Realza Capital reaches second close on EUR110m

01 February 2008

Tweet
Facebook
LinkedIn
Google plus
Send to

Fund

Realza Capital has held the second closing of its first vehicle, Realza Capital I, on more than EUR110m. The Spanish fund focuses on the low end of the mid-market and is aiming for EUR150m at final close. The fund is set to invest mostly in Spain, but may consider operations in Portugal.

The GP contribution to the vehicle is 2%. The terms and conditions of the fund are described as industry standard, with the minimum subscription set at EUR3m and a 2% management fee. The fund has a 10-year life span with the possibility of a two-year extension. Realza has retained Elm Capital as placement agent and SJ Berwin as legal adviser. A final close is forecast for the first quarter of 2008.

Investors

Realza has received strong backing from international sponsors who represent about 85% of its investor base.

Investments

Realza Capital I will target control investments in Spanish firms with an enterprise value of less than EUR100m. Transaction values will range between EUR7-25m and will target proprietary buyouts aiming to complete two to three deals per year. Co-investments are not excluded. The exit strategy is geared towards industrial players. The proceeds of divestment cannot be re-invested.

The fund closed its first investment in October 2007 in Perio SA, a chain of dental practices in Madrid (January 2008, page 36).

People

Realza Capital was launched in 2007 by managing partners Alfredo Zavala and Martin Gonzalez del Valle. Gonzalez del Valle was the head of Investindustrial for Spain, while Zavala worked with Spanish firm Mercapital for 17 years. They worked together for six years at Mercapital before setting up Realza. They are supported by a team of seven professionals and a seasoned industrial board. The GPs are hiring a new analyst and are considering hiring an investment director and another analyst for a period of three years.

SPAIN

Name

Realza Capital I

Target

EUR150m

Second close

EUR110m

Focus

Expansion/Proprietary Buyouts

Contact

Alfredo de Zavala

Martin Gonzalez del Valle