JPMorgan Private Equity Limited (JPEL), the London-listed private equity arm of JPMorgan, has invested $107.5 million in eight secondaries investments since January 2014, according to a report from Edison Investment Research.
JPEL implemented a strategy in January 2014 to halt distributions to JEPL shareholders and invest up to $150 million of fund distributions into focused investments. The decision was made in an effort to reduce leverage and increase asset cover for zero dividend purchase shares.
Each of the eight investments made so far is considered a “top three player” in its field and has potential for an exit or partial exit in between one and four years.
JPEL typically invests in attractively-priced, medium-sized businesses in the US and Europe through the secondaries market. Deal types include the purchase of minority stakes, provision of growth or development capital and fund restructurings.
The closed-ended fund is listed on the London Stock Exchange and is registered in Guernsey. As of February 2015 JPEL had 87 separate fund interests, 21 co-investments and five fund of fund holdings, giving it exposure to more than 700 underlying companies. Most of the investments, or about 86 percent, have been made through the secondaries market as of December 2014.
“Secondaries investing enables JPEL to gain exposure to more mature private equity assets that offer an accelerated pace of distributions and net asset value growth,” the report disclosed.
JPEL’s NAV per share was $1.25 as of 28 February 2015.