JZCP Announces Sale of Fidor Bank

JZCP ANNOUNCES SALE OF FIDOR BANK

01 August 2016

JZ Capital Partners Ltd. (LSE: JZCP.L or “JZCP”), the London listed fund that invests in US and European micro-cap companies and US real estate, is pleased to announce an agreement to sell its equity interest in Fidor Bank AG (“Fidor”) to Groupe BPCE, the second largest banking group in France.

JZCP first invested in Fidor in August 2013 through its EuroMicrocap Fund 2010, L.P. and has since worked with the senior management team, including Matthias Kröner, CEO, and Wolfgang Strobel, CFO, to grow and develop the business. JZCP invested a total of $18.4 million and is expected to receive total gross proceeds[1] of approximately $34.3 million from the sale[2].

During our hold period, Fidor’s loan book approximately tripled and total customers holding accounts increased more than six times.

Founded by its CEO Matthias Kröner in 2009, Fidor has pioneered the collaboration between traditional financial services and technology businesses. Fidor offers a unique platform, where 350,000 community members work together to help build the bank’s services and products.

David Zalaznick, JZCP’s Founder and Investment Adviser, commented: “The European investment team has done an excellent job in assisting Fidor in securing new wholesale lending opportunities and driving the expansion of the business into international markets, such as the UK and Spain, as well as the development of critical in-house functions.

Proceeds from the sale will help fund the Company’s growing pipeline of opportunities in Western Europe and the US.”

Miguel Rueda, Senior Partner of JZAI’s London Office, commented: “Fidor is a first class business, and it has been a pleasure to work with the management team to drive profitable growth during our period of ownership. I am confident that Fidor will continue on its trajectory of growing its customer base alongside its new shareholder.”

The closing of the transaction will be subject to customary regulatory change of control approval from the European Central Bank and BaFin as well as clearance from the German competition authority, expected in the fourth quarter of 2016.

Ends

For further information:

Ed Berry / Kit Dunford                                                                [phone]
FTI Consulting

David Zalaznick                                                                          [phone]
Jordan/Zalaznick Advisers, Inc.

Paul Le Ray                                                                              [phone]
JZ Capital Partners, Ltd.

About JZCP

JZCP is a London listed fund which invests in US and European micro-cap companies and US real estate. Its objective is to achieve an overall return comprised of a current yield and capital appreciation. JZCP receives investment advice from Jordan/Zalaznick Advisers, Inc. (“JZAI”) which is led by David Zalaznick and Jay Jordan. They have worked together for 30 years and are supported by teams of investment professionals in New York, Chicago, London and Madrid. JZAI’s experts work with the existing management of microcap companies to help build better businesses, create value and deliver strong returns for 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 Fidor Bank

Fidor is an internet-based direct bank, licensed in Germany, with over 120,000 account holders and more than 350,000 registered community members. Founded by CEO Matthias Kröner in 2009, Fidor has pioneered the collaboration between traditional financial services and technology businesses.

Fidor’s banking concept provides an online community for people to provide and receive financial advice, giving users rewards for doing so such as cash and improved current account and savings bond interest rates.

Fidor also acts as a marketplace for its customers, giving them access to a large selection of financial services, products and offerings through its partnerships.

Fidor has received several international awards for its innovations, most recently from the World Economic Forum as a "Global Growth Company" and Celent Banking Model for 2015.

[1] Based on the exchange rate between the US dollar and the euro as of 29 July 2016

[2] Actual proceeds received by JZCP (in US dollars) may fluctuate due to foreign exchange movements (sale is priced in euros), carried interest, local withholding taxes, and other expenses related to consummating the transaction.