JZ Capital buys in Spain on EU solution hopes

Michael Bow
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JZ CAPITAL Partners, the listed private equity firm, yesterday said it was banking on an upswing in the European economy after increasing its investment in Spanish companies over the past six months.

The fund, which invests in micro cap companies in the US, Europe and Latin America, said it put $130.8m (£81.7m) to work across 17 investments, including boosting its European fund to $81.3m, or 14 per cent of its total assets.

The company snapped up Spanish gold and silver dealer Oro Direct for €13.5m in April – and the fund is hoping the discount on the investment will pay off if the European economy ticks back up.

The firm’s founder, David Zalaznick, told City A.M.: “The problems in Europe are real but eventually they are going to have to get their act together.

“The companies we bought in Spain are all companies which grew throughout the recession. We are buying companies at a 30 or 40 per cent discount.”

The fund posted a slight dip in value over the half year on the back of a higher dividend payout for investors, it said yesterday.