Spanish fundraising down by 25% in 2015, says Ascri

Released in mid-January, the report by Ascri tallied up commitments to Spanish private equity and venture capital funds, and found a 25% dip from €1.69bn in 2014 to €1.37bn in 2015. The fall marks a turning point for Spanish fundraising, which grew fivefold in 2014 after hovering around the €300m mark during the 2009-2013 period.

The fear of a fundraising slump in Spanish private equity was already intimated by local practitioners last November: allocations to Spanish funds had been generous in 2014, but, as Miura Private Equity managing partner Luis Seguí told unquote" at the time, LP enthusiasm cooled down throughout 2015.

With ongoing talks between left-wing parties to form a new government adding political uncertainty to the mix, unquote" revisits last year's key fundraising-related developments within Spanish private equity.

1. CDTI Private Equity Fund – Launch, March 2015
During 2014, the support of state backers such as Fondo ICO had been an essential driver behind the thriving fundraising scene in Spain. In a continuation of the theme, one of the first sizable funds to hit the road in 2015 was launched by the government-backed Centre for the Development of Industrial Technology (CDTI). The €400-600m vehicle will provide growth capital to medium-sized Spanish companies from the chemicals, energy and transport sectors, among others.

2. Portobello Capital Secondary Fund I – Final close, July 2015
Mid-market GP Portobello Capital was another Spanish GP that hit the road in 2015. The past year brought the firm's first incursion in the secondaries space with a fund intended to recoup the assets held in its €331m second buyout vehicle. Primarily raised from fund-of-funds HarbourVest, the vehicle closed on the total equity valuation of Fund II's portfolio companies.

3. Realza Capital II – Launch, August 2015
On the road since June 2015, Realza's second fund comes with a €200m target, up from a €170m predecessor. Overwhelmingly backed by Spanish LPs, the vehicle targets SMEs valued in the €20-100m range; its average equity ticket falls within the €15-30m bracket.

4. Espiga Equity Fund – Final close, October 2015
According to an unquote" source, Espiga's latest fund was one to experience the Spanish fundraising slowdown in 2015. Propped up by a strictly institutional LP base, the €140m sector-agnostic vehicle will deploy an average €8-20m during MBO deals for lower-mid-market businesses. At the time of its final close, the fund was already invested at 15% via two deals.

5. THCap II – First close expected January 2016
One of the VC exponents of Spanish fundraising last year, Telegraph Hill Capital (THCap) went to market for its second fund in April 2015. THCap II comes with a €30-35m target, with plans to raise a minimum of €10m in January 2016 and follow that with a final close over the summer. Once investment kicks off, THCap will provide €100,000-400,000 tickets during seed rounds and up to €1.5m when backing series-A deals, in return for 5-15% stakes in technology assets.

6. GED V España – Launch, November 2015
As of November 2015, GED's seventh fund had raised €80m of its €150m target from state backer Fondo ICO, insurers, mutual funds and family offices. GED V España will split its capital across 8-10 investments in the €15-25m region and will seek medium-sized Spanish industrial companies with EBITDA in excess of €3m.

7. Talde Capital Crecimiento – First close, December 2015
Initiated in 2014, fundraising for Talde's newest VC fund reached a €67m first close towards late November 2015. Also backed by Fondo ICO, Talde Capital Crecimiento will earmark 90% of its capital for Spanish SMEs valued in the €7-70m range. The fund, deploying an average of €7-15m per deal, will prioritise growth capital investments but LBO and MBO transactions will also be contemplated on a secondary basis.

8. Black Toro Capital II – First close, December 2015
Black Toro's second fund was launched in November 2015 and notched a €136m first close one month later after receiving a €50m commitment from the University of Michigan. BTC Fund II will deploy €20-50m equity tickets to Spanish businesses where, in spite of a proven business model, there is a need for financial and management restructuring.

Further reading

• Southern Europe

LP enthusiasm for Spain cools down in election run-up

• 25 Nov 2015

• Investments

Southern Europe eyes new year with caution after mixed 2015

• 03 Dec 2015

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