Active Funds

The QMC products invest in relevant minority positions in small & mid-cap listed companies in Europe applying a “hands on” approach with strong value discipline and focusing on quality assets generally exposed to global markets. The investments meet strict value metrics, present opportunities for value enhancement and have management teams typically open to improving shareholder returns in the mid to long term.

The QMC investment strategy targets public companies of sizes below €1bn market cap with a pan-European scope, an ample universe which is under-covered by analysts. The managers of the fund have been working together for many years, have multidisciplinary skills and are supported by both a strong network of senior local advisors and the Alantra pan-European platform.

Currently there are three funds of the QMC family: the EQMC Fund, with a Pan-European investment strategy, and the QMC II & QMC III Funds, with an investment focus in Spanish and Portuguese companies.

Features

EQMC Fund:

Focus on the pan-European small cap universe:

  • c. 7.000 small caps in Europe (below <€1bn market cap)
  • A c. 500 target universe after applying sector, size and liquidity filters
  • Take advantage of the lack of analyst coverage via own research capabilities

Key fundamental quantitative criteria are:

  • Key fundamental criteria are:
    • Asset quality (ROCE)
    • Value (FCF Yield)
    • Strong earnings power generation

Key qualitative criteria

  • Seek for global niche leaders exposed to global growth
  • High barriers to entry with sustainable competitive advantages
  • Predictable sectors

Flexibility to allocate the capital with a pan-European scope

  • Focus on UK, Germany and Southern Europe
  • More opportunistic approach towards other geographies

 

QMC Fund:

Attractive Small cap Universe (market cap < € 1bn)

  • c. 150 small caps in Spain & Portugal
  • High quality assets: 70% of Companies in the universe deliver historical avg. ROCE >10%
  • International exposure: ≈ 50% of companies have >60% sales outside Spain
  • Lack of adequate analyst coverage generates price/ value gap

Focus on top quality companies

  • Key fundamental quantitative criteria are:
    • Asset quality (ROCE)
    • Value (FCF Yield)
    • Strong earnings power generation
  • Key qualitative criteria:
    • Seek for global niche leaders exposed to global growth
    • High barriers to entry with long-term sustainable competitive advantages
    • Companies operating in predictable sectors

EQMC Fund

  • A concentrated portfolio of 8-12 names enables for in-depth knowledge of our companies.
  • The fund seeks minority but relevant ownership in targeted companies, which could range from 5-20% stakes
  • EQMC searches for value whilst maintaining a midterm plan and a defined path to accelerate the value creation of investments
  • The fund actively works with management teams and shareholders to either boost and/ or unlock value through an ample toolkit:
    • Capital allocation discipline
    • Strategic clarification / M&A
    • Operational efficiencies
    • Corporate governance
    • Alignment of management teams
    • Investor relations improvements
  • The fund eventually nominates representation in the board of directors of investee companies

 

QMC II Fund:

  • QMC II searches for value whilst maintaining a management mid-term plan and a defined path to accelerate the value creation of investments
  • The fund actively works with management teams and shareholders applying “private equity” approach to generate and unlock value through an ample toolkit which covers aspects such as promoting corporate development & growth measures, capital allocation discipline, efficiency gains, improving communication & transparency to the market and corporate governance
  • A concentrated portfolio of 5-7 names enables in-depth knowledge of our companies
  • Significant stakes (up to 20%) allows QMC II fund a corporate engagement over the medium term (2-4 years) with close relationship with management team and main shareholders, eventually through Board of Directors representation
  • QMC’s strong reputation as a financial investor in Iberian market helps to build a friendly and constructive approach (pre-negotiated entry; discretion; productive relations; avoiding hostile positions)

EQMC Fund

  • The investment team follows an investment process that is disciplined, thorough, well-documented and repeatable
  • Multiple step due diligence targeting an constant improvement of the risk/ reward of the portfolio
  • Investments typically start as small “seed” positions. Eventually, some of these become “core” investments on which an active constructive engagement is deployed
  • Stringent risk controls based in-depth knowledge of the investments and patience to allocate capital

QMC II Fund

  • The investment team follows an investment process that is disciplined, thorough, well-documented and repeatable
  • Engagement with management’s mid-term plan in order to asses, understand and support
  • Stringent risk controls based on thorough due diligence (strategic, commercial, operational, financial), shareholder analysis and management depth
  • Well-structured and in-depth analysis that can take from 3 to 6 months:
    • Strong relevance of channel checks and competitive benchmarking in the commercial/ strategic due diligence;
    • Margin of safety as a key principle when valuing a company
  • Investments are typically built up through either block trade or open market

EQMC Fund

  • The key people at the EQMC fund are:
    • Francisco De Juan: Portfolio Manager
    • Jacobo Llanza: CEO of Alantra Asset management
    • 5 investment analysts fully dedicated to the fund with strong international experience and multi-skilled background
  • Support by several senior advisors and investment consultants in the different geographies

QMC II Fund

  • The key people at the QMC II fund are:
    • Julián Cepeda: Portfolio Manager
    • Jacobo Llanza: CEO of Alantra Asset management
    • 4 investment analysts fully dedicated to the fund with multi-skilled background
  • Support by several senior advisors and investment consultants

Managers

Jacobo Llanza

Partner & CEO of Alantra Asset Management

Jacobo Llanza

CEO of Alantra Asset Management with over 22 years of experience

+ info

Francisco de Juan

Partner & EQMC Portfolio Manager

Francisco de Juan

EQMC portfolio manager since 2010, with over 16 years experience. Active fund management at Alantra AM since 2006

+ info

Julián Cepeda

Partner & QMC portfolio Manager

Julián Cepeda

QMC II Fund portfolio manager. More than 22 years’ experience including active fund management (at Alantra AM since 2003)

+ info
  • CIE Automotive
  • Fluidra
  • Adveo
  • Tubos Reunidos
  • Laboratorios Rovi

 

  • e2v/ UK
  • Grammer/ Germany
  • Vitec/ UK
  • CIE Automotive/ Spain
  • WashTec/ Germany

* Does not include “seed” investments.

Legal Information (in Spanish)

EQMC FIL

QMC II FIL

QMC III FIL