JZ CAPITAL PARTNERS LIMITED

Annual Report and Financial Statements

For the year ended 28 February 2021

Contents

Page

Who We Are

1

Performance and Results Highlights

2

Annual Review

Chairman's Statement

4

Investment Adviser's Report

6

Investment Review

13

Investment Portfolio

18

Directors' Report

Board of Directors

20

Report of the Directors

21

Corporate Governance

29

Directors' Remuneration Report

34

Audit Committee Report

35

Independent Auditor's Report

39

Financial Statements

Statement of Comprehensive Income

48

Statement of Financial Position

49

Statement of Changes in Equity

50

Statement of Cash Flows

51

Index to Notes to the Financial Statements

52

Notes to the Financial Statements

53

Other Information

Company Advisers

84

Useful Information for Shareholders

85

Notice of Annual General Meeting

90

Form of Proxy

97

Who We Are

Corporate Objective

JZ Capital Partners Limited ("JZCP" or the "Company") seeks to maximise the value of its investments in its US and European micro-cap companies and US real estate, to repay debt and to return capital to shareholders.

About Us

JZCP has investments in US and European micro-cap companies, as well as real estate properties in the US.

JZCP's Investment Adviser is Jordan/Zalaznick Advisers, Inc. ("JZAI") which was founded by David Zalaznick and Jay Jordan in 1986. JZAI has investment professionals in New York, Chicago, London and Madrid.

In August 2020, the Company's shareholders approved changes to the Company's investment policy. Under the new policy, the Company will make no further investments except in respect of which it has existing obligations and to continue to selectively supporting the existing portfolio. The intention is to realise the maximum value of the Company's investments and, after repayment of all debt, to return capital to shareholders.

JZCP is a Guernsey domiciled closed-ended investment company authorised by the Guernsey Financial Services Commission. JZCP's shares trade on the Specialist Fund Segment of the London Stock Exchange.

1

Performance and Results Highlights

Realisations During Year

Realisations of investments in the year ended 28 February 2021 total $139.5 million including:

  • $87.7 million from the partial realisation of six US micro-cap portfolio assets through a secondary sale;
  • $13.6 million from the sale of Greenpoint (real estate);
  • $9.4 million from the sale of ABTB;
  • $9.4 million from the sale of Eliantus (European micro-cap); and
  • $9.2 million fron the sale of K2 Towers II.

Net Asset Value ("NAV") per Share and Total NAV Returns

NAV per share at 28 February 2021 was $4.25 (29 February 2020: $6.14). Total NAV Returns per share are shown below and also on an 'adjusted' basis which presents the Company's NAV return, before the effect of dilution from

capital raised1 and subsequent appreciation from the buy back of ordinary shares at a discount.

1 Year

3 Year

5 Year

7 Year

Total NAV return

-30.8%

-57.4%

-56.9%

-54.4%

Total NAV return (Adjusted)1

-30.8%

-58.2%

-57.6%

-50.7%

Following table presents the Company's annual NAV performance by sector:

All NAV returns above are presented in US dollar terms and on a dividend reinvested basis and for periods ended 28 February 2021.

1 On 30 September 2015 a Placing and Open Offer of Ordinary shares resulted in 18,888,909 Ordinary shares being issued at the price of £4.1919.

2

Performance and Results Highlights (continued)

Shareholder Returns

JZCP's share price at 28 February 2021 was £0.78 (29 February 2020: £2.58). At the time of the announcement of

these results, JZCP's ordinary share price had risen to £1.2651

1 Year

3 Year

5 Year

7 Year

Total Shareholder return

-69.8%

-82.7%

-79.3%

-79.7%

NAV to Market Price Discount

The data below shows the theoretical discount of the year end share price and the year end NAV per share and does not factor in the timing delay in announcing the year end NAV to the market.

Discount

28.2.2014

29.2.2016

28.2.2018

29.2.2020

28.2.2021

27.2%

45.5%

37.7%

46.3%

74.3%

Total NAV return, Total Shareholder returns, NAV to Market Price discount, are classified as Alternative Performance Measurements under European Securities and Market Authority guidelines and are further explained on page 85 under Useful Information for Shareholders.

1JZCP's Ordinary Share price at close 17th May 2021 (London Stock Exchange)

3

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Disclaimer

JZ Capital Partners Ltd. published this content on 27 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2021 07:44:04 UTC.