In recent months, private equity funds have closed deals such as the sale of Mémora to Ontario Teachers' for €500M or the sale of Pronovias by BC Partners. With sales like these, and many others, the year looks set to be exceptional for the sector. Recently, we have seen the announcement of new funds such as Encomenda and other funds, such as Portobello, have made their first transactions.
Risk capital situation in Spain
According to Ascri, up to June, equity funds have invested 3.046 billion euros in Spain in almost 300 deals, this is largely due to international funds putting their focus on Spain. These have been responsible for 79% of all the volume invested between January and June by private equity in Spain, having carried out 33 deals.
In addition, several "mega-deals" have been completed, transactions that alone are capable of boosting the sector's figures. In the first half of 2017, 7 deals were completed including: CLH, Allfunds, Acceltya, Vitalia Home, Nace and Pachá. These deals generally have high multiples, as they are in the European market, where higher prices are paid for companies.
New venture capital fund: Encomenda, for early stage technology companies
The Spanish Securities and Exchange Commission (CNMV) has approved a new fund, Encomenda Smart Capital, which will manage a €20 million fund. The initiative, on which the management team has been working for months, already has the confidence of Fondico, which approved its investment in the fund last May, as detailed in the note.
The focus will be on young Spanish technology-based companies, both B2C and B2B models and startups from all sectors.
The objective, according to Carlos Blanco, is to work a lot on co-investment with business angels and other seed capital funds such as Cabiede & Partners, Caixa Capital Risc, Banco Sabadell or Inveready, other early-stage venture capital investment groups in Spain.
Portobello closes its first Fund IV transaction
Portobello Capital has invested in a large group of dental and aesthetic medicine clinics in Spain. This is the first investment of its Fund IV, which has had a first closing of €500m.
Portobello Capital is a leading private equity fund manager in the Spanish Middle Market, with Assets under Management (AuM) of €1.2 billion.
In July 2014 he raised €375 million Portobello Fund III, which has been fully invested in nine companies: Vitalia Home (residences for the elderly) sold to CVC in April this year, IAN (canned vegetables and ready meals under the Carretilla brand), EYSA (services and technological solutions to improve mobility in cities), Iberconsa (frozen seafood products), Laulagun Bearings (bearings especially for the aerogeneration sector), Ramón Sabater (processing and distribution of paprika, spices and herbs), Trison (sensory marketing), Blue Sea (hotel and holiday resort chain) and Centauro (car rental in the low cost segment).
In July 2015, it also closed its first secondary fund: Portobello Secondary Fund I, which includes five companies from its Fund II, including: Mediterránea (catering services for hospitals, schools and companies), Angulas Aguinaga (value-added, ready-to-eat and chilled fish products), The Ice Cream Factory (manufacture of private label ice cream), Multiasistencia (outsourcing of household claims management for banks and insurance companies) and GrupoUno CTC (outsourcing of marketing, merchandising and promotional logistics services).
Last July, six months after initiating the fundraising process, Portobello Capital made the first closing of Portobello Capital Fund IV at €500M.
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