JZ Capital Partners has a history of adapting its investment focus to suit market conditions. The Board has decided to ask shareholders to approve a relaxation of the investment policy for the fund to permit it to shift assets to the regions and sectors that its managers think look most attractive. At present they say that US microcaps are a “sellers market”, small companies in western Europe look more attractive and they have been happily building up a position in property in the Brooklyn area of New York. the proposed amendments to the policy are reproduced below. The vote will be on 26 February.
Proposed Amendments to Investment Policy
As part of the amendments to the Company’s investment policy, the Company will target predominantly private investments, seeking to back exceptional management teams to deliver on attractive investment propositions. In executing this strategy, the Company will take a long term view. The Company will seek to invest directly in its target investments, although it may invest through other collective investment vehicles. The Company may also invest in listed investments, whether arising on the listing of its private investments or directly. The Company will be focussed on investing in the areas of:
- small or micro-cap buyouts in the form of debt and equity and preferred stock;
- real estate or real estate linked investments and natural resources investments;
- debt opportunities, including mezzanine investments, comprising loans and high-yield securities, and listed bank debt, including both senior secured debt and second lien loans;
- and other debt and equity opportunities, including distressed debt and structured and off-balance sheet financings, derivatives and publicly traded securities.
The Company proposes to remove existing limits that apply to certain asset classes and geographies with in the latter case it being proposed that the Company will have the ability to invest globally but with a particular focus on the US and Europe. The Company however will always seek to maintain a broad spread of investment risk and will continue to comply with those investment restrictions voluntarily adopted by it and that apply from time to time to closed ended investment funds listed on the premium segment of the Official List under Chapter 15 of the Listing Rules. No changes are proposed to be made to the Company’s borrowing policy, including its existing gearing limits.
JZCP : JZ Capital Partners proposes changes to investment policy