Suma holds €65m first close for second growth fund

Alessia Argentieri
10 December 2019

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Spanish GP Suma Capital has held a €65m first close for its second growth fund, Suma Capital Growth Fund II (SC Growth II), which invests in the Spanish lower-mid-market.

The fund was launched in November 2019 with a €125m target and expects to hold a final close by the end of the summer of 2020.

The fund is larger than its predecessor, Suma Capital Growth Fund I, which closed on €50m in 2014 and is now 90% deployed. The fund will invest its remaining capital in two add-ons at the beginning of 2020, Unquote understands.

Triago is acting as placement agent for Suma.

Investors
SC Growth II received commitments from all the LPs in the previous vehicle, including the European Investment Fund (EIF), the Institut Català de Finances (ICF) and 16 Spanish family offices, such as those of the Elías, Sorigué and Rosell families. In addition, one British asset manager and a Luxembourg-based fund-of-funds committed capital to the vehicle.

Furthermore, Suma expects that its ESG-orientated approach will attract several Nordic and UK-based pension funds and funds-of-funds in the coming months, as well as insurance companies and additional Spanish family offices. The fund is likely to have an LP base composed of 40% international investors from outside Spain, 30% Spanish institutional investors and 30% Spanish family offices, according to the GP.

Investments
SC Growth II invests in companies generating EBITDA of at least €2m from revenues of €20-60m and with EV in the €20-50m range. It targets businesses with high-growth potential that are ESG-focused, operating in the niche manufacturing, specialised retail, business process outsourcing and e-commerce sectors.

The vehicle deploys equity tickets of around €10m and acquires majority stakes of 51-55%, or minorities of no less than 30%. It plans to deploy more than half of its capital outside Catalonia, with a special focus on the Basque, Navarra and Valencia regions.

SC Growth II has already made its first investment in business education provider Implika. The fund invested €10.4m in the company via the purchase of shares from a minority shareholder and a capital increase, acquiring a 55% stake.

Unquote understands that the fund is planning to make its second investment in the first quarter of 2020 by acquiring a stake in a Madrid-based company operating in the e-commerce sector.

People
Suma Capital – Pau Bermudez, David Arroyo (founding partners).