JZ holds €400m final close on Fund III

JZI Fund III, which will invest in lower mid-market companies in Western Europe, exceeded its €350m target.

JZ Capital Partners (JZCP), a London-listed specialist small-cap private investment firm, has held a final close on JZI Fund III on €400 million, according to a statement from the firm.

The fund, a successor to the €150 million EuroMicrocap 2010, had an initial target of €350 million and held a first close on €237 million last September.

JZI Fund III, which will focus principally on lower middle market companies in Western Europe, will be looking to acquire businesses with enterprise values between €15 million and €150 million with the ability to generate EBITDA of between €5 million and €20 million per year.

The vehicle attracted strong interest from institutional investors and family offices from across Europe and North America, as well as existing investors in EMC 2010, JZCP said.

JZCP committed €75 million to the vehicle. In addition, JZCP’s co-founders David Zalaznick and Jay Jordan, together with the European management team, have committed €25 million.

JZCP is advised on investments and managed by Jordan/Zalaznick Advisers.

“Our European lower middle market strategy and JZAI’s track record in the region was compelling for investors,” Zalaznick said in a statement. “We are pleased to have attracted an impressive group of blue-chip institutional investors to be our partners.”

The fund close “underpins the significant investment opportunity” in the lower mid-market in Western Europe and “demonstrates the confidence investors have in JZAI’s ability to source accretive long-term investments in the region”, the firm said.

As of the end of 2015, Fund III had made five platform investments: Italian consumer finance company Fincontinuo; Danish van leasing company S.A.C.; UK-based auto insurer Collingwood; Spanish petrol station business Petrocorner; and My Lender Oy, a consumer lending platform in Finland.