JZ Capital Partners to benefit from portfolio holding sale in JZHL Secondary Fund – JZ Capital Partners (JZCP), has provided a further update in relation to its interest in the secondary fund, JZHL Secondary Fund, which was the fund it had earlier sold its interests in certain US microcap portfolio companies to.
Since JZCP’s last update announced on 7 April 2022, a portfolio company of the secondary fund has executed an agreement to sell certain of its interests, with the secondary fund expecting to receive a distribution from the sale of approximately $165-180m.
JZCP has a Special LP Interest in the secondary fund, which entitles it to certain rights and obligations, including to distributions by way of an agreed distribution waterfall. Accordingly, the sale is expected to result in JZCP receiving a distribution of approximately $89-94m, which would correspond to a NAV uplift to JZCP in the range of approximately 56-63 cents per ordinary share. JZCP’s remaining interest in the secondary fund, based on pro forma financials as at 28 February 2022, is valued at approximately $71.2m.
The sale remains subject to certain conditions, including the federal premerger notification program established by the Hart-Scott-Rodino Act. Whilst it is expected that completion of the sale will occur, subject to the satisfaction of the relevant conditions, on or before 30 June 2022, there can be no assurance that the aforementioned conditions will be satisfied and, accordingly, that completion of such portfolio company sale (or receipt of its distribution) will occur. As such, JZCP will make further announcements at the appropriate time regarding the status of completion.
JZCP : JZ Capital Partners to benefit from portfolio holding sale in JZHL Secondary Fund