JZ Capital Partners, Avenue Capital Group announces launch of new firm
London-based private equity firm JZ Capital Partners or JZCP and investment company Avenue Capital Group said they had formed a new investment vehicle. Toro Finance is a company that that aims to give financing to Spanish small and medium-sized firms. JZ Capital Partners invested EUR 26 million to the new fund. Together with Toro Finance's management, JZCP holds a 50% equity interest in the newly-formed company. The investment was made through the European Micro Cap fund of JZCP. Avenue Capital will also give financing for the new firm.
Toro Finance will fund suppliers of major Spanish firms by providing short-term receivables financing. Through the working capital that Toro Finance will provide, Spanish businesses will be able to grow their businesses. The new fund is expected to have assets worth EUR 400 million.
JZCP Founder and Investment Adviser David Zalaznick said about the joint venture, "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."
The track record of the European advisers of JZCP will help Toro Finance grow as they have over a decade of experience in the industry. The new firm will also draw on the expertise of Avenue Capital when it comes to making investments in finance firms worldwide. In the past ten years, Avenue Capital has over USD 11 billion investments in Europe.
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."