during 4Q 2015
– Shareholder documents to be drafted in early 2016
– Trading expected to begin after 31 March 2016 (subject to various LSE requirements)
– Any proceeds from RSCs expected to be distributed when underlying portfolio companies are exited over time
– JPEL to determine requirements for cash reserves prior to conducting distributions to RSC (i.e.: 2017 ZDPs, any drawn leverage under
credit facility, fees, expenses, etc.)

[skyship] 14/12/2015 12:07

Buying back into JPEL again; having phased out of a few on the rally 5-6weeks ago. These again look cheap; and the 95.75c offer price hopefully already discounts an NAV fall since the last disclosure of $1.26 for 30th Sept.

If $1.26 maintained then the discount is back up to 24%.

I wish they'd speed up their NAV announcements - really no need at all to be so tardy versus all (most) of their peers

[tiltonboy] 14/10/2015 17:31

...and BTEM go above 13%

[tiltonboy] 14/10/2015 16:43

I liked the "seasoned investments" with liquidity in 2-4 years.

Of course there will be sales (and returns to shareholders) before then, but I'm happy with a four year run-off.

On Liberum's figures, we could be looking at an NAV of $1.40 in the next 18 months.

Happy to hold for that. Just need the currency to behave!