Date: September 10, 2019
Eppley Limited has completed its first full five years as a public company and Chairman, P.B. Scott stated that “in no year since our listing has our return on equity been less than 10%.” The Company has grown considerably since its listing as, Eppley’s net profit was $15 million. In addition, P.B. Scott, highlighted that, “our net profit last year was roughly 8x that amount.” Furthermore, Mr. Scott stated, “Eppley has built an asset management business to complement our proprietary investments and now have a predictable stream of fee income in addition to our net interest income.” Eppley produced a commendable performance for the year ended December 31, 2018, improving in tandem with the Company’s growth. Net profit was up 74% from $120.48 million to $69.22 million in 2018. Mr. P.B. Scott, at the 2019 Annual General Meeting stated that, “last year Eppley purchased a company called Fortress Fund Managers.” This is a Barbados- based investment manager and was renamed Eppley Caribbean Property Fund Limited SCC, which was recently listed on the stock exchange.
Chairman highlighted that Eppley intends to refine the principles that have been the source of our performance:
- “Committing to a clear investment strategy. In our case, the insight that addressing inefficiencies in Caribbean financial markets produces high returns adjusted for the risk of loss.”
- Investing only in areas where the Company has a competitive advantage. For us that’s investing in private markets like credit, mezzanine and commercial real estate where our skills of originating, structuring and negotiating transactions are most highly rewarded.
- Respecting capital above all else. We’re privileged to manage investments for the leading institutions in our region, individuals we admire and our fellow directors, employees and their families. Our goal isn’t just to deliver returns for these partners but to do so with professionalism, transparency and candor.
- Compounding talent. At a fundamental level, a business is a collection of people organized around a common goal. Retaining our people and creating a culture that reinforces our values let’s us compound our expertise in addition to our capital.”
Outlook:
- Grow by continuing to work with investors in the Caribbean and beyond seeking to pursue these assets alongside an established manager.
- The proprietary portfolio will remain an important part of the business
- Grow mostly by managing funds for investors rather than investing in its own balance sheet.
- Expect to have fully deployed the Caribbean Mezzanine Fund later this year ahead of schedule and in line with targeted returns.
- Grow the size of the Eppley Caribbean Property fund and to diversify its holdings throughout the English-speaking Caribbean. Furthermore, the intention is to cross-list the fund on the Jamaica Stock Exchange.
Moreover, Mr. P.B. Scott stated, “our focus in 2019 will be on continuing to grow our asset management business by increasing the scale and geographic scope of the Eppley Caribbean Property Fund and by deploying the remaining capital in the Caribbean Mezzanine Fund.”
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