Jpel Priv Eqty Regulatory News (JPEL)

8 Oct 2007 11:59

Bear Stearns Private Equity Limited08 October 2007 Bear Stearns Private Equity LimitedSt Martin's House. Le Bordage, St Peter Port, Guernsey GY1 4AU 8 October 2007 Notice to Shareholders in Bear Stearns Private Equity Limited Regarding theOptional Bi-Annual Redemption Facility Bear Stearns Private Equity Limited (the "Company") gives the following noticeto its shareholders. The Directors have the discretion to resolve to give shareholders theopportunity to redeem up to 15% of the shares of the relevant share class inissue as at the start of the relevant financial year. At the Company's boardmeeting held on 11 September 2007, the Board of Directors considered theappropriateness of offering shareholders the opportunity to participate in thebi-annual redemption facility, whereby shareholders may redeem shares at NetAsset Value ("NAV") as of the last business day of December. The Board ofDirectors resolved to operate the redemption facility and accordingly to offershareholders, if they so wish, the opportunity to redeem up to 15% of equityshares (the maximum remaining amount that can be redeemed in respect of thisfinancial year) and up to 15% of ZDP shares. Company Performance The following represents the Company's key performance highlights sinceinception, for the fiscal year and the fiscal quarter: • Strong, Consistent Returns Since Inception. Following the conclusion of its second full fiscal year, the Company has continually provided positive returns on invested capital in each quarter since inception. In absolute terms, the Company has increased unaudited NAV per Equity Share by a net 52% as at its fiscal year ending 30 June 2007, or an annualized 23% IRR on a net basis • Significant Annual NAV Growth. The Company's unaudited NAV per Equity Share increased by a net 30.3% to a record $1.55 for the fiscal year ending 30 June 2007. This represented a $0.36 increase over the fiscal 2006 NAV of $1.19 per share • Strong Quarterly Private Equity Performance. For the June quarter, the private equity portfolio increased by 8.8%. Due to the successful follow-on Equity Share offering completed on 2 May 2007, the increased outstanding cash balance tempered NAV per share growth to a more moderate 3.3% (cash on hand following the offering represented 66% of total NAV) Share Price Performance The share price of the Equity Shares traded at a premium to NAV for much of thefinal quarter of the fiscal year ended 30 June 2007 (an average of +6.0%),however the Equity Shares ended the most recent September quarter at a discountof 6.5%, outperforming an average 7.8% discount of comparable UK-listed privateequity vehicles. ZDP Shares ended the September quarter at a premium, closingat a price of 48.5p per share versus the latest reported NAV of 47.81p. Investment Adviser's Report The Company ended the 2007 fiscal year with $505.9 million in net assets, and iswell positioned now to capitalise on current trends in the market. Subsequentto the recent follow-on offering that raised approximately $309 million, theCompany had $265.4 million in bank deposits available for new investments as theCompany continues to seek out new opportunities. Prior to and as a result ofthe offering, the year witnessed a high level of investment activity,complemented by a consistent stream of distributions from existing investments. The Company purchased interests in 25 private equity funds and made fouradditional co-investments during the fiscal year. These investments representedtotal commitments of $199.3 million compared to total commitments of $140.7million in the fiscal year ended 30 June 2006. After starting the fiscal yearwith $89.9 million in private equity assets, the Company subsequently concludedfiscal 2007 with $243.5 million. In addition, the new investments had theeffect of (i) reducing the Company's overall exposure to the U.S. buyout marketwhile simultaneously increasing its European and Asian asset base, and (ii)expanding the Company's position in the mezzanine and distressed private equitymarket. With the potential of an extended credit crunch currently hanging over theglobal debt capital markets, the Company remains optimistic that it is wellpositioned to perform in a turbulent market environment. The Company hasfocused on lower middle market transactions purchased at discounted multiples,and pursued several investments with the specific purpose of benefiting from atightening credit market over the course of the latest fiscal quarter. The Company now stands with sufficient capital to opportunistically pursuetransactions resulting from recent market fluctuations. In the near term, theCompany may opportunistically deploy capital in special situations investmentsand seek to acquire assets that are deemed value investments. The Company willcontinue to emphasize the development of a diverse, seasoned pool of privateequity assets consistent with its current portfolio of 66 funds and over 900companies. Optional Bi-annual Redemption of up to 15% of Shares Shares may be redeemed at their NAV on 31 December 2007 (the "Redemption Date").Once the Company has calculated the NAV as at the Redemption Date, proceedswill be payable to shareholders within 10 Business Days. If the number ofredemption requests for the relevant share class received exceeds the limits of15% of Equity Shares or 15% of ZDP shares, each shareholder's redemption requestwill be reduced pro rata. If you are in any doubt as to the action to be taken, you are recommended toimmediately seek your own personal financial advice from an appropriatelyauthorised independent financial adviser. Shareholders with certificated shares may make redemption requests on aredemption notice form, a copy of which is available from the Administrator atthe address set out below. The completed redemption notice form must bedelivered to the Company, at the Administrator's address below, no later than 31October 2007, 60 days from the Redemption Date. Shareholders with uncertificated shares may make redemption requests throughCREST by no later than 31 October 2007 in accordance with CREST procedures. Redemption requests should be made for a number of shares rather than a Sterlingor US Dollar amount. Only a whole number of shares may be redeemed, unless theredemption request would result in a residual holding of less than one share, inwhich case the request should include the residual fraction of the share. A redemption notice, once served on the Company or its agents may not bewithdrawn without the consent of the Company. For further information regarding the bi-annual redemption facility, pleasecontact HSBC Management (Guernsey) Limited at +44 1481 759 000591,HMGPrivateEquity@Hsbc.com . Paul WrenchManaging DirectorHSBC Management (Guernsey) LimitedSt Martin's House, Le Bordage, St Peter Port, Guernsey, GY1 4AU A notice to shareholders regarding the above has been posted to shareholders andsubmitted to the UK Listing Authority and will be available shortly forinspection at the UK Listing Authority's Document Viewing Facility, which issituated at: Financial Services Authority25 The North ColonnadeCanary WharfLondonE14 5HSTel: 0207 676 1000 Certain information contained in this announcement is regulated information forthe purposes of Chapter 6 of the Disclosure and Transparency Rules. END This information is provided by RNS The company news service from the London Stock Exchange