Jordan/Zalaznick Advisers (JZAI), the investment adviser to JZ Capital Partners, has closed the second and final round of fundraising for JZI Fund III, the successor fund to the EuroMicrocap Fund 2010, with EUR400 million of commitments.
The fundraising surpassed its EUR350 million target, receiving strong backing from institutional investors and family offices from across Europe and North America as well as existing EMC 2010 investors. Fund III will invest principally in lower middle market companies in Western Europe, generally focusing on businesses with enterprise values between EUR15 million and EUR150 million and the ability to generate EBITDA of EUR5 million to EUR20 million per annum.
As previously disclosed, JZCP has committed EUR75 million to Fund III. In addition, JZCP’s co-founders and investment advisers, David Zalaznick and Jay Jordan, along with the European management team have committed EUR25 million. Fund III will enable JZCP to expand and diversify its investment portfolio in Western Europe.
As of 31 December 2015, Fund III has made five platform investments: Fincontinuo, a niche consumer finance company in Italy; Petrocorner, a petrol station build-up in Spain; S.A.C, a van leasing company in Denmark; Collingwood, a niche auto insurer in the UK; and My Lender Oy, a consumer lending platform in Finland.
Zalaznick says: “Our European lower middle market strategy and JZAI’s track record in the region was compelling for investors. We are pleased to have attracted an impressive group of blue-chip institutional investors to be our partners.”
Building on its established track record, JZAI will continue to invest in Western Europe, where it has built an exciting portfolio of growing businesses in the financial services, business process outsourcing and niche manufacturing sectors, and sees good quality investment opportunities for the future. This final close underpins the significant investment opportunity that exists in the lower middle market in Western Europe and demonstrates the confidence investors have in JZAI’s ability to source accretive long-term investments in the region.
