US private equity firm eyeing UK investment opportunities as sterling value falls
JZ Capital Partners, a US private equity company listed in London, is eyeing investment opportunities in the UK, with the fall in sterling making assets cheaper.
The company’s share price rose by more than one per cent today to 518p after it reported a net asset value (NAV) of $873m (£714m), up from $851.7m, for the six months ending 31 August.
JZ Capital also announced a 15.5 cents per share interim dividend for the period in which its share price has risen to a near-all time high.
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The firm invests in US real estate and micro-cap companies across the US and Europe, with its portfolio including businesses from Spain, Italy, Germany and Scandinavia. JZ currently has one investment in the UK, but is eyeing the country after the Brexit vote and subsequent fall in sterling.
“The UK is a very interesting market for us,” Miguel Rueda, a senior partner in the European team, told Morning Wire “The pound exchange rate makes it very attractive.”
Asked if this was a general trend for companies in the space, Rueda said: “I think everyone’s looking at the UK at the moment. It’s an attractive opportunity – there’s no doubt.”
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Founder and chief executive David Zalaznick said: “Whenever there is uncertainty, it’s a good catalyst for a lot of owners of businesses… with this uncertainty, [to accelerate] their thinking about taking in a partner to help them grow their business during more uncertain times, when they need a bit of sophistication.” He added: “It is a good opportunity now.”
On the US side of the business, Zalaznick said he does not believe the upcoming presidential election and the usual uncertainty around the vote is having any impact on the business because “most of the consensus is that the election’s over”.