Proven looks to close two private equity deals

PROVEN Investments Limited (PIL) expects to complete two additional private equity deals before year-end.

The firm made the announcement amid reporting solid first-quarter results for the period ending June 30, 2013, with a 25 per cent increase in consolidated net revenue to US$2.6 million, and a 22 per cent improvement in net profit to US$1.03 million for the period compared with the same three months last year.Johann Heaven, the senior vice-president of investments at Proven, said that the investment company’s focus is now on diversifying its revenue streams and building on its private equity portfolio.“These deals will fit nicely in the portfolio and we expect them to provide an above-average return to our shareholders. Our preferred avenue for investment is through mezzanine debt, which is a hybrid of debt and equity financing,” Heaven said.“This financing is in the form of debt capital, where we have the rights to convert to an ownership or equity interest in the company, if we so choose in the future,” he continued.“We are targeting companies that have a solid track record in their industry with an established reputation and product, history of profitability and viable expansion plans for the business. We are seeing numerous opportunities right now and the deal flow has increased considerably over the past few months.”Heaven said that Proven Wealth Limited (PWL) has been growing its off-balance sheet business steadily and has been performing well. The acquisition of the broker dealer licence by PWL last November has already begun to bear fruit, he said, as the company executes on its objective of listing companies on both the Junior and Main market of the Jamaica Stock Exchange.PWL successfully raised US$2 million in preference shares for a major corporate during the quarter and will be listing these shares on the Jamaica Stock Exchange before the end of the calendar year, Heaven said.Asset Management Company Limited (AMCL) during the quarter contributed US$160,000 in net revenue to the Proven Group. The company, which offers consumer, personal, student and micro-business loans, saw further growth in its loan portfolio since the start of the financial year as it continues to expand its product offerings and reach through marketing and other initiatives. AMCL has been aggressive in the retail loan space and is seeing the rewards of its efforts with a doubling of the portfolio in just one year.A major project planned for Proven REIT Limited, of which PIL is majority owner with an 85 per cent stake, is scheduled to kick off before the end of the year. Proven REIT Limited provided net rental income of US$6,853 for the quarter under review. Though minute in the context of total revenue, they are in the process of evaluating other properties and expect that this subsidiary will have a very profitable year.PIL reported that its bottom line benefited from robust gains in securities trading and foreign exchange translation during the quarter. Increases in securities trading climbed to US$1.04 million from US$376,000 a year earlier, on the heels of the continued rebound in global asset prices. PIL saw a more than six-fold increase in its foreign exchange translation gains to US$388,000 due to positive movements in their foreign exchange positions. HEAVEN… These deals will fit nicely in the portfolio and we expect them to provide an above-average return to our shareholders

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Proven looks to close two private equity deals