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Private Equity Upside

Closed-end funds and OEICs
Lemon Slice
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Re: Private Equity Upside


Postby toofast2live » September 19th, 2021, 5:41 pm

3.45%! Modest? Hardly. Several years of BS interest in one day.

I only wish I had a “modest” holding ;)

Lemon Slice
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Re: Private Equity Upside


Postby SKYSHIP » September 23rd, 2021, 8:47 am

JPEL Private Equity (JPEL) – in wind-down - possible 25% gain within a year

On 23rd July JPEL made a pretty momentous announcement, at least for JPEL shareholders:
JPEL is pleased to announce the realisation of its investment in the Company's largest portfolio company, Swania International SA ("Swania").

The realisation results in an investment return of approximately 3.9x and an IRR of approximately 25.8% for JPEL.(1) As part of the transaction, JPEL expects to receive gross proceeds of approximately US$78 million, representing approximately 70% of JPEL's overall market capitalisation as of 22 July 2021 and an approximate 19% uplift to the current carrying value at 31 May 2021. At 31 May 2021, Swania represented 47.7% of JPEL's private equity portfolio value.

Upon receipt of the net proceeds relating to the sale of Swania, the Board anticipates conducting its ninth mandatory redemption to shareholders as soon as practicable.

Less than 2 weeks later, the redemption arrived:
# REDEMPTION DATE 12 August 2021
# REDEMPTION @ NAV level of $2.00

After the redemption the company has just 40,017,883 shares in issue.

This is a trust managed by the giant JP Morgan, yet after 3yrs of wind-down the trust now has a MCap of just £46m at 115p (158c).

The question now has to be – where do we go from here. Frankly the trust is now too small and irrelevant to continue. A trade sale within the PE sector has to be the most likely outcome – sell the portfolio, make a final redemption and wind-up.

We may get some clarity with the Annual Report statement due in c2weeks – 8th October last year.

The obvious investment case has to be – almost Zero risk with a now widely diversified portfolio of small PE plays, split practically equally between direct investments & PE funds: ... review.pdf

Zero Risk; but serious short-term upside of c25%, OK perhaps only 20% if the portfolio has to be sold at a discount.

There is one catch – liquidity. You have to be patient and buy when available; also can only be phone traded, consistently no offer online.
One last thing. Quoted in US$, but UK listed; so no FX charges.

Lemon Slice
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Re: Private Equity Upside


Postby SKYSHIP » October 7th, 2021, 2:16 pm

The 5% pullback in PIN after recently achieving the 3000p target, does now represent a good entry point again as at 2845p the discount is up to 26.7%. This whilst PIN has also started buybacks, which should help underwrite current levels.

I've posted the chart on ADVFN's PE thread:

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Re: Private Equity Upside


Postby UncleEbenezer » October 13th, 2021, 4:43 pm

Dunedin Enterprise's turn today. Partial realisation of GPS, for an uplift of 44p/share.

Share price is up by just one third of that on the day. ... 000009270O

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