Suma Capital Growth Fund II closes on €160m

The fund was launched in November 2019 with a €125m target and held a €65m first close in December 2019.

It is larger than its predecessor, Suma Capital Growth Fund I, which closed on €50m in 2014 and is almost fully invested, performing at more than 2.4x. The GP told Unquote that the fund plans to make a new add-on by the end of June for its portfolio company Germans Homs, which specialises in renting out equipment to the construction and industrial sectors.

The growth fund strategy of Suma is led by partners David Arroyo and Pau Bermúdez-Cañete.

Triago acted as placement agent and Clifford Chance provided legal advice to Suma on the fundraising of SC Growth II.

The GP also manages two infrastructure funds: Suma Capital Energy Efficiency Funds I, which is currently fully deployed; and Suma Capital Efficiency & Environment Fund, which closed on €150m in 2018 and is dedicated to investments in sustainable infrastructure and energy companies, with the aim of tackling climate change. The fund is almost fully deployed and Suma plans to launch a third vehicle in the coming months, the GP told Unquote.

Investors
SC Growth II received commitments from all the LPs in the previous vehicle, including the European Investment Fund (EIF), Institut Català de Finances (ICF) and around 20 Spanish family offices, such as those of the Elías, Sorigué and Rosell families.

In addition, asset manager Aberdeen Standard Investments, a Luxembourg-based fund-of-funds and a French family office joined the investor base at first close.

The vehicle also received commitments from French and Swiss asset managers, as well as Spanish insurance companies and pension funds.

Overall, the LP base is composed of around 40% international investors, 30% Spanish institutional investors and 30% Spanish family offices.

Investments
SC Growth II invests in companies generating EBITDA of at least €2m from revenues of €10-100m and with EV in the €20-50m range. It targets businesses with high growth potential that are ESG-focused, operating in the manufacturing, specialised retail, business process outsourcing and e-commerce sectors.

The vehicle deploys equity tickets of around €10-15m and acquires majority stakes of 51-55%, or minorities of no less than 25%. It plans to deploy more than half of its capital outside Catalonia, with a special focus on the Basque, Navarra and Valencia regions.

The fund plans to build a portfolio of around 10 companies.

SC Growth II has inked two deals so far. The first was the acquisition of a 55% stake in Bilbao-based business education provider Implika in December 2019. Suma backed the company alongside a Spanish family office, which took 5%, while the company's founder and chair Zigor Maritxalar retained the remaining minority stake. The GP invested an equity ticket of just less than €10m via the purchase of shares from a minority shareholder and a capital increase.

The fund has also invested in Barcelona-based Nice People At Work (NPAW), a specialist in online video analytics, acquiring a stake of around 25% in the company with a ticket slightly in excess of €10m.

The GP told Unquote that it will close a third deal next week, investing in a Spanish distributor of video content, and that a fourth investment in an online retailer is currently in the due diligence phase and is expected to close in September.

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

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