Portland JSX posts losses, Merqueo closes operations
Published:Wednesday | January 21, 2026 | 12:06 AM
Portland JSX Limited reported losses for its third quarter ended November 2025, as declines in the value of its investment portfolio weighed on results. The portfolio now stands at roughly half its value four years ago.
Its outlook however remains fairly positive as it plans to monetise key investments, largely held through Portland Caribbean Fund II (PCFII).
“We will evaluate our options based on any distributions received,” stated non-executive chairman Ricardo Hutchinson in response to Financial Gleaner queries when asked if the entity would explore legal options.
During the financial year, one of its investments shuttered operations. Merqueo, a once promising Colombian e commerce startup, ceased business “due to insufficient capital and limited runway”, according to Portland’s financials. The company added that “shareholders approved the initiation of the company’s liquidation process”. The collapse further reduces the likelihood of Portland recovering its more than US$7.5 million investment, which had already been impaired.
“We are awaiting the outcome of the liquidation process and will act according based on the outcome,” stated Hutchinson in response to Financial Gleaner queries when asked if the entity would explore legal options.
Income statement
Portland posted a net loss of US$1.6 million for the quarter, reversing a US$1.8 million profit in the same period a year earlier. For the nine months ended November 30, cumulative losses widened to US$3.7 million, compared with a US$745,570 loss a year earlier.
The company, listed on the Jamaica Stock Exchange, is held primarily by Jamaican pension funds seeking exposure to Latin American and Caribbean private equity.
PCFII
Those investments are largely channelled through PCFII, chaired by businessman Michael Lee Chin and managed by Portland Private Equity. While PCFII’s performance isn’t publicly disclosed, Portland JSX’s results provide a proxy, as it invests alongside the larger fund. Net assets fell to US$16.1 million, down 19 per cent from US$19.8 million at the start of the financial year. Accumulated deficits total US$9.6 million. Net assets peaked at US$32 million in 2022, driven by PCFII’s value, which reached US$35.8 million that year. As of November 30, 2025, the investment stood at US$15.4 million, down 17 per cent from US$18.5 million in February. PCFII, structured as a 10 year fund, has been extended twice, most recently to July 2026, underscoring difficulties in exiting holdings at favourable valuations. But Hutchinson was optimistic about the liquidation of PCFII this year.
“As PCF II is in the process of liquidating its investments, we are assured that the managers are targeting the highest value they can receive in the markets. For 2026,” he stated.
Merqueo
Two years ago, Portland JSX wrote down its direct investment in Merqueo to US$1 from US$4.5 million. It also held an indirect stake of about US$3 million through PCFII, representing 12.7 per cent of the fund at the time. Merqueo, a vertically integrated e grocer, previously attracted investor interest during the pandemic and advanced far enough to pursue a US Nasdaq listing. But volatile markets and waning investor appetite for unprofitable tech firms forced it to abandon those plans. By early 2025, Portland said Merqueo was “undergoing a reorganisation” dependent on “raising additional capital” warning that “any repayment of debt notes and factoring facilities is uncertain at this time and so is the medium of repayment”.
Cash flow
Over the nine months, Portland depleted one third of its cash, falling to US$3.6 million from US$5.1 million. It also reported negative operating cash flow, though it invested US$500,000 via a convertible note in advertising firm Visual Vibe.
In 2026, Portland faces two debt maturities: a J$600 million (US$3.75 million) bond due in April, issued by VM Investments, and a redeemable preference shares callable as early as July 30. The preference shares have been written down to US$1.00 from US$5 million, though the company owes US$948,000 in accumulated dividends, its books indicate. The shares were issued in 2021 to fund an investment in Outsourcing Management Ltd., which owns outsourcing firm Itel, but subsequently impaired.
Hutchinson indicated that the company holds sufficient cash to make payment with the option of raising capital.
“The company is always looking at options to raise additional capital however to date no decision has been made as yet about future capital raise. We are mindful of the maturity and actively looking at all options, however we don’t believe this possess any significant risk to the company,” stated Hutchinson.
Top shareholders in Portland JSX include GraceKennedy Pension Fund with 12.9 per cent, ATL Group Pension Fund with 10 per cent, and Prime Asset Management’s JPS Employees Superannuation Fund with 5 per cent.