JZ Capital makes 1.3x return on direct secondaries sale

The sale to an undisclosed buyer comes two months after the London-listed firm held the final close on Fund III.

JZ Capital Partners, an investment firm specialising in growth equity and management buyouts, has sold a portfolio of six European assets to an undisclosed buyer in a direct secondaries deal.

The London-listed firm has agreed to sell its entire stakes in six companies to a major financial institution for €96.3 million, according to a statement. JZ Capital held the interests through its EuroMicrocap Fund 2010, and the firm will realise an aggregate gross multiple of 1.3x on invested capital, accounting for foreign exchange losses.

The transaction gives the firm “significant liquidity to pursue further investment opportunities across its three portfolios” including its US micro-cap, European micro-cap and real estate platforms, according to the statement.

Five of the assets are Spain-based firms and were sold on 1 February. They including document management company Docout, security firm Ombuds, packaging provider One World Packaging, financial services firm Toro Finance, and telecommunications equipment maker Xacom.

The sixth asset, UK-based Winn Solicitors, an accident claims management company, will be sold within four to six months, due to needing regulatory approval, according to the statement.

Last December, the firm held a final close on its JZI Fund III on €400 million, surpassing its €350 million target, according to PEI’s Research & Analytics. The fund will mainly invest in lower mid-market companies in Western Europe in businesses with enterprise values between €15 million and €150 million, according to JZ Capital’s website.