N+1 reaches out to small-caps

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N+1 Family Office, a subsidiary of the N+1 (formerly Nmas 1) Group has launched a new investment initiative alongside a pool of 18 Spanish families. Capital Empresarial was designed as a mechanism for N+1 to tap into the SME pool, backing exclusively Spanish businesses worth less than EUR35m in enterprise value. The estimated amount of capital available, assuming steady investments from the families in the next two to three years, can reach up to EUR120m.

The strategy, managed by N+1 advisory business, will allow its backers to co-invest between themselves and actively participate in the running of companies by bringing together different sector skill sets. It will avoid early-stage businesses or companies undergoing restructuring processes. Deal opportunities will be sent simultaneously to the families, which will then invest on a pro-rata basis. According to N+1, Capital Empresarial covers the end of the market that its larger funds (currently investing an average of EUR40-250m per deal) would not consider. Additionally, it satisfies any problems related to decision-making, since the investing families will have control over the whole process. The N+1 team received a corporate finance-style fee in the shape of a lump payment to assist with the management, while additional payments are made on a monthly basis.