Argo Capital targets year-end first close

The Spanish firm plans to raise capital from Spanish investors including pension funds, insurance companies, family offices and public regional governments. After the first closing, Argo is likely to target international investors and may hire a placement agent.

The manager is targeting a final close of €100m and pitching the fund as a lower-mid-market growth strategy.

The fund is not sector-focused, but instead will invest in the overarching trend of energy transition. Investments will be in Spanish and Portuguese SMEs that contribute with their products or services to the reduction of CO₂ emissions, with electric cars, batteries, recycling, construction materials and energy efficiency all potential targets.

Typical equity commitments will be €5-15m in companies with EBITDA of €1-4m.

According to Argo's website, the fund is targeting returns in line with those obtained by traditional private equity fund managers, with the environmental impact of investments not giving up the financial profitability of investments.

Target returns to investors are understood to be at least 20% net IRR and 2x money.

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