JZCP posts NAV growth

NAV total return reached 3.4%, including NAV appreciation and reinvested dividends, with NAV per share increasing to $9.87 to give an overall NAV of $641.7m.

"We're very happy with the results," David Zalaznick, founder and investment adviser, told unquote". "We've reported NAV growth for 17 out of the last 18 quarters. Realisations have been very active and returns have been strong. Everything is positive."

The company will distribute an interim dividend of 14.5 cents per share for the six months ended 31 August 2013, based on the policy to distribute 3% of NAV annually.

JZCP trades at a 26% discount to last night's close, wider than the average of direct private equity funds. "We are frustrated as you can imagine. We have a tremendous balance sheet and all trends have an upward trajectory. We hope the market recognises that and our discount narrows," said Zalaznick.

Proceeds for the quarter totalled $69.3m, following the divestment of a US micro-cap investment and several refinancings. 

The global micro-cap portfolio is valued at 7.1x EBITDA after a 26% marketability discount. The European micro-cap portfolio is leveraged at less than 2x EBITDA.

Spanish energy reseller Factor Energia made the largest contribution to NAV growth of 14 cents per share, while this gain was partially offset by a four cent decrease at the Spanish telecom provider Xacom.

The investor has backed seven companies across the US and Europe in the last quarter, including UK-based Winn Group and German firm Fidor Bank. A €5m capital commitment was also made to Spanish speciality packaging firm One World Packaging in April, in exchange for a 70% stake.

European companies now account for 18.5% of investments, with six companies based in Spain.

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