JZ Capital Ptnrs Ltd Update: Secondary Sale and

 
TIDMJZCP TIDMJZCN 
 
JZ CAPITAL PARTNERS LIMITED (the "Company" or "JZCP") 
 (a closed-ended investment company incorporated with limited liability under 
              the laws of Guernsey with registered number 48761) 
                           LEI 549300TZCK08Q16HHU44 
 
                   Update in relation to Secondary Sale and 
 
                            Monthly Net Asset Value 
 
7 April 2022 
 
JZ Capital Partners Limited, the London listed fund that has investments in US 
and European microcap companies and US real estate, is today pleased to provide 
an update in relation to its interest in the secondary fund, JZHL Secondary 
Fund LP (the "Secondary Fund") to which JZCP sold its interests in certain US 
microcap portfolio companies (the "Secondary Sale"). The Secondary Sale was 
announced on 19 October 2020, with further details of the sale being included 
in a circular sent to shareholders of the Company dated 29 October 2020. 
 
The Secondary Fund has sold its interest in Flow Control Holdings LLC ("Flow 
Control") for consideration of approximately US$77.7 million. This transaction 
confers no immediate cash benefit to JZCP because, as described below, the 
other investors in the Secondary Fund (the "Secondary Investors") have an 
entitlement to a priority return before any distribution may be made to JZCP. 
However, as a result of the distribution to the Secondary Investors from the 
sale of Flow Control the amount of the outstanding priority return has been 
reduced to approximately US$35.5 million. Excluding Flow Control, the remaining 
investments in the Secondary Fund are, subject to audit, held at approximately 
US$256.5 million as at 28 February 2022. JZCP's interest in the Secondary Fund 
based on pro forma financials as at 28 February 2022 is valued at approximately 
US$117.3 million. 
 
As detailed in the aforementioned announcement and circular, JZCP received as 
consideration for the Secondary Sale, and in addition to the already received 
approximately US$90 million in cash, a special limited partner interest in the 
Secondary Fund entitling JZCP to certain distributions and other rights and 
obligations from the Secondary Fund (the "Special LP Interest"). Any 
distributions to be received by JZCP as a result of its Special LP Interest are 
subject to an agreed distribution waterfall as detailed in the aforementioned 
announcement and circular which provides that, once  the Secondary Investors 
have received their initial required distributions determined by reference to 
their respective contributions to the Secondary Fund and amounting to 
approximately US$132.6 million, in aggregate, JZCP will be entitled to receive 
as distributions from the Secondary Fund: (i) 95 per cent. of all distributions 
until it has received distributions equal to US$67.6 million; and (ii) 
thereafter, 37.5 per cent. of all distributions. 
 
The sale of Flow Control will result in the Secondary Investors receiving a 
distribution from the Secondary Fund of approximately US$77.7 million which, 
together with other distributions so far made and received, will amount to 
distributions totalling approximately US$97.1 million for the benefit of the 
Secondary Investors. The Secondary Investors are therefore still entitled to 
receive further distributions from the Secondary Fund totalling approximately 
US$35.5 million before JZCP becomes entitled to any distributions as a result 
of its Special LP Interest and in accordance with the distribution waterfall as 
described above. 
 
The Company will make further announcements concerning the distributions of the 
Secondary Fund (and in particular concerning any distributions as a result of 
its Special LP Interest) as and when appropriate and once further information 
becomes available to it. 
 
Update in relation to Monthly Net Asset Value 
 
On 23 March 2022, the Company announced that its unaudited Net Asset Value ( 
"NAV") per Ordinary Share of the Company as at the close of business on 28 
February 2022 was US$ 4.16. 
 
The sale of Flow Control has resulted in an uplift to the Company's unaudited 
NAV per Ordinary Share of the Company as at the close of business on 28 
February 2022 of 24 cents per share, as follows: 
 
Company Name                Date             NAV per Ordinary Share 
 
JZ Capital Partners Limited 28 February 2022 US$ 4.40 
 
The Company's annual results are currently being audited and the above NAV is 
therefore subject to change. 
 
______________________________________________________________________________________ 
 
For further information: 
 
Kit Dunford / Ed Berry                  [phone] / +44 (0)7703 
FTI Consulting                          330 199 
 
David Zalaznick                         [phone] 
Jordan/Zalaznick Advisers, Inc. 
 
Sam Walden / Martin Chapman             [phone] / +44 (0)1481 
Northern Trust International Fund       745183 
Administration Services (Guernsey) 
Limited 
 
 
 
END 
 
 

(END) Dow Jones Newswires

April 07, 2022 02:00 ET (06:00 GMT)