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JZCP expands European portfolio with UK and Germany investments

JZ Capital Partners (JZCP), a private equity fund that invests in high quality US and European micro cap companies, has expanded its European portfolio by making two micro cap investments in the UK and Germany.

 
JZCP has co-invested GBP9m to acquire 36 per cent of the Winn Group, which specialises in personal injury cases and is a UK legal services firm. It also provides replacement car hire, credit repair advice and medical treatment services. The Winn Group was founded in 2002 and employs nearly 300 people in Newcastle.
 
Souter Investments, the investment vehicle of Sir Brian Souter, the co-founder and chairman of Stagecoach Group, has made a co-investment to acquire 24 per cent of the firm. The existing management team will retain a 40 per cent stake.
 
The Winn Group generated revenues of GBP40m in the year to 31 March 2013.
 
JZCP has also invested EUR7.75m to acquire 25.2 per cent of Fidor Bank AG, an online German bank. It was founded in 2003 and is one of the only banks in Europe to allow customers to transfer money through social media. It also provides deposit and savings accounts, foreign exchange, a credit card and crowdfunding, which enables small businesses to secure funding from individual lenders. The bank’s deposits in the year to 31 March 2013 have almost doubled and JZCP’s investment and experience will help Fidor Bank to expand globally.
 
Fidor Bank currently has 200,000 customers and is listed on the Open Market of the Frankfurt Stock Exchange. The acquisition has been approved by the Federal Financial Supervisory Authority (BaFin).
 
David Zalaznick, JZCP’s founder and investment adviser, says: “We continue to see attractive opportunities in Europe and are delighted to be able to expand our portfolio by making investments in two growth companies, Winn Group in the UK and Fidor Bank in Germany.
 
“Both Winn Group and Fidor Bank are profitable high quality companies where we can work with the existing management to generate additional growth. We look forward to working with our co-investor Souter Investments and the management teams of both companies over the coming years.”
 
Jeff Winn, the Winn Group’s founder, says: “This investment is recognition of the excellent business we have built up and confidence that Winn Group will further develop its offering.
 
“We aim to expand the business significantly in the next few years and this investment gives us the backing to do that. Winn Group is dedicated to offering the best service for its clients and the best working environment for its employees.”
 
Matthias Kröner, Fidor Bank’s chief executive, says: “We look forward to continue developing Fidor to become a market leader in the on-line banking sector, helped by the experience of JZCP’s management team.”
 
JZCP made the acquisitions through its 75 per cent shareholding in the European Microcap Fund.

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