Z Capital smashes $500m target in final close for latest special situations fund


letter ZTurnaround and restructuring-focused private equity firm Z Capital Partners has held a final close for its latest vehicle 50 per cent above it $500m target.

The firm pulled in $750m for Z Capital Special Situations Fund II thanks to 30 new LPs, including sovereign wealth funds, pension funds, family offices and insurance companies from across the globe.

Z Capital president and CEO James Zenni Jr said, “We received interest of approximately $1bn from limited partners which we believe, together with the global footprint of our investor base, is a testament to our leading track record, proven investment strategy and experienced leadership team.

“As we have done for over a decade, we will continue to capitalize on opportunities to maximize value for our investors through our opportunistic, value-oriented approach.”

AltAssets revealed in August 2012 that the firm had hired Jefferies to place the fund, which followed the final close of its debut vehicle on $250m in June the previous year.

The vehicle will continue its predecessor’s strategy of investing in distressed debt, operational turnarounds and special situation opportunities in the mid-market across industries that in the past have included consumer, steel, agricultural, gaming, leisure and automotive.

Z Capital was founded in 2006 after Zenni left Black Diamond with six of its associates.

The firm has made a number of high-profile investments to date, including casino operator Affinity Gaming and former Sun Capital portfolio business Real Mex Restaurants.

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