Contact

Venture capital in Spain (April 2018): at last the SME as a protagonist


, , ,
Integral service around a transaction
BY : Diego GutiérrezMay Fri, 2018

SMEs have received good news in recent months as they have seen an increase in the alternatives for obtaining financing for their growth plans. The private equity is developing funds specialising in this size segment of companies in Spain. Examples are the Sherpa, Investindustrial and Axon funds for technology companies.

SMEs have received good news in recent months as they have seen an increase in the alternatives for obtaining financing for their growth plans. The venture capital sector is developing funds specialising in this size segment of companies in Spain. Examples of this are the Sherpa, Investindustrial and Axon funds for technology companies.

Axon venture capital selected by the EU for its public co-investment programme

One thing is clear from the EU's point of view on venture capital: when it comes to funds, it is their size that matters.

Este compromiso se vio reforzado recientemente cuando la Comisión Europea lanzó su programa VentureEU, una iniciativa diseñada para reforzar la escena de riesgo en el continente en unos 2.100 millones de euros. Es una iniciativa similar a la lanzada por Fondo ICO en España pero orientada al venture capital is y a empresa tecnológicas.

However, it is not only about increasing the amount of capital; it is also about the type of capital. Compared to the US, European companies receive much more public funding and much less private investment. The EU wants to increase investment opportunities for private institutional investors, both from inside and outside the EU, in Europe's venture capital market.

In practice, VentureEU consists of six funds of funds for which the EU itself has committed €410M. The FoFs themselves are to be run by six dedicated fund managers, charged with raising up to €2.1 billion combined from public and private investors, which, according to the commission, will amount to a new backing of around €6.5 billion in European start-ups.

The Spanish technology fund Axon Partners has been one of the GPs selected to lead Venture UE. The news is a milestone for the fund manager, allowing it to move to the next level in terms of both the size of the fund and the impact due to its new role as an anchor investor in many pan-European funds. The programme makes it clear that Spain has a strong and long-standing venture capital industry.

Sherpa capital raises €150M for growing SMEs

Sherpa Capital, a private equity manager specialising in the middle market segment, has secured commitments from its investors for a new $150 million fund called Sherpa Capital Private Equity.

The new fund will focus on taking stakes, usually majority stakes, in profitable and growing small and medium-sized companies with EBITDA between 1 and 5 million euros. In addition, it will focus mainly on companies with good results that are in the process of expansion, and on opportunities in sector concentration processes (buy and bui ld).

The fund is expected to make between 8 and 10 investment transactions in total, each with a capital amount of between EUR 10 million and EUR 20 million.

With the launch of this fund, the fund manager will have two distinct investment strategies, continuing with its traditional strategy of investing in companies in special situations and adding the strategy of this new fund with the fund focused on profitable small and medium sized companies.

Unlike other private equity firms, and continuing with the strategy of the previous special situations fund, Sherpa Capital will also rely on the internal portfolio management team for the creation of value in its investees, a unique and differential element in the Spanish private equity market, which until now has been an important source of value creation for the companies.

Investindustrial closes a new growth fund in record time

Investindustrial, the Bonomi family's private equity manager, has announced the closing of a new €375 million growth fund to invest in small and medium sized European companies.

The firm has stressed that this instrument allows Investindustrial to cover the entire mid-market, consolidating its position as a major player in Southern Europe, while underlining that the fund has been raised in less than three months and has been oversubscribed due to the strong interest of existing Investindustrial investors. The latter base consists of 20 long-term investors. 66% of the capital comes from Europe and 34% from the US.

The new vehicle begins its journey after having made two investments: the French company Benvic, a European leader in the PVC compound industry (which has activities in Catalonia), and the British company OKA, a brand specialising in home and lifestyle furniture.

The M&A Professionals

Meet our services

MEET
OUR
METODOLOGY

Do you want to be up to date?

SUSCRIBE OUR NEWSLETTER

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

M&A NEWS
INDUSTRIAL REPORTS
closearrow-circle-o-downchevron-downcrossmenu