The deal is for 38 mid-market buyout co-investments and will be funded using £36.7m of dollar equity shares and £19.8m of a new class of 2017 zero dividend preference shares for the SPL funds’ assets.
JP Morgan said the acquisition was expected to generate positive growth and distributions from near-term exits and repositions JPEL’s portfolio, adding mid-market buyout assets, primarily in the UK, Germany and France.
The deal is with Private Equity (PE1) IC Ltd, SPL Private Equity (PE2) IC Ltd, and SPL Integrated Finance (PE3 IC Ltd).
“This acquisition is part of JPEL’s strategy of continually repositioning its private equity portfolio. Currently, JPEL’s existing portfolio is weighted towards lower-middle market companies and the addition of the co-investment portfolio enables JPEL to gain access to middle market companies managed by leading private equity sponsors,” said JPEL chairman Trevor Ash.
“JPEL anticipates that the co-investment portfolio will provide JPEL with positive growth and distributions from near term exits as well as from potential asset sales,” Ash said. “It is likely that any distributions would be reinvested by JPEL in opportunistic secondary investments or distributed to shareholders through JPEL’s tender facility.”
