JZCP and Avenue Capital launch new company Toro Finance

JZ Capital Partners Limited and Avenue Capital Group said Monday that they have launched a new company Toro Finance, which will provide financing to small and medium-sized companies in Spain. Toro Finance is expected to have 400 million euros in assets.


London, 11 November 2013: JZ Capital Partners Limited (LSE: JZCP.L or “JZCP”), the London listed private equity fund that invests in high quality US and European micro cap companies, and Avenue Capital Group, a global investment firm that oversees more than $12 billion of assets under management, today announced that they have launched a new company to provide financing to small- and medium-sized companies in Spain.
The vehicle, Toro Finance, will provide short-term receivables finance to the suppliers of major Spanish companies. This form of financing will provide companies with working capital to develop their businesses. JZCP, through its European Micro Cap fund, and Avenue Capital have provided the funding for the vehicle, which is expected to have €400 million of assets. JZCP’s investment is €26 million which will give it, together with the management of Toro, a 50% equity interest.
Toro Finance will draw on the track record of JZCP’s European advisers who have worked with businesses on the continent for more than a decade. JZCP’s European portfolio now includes seven micro cap companies in Spain and other businesses in both the UK and Germany. Toro Finance also will benefit from Avenue Capital’s expertise investing in finance companies globally, and investing more than $11 billion in Europe over the past 10 years.
David Zalaznick, JZCP’s Founder and Investment Adviser, said: “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.”
Richard Furst, Senior Portfolio Manager of the Avenue Europe Strategy and CIO of Avenue
Richard Furst, Senior Portfolio Manager of the Avenue Europe Strategy and CIO of Avenue
Capital Group, said: “Toro Finance will provide much needed relief for small-and medium-sized Spanish companies still struggling to obtain working capital financing. We are very excited about this joint venture with JZCP, and the fact that we will both contribute complementary skills that will distinguish Toro Finance in the market.
About JZCP
JZCP is a London listed private equity fund which invests in high quality US and European micro cap companies. Its objective is to achieve a superior overall return comprised of a current yield and significant capital appreciation. JZCP receives investment advice from Jordan/Zalaznick Advisers, Inc. (“JZAI”), founded by David Zalaznick and Jay Jordan, which has advised JZCP for twenty five years and has investment professionals and offices 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 to investors. JZCP also invests in mezzanine loans, first and second lien investments and other publicly traded securities. For more information please visit www.jzcp.com
About Avenue Capital Group
Avenue Capital Group is a global investment firm focused the private and public debt, equity and real estate markets in the U.S., Europe and Asia. The firm is headquartered in New York, with offices in London, Luxembourg and Munich, and five offices throughout Asia. As of September 30, 2013, Avenue oversees approximately $12.3 billion of assets under management, on behalf of a sophisticated global base of institutional investors, the majority of which is pension funds, and also includes family offices, foundations, insurance companies and sovereign wealth funds. Avenue was founded in 1995 by Marc Lasry and Sonia Gardner and draws on the skills and experience of approximately 200 employees worldwide.