- JZ Capital Partners Ltd has completed the sale of six of its European investments (held through the EuroMicrocap Fund 2010, LP, to a major financial institution for euro96.3 million (USD104.6 million).

This transaction will be completed in two phases. Firstly, on 1 February 1, JZCP sold its stake in the first five assets (Docout, Ombuds, One World Packaging, Toro Finance, and Xacom) for €75.2 million.

Secondly, JZCP will sell its stake in Winn for €21.1 million when regulatory approval is received (estimated 4-6 months). Once both phases are completed, JZCP expects to have realised an aggregate gross multiple of invested capital of 1.6x in constant euros (1.3x after accounting for FX losses).

The sale was undertaken as a secondary transaction and priced at net asset value.

In addition to validating the company’s NAV, this transaction provides JZCP with significant liquidity to pursue further investment opportunities across its three portfolios (US microcap, European microcap and real estate). JZCP sold four out of the six companies at premiums to cost. Had these four companies been sold separately, they would have generated a 2x aggregate gross MOIC in constant euros (1.7x after accounting for FX losses).

The other two investments were sold at a discount to cost, but at JZCP’s current NAV. Furthermore, JZCP will hold onto its equity stake in the three remaining companies in EMC 2010 (Factor Energia, Fidor Bank, and Oro Direct), which had an aggregate fair value of €84.2 million and an aggregate gross unrealized MOIC of 3.1x in constant euros (2.6x after accounting for FX losses) at the secondary transaction’s valuation date.

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