JZ Capital Partners has completed the sale of six of its European investments – held through the EuroMicrocap Fund 2010 (EMC 2010) – to a major financial institution for EUR96.3 million (USD104.6 million).
This transaction will be completed in two phases. Firstly, on 1 February, 2016, JZCP sold its stake in the first five assets (Docout, Ombuds, One World Packaging, Toro Finance, and Xacom) for EUR75.2 million. Secondly, JZCP will sell its stake in Winn for EUR21.1 million[1] when regulatory approval is received (estimated 4-6 months). Once both phases are completed, JZCP expects to have realised an aggregate gross multiple of invested capital (“MOIC”) of 1.6x in constant euros[2] (1.3x after accounting for FX losses).
The sale was undertaken as a secondary transaction and priced at net asset value (NAV). In addition to validating the Company’s NAV, this transaction provides JZCP with significant liquidity to pursue further investment opportunities across its three portfolios (US microcap, European microcap and real estate).
JZCP sold four out of the six companies at premiums to cost. Had these four companies been sold separately, they would have generated a two-times aggregate gross MOIC in constant euros (1.7x after accounting for FX losses). The other two investments were sold at a discount to cost, but at JZCP’s current NAV.
Furthermore, JZCP will hold onto its equity stake in the three remaining companies in EMC 2010 (Factor Energia, Fidor Bank, and Oro Direct), which had an aggregate fair value of EUR84.2 million and an aggregate gross unrealised MOIC of 3.1x in constant euros (2.6x after accounting for FX losses) at the secondary transaction’s valuation date.
David Zalaznick, JZCP’s Founder and Investment Adviser, says: “We have been working for the past year on building the liquidity of JZCP for two important reasons: to raise capital for new investments ahead of realisations and to have sufficient funds to repay the balance of the ZDPs due June 2016. In the past fiscal year, we have realised or raised more than USD410 million, a significant achievement given our market cap is circa USD480 million and we continue to trade at a circa 40 per cent discount to NAV.”
ign:none;text-autospace:none'>"We are very pleased to welcome Paul to V&E at a time when the focus on London has never been stronger," says London office managing partner Alex Msimang. "From moving into our brand new office space earlier this week to enhancing our corporate group capabilities, we look forward to building on this momentum."
