Expansion of European Portfolio

RNS Number : 1966N

JZ Capital Partners Ltd

04 September 2013

 

JZCP EXPANDS EUROPEAN PORTFOLIO WITH INVESTMENTS IN THE UK AND GERMANY

4 September 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, has expanded its European portfolio by making two micro cap investments in the UK and Germany.

JZCP has co-invested £9 million to acquire 36% of the Winn Group, which specialises in personal injury cases and is a successful UK legal services firm. It also provides replacement car hire, credit repair advice and medical treatment services. The Winn Group was founded in 2002 and employs nearly 300 people in Newcastle.

Souter Investments, the investment vehicle of Sir Brian Souter, the Co-Founder and Chairman of Stagecoach Group plc, has made a co-investment to acquire 24% of the firm. The existing management team will retain a 40% stake.

The personal injury sector is seeing rapid consolidation. Winn Group is well positioned to benefit from this due to its efficient business model, while JZCP's investment will further enhance its strong growth trajectory. The Winn Group generated revenues of £40 million in the year to 31 March 2013.

JZCP has also invested €7.75 million to acquire 25.2% of Fidor Bank AG, an innovative and fast growing online German bank. It was founded in 2003 and is one of the only banks in Europe to allow customers to transfer money through social media. It also provides deposit and savings accounts, foreign exchange, a credit card and crowdfunding, which enables small businesses to secure funding from individual lenders. The bank's deposits in the year to 31 March 2013 have almost doubled and JZCP's investment and experience will help Fidor Bank to expand globally.

Fidor Bank currently has 200,000 customers and is listed on the Open Market of the Frankfurt Stock Exchange. The acquisition has been approved by the Federal Financial Supervisory Authority (BaFin).

David Zalaznick, JZCP's Founder and Investment Adviser, said: "We continue to see attractive opportunities in Europe and are delighted to be able to expand our portfolio by making investments in two growth companies, Winn Group in the UK and Fidor Bank in Germany.

"Both Winn Group and Fidor Bank are profitable high quality companies where we can work with the existing management to generate additional growth. We look forward to working with our co-investor Souter Investments and the management teams of both companies over the coming years."

Jeff Winn, the Winn Group's Founder, said:"This investment is recognition of the excellent business we have built up and confidence that Winn Group will further develop its offering.

"We aim to expand the business significantly in the next few years and this investment gives us the backing to do that. Winn Group is dedicated to offering the best service for its clients and the best working environment for its employees."

Matthias Kröner, Fidor Bank's CEO, said:"We look forward to continue developing Fidor to become a market leader in the on-line banking sector, helped by the experience of JZCP's  management team".

JZCP made the acquisitions through its 75% shareholding in the European Microcap Fund.

For further information:

Ed Berry/ Tom Willetts                                                           [phone]/ 7175

FTI Consulting

David Zalaznick                                                                       [phone]

Jordan/Zalaznick Advisers, Inc.

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 Winn Solicitors

Winn Solicitors was founded by Jeff Winn and Ghazala Bashey in 2002 after a motorist crashed into the back of Jeff's car. Frustrated by the losses Jeff incurred from insurers they decided to set up a practice specialising in claiming directly from those at fault. Since then the company has expanded with two sites, a 22,000sq ft ex-supermarket in Byker and a site on Heaton Road, Heaton, both in Newcastle upon Tyne. Winn Solicitors specialises in a full accident management service known as the 'One Stop Shop', where every aspect of accident compensation cases can be handled including compensation, repairs, replacement vehicles and rehabilitation.

About Fidor Bank AG

Fidor Bank AG was founded in 2003 by a highly experienced management team to take on-line banking to a new level and it has become a leading innovator in the European market. It has attracted 200,000 social media members since 2003 and has built a significant depositor base. Fidor's business model allows it to compete across Europe and JZCP's management team will use its expertise and experience to expand in Europe and globally. Fidor's shares are traded under the Entry Standard based on the rules of the Open Market, a regulated unofficial market of the Frankfurt Stock Exchange.

 

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