JZ Capital Ptnrs Ltd JZCP Announces Exit of Factor Energia for EUR69.7 Million
November 06 2017 - 1:00AM
UK Regulatory
TIDMJZCP TIDMJZCC TIDMJZCN
JZ CAPITAL PARTNERS LIMITED
JZ CAPITAL PARTNERS ANNOUNCES FACTOR ENERGIA EXIT FOR GROSS PROCEEDS OF EUR69.7
MILLION
Transaction represents a gross 9.2x multiple of invested capital and 42.4%
internal rate of return
06 November 2017
JZ Capital Partners Limited (LSE:JZCP.L "JZCP" or the "Company"), the London
listed fund that invests in US and European micro-cap companies and US real
estate, today announces the realization at net asset value ("NAV") of its
majority equity interest in Factor Energia S.A. ("Factor"), held through the
EuroMicrocap Fund 2010, L.P. ("EMC 2010"). The transaction enterprise value was
approximately EUR120 million.
Factor is being acquired by a public-sector asset manager, on behalf of a major
Canadian pension fund. As part of this transaction, JZI Fund III, L.P. ("Fund
III"), in which JZCP is an approximately 18.8% limited partner, has agreed to
invest EUR20 million alongside the majority owner and Factor management,
representing approximately 25% of the business' fully diluted equity
ownership.
Founded in 1999, Factor is a leading independent supplier of electricity to
small and mid-sized companies in Spain. Taking advantage of distressed
valuations at the height of the financial crisis, JZCP entered the Spanish
market through its investment in Factor in July 2010 and has since worked with
Factor's Founder and CEO, Emilio Rousaud, to significantly scale the business.
Supported by the deregulation of Spain's electricity supply market and the
recovery of the domestic economy, Factor has experienced a period of
significant transformation under JZCP's ownership, growing its customer base
from approximately 4,000 to 45,000 and reported revenues from approximately EUR68
million to more than EUR370 million.
JZCP invested a total of approximately EUR7.6 million in Factor and is expected
to receive total gross proceeds (before carry) of approximately EUR69.7 million
from the sale (including deferred payments and interim distributions received
over the course of the investment), representing a gross multiple of invested
capital ("MOIC") of approximately 9.2x and a gross internal rate of return
("IRR") of approximately 42.3%.
Across the six Spanish portfolio companies it has sold to date (including
Factor), JZCP has realized approximately EUR144.9 million on an investment of
approximately EUR60 million. These six transactions represent a gross MOIC of
2.4x and a gross IRR of 23.2%. JZCP is still highly committed to the Spanish
region, holding four Spanish portfolio companies through its limited partner
interest in Fund III (including Factor), which continue to perform in line with
expectations.
David Zalaznick, JZCP's Founder and Investment Adviser, commented: "We're
delighted to announce the successful realization of Factor Energia. As we
continue to focus on narrowing the discount to NAV at which JZCP's ordinary
shares trade, our ongoing ability to realize key assets at NAV further
validates the true value of the Company's portfolio. We are excited about
Factor's future and the next chapter of its history through JZCP's investment
in JZI Fund III, L.P. We continue to see exciting micro-cap investment
opportunities in Spain and look forward to deploying further capital in the
region."
Miguel Rueda, Senior Partner of JZAI's London office, commented: "A lot has
been achieved over the seven years we have owned Factor Energia. During this
time, we have strengthened the company's market position and grown revenues and
profits substantially. We believe Factor still has considerable upside
potential and look forward to continue working closely with management via our
minority investment in Factor through JZI Fund III, L.P."
Ends
For further information:
Ed Berry / Kit Dunford +44 (0) 20
3727 1143
FTI Consulting
David Zalaznick +1 212 485
9410
Jordan/Zalaznick Advisers, Inc.
Rebecca Booth +44 (0)
1481 745189
JZ Capital Partners
About JZCP
JZ Capital Partners ("JZCP") is one of the oldest closed-end investment
companies listed on the London Stock Exchange. It seeks to provide shareholders
with a return by investing selectively in US and European microcap companies
and US real estate. JZCP receives investment advice from Jordan/Zalaznick
Advisers, Inc. ("JZAI") which is led by David Zalaznick and Jay Jordan. They
have worked together for more than 35 years and are supported by teams of
investment professionals in New York, Chicago, London and Madrid. JZAI's
experts work with the existing management of micro-cap companies to help build
better businesses, create value and deliver strong returns for investors. For
more information please visit www.jzcp.com.
END
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