JZ Capital cashes in on Factor Energia investment

Guernsey-based closed-ended investment company JZ Capital Partners (JZCP) realised the net asset value of its majority interest in Spanish energy group Factor Energia on Monday.

Factor, of which JZCP was an 18.8% limited partner in, was set to be acquired by a public-sector asset manager on behalf of a major Canadian pension fund.

JZCP invested €7.6m in Factor in July 2010 and stated that it was in line to receive around €69.7m as result of the sale, representing an internal rate of return (IRR) in the vicinity of 42.3%.

David Zalaznick, JZCP's founder and investment adviser, said, "As we continue to focus on narrowing the discount to NAV at which JZCP’s ordinary shares trade, our ongoing ability to realize key assets at NAV further validates the true value of the Company’s portfolio.

"We are excited about Factor's future and the next chapter of its history through JZCP’s investment in JZI Fund III, L.P. We continue to see exciting micro-cap investment opportunities in Spain and look forward to deploying further capital in the region," he added.

As of 1400 GMT, shares had gained just 0.08% at 506.88p.