JZ International has completed its 14th investment for JZI Fund III

After approval from the National Bank of Spain, JZ International Fund III has backed a management buy-in to acquire 57% of Union Financiera Asturiana (UFASA), a leading independent consumer lender in Spain. The opportunity was sourced through JZ International’s own internal resources, making it a non-competitive process, which resulted in an attractive entry multiple.

About UFASA: Established in 1984, Union Financiara Asturiana is a regulated Spanish consumer lender. The Company has enjoyed significant growth over the past years and is ready to transition into a nation-wide player. Through a partnership of over 300 points of sale and 36 representative outlets, UFASA has generated a loan book with more than 40,000 loans and a net loan balance exceeding Euro 60 M.

Value-Creation: JZ International has identified and partnered with a highly experienced management team, who is investing alongside JZI and will assist current UFASA management with the next steps in the growth phase. Value creation opportunities include:

• establishing a more effective digital loan distribution process to increase revenues
• implementing internal digital operations to reduce costs
• expanding the sales channel and product offerings
• securing additional and better financing for current and future loan book.

Parameters of the deal: Total investment to acquire 57% of UFASA was €17m, of which JZI Fund III invested €15.7m for 53% while the management team acquired 4% for €1.3m. In order to acquire the remaining shares of the company, execute growth plans and secure additional add-on acquisitions, a total equity investment of up to €80 M is planned. The acquisition has an attractive entry multiple compared to the valuation of UFASA’s peers and a strong downside protection.

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