Iame launches EUR500m maiden fund

01 July 2008

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Fund

Iame Capital Riesgo has launched Brand Capital Made in Spain, to invest in Spanish high-end fashion brands. The EUR500m vehicle has a floor of EUR350m and a 5+5 year structure. Minimum subscriptions are set at EUR6m. Placement fees are 2%; management fees are set at 2.2% while the carry and hurdle are set at 20% payable on the fund as a whole. The fund is expecting to announce its intermediary closing in September 2008 with a final closing forecast for April 2009.

Investors

The fund has mostly received commitments from Spanish and Mexican family offices as well as some institutional investors such as banks, pension funds and funds-of-funds. It expects to internationalise its investor base following the intermediary closing.

Investments

The vehicle will invest in Spanish brands in the fashion & accessories, jewellery and leather sectors developing a holding model similar to that of LVMH and dedicating 65% of its capital to expansion deals with the remainder allocated to the acquisition and sales of shares. Brand Capital will carry out 15-20 transactions investing between EUR3-40m per deal and taking majority positions.

Co-investing alongside LPs or other GPs is not part of the core strategy but it will be considered on a case-by-case basis. Exits will be carried out in block divestments with all traditional routes on the table. Profits cannot be reinvested. The fund expects to complete four to eight transactions by the year's end.

People

The fund is managed by Iame Capital Riesgo, headed by managing director Luis Sans who is supported by general manager of synergies and operations Christian Lopez-Baillo and general finance manager Alvaro Ferrer. Sans has previously founded and managed ViapostaI and Hupacksa also acting as adviser to Grupo Inversor Invmexbuild and Group Fabric Decoration Asia. Lopez-Baillo joins from Venture Capital Fund where he worked for eight years as investment manager. Ferrer, also investment manager at Iame Capital, comes from a corporate finance background having worked for five years at Avantia Partners and 10 years in financial and strategy advising at Rothschild, American Appraisal and Arthur D. Little. The fund will also rely on a board of experts in financial, managerial and industrial know-how.

Name: Brand Capital Made in Spain

Launched: April 2008

Focus: Spain

Contact: Luis Sans

Address: Iame, Iame Capital RIesgo, Plaza Marques de Salamanca 10, 5 degs Dcha, 28006 Madrid, Spain

Tel: +34 91 432 36 28

Fax: +34 91 576 12 85

Advisers: Caja Madrid (Placement agent), Barrilero & Associados (Legal).