Marwyn is pleased to announce that MVI II LP held its first third-party fund close on Thursday 11 May 2017, securing commitments of GBP41 million from limited partners who have acquired interests in the portfolio at NAV and are expected to invest alongside the company in future investment opportunities. Marwyn anticipates that further third-party closes at NAV may be held by MVI II LP within the following 12 month period.
MVI II LP is a private equity fund structure seeded by Marwyn Value Investors LP (“the Master Fund”). The company has invested all of its available capital in the Master Fund. MVI II LP holds investments in Zegona Communications plc, BCA Marketplace plc, Gloo Networks plc, Safe Harbour Holdings plc and Wilmcote Holdings plc (the “assets”). The Master Fund has sold interests in MVI II LP to the new third party investors at the market value of the assets at the close of business on Monday 15 May.
The company welcomes the news that Zegona has this morning announced the successful sale of its Spanish Cable business, Telecable, to Euskaltel.
To date (there is more to tidy up re Zegona), the ordinary shares’ portfolio of assets on a look-through basis has reduced by GBP11m in aggregate, and the cash balance attributable to the ordinary shares has increased by the same amount. There is no net effect on NAV.
The sale of the Master Fund interests in MVI II LP will crystallise a profit of GBP1.8m. The Company has returned GBP10 million in dividends since the sale of Entertainment One in September 2015 and in line with the Ordinary Share Distribution Policy is not required to pay a special dividend following this Profitable Realisation event.
Robert Ware, Chairman of the Company said, “We are pleased that MVI II LP has raised third party funds at NAV, demonstrating the inherent value of the portfolio and augmenting the Company’s capital to invest in upcoming opportunities. As we stated in October last year, we believe that Ordinary shareholders will benefit from the increased diversification of the portfolio to six management platforms and the ability of the Master Fund to deploy capital in follow-on investments into these holdings, as well as consider new opportunities.”