Abac Capital targets €350m for second fund

Spain fundraising update

Fundraising activity recorded a contraction in Spain in 2019, affected by political instability, which discouraged some international investors from increasing their exposure to the local market.  

The country held two elections – one in April and one in November – and saw extreme-right-wing party Vox more than double its seats becoming the country's third most-powerful party. Furthermore, turmoil continued in Catalonia, whose failed bid for independence in 2017 triggered one the country's biggest political crises.

The local private equity market recorded only two noticeable closings last year: ProA Capital Iberian Buyout Fund III, which closed on €475m, surpassing its €450m target; and Nazca Capital V, a lower-mid-market-dedicated fund, which hit its €150m hard-cap.

However, several funds were launched over the year and are now wrapping up their fundraising. GED Capital launched GED VI España Fund, a €175m vehicle that held a first close on €100m in March 2019, while Suma Capital held a €65m first close for its second growth fund, Suma Capital Growth Fund II, which invests in ESG-focused lower-mid-market companies.

Meanwhile, MCH Private Equity launched its fifth vehicle with a €400m target in April and Magnum Capital started fundraising in December for its third fund, a buyout fund with a €400-450m target.

2020 has already started on a positive note, with the formation of a coalition government between the socialist party led by prime minister Pedro Sanchez and the anti-austerity Unidas Podemos alliance. According to several sources, fundraising activity is expected to flourish in the coming months, benefiting from international LPs and private investors' renewed interest in allocating capital in the country.