Gala Capital cornerstone investors pull out

Amy King
10 February 2012

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Cornerstone investors in Spanish private equity firm Gala Capital have pulled out of further commitments, according to reports in the Spanish press.

Omega Capital's Alicia Koplowitz, real estate magnate Manuel Jove and the Del Pino family, including Ferrovial founder Rafael Del Pino, are reported to have terminated their involvement with Gala Capital, which began in 2004.

Koplowitz, Jove and the Del Pino family were drawn to Gala Capital, co-founded by former adviser at McKinsey Carlos Tejera and former president of Merril Lynch Espana Jaime Bergel, by the potential of highly-leveraged alternative investments in 2004. Current market conditions are cited as the reason for the departure of the three cornerstone investors.

Gala Capital began to show signs of weakness in 2008 when investors learned through the Spanish press that Gala chairman and co-founder Jaime Bergel had plans to leave the firm for JP Morgan.

Bergel had been preparing to accept an offer to head up the investment bank's Middle East and Africa division when Gala LPs expressed their concern about the negative effect his departure could have.

Stakeholders including Rafael Del Pino, Manuel Jove and Alicia Koplowitz requested Bergel remain at Gala until its current fund has been invested. Bergel agreed to remain at the firm unconditionally.

The private equity firm currently holds a majority stake in antivirus developer Panda Software International SL alongside co-investor Investindustrial after the 2007 buyout, a minority stake in digital broadcaster La Sexta after investment in 2006 and a minority stake in French engineering firm GSE Group after a transaction the same year.

Gala Capital will manage current investments but will not raise new commitments.