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Portland JSX Limited, a private equity fund linked to the prominent Jamaican-Canadian billionaire Michael Lee-Chin, among the world’s Black billionaires, faced a net loss of $7.23 million during the first quarter of its 2024 fiscal year.
The significant loss incurred by the private equity fund during the initial three months of its 2023 fiscal year resulted primarily from write-downs related to a substantial $7.02 million write-off of the online grocery store, Merqueo.
Chairman Douglas Hewson stated that the decline in value was due to market volatility, as Merqueo struggled in the wake of the collapse of Silicon Valley Bank and two other global banks. Despite the setback, Hewson expressed confidence in the fund’s portfolio, believing that the risk of further value declines has diminished post-write-downs.
“Though Merqueo faces significant challenges in the current market environment, we are actively working on recovering its value,” Hewson said, highlighting the fund’s dedication to restoring the investment’s potential.
Despite the recent loss, Portland’s financial position and liquidity remain strong, boasting a book value of $24 million and a market capitalization of $22 million. The company’s market capitalization reflects a valuation of 0.9 times its book value, consistent with industry peers.
Meanwhile, Lee-Chin, the founder of Portland Private Equity, the private equity fund company in charge of Portland JSX Limited, has experienced a decline of $100 million in his net worth since the start of the year. Despite this reduction, Lee-Chin maintains his status as one of the world’s Black billionaires, with a net worth of $1.4 billion.
As the 2024 fiscal year continues, the Portland JSX Limited team is focused on strategic efforts to enhance the fund’s portfolio and position it for future growth.
With a strong financial foundation and the guidance of its influential founder, the private equity fund remains committed to navigating the challenges of the market.
