Industrial Investment

We analyze the macroeconomic markets tendency, in order to identify investment opportunities in mature and unlisted companies with different development levels that expect to grow at a constant fixed rate, taking into consideration the historical evolution of their financial statements, the sectors where they developed, the environment general situation and its future expectations. On this formula we provide financing through the acquisition in a share of its capital with a certain temporal horizon.

We channel our investments, efficiently and diversified, in a co-investment regime with other professional investors that share a common philosophy and investments objectives, as well as through a careful selection of consolidated managers, with a consistent strategy and well-sized stable teams that have generated, on a recurring basis, attractive returns with low volatility.

We don’t invest in companies in difficulties or that still need to acquire the necessary structure to grow and/or scale operations.

We invest in the real economy by taking participations in solid, profitable companies across Spain, without strict sector restrictions, with revenues exceeding €10 million and sustained levels of operating profitability, with EBITDA margins above 15% or equivalent comparable metrics, that require the support of a partner to enable operational, managerial and financial transformation and that promote conservative policies ensuring the success of the business plan through the optimization of working capital management and the prudent use of leverage, within two investment contexts:

• Capital increases to accompany the reference shareholder in an expansion project (development of a new business unit, internationalization, buying a competitor, horizontal or vertical integration, etc.).
• Transactions arising from succession processes or the divestment of non-core assets within family-owned businesses or small corporate groups, facilitating ownership transitions and supporting management teams in a new phase of growth and professionalization.

Evaluation criteria:

• Companies based in Spain that currently are looking for an investment partner.
• Preference for sectors showing structural growth and not easily disrupted.
• Proven business models with a sustainable competitive advantage that follow specialization strategies and have an appropriate debt use, as a way to improve profitability and generate shareholder value.
• Price and value: different valuations within a market logic, nonetheless capable of offering a reasonable “safety margin”.
• We approximate the present value of the future cash flows by discounting them at a rate that reflects the cost of capital provided and gives us their real value.
• The efficient allocation of its economic resources: projects and alternatives of investment and financing capable of producing the highest profitability margins, within acceptable risk fundamentals.
• The ability to generate liquidity, promoted by its growth and profitability from its invested capital.