Corpfin Capital is gearing up to continue investing in the potential of SMEs. The manager, one of the most established in the Spanish private equity industry, is finalising the closing of its fifth private equity fund, which will have resources of around €300 million, according to sources close to the firm.

In just three months since the fundraising process began, Corpfin has secured commitments of more than €350 million and the firm’s managers are now focused on the allocation of stakes, with the intention of ensuring a maximum total fund size not exceeding €300 million.

The strategy followed

The steps of this vehicle, named Corpfin Capital Fund V and registered with the CNMV last July, are led by the team resulting from the recent management restructuring of the firm, comprising four partners: Álvaro Olivares, Alberto Curto, Gorka García and Fernando Trueba. Carlos Lavilla continues at the firm as chairman.

That said, the investment strategy of the new fund does not differ much from that of its predecessors. The plan is to use the resources raised to acquire majority stakes (although minority stakes are not ruled out) in unlisted companies with a valuation of around €100 million.

Regarding the geographical focus, Corpfin will seek investment opportunities mainly in Spain, without ruling out acquisitions in the Portuguese market. In any case, Portuguese companies will not absorb more than 15% of the total resources raised by the fund, as stated in the prospectus submitted to the CNMV.

The firm’s aim is to build a portfolio of around a dozen portfolio companies across all types of sectors, except real estate (Corpfin has a specific division for this area), financial services and those related to activities that may raise governance concerns, such as tobacco or arms sales. The planned investment in each of these companies ranges between €15 million and €40 million, according to sources.

Among the institutional investors providing capital to the fund, more than 90% are international entities that have previously invested with the firm. Among domestic investors, the repeat rate is also high, sources underline.

The European Investment Fund is among the participants reaffirming its commitment to the firm. Likewise, Corpfin Capital Fund V has been one of the vehicles awarded in the tenth call, resolved last July, of the Government’s fund of funds, Fond-ICO Global.

The arrival of the new vehicle comes at a time when the previous one, Corpfin Capital IV—closed in 2015 with €255 million—has already deployed more than 85% of its resources.

By Mamen Ponce de León / Expansión

Want to know more?

Corpfin Capital finalises a new €300 million fund – Capital-riesgo.es

Corpfin Capital ultima el cierre de su nuevo fondo Corpfin Capital Fund V – Webcapitalriesgo.com