Meridia Capital and Closa Gordon, two companies familiar with investment, have decided to move into private equity and are setting up funds to invest in Spanish SMEs.
Meridia capital creates a fund for Spanish SMEs
Meridia capital, a global asset manager, after 10 years focused on the hotel and real estate sector, is now making the leap into private equity and is in the process of creating the €125 million Meridia Growth fund to take stakes in Spanish companies.
The fund is already in the process of registration with the CNMV and a first closing of 50% will soon materialise. Investors include national and international family offices, but the incorporation of institutional investors is not ruled out in the coming months.
Rounding out the staff and completing the fundraising are Meridia's two main objectives for 2016 in the private equity area, but not the only ones. The third priority is to initiate acquisitions. Thus, it hopes to complete at least one transaction this year. To this end, it is already in talks with up to four companies.
What kind of companies will be invested in and what will the investment process be like?
Aunque Meridia Growth está constituido para realizar acquisitions en cualquier sector, las preferencias apuntan a negocios asociados con el estilo de vida, como grupos de restauración, cadenas de gimnasios o empresas de cosméticos, entre otros.
The investment phase will cover three years and then the acquired assets are expected to mature in the portfolio for a maximum period of up to 5 years.
La estrategia de compras se asienta sobre preceptos bien precisos. La intención es efectuar hasta seis acquisitions –sin utilizar apalancamiento–, tanto de posiciones mayoritarias como de minorías, y siempre en empresas con un negocio probado y cuyo ebitda sea positivo. El importe de inversión promedio es de 20 millones y el propósito es evitar los procesos de compra competitivos y buscar oportunidades de tú a tú.
Closa creates the Gordon fund to invest in SMEs in traditional sectors for the long term.
Closa investment, la firma de asesoría de M&A transactions and acquisitions, ahora ha constituido, Closa Gordon Investment para tomar participación minoritarias en pymes orientadas a sectores tradicionales de la economía.
The vehicle is halfway between an industrial holding company and an investors' club. Unlike what happens with venture capital, the profitability of Gordon's operations will not come from divestment, but from the dividends delivered by the investee. This is an unusual initiative in Spain, although it is more widespread in the US.
Gordon will make between six and eight investments over the next ten years for a total volume of €60 million, with a total amount per transaction ranging from €0.5 million to €10 million.
The investment company has started with half a million euros, a figure which, according to Romances, will be doubled before the summer and which it completes with a line of bank financing for one million euros.
Gordon excludes entering startups or companies with a strong technological component. "The more traditional a business is, the more we like it," says Romances, who cites restaurants, fashion and tourism as three sectors in which some of Gordon's partners are experts.
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