JZ Capital Partners NAV falls after large realisations

The London-listed specialist fund said its net asset value per share ended the period at $9.78 - a decrease of 2.0% for the quarter.

A total of $84.1m was invested during the period, including $10m in a new flexible packaging vertical, through the acquisitions of Phoenix Converting and Valley Packaging Supply; $9.1m in the testing services vertical; $15.1m in the ISS vertical; and $4.3m in K2 Towers II.

JZ said it made $20.4m in follow-on real estate investments in its Williamsburg, Greenpoint, Fulton, Design District and Wynwood assemblages.

A total of $124.1m was realised in the period, including $105.7m from the sale of Bolder Healthcare Solutions, where a further $4.2m in proceeds was expected; and $15.7m from Paragon Water Systems, where a further.$0.5m in proceeds was expected.

It said $1.3m was used to buy back a total of 188,685 shares, with a further $4.1m used to buy back an additional 636,489 shares, post-period end.

At the end of the period, the board said its portfolio consisted of 38 micro-cap investments across nine industries and five major real estate ‘assemblages’, for 59 total properties, located in New York and South Florida.

“We made good progress with our realisation program at or above net asset value during the period,” said JZ Capital Partners founder and investment adviser David Zalaznick.

“The uplifts were again offset by pre-development and carrying costs in our real estate portfolio but we expect these will decline going forward when we take in outside investors into the development projects.

“The acceleration of our buyback programme further underlines the board’s confidence in the future prospects of the company.”