Fortress Transaction and Realisation Share Class

RNS Number : 8901R

J.P. Morgan Private Equity Ltd

11 March 2016

 

J.P. Morgan Private Equity Limited
Carinthia House

9-12 The Grange

St Peter Port

Guernsey GY1 4BF

www.jpelonline.com

Notice to Shareholders

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·      J.P. Morgan Asset Management and Fortress Investment Group have completed the transfer of the JPEL investment management team

·      JPEL Announces Timeline for Implementation of Realisation Share Class

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GUERNSEY, 11 MARCH 2016

FORTRESS TRANSACTION COMPLETED

Further to J.P. Morgan Private Equity Limited's ("JPEL" or the "Company") announcements on 27 October 2015 and 8 December 2015 regarding the spin-out involving the investment management team led by Troy Duncan and Greg Getschow and transition of investment management of JPEL from J.P. Morgan Asset Management ("JPMAM") to an affiliate of Fortress Investment Group LLC ("FIG"), the Company has now been notified that JPMAM has completed the transaction with FIG (the "Fortress Transaction"). 

Today, JPEL signed an investment management agreement with FIG, which, other than provisions specifically reflecting the appointment of a new investment manager, is similar to the prior investment management agreement with JPMAM in all material aspects.  Accordingly, JPEL has terminated its investment management agreement with JPMAM as of today. 

As part of the Fortress Transaction, the entire investment management team that has been responsible for managing JPEL since its inception in 2005 led by Troy Duncan and Greg Getschow, has transitioned from JPMAM to the credit business of FIG.  There has been no change in the Company's underlying investment process, strategy, investment team or investment committee members as a result of the Fortress Transaction. 

The JPEL shares held by JPMAM have been transferred to funds managed by Fortress Investment Group.

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JPEL TIMELINE FOR IMPLEMENTATION OF REALISATION SHARE CLASS

JPEL Shareholders approved a special resolution at the 2014 Annual General Meeting which provided for the creation of Realisation Shares.  The Board of Directors has determined that it would be in the best interests of the Company and its Shareholders as a whole to delay the implementation of the conversion of US$ Equity Shares into Realisation Shares by those US$ Equity Shareholders electing to do so, to allow for the investment management team's transition to FIG to fully take effect.  The Board now intends to submit a prospectus to the United Kingdom Listing Authority ("UKLA") regarding the implementation of the Realisation Share Class by the end of March 2016 and release it to shareholders as soon as practicable once approved by the UKLA.  It was previously expected that the Company would implement the conversion process of US$ Equity Shares into Realisation Shares at the beginning of April 2016. 

The Board has further determined that any new investment made by the Company following the date of this announcement shall be allocated solely to the Continuation Share Class and not otherwise affect the Realisation Share Class.  The change in timeline will not impact the timing of any potential future distributions to Realisation Share Class shareholders.        

Full details of the implementation of the Realisation Share Class will be contained in a prospectus to be issued by the Company in due course.

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For further information please contact:

JPEL Private Equity Limited

Greg Getschow 

[phone]

[e-mail] 

Rosemary DeRise / Samantha Ladd Sughrue

[phone] / [phone] 

[e-mail] / [e-mail]

About JPEL Private Equity Limited

J.P. Morgan Private Equity Limited ("JPEL" or the "Company") is a Guernsey registered and incorporated, London Stock Exchange-listed, closed-ended investment company (LSE: JPEL, JPSZ).   The Company's capital structure consists of two classes of shares: US$ Equity Shares and one class of Zero Dividend Preference Shares due 2017.   

 

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