The J.P. Morgan Private Equity fund received distributions of approximately USD18m in the second quarter of 2010, more than three per cent of its private equity portfolio value.
Capital calls for the quarter continued to remain low at USD3.2m, less than one per cent of the private equity portfolio value.
The fund has continued to emphasise investments in companies with rational debt levels. Its top 35 buyout holdings had a weighted average net debt/Ebitda level of 1.9x.
The weighted average LTM revenue grew by 9.3 per cent based on the fund’s largest underlying buyout investments. The weighted average LTM Ebitda grew by 18.1 per cent based on its largest underlying buyout investments.
Troy Duncan, co-portfolio manager of J.P. Morgan Private Equity, says: “Despite the declines in the public equity markets and extreme foreign exchange volatility that marked the second quarter, JPEL’s private equity portfolio continued to show positive signs of growth. We were able to benefit from the ongoing market uncertainty by closing several opportunistic transactions in the debt market.”
The fund is currently working on the later stages of due diligence on several transactions it hopes to close over the next two quarters.
It has over USD5.34 of private equity assets and cash for every USD1.00 of unfunded commitments. Current cash and marketable securities were USD122.9m at 30 June 2010.
