Portobello IV hauls in €570m, nears €600m hard-cap

Amedeo Goria
10 November 2017

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Spanish fund manager Portobello Capital has attracted commitments totalling €570m for its fourth buyout fund, Portobello Capital Fondo IV, and is nearing a final close before year-end.

The fund manager was initially expected to reach a final close for its latest vintage by the end of Q3 2017. The delay is stemming from the fact the remaining available commitments are lower than the minimum ticket size of a number of existing LPs otherwise willing to chip in, said a source close to the situation.

However, Portobello expects to reach the final close for its latest buyout vehicle on the €600m hard-cap by early December, following the interest shown by some additional domestic LPs.

The fund held a first closing on €500m in July 2017. Quest Fund Placement is acting as placement agent for the GP.

Portobello Capital IV is domiciled in Madrid and is on track to be the largest local fund raised since 2008, according to unquote" data. The announcement comes amid signs of a positive fundraising momentum for Spanish GPs.

According to the source, international LPs account for 85% of the fund's investor base. Additionally, more than 75% of investors in the fund are returning from Portobello Capital III, which reached a €375m final close in September 2014.

Concurrently to the fund's final close, Portobello is expected to complete the second acquisition for the vehicle by the end of November 2017, according to the source. The GP will purchase a 55% stake in Spanish fitness studio chain Supera from the founders and management team, which will retain the remaining 45% holding. The business was founded in 1993 and manages 35 gym studios across Spain and Portugal. It generated EBIDTA of approximately €16-17m in 2016, according to the source. The GP is understood to have outbid an undisclosed infrastructure fund competing for the asset.

The fourth fund inked its first deal with the acquisition of five Spanish companies operating in the dental care segment in September 2017. According to a statement, the group has an aggregate €95m turnover with €14m in EBITDA.

Following this second deal, the fund will have deployed aggregate capital of €85-90m and expects to complete up to 10 acquisitions within its four-year investment period. It aims to ink two additional acquisitions in 2018.

The GP also made two investments via its previous vehicle this year: car rental service Centauro in April 2017, and resorts chain Blue Sea in July 2017. Portobello III currently has nine companies in its portfolio and has ended its investment phase.

Portobello targets Spanish businesses valued at between €50-500m, deploying equity tickets within the €10-100m bracket.