TIDMJZCP TIDMJZCN 
 
NOT FOR RELEASE OR DISTRIBUTION IN OR INTO THE UNITED STATES. 
 
 
             JZ CAPITAL PARTNERS LIMITED (the "Company" or "JZCP") 
(a closed-end collective investment scheme incorporated with limited liability 
           under the laws of Guernsey with registered number 48761) 
 
                           LEI: 549300TZCK08Q16HHU44 
 
                       Update on Liquidity Plan for JZCP 
 
2 October 2019 
 
Following the announcement on 8 May 2019, the Board of Directors of JZCP 
announces that it is planning to convene an extraordinary general meeting of 
the Company to approve a revised investment policy. In line with this previous 
announcement, the Board is seeking to enshrine a strategy to look to realise 
investments, pay down debt and materially reduce commitments to new 
investments, such that capital may be returned to shareholders. 
 
The Board is pleased to report on the progress made in implementing this plan 
to generate liquidity for JZCP. On 29 August 2019, the Company completed its 
first tender offer for approximately $30 million, part of the previously 
announced plan to return approximately $100 million in capital to shareholders. 
Subject to timing of upcoming realisations, the Company expects to return the 
balance of approximately $70 million to shareholders via a series of tender 
offers, special dividends or opportunistic market buybacks over the next 12-15 
months. 
 
Shortly prior to the close of the first tender offer, JZCP finalized the sale 
of 80% of its interest in portfolio companies Orizon and Avante, 34% above NAV, 
for $65.5 million in gross proceeds received by the Company. This transaction 
brings total gross proceeds realised during the first six months of the fiscal 
year to more than $120 million. 
 
The Board has now decided on a more ambitious plan than previously announced, 
being a plan to raise approximately $400-500 million in liquidity by the end of 
the Company's fiscal year ending February 2023. This plan is intended to enable 
JZCP to pay down a substantial amount of debt and return a substantial amount 
of capital to shareholders while also meeting the capital requirements of the 
portfolio in order to achieve NAV growth. 
 
JZCP's plan calls for raising liquidity from realisations, secondary sales of 
certain asset portfolios, joint venture partnerships and the previously 
announced US Side-Car Fund. Notwithstanding the fact that the Company's 
Investment Adviser is aggressively pursuing the realisation strategy outlined 
herein, shareholders are reminded that JZCP's portfolio of assets is highly 
illiquid and the sale of which is dependent upon positive market conditions. 
Shareholders are also reminded that JZCP and its Investment Adviser do not have 
control over a large portion of the JZCP portfolio and thus the Investment 
Adviser must seek the cooperation of JZCP's portfolio partners to realise 
assets. To date, our Investment Adviser has been successful in getting the 
cooperation of JZCP's investment partners. 
 
Regarding secondary sales, the Company is currently in the market with a 
portfolio of select US microcap assets; JZCP expects to realise between 
$150-170 million in gross proceeds prior to 28 February 2020 from these 
transactions. 
 
In addition, the Company's Investment Adviser expects to launch the US Side-Car 
Fund within the next 45 days, targeting approximately $500 million. As 
mentioned in the Company's last Annual Report, the bulk of any new US microcap 
investments will be directed to this new US Side-Car Fund, which will be 
substantially funded by third-party limited partners. In order to successfully 
complete the marketing of the US Side-Car Fund, JZCP will be required to invest 
approximately 5% of the fundraise in order to validate to future LPs that JZCP 
will continue to support its US microcap buyout program and team. It is 
anticipated that this investment will be called over a five-year period, thus 
putting significantly less of a burden on JZCP's future cash flow. 
 
JZCP's real estate assets do require additional investments for debt service 
and certain pre-development expenses. At the end of last year, the Company's 
Investment Adviser successfully sold approximately half of one of JZCP's 
Brooklyn, NY, development sites to HomeFed, a real estate investor and 
developer of mixed-use projects in the United States. The price was 
approximately at NAV, which had been marked up from original cost. The 
Investment Adviser is actively seeking investment partners or outright sales 
for a number of the Company's other development sites. The Investment Adviser 
has indicated that it does not expect to make any new real estate investments, 
other than in the Company's existing real estate portfolio. 
 
Additionally, other than honouring JZCP's funding commitments and supporting 
its portfolio of assets, it is anticipated that no meaningful capital will be 
dedicated to new investments. The Investment Adviser instead intends to 
dedicate its activities to achieving realisations and working on the Company's 
current portfolio of assets to enhance values. 
 
The Board expects to publish a circular to all shareholders convening an 
extraordinary general meeting of the Company to approve this revised investment 
policy as well as the Company's investment in the US Side-Car Fund as soon as 
practicable. 
 
For further information: 
 
Ed Berry / Kit Dunford                  +44 (0) 20 3727 1046 / 1143 
FTI Consulting 
 
David Zalaznick                         +1 (212) 485 9410 
Jordan/Zalaznick Advisers, Inc. 
 
Sam Walden                              +44 (0) 1481 745385 
Northern Trust International Fund 
Administration Services (Guernsey) 
Limited 
 
About JZCP 
 
JZ Capital Partners ("JZCP") is one of the oldest closed-end investment 
companies listed on the London Stock Exchange. It seeks to provide shareholders 
with a return by investing selectively in US and European microcap companies 
and US real estate. JZCP receives investment advice from Jordan/Zalaznick 
Advisers, Inc. ("JZAI") which is led by David Zalaznick and Jay Jordan. They 
have worked together for more than 35 years and are supported by teams of 
investment professionals in New York, Chicago, London and Madrid. JZAI's 
experts work with the existing management of microcap companies to help build 
better businesses, create value and deliver strong returns for investors. For 
more information please visit www.jzcp.com. 
 
Important Notice 
 
This announcement is not an offering of securities. Any securities offered have 
not been and will not be registered under the US Securities Act and may not be 
offered or sold in the United States absent registration or an applicable 
exemption from registration requirements. 
 
This announcement also includes statements that are, or may be deemed to be, 
"forward-looking statements". These forward-looking statements can be 
identified by the use of forward-looking terminology, including the terms 
"believes", "estimates", "anticipates", "expects", "intends", "may", "will" or 
"should" or, in each case, their negative or other variations or comparable 
terminology. These forward-looking statements relate to matters that are not 
historical facts. 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 investment performance, 
results of operations, financial condition, liquidity, policies and the 
development of its strategies may differ materially from the impression created 
by the forward-looking statements contained in this announcement. In addition, 
even if the investment performance, result of operations, financial condition, 
liquidity and policies of the Company and development of its strategies, are 
consistent with the forward-looking statements contained in this announcement, 
those results or developments may not be indicative of results or developments 
in subsequent periods. These forward-looking statements speak only as at the 
date of this announcement. Subject to their legal and regulatory obligations, 
each of the Company, the Investment Adviser and their respective affiliates 
expressly disclaims any obligations to update, review or revise any 
forward-looking statement contained herein whether to reflect any change in 
expectations with regard thereto or any change in events, conditions or 
circumstances on which any statement is based or as a result of new 
information, future developments or otherwise. 
 
 
 
END 
 

(END) Dow Jones Newswires

October 02, 2019 02:00 ET (06:00 GMT)

Jz Capital Partners (LSE:JZCP)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Jz Capital Partners Charts.
Jz Capital Partners (LSE:JZCP)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Jz Capital Partners Charts.