Z Capital to Raise $100 Million Shariah Distressed Asset Fund

Z Capital Partners, which owns 51 percent of cookie chain Mrs. Fields Famous Brands LLC, plans to raise at least $100 million with Saudi Arabian partner MEFIC Capital for a new Shariah-compliant fund investing in distressed assets, two people familiar with the plan said.

Z Capital, established in 2006 by James Zenni, co-founder of Black Diamond Capital Management LLC, and MEFIC Capital plan to start raising the MEFIC-Z Capital Special Situations Fund within the next couple of months and target institutions and high net worth individuals in the Persian Gulf, the people said, asking not to be named as the news isn’t public.

Jonathan Keehner, a spokesman for Z Capital, declined to comment.

Lake Forest, Illinois-based Z Capital typically seeks to gain control of a company through debt for equity swap after buying more than 50 percent of its loans.

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