JZ Capital Partners and Avenue Capital Group have launched a new company to provide financing for small- and medium-sized companies in Spain.

JZ Capital Partners, the London-listed private equity fund, and global investment firm Avenue Capital Group have launched a new company to provide financing for small- and medium-sized companies in Spain.

Toro Finance will provide short-term receivables finance to the suppliers of major Spanish companies, providing them with working capital to develop their businesses. JZCP, through its European Micro Cap fund, and Avenue Capital have provided the funding for the firm, which is expected to have €400 million ($535.4 million) of assets. The former’s €26 million investment will give Toro Finance a 50 per cent equity interest.

“Toro Finance aims to provide high risk adjusted returns by purchasing senior accounts receivable issued by major Spanish companies at a significant discount from par,” explained David Zalaznick, JZCP’s founder and investment advisor.

JZCP is a fund that invests in high quality US and European micro cap companies. Avenue Capital Group is a global investment firm that currently oversees more than $12 billion of assets under management.