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JPEL’s portfolio by the numbers

The listed FoF employs a secondaries strategy to minimise the J-curve effect.

JPMorgan Private Equity Limited (JPEL) has said it will spend $150 million on secondaries over the next two years in a report produced for it by investment bank Liberum.

Liberum’s report said JPEL has historically built up its portfolio primarily through secondaries investments to minimise the J-Curve effect.

JPEL’s current $538 million portfolio provides the firm exposure to around 800 underlying companies across 26 industries in 100 separate fund interests, 12 co-investments and five fund of funds.

Buyout funds make up JPEL’s main holdings within the portfolio accounting for 52 percent of gross investments, of which 92 percent is invested in small to medium sized buyout funds, which typically use lower leverage and purchase multiples. In terms of industry exposure, real estate was the largest with 14.4 percent of the portfolio allocation (which the company attributed to its investment in Deutsche Annington) followed by healthcare.

JPEL commissioned the Liberum report to challenge investor views that it had fallen out of favour relative to private equity peers, due to gearing and portfolio performance issues; arguing its share class, accelerating portfolio distributions and recent investment performance positioned it for a re-rating.