27th Sep 2019 12:44
(Alliance News) - JPEL Private Equity Ltd on Friday reported a decline in net assets for financial 2019 as the company continued with its realisation strategy.
At June 30, JPEL's NAV per share stood at USD1.70 compared to USD1.82 at the same point a year prior, a 6.6% decline.
The investor's net assets declined 13% in the year to June-end to USD322.6 million from USD370.2 million the year before.
During the period, JPEL said its NAV was hurt by the stock price decline of its two publicly traded investments, Paratek Pharmaceuticals Inc and Fibrogen Inc, and the write downs in Placid Holdings and Corsicana.
In January, the investor carried out its fifth mandatory redemption, returning USD25 million, about 14.0 million shares, to shareholders. The redemption equalled about 6.9% of the company's NAV.
"The company will continue to review its cash balance and will determine the timing of the next mandatory redemption in due course," JPEL added.
Chair Sean Hurst added: "The board and the manager believe that despite recent public market volatility, the overall environment continues to be favourable for realisations of well performing private equity assets. The current portfolio is mature, with a weighted average age of 6.8 years at June 30. The board and the manager do not expect any disruption to the investment strategy of the company due to Brexit."
Hurst added that the company "remains focused" on returning capital to shareholders at prevailing net asset value.
Shares in JPEL Private Equity were untraded in London on Friday at USD1.35 each.
By Paul McGowan; [email protected]
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