Jz Capital Partners Share Discussion Threads

[rooky4] 27/11/2019 11:27

And a director resigns the day before the publication of the report, doesn't help confidence.

[flyfisher] 27/11/2019 11:24

Property portfolio cost has increased by $64m, yet valuation has decreased by $20.4m.

also, have had insufficient time to have figures approved by auditor.

And - ''The Board believes that significant uncertainty remains as to whether the real estate portfolio could be realised at these values.''

Another writedown pending ?

[tykethat] 27/11/2019 09:30

doesn't make good reading. Share price down 4.5%, no sign of a recovery.

[rooky4] 27/11/2019 07:37

Report now out:
hxxp://www.jzcp.com/media-centre/regulatory-news

[tykethat] 08/11/2019 13:41

A property portfolio in Brooklyn and Florida....... What could possibly go wrong!

[spectoacc] 31/10/2019 15:14

Staggering - so I assume it's a c.$50-150m valuation drop in the space of 12 months, rather than any fraud previously? Looks a total mess.

[hindsight] 31/10/2019 13:29

Had been considering investing here (already own the zeros) so for once dodged a bullet. But from uk experience if difference is $50m then 10% is quite possible between 2 commercial valuers. $150m on the other hand isnt

[nil of] 31/10/2019 13:19

They have so many connected party transactions and a circle of associated parties and shareholders I wonder if some potential transaction has prompted this ie are they trying to sell assets cheaply to a connected party for their eventual benefit?

[nil of] 31/10/2019 13:10

How can you not know you r property valuations have changed by $150m? Are these guys criminal or stupid or both?

[topvest] 31/10/2019 12:07

No bounce yet. Let see if there is any US buying this afternoon.

[topvest] 31/10/2019 08:50

It will be interesting to see who is buying the shares today. These are difficult to sell or buy given they are SFM shares. I will mull it over.
I pondered selling this morning, but with illiquid shares like this you can't exit quickly enough and I can only do telephone trades for SFM shares, so I will hold for now and see how things go. With the benefit of hindsight, selling after the tender offer was the way to go!

[topvest] 31/10/2019 08:46

Reading between the lines, I suspect that the reason for the valuation issue may be due to the fact that they are holding some retail development sites - if its anything like the UK, the market is very illiquid and valuations are very judgemental..and declining!

[skyship] 31/10/2019 08:42

TV - yes indeed. Would be interesting to see the full quantum of the Manager's fees over those past 10yrs.

[topvest] 31/10/2019 08:36

It doesn't look like it given a range has been given. I've assumed a US$100m hit for now. I do get the feeling that they have invested poorly over the last decade, but NAV is always flat. They earn their performance fee and we get very little. Think it's time to return cash to holders which is what they have indicated anyway. Personally, I don't have any faith in their approach and their strategy flip-flops between one failed strategy and another. The only winners have been the investment advisor. That being said, there is probably a return to be made at the existing share price. Now a deep value run-off orphan fund I suppose.

[skyship] 31/10/2019 08:36

Sorry for holders. JZCP really stinks on governance grounds; hence the 48% discount prior to yesterday's statement. To my mind this write-down has the distinctive whiff of fraud. Not tempted to get back in,,,

[pugugly] 31/10/2019 08:22

Stuffed - Looks as though might be a junior Woodford - over valued illiquid assets
Question -Bail out and take a thumping loss or wait and see what is the true value of the assets - Could they be over valued by 50%?

[topvest] 31/10/2019 08:13

Agreed. At least the write-down will stop the incentive fee accruing. I should really have exited this pile of rubbish after the tender offer. Its on a 50% discount now. Not sure what they have been doing with real estate. I remain a tad suspicious about the level of fees going to the investment advisor. There is a slight hint of wrongdoing with the RNS as well, so I hope it's not fraudulent. Anyway, the discount remains enormous and probably justifiably so. Their value style of investment hasn't really worked for a decade.

[rambutan2] 31/10/2019 03:21

Been one to avoid for many years, and now outdoing themselves...

30 October 2019

JZ Capital Partners Limited ("JZCP" or the "Company"), the London listed fund
that invests in US and European micro-cap companies and US real estate,
announces that it is postponing the publication of its half year results for
the six-month period ended 31 August 2019, which was scheduled to take place on
Thursday, 7 November 2019.

In the course of examining certain real estate investment proposals, JZCP has
consulted third party real estate brokers who indicated that, in their opinion,
the value of certain of the Company's existing real estate investments could
currently be lower than that indicated in the Company's most recent real estate
valuations, which, based on independent third party appraisals, valued the
Company's real estate portfolio at US$443 million as at 28 February 2019. The
Company is therefore requesting that its third party appraiser accelerate the
appraisals that would normally be undertaken as at the Company's financial year
end at the end of February in order to confirm the current valuation of the
Company's real estate assets. The initial assessment is expected to take a
number of weeks. The Company will make further announcements as the assessment
progresses, including with respect to the date of publication of its half year
results for the six-month period ended 31 August 2019.

At this stage of the examination, the Company is unable to determine whether or
not there has been a material diminution in the value of the Company's real
estate portfolio and there can be no certainty as to the quantum of any such
diminution at this stage in the process, but, based on the information
currently at its disposal, the Company currently believes the aggregate
reduction in valuation could be in the range of US$50 million to US$150
million.

[davebowler] 02/10/2019 10:49

Liberum;

JZ Capital Partners has provided an update on its liquidity plan for the company. JZ Capital Partners is seeking to realise investments, pay down debt and reduce commitments to new investments in order to return capital to shareholders.

The company's first tender for $30m completed in August as part of a plan to return $100m to shareholders. The remaining $70m is expected to be returned via tenders over the next 12-15 months.

Realisations of $120m completed during the six months to August. The company is now planning to realise $400m-500m by February 2023 to pay off a substantial portion of debt and return capital to shareholders. This will be by way of realisations, secondary sales of portfolio, JV partnerships and the US side-car fund. The manager has noted that it does not control many of the investments and is reliant on the cooperation of partners to achieve realisations.

The company is currently seeking to sell a secondary portfolio of US microcap assets and is aiming to realise $150m-$170m by February 2020. The real estate investments require additional capital for debt service and pre-development costs. The manager is seeking partners for a number of the development sites.


The manager intends to launch its US Side-Car fund shortly ($500m target). Any new US microcap investment will be through this fund and the majority of capital will come from third-party LP investors. JZCP will be required to invest approximately 5% of the fundraise in order to demonstrate continued support for its US microcap buyout programme and team. This is expected to be called over a five year period.

JZCP does not intend to commit meaningful capital to new investments other than supporting the existing portfolio. An EGM will be held shortly to approve the revised investment policy.

Liberum view

The proposed changes are likely to be welcomed by investors although a certain amount of ambiguity remains over the timing and quantum of capital returns from the increased realisation target. The $400m-$500m realisation range equates to 38-48% of the total portfolio over the next 3.5 years. Aside from the intended $70m tender, debt repayment is likely to take up a considerable proportion of the realised capital. The fund has experienced a persistent discount for a long period of time for a number of reasons. The relatively low NAV return (7.6% cumulative over five years), limited share liquidity and high fees are largely responsible for this. In addition, the portfolio mix of US real estate development assets in Brooklyn and Florida alongside US microcap investments does not seem like a natural fit. We expect only a slight narrowing of the discount as a significant proportion of investor equity will still be in the fund post realisation phase.

JZCP - Balance Sheet at July 2019



$m

% of NAV

Portfolio





US Micro Cap

456.0

57.2%

European Inv

105.9

13.3%

Real Estate

460.7

57.8%

Other

21.0

2.6%

Total Portfolio

1,043.7

130.9%

Cash

58.4

7.3%

Total Assets

1,102.1

138.2%


Debt & other liabilities

304.7

38.2%


NAV

797.4

[skyship] 01/9/2019 17:26

6.9%???

How come when the redemption rate was 3.96%

This is equivalent to a mere 2.4% extra divi.

A holder of 1000 shares worth £4800 gets 39.6 shares redeemed at a 285p premium. That = £115 = 2.4%

The tender was of course massively over-subscribed, ergo no overage. So if you did indeed have 6.9% of your holding redeemed then you may have benefited from other nominee shareholders with ATS failing to accept. Lucky you in that event.

[super_sub] 30/8/2019 20:31

Happy with my 6.9% redemption in the Tender Offer via my holding with ATS.

[skyship] 29/7/2019 16:19

Cap return @ c£7.63,,,,but only $30m; so = c4% of holdings. Miniscule.

Will stay on the sidelines...

[davebowler] 29/7/2019 15:57

26/07/2019 8:39am
UK Regulatory (RNS & others)


TIDMJZCP TIDMJZCN

JZ CAPITAL PARTNERS LIMITED (the "Company")
(a closed-end collective investment scheme incorporated with limited liability
under the laws of Guernsey with registered number 48761)

LEI: 549300TZCK08Q16HHU44

Proposed return of capital to Ordinary Shareholders

of up to US$30 million by way of Tender Offer and resultant Off-Market
Acquisitions

to purchase Ordinary Shares at US$9.39 per Ordinary Share

and

[skyship] 17/4/2019 08:46

Hmm - quandary, still cheap but hit my short-term target @ 475p. Decided to take the turn at 472p as loaded up in the same PE sector with ICGT this week. Chart looks good there too...

[skyship] 12/4/2019 13:52

466p-470p - that's a rise of 7.5% from the recent low...



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