JZ Capital Partners has sold six European investments for €96.3m. These investments are held through the EuroMicrocap Fund 2010, L.P. The transaction will be completed in two phases. Firstly, on February 1, 2016,
JZCP sold its stake in the first five assets (Docout, Ombuds, One World Packaging, Toro Finance, and Xacom) for €75.2 million. Secondly, JZCP will sell its stake in Winn for €21.1 million when regulatory approval is received
(estimated 4-6 months). Once both phases are completed, JZCP expects to have realized an aggregate gross multiple of invested capital of 1.6x in euros (1.3x after accounting for FX losses).
The sale was undertaken as a secondary transaction and priced at net asset value. 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 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 €84.2 million and an aggregate gross unrealized multiple on invested capital of 3.1x in euros (2.6x after accounting for FX losses) at the secondary transaction’s valuation date.
They say the announcement marks further progress made with several initiatives completed in the past year which have secured repayment of the 2016 ZDPs and allowed the Company to take advantage of a healthy investment pipeline, including:
- $181.5 million raised via the issuance of new ordinary shares (net GBP77m / $117.8m) and rollover of approximately GBP41.6 million ($63.7m) of the 8% ZDPs due 2016 into a longer-dated ZDP with a much lower yield.
- $124.2 million in proceeds from the full realization of four US portfolio companies.
Together with the secondary sale today, the Company has realised or raised more than $410 million in the past year.
JZCP : JZ Capital Partners sells six European investments