New funds July 2018; Euskadi, Oquendo Capital and Seaya Ventures

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BY : Diego GutiérrezJuly Mon, 2018

We analyse the new funds created in Spain in July 2018. In this case, we look at the Basque Government's new economic model, the expansion of Oquendo Capital's strategy and Seaya Ventures' new fund.

We analyse the new funds created in Spain in July 2018. In this case, we look at the Basque Government's new economic model, the expansion of Oquendo Capital's strategy and Seaya Ventures' new fund.

New economic model of the Basque Government

The lehendakari, Iñigo Urkullu, accompanied by the Finance ministers, presented on Monday the Basque Government's new financial policy model which, always with the protection and promotion of companies as its leitmotiv, renews the instruments that have existed up to now and creates two new figures.

This is a public-private venture capital fund, endowed with 125 million but which aspires to raise up to 250 million, which will be used to support Basque companies in their development or internationalisation projects. In addition to this, there will be an injection of 100 million in Socade, the public Basque Development Capital company, which with these funds will enter into the capital of large Basque tractor companies (as was already done with 1.24% from CAF) with roots as the main premise.

The new venture capital fund - which is expected to be fully operational in 2019 - has as its initial partners, together with the government, the provincial councils, Kutxabank, Bankoa, Mondragon Corporación, Lagun Aro and Itzarri. The rest of the 'hard core' shareholders of this formula, who have already shown their interest in participating, are Banco Sabadell, Banco Santander, BBVA, among others.

The members of this new venture capital fund will be able to make contributions of between €2 million and €10 million. The vehicle will support companies with a turnover between €50 million and €250 million and an EBITDA of more than €10 million.

Among the new features of this reorganisation of the Basque Government's financial instruments is the creation of a Forum for Financing and Business Participation, which will serve as a framework for coordination and debate on financing and for the search for synergies with other investors in company participations.

Oquendo Capital, strategy expansion

Spain's oldest alternative finance firm has decided to expand its lending strategy and add senior debt to its corporate lending offering. It will do so through the loan fund it is raising, which aims to raise a maximum of €150 million.

This vehicle will be the fourth of the Spanish private debt fund manager led by Alfonso Erhardt and Daniel Herrero, but the first of this new senior lending strategy. The three previous vehicles, totalling 407 million, are intended to provide subordinated loans. Oquendo Capitalis one of the most active companies in Spain in this sector. In fact, its third mezzanine debt fund is invested in more than 60% and the fund manager is already looking ahead to 2019 for the fourth vehicle of this type, which will be the largest raised so far with an amount of around 300 million.

Like all Oquendo vehicles to date, the new fund is aimed at medium-sized companies, those with an ebitda between 10 and 20 million. In terms of yield, the senior debt will offer a 5%.

Oquendo already has commitments from investors for its new fund and one of them is the government, which is receiving 20 million from the fund. With this injection, the aim is to close the first fund by the end of this year.

Seaya Ventures

Seaya Ventures has closed its second fund, Seaya Ventures II, exceeding its target of €100 million. Seaya has tripled its assets under management to €160 million through its two active funds.

The new fund has a broad, international investor base combining institutional investors and family offices.

Seaya II will continue Seaya I's strategy of investing in technology companies based in Spain and Latin America. The fund will continue to focus on leading Series A and B companies and may invest up to €15 million in a single company at different stages with the ambition of becoming a leader in its sector.

Other new funds in July

New funds July 2018; Euskadi, Oquendo Capital and Seaya Ventures

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