Third Point Investors Ltd TPIL Statement of Third Point's New Redemption Policy
May 25 2023 - 11:40AM
UK Regulatory
TIDMTPOU TIDMTPOS
25 May 2023
TPIL Statement on Third Point's New Redemption Policy
This announcement contains inside information.
The Board of Third Point Investors Limited ("TPIL" or the "Company") wishes to
update shareholders on certain amendments to Third Point LLC's ("Third Point" or
the "Investment Manager") new redemption policy for Third Point Offshore, Ltd.
(the "Master Fund"), the fund into which TPIL invests.
Current market conditions have extended the expected timeline for private
companies to list in the public markets. Considering this, Third Point has
announced a change to its redemption policy to address the illiquidity of Legacy
Private Investments[1] contained in its portfolio:
· Beginning June 30, 2023, redemptions from the Master Fund will be satisfied
with (1) approximately 91% in cash, and (2) approximately 9% in a participation
note ("Participation Note") representing the redeeming investor's pro rata share
of the Master Fund's Legacy Private Investments as of June 30, 2023, and a small
cash reserve.[2]
· It will be Third Point's priority to liquidate the Legacy Private
Investments at appropriate levels as opportunities present themselves, and
proceeds from these liquidations will be reinvested in the liquid portion of the
Master Fund.
· In connection with the foregoing, holders of the Participation Notes will be
subject to a management fee on the value of those notes at the same rate
applicable to the interests being redeemed, but reduced by 0.50% per annum. For
continuing investors in the Master Fund, the management fees charged with
respect to their ownership of the Legacy Private Investments will similarly be
reduced by 0.50% per annum (with no change to the management fees charged with
respect to the rest of the portfolio). These changes will result in a small
reduction in the current 1.25% management fee associated with TPIL shares.
In thinking about its fiduciary responsibility to current, redeeming, and future
investors generally, the Investment Manager believes this redemption structure
offers the most equitable outcome to its investor base in its entirety. While
Master Fund redemptions for the upcoming quarter-end are within the typical
range, Third Point considers it prudent to enact this policy at the current
moment given the sustained unusual conditions in the macro, rates and IPO
environments.
TPIL-related redemption requirements, including those associated with the
ongoing share buyback programme and the potential tender offers in 2024 and
2027, will be subject to the new redemption policy. However, in order to
satisfy TPIL's commitments in cash, a slightly higher redemption of Master Fund
shares will be made. When such redemptions take place, they will result in the
accretion of Participation Notes, which will modestly increase the Company's
exposure to the Legacy Private Investments in the absence of liquidity events
occurring within the Legacy Private Investments portfolio.
Rupert Dorey, Chairman of the Board, commented:
"The Board of TPIL acknowledges the measures and rationale taken by Third Point
for amending the share structure and fee structure at the Master Fund. The
separation of the liquid investments from the more illiquid private companies
portfolio is a prudent measure that will ensure a more stable platform for
investors while enhancing investor exposure to Third Point's core strategies and
competencies.
"Importantly, the new structure will not impact materially on TPIL's ongoing
share buyback programme or on the proposed share tenders in 2024 and 2027.
Assuming flat performance, the exposure to private companies would expect to
increase from around 9% of NAV to 12% in the event that the 2024 tender was
fully subscribed and the current buyback facility was fully utilised."
- Ends -
Press Enquiries
Third Point Buchanan
Elissa Doyle, Chief Communications Charles Ryland
Officer and Head of ESG Engagement
charlesr@buchanan.uk.com
edoyle@thirdpoint.com
Tel: +44 (0)20 7466 5107
Tel: +1 212-715-4907
Henry Wilson
henryw@buchanan.uk.com
Tel: +44 (0)20 7466 5111
Notes to Editors
About Third Point Investors Limited
www.thirdpointlimited.com
Third Point Investors Limited (LSE: TPOU) was listed on the London Stock
Exchange in 2007 and is a feeder fund that invests in the Third Point Offshore
Fund (the Master Fund), offering investors a unique opportunity to gain direct
exposure to founder Daniel S. Loeb's investment strategy. The Master Fund
employs an event-driven, opportunistic strategy to invest globally across the
capital structure and in diversified asset classes to optimize risk-reward
through a market cycle. TPIL's portfolio is 100% aligned with the Master Fund,
which is Third Point's largest investment strategy. TPIL's assets under
management are currently $600 million.
About Third Point LLC
Third Point LLC is an institutional investment manager that actively engages
with companies across their lifecycle, using dynamic asset allocation and an
ethos of continuous learning to drive long-term shareholder return. Led by
Daniel S. Loeb since its inception in 1995, the Firm has a 37-person investment
team, a robust quantitative data and analytics team, and a deep, tenured
business team. Third Point manages approximately $12.2 billion in assets for
sovereign wealth funds, endowments, foundations, corporate & public pensions,
high-net-worth individuals, and employees.
[1] Legacy Private Investments is defined as Private Investments (investments
made by the Master Fund that are traditionally considered venture capital or
private equity) other than those with ongoing capital contributions.
[2] The cash reserve will be used for fees and expenses, including management
fees, costs related to currency hedging in respect of certain Legacy Private
Investments and other applicable Fund operating expenses.
This information was brought to you by Cision http://news.cision.com
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