Alantra’s new private equity fund achieves €400m first close

Date 22 April 2016

Type Alternative Asset Management

The Alantra Private Equity Fund III will be invested in unlisted, medium-sized Spanish companies with international expansion ambitions

The capital committed by Alantra and the management team is equivalent to 10% of the fund’s definitive size, thereby guaranteeing full alignment of the fund managers’ and investors’ interests

Spain’s CDTI, the fund’s anchor investor, has committed €100 million

Alantra PEF III’s other investors are, for the large part, dedicated European institutional investors

The fund, which will ultimately be sized up to €450 million after the second and definitive close, is the largest private equity fund raised in the Spanish mid-market since 2008

Madrid– Alantra has achieved a €400 million first close for its new private equity fund, Alantra Private Equity Fund III (Alantra PEF III). The fund, which will have a five-year investing period and another five-year divesting period, will take majority ownership interests in unlisted, medium-sized (equity value: €35-75m) Spanish and, to a lesser extent, Portuguese companies with international expansion ambitions, principally in the technology and industrial sectors.

Having committed €100 million, the CDTI (the acronym in Spanish for the state body called the Centre for the Development of Industrial Technology) is one the fund’s anchor investors. Alantra and the management team have committed fund equivalent to 10% of the definitive size of the Alantra PEF III. Other investors of the fund are, for the large part, dedicated European institutional investors. Several Spanish family offices have also invested in the fund. On top of that, a second and definitive close (which could increase the volume of assets under management by another extra €50 million), may include the up-to- €50 million contribution by ICO’s private equity vehicle announced last November; the ICO is Spain’s public credit institution.

Gonzalo Rivera, CEO of Alantra Private Equity, underscored that this fund-raising exercise “consolidates Alantra as the Spanish mid-market segment leader, with over €1 billion of assets under management.” Rivera added that “against the backdrop of macroeconomic uncertainty, Alantra’s track record – Alantra PEF II is expected to culminate with a multiple on invested capital of 2x – was crucial to this fund raise”.

“The transaction clearly evidences the strategic rationale underpinning the merger between Alantra and Dinamia: the creation of a Group which combines the financial advisory and management side of the business with investment in assets and products managed directly by the Group, fully aligning investors’ and managers’ interests”, outlined Santiago Eguidazu, Chairman of Alantra.