Z Capital tops target for Fund II, eyes $750m hard cap


dollars 15_sqSpecial situations private equity firm Z Capital Partners has reportedly beaten its target for its second fund and is eyeing its $750m hard cap.

The Chicago-based firm set up by Black Diamond Capital co-founder James Zenni, hoped to gather $500m when it was launched in December 2012.

It has now collected more than $600m of commitments according to peHub, which cited two people with knowledge of the situation.

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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