6th May 2014 10:20
LONDON (Alliance News) - JZ Capital Partners Ltd, the listed private equity fund, Tuesday reported a net asset value total return of 8.8% in its most recently ended financial year, boosted by growth in net asset value.
In a statement, JZ Capital, which invests in US and European micro cap companies, said its NAV total return in the 12 months ended February 28 was due to a USD0.30 per share distribution implying a 4% dividend yield, pre-dividend NAV growth of 8.8% to USD10.55, and post-dividend NAV growth of 5.8% to USD666.0 million.
Founder and investment adviser David Zalaznick said the company had another year of sustained NAV growth driven by strong earnings performance from its core US and European micro cap portfolios and "steady progress" with its maturing real estate assets in Brooklyn.
"Our differentiated micro cap strategy, distinct industry verticals and proprietary network continue to provide attractive investment and realisation opportunities for the company. Early signs of an economic recovery in our core regions of the United States and Europe will further support our ability to generate long-term growth for our shareholders and we approach the next twelve months with confidence," Zalaznick said in a statement.
Chairman David Macfarlane said JZ Capital Partners is approaching the next 12 months with confidence.
"The board is encouraged by a pipeline of high quality potential investments in the US, particularly through the verticals, and quality existing and prospective investments in Europe. Positive macroeconomic indicators and a strong balance sheet means the company is well positioned to capitalise on attractive investment opportunities in its core markets," the Chairman said.
JZ Capital Partners also said it will ask shareholders to increase the proportion of gross assets it's permitted to invest in businesses outside the US to 40% from 30%.
At current value, JZ Capital Partners' European investment makes up 23.3% of its total portfolio.
"This situation arises as a result of the continuing availability of outstanding investment opportunities in Europe and the success of the investments that we have already made," Macfarlane said.
"Whilst there is immediate pressure on the ceiling, the maturity of parts of the European portfolio is such that realisations might be expected, although the directors would in the light of opportunities currently available, expect a continued significant commitment to investment in Europe," he added.
JZ Capital Partners shares were Tuesday quoted at 437.00 pence, up 0.2%.
By Samuel Agini; [email protected]; @samuelagini
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