Third Point Investors Ltd TPIL Statement of Third Point's New Redemption Policy

 
TIDMTPOU TIDMTPOS 
 
25 May 2023 
 
TPIL Statement on Third Point's New Redemption Policy 
 
This announcement contains inside information. 
 
The Board of Third Point Investors Limited ("TPIL" or the "Company") wishes to 
update shareholders on certain amendments to Third Point LLC's ("Third Point" or 
the "Investment Manager") new redemption policy for Third Point Offshore, Ltd. 
(the "Master Fund"), the fund into which TPIL invests. 
 
Current market conditions have extended the expected timeline for private 
companies to list in the public markets. Considering this, Third Point has 
announced a change to its redemption policy to address the illiquidity of Legacy 
Private Investments[1] contained in its portfolio: 
 
  · Beginning June 30, 2023, redemptions from the Master Fund will be satisfied 
with (1) approximately 91% in cash, and (2) approximately 9% in a participation 
note ("Participation Note") representing the redeeming investor's pro rata share 
of the Master Fund's Legacy Private Investments as of June 30, 2023, and a small 
cash reserve.[2] 
  · It will be Third Point's priority to liquidate the Legacy Private 
Investments at appropriate levels as opportunities present themselves, and 
proceeds from these liquidations will be reinvested in the liquid portion of the 
Master Fund. 
  · In connection with the foregoing, holders of the Participation Notes will be 
subject to a management fee on the value of those notes at the same rate 
applicable to the interests being redeemed, but reduced by 0.50% per annum. For 
continuing investors in the Master Fund, the management fees charged with 
respect to their ownership of the Legacy Private Investments will similarly be 
reduced by 0.50% per annum (with no change to the management fees charged with 
respect to the rest of the portfolio). These changes will result in a small 
reduction in the current 1.25% management fee associated with TPIL shares. 
 
In thinking about its fiduciary responsibility to current, redeeming, and future 
investors generally, the Investment Manager believes this redemption structure 
offers the most equitable outcome to its investor base in its entirety. While 
Master Fund redemptions for the upcoming quarter-end are within the typical 
range, Third Point considers it prudent to enact this policy at the current 
moment given the sustained unusual conditions in the macro, rates and IPO 
environments. 
 
TPIL-related redemption requirements, including those associated with the 
ongoing share buyback programme and the potential tender offers in 2024 and 
2027, will be subject to the new redemption policy.  However, in order to 
satisfy TPIL's commitments in cash, a slightly higher redemption of Master Fund 
shares will be made. When such redemptions take place, they will result in the 
accretion of Participation Notes, which will modestly increase the Company's 
exposure to the Legacy Private Investments in the absence of liquidity events 
occurring within the Legacy Private Investments portfolio. 
 
Rupert Dorey, Chairman of the Board, commented: 
 
"The Board of TPIL acknowledges the measures and rationale taken by Third Point 
for amending the share structure and fee structure at the Master Fund. The 
separation of the liquid investments from the more illiquid private companies 
portfolio is a prudent measure that will ensure a more stable platform for 
investors while enhancing investor exposure to Third Point's core strategies and 
competencies. 
 
"Importantly, the new structure will not impact materially on TPIL's ongoing 
share buyback programme or on the proposed share tenders in 2024 and 2027. 
Assuming flat performance, the exposure to private companies would expect to 
increase from around 9% of NAV to 12% in the event that the 2024 tender was 
fully subscribed and the current buyback facility was fully utilised." 
 
- Ends - 
 
  Press Enquiries 
 
Third Point                         Buchanan 
 
Elissa Doyle, Chief Communications  Charles Ryland 
Officer and Head of ESG Engagement 
                                    charlesr@buchanan.uk.com 
edoyle@thirdpoint.com 
                                    Tel: +44 (0)20 7466 5107 
Tel: +1 212-715-4907 
                                    Henry Wilson 
 
                                    henryw@buchanan.uk.com 
 
                                    Tel: +44 (0)20 7466 5111 
 
Notes to Editors 
 
About Third Point Investors Limited 
 
www.thirdpointlimited.com 
 
Third Point Investors Limited (LSE: TPOU) was listed on the London Stock 
Exchange in 2007 and is a feeder fund that invests in the Third Point Offshore 
Fund (the Master Fund), offering investors a unique opportunity to gain direct 
exposure to founder Daniel S. Loeb's investment strategy. The Master Fund 
employs an event-driven, opportunistic strategy to invest globally across the 
capital structure and in diversified asset classes to optimize risk-reward 
through a market cycle. TPIL's portfolio is 100% aligned with the Master Fund, 
which is Third Point's largest investment strategy. TPIL's assets under 
management are currently $600 million. 
 
About Third Point LLC 
 
Third Point LLC is an institutional investment manager that actively engages 
with companies across their lifecycle, using dynamic asset allocation and an 
ethos of continuous learning to drive long-term shareholder return. Led by 
Daniel S. Loeb since its inception in 1995, the Firm has a 37-person investment 
team, a robust quantitative data and analytics team, and a deep, tenured 
business team. Third Point manages approximately $12.2 billion in assets for 
sovereign wealth funds, endowments, foundations, corporate & public pensions, 
high-net-worth individuals, and employees. 
 
[1] Legacy Private Investments is defined as Private Investments (investments 
made by the Master Fund that are traditionally considered venture capital or 
private equity) other than those with ongoing capital contributions. 
 
[2] The cash reserve will be used for fees and expenses, including management 
fees, costs related to currency hedging in respect of certain Legacy Private 
Investments and other applicable Fund operating expenses. 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
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