11th Nov 2013 10:35
LONDON (Alliance News) - JZ Capital Partners Limited Monday said it has teamed up with Avenue Capital Group to launch a EUR400 million finance company in Spain.
The London-listed private equity fund, which invests in US and European micro-cap companies, said the resulting vehicle, Toro Finance, will provide short-term working capital, via invoice financing, to small- and medium-sized suppliers of major Spanish companies.
JZCP is making a EUR25 million investment through its European Micro Cap fund, which will give it and Toro's management a 50% stake in the company.
Avenue Capital, which specialises in distressed and undervalued debt and equity and manages USD12.3 billion in assets, has invested over USD11 billion in Europe over the past decade.
"We are excited about our joint venture with Avenue Capital which has been founded to take advantage of the opportunities in the Spanish financial sector. Toro Finance aims to provide high risk-adjusted returns by purchasing senior accounts receivable issued by major Spanish companies at a significant discount from par," David Zalaznick, JZ Capital Partners founder and investment adviser, said in a statement.
JZ Capital Partners shares were Monday quoted at 442.45 pence, up 0.6%.
By Samuel Agini; [email protected]; @samuelagini
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