JZ Capital Ptnrs Ltd JZCP Announces Exit of Factor Energia for EUR69.7 Million

 
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 
 

(END) Dow Jones Newswires

November 06, 2017 02:00 ET (07:00 GMT)