Carlyle Group is further strengthening its position in Europe, opening an office in Madrid, which is to be led by Pedro de Esteban, the newly-appointed managing director for buyouts in Spain. Carlyle other European offices are in the UK, France, Germany and Italy.
In Spain, the firm will focus on investments in family businesses. These represent a high proportion of Spanish GDP, but are reluctant to become listed companies in order to raise further capital for growth.
Carlyle has already demonstrated its ability to partner successfully with family members through investments in Italy, Germany and France.
These include; Riello, an Italian leader in boilers and burners for heating; Honsel, the German automotive component manufacturer and Figaro, the French newspaper.
De Esteban joined Carlyle in April and has been recruiting a team of investment professionals to work with him in Barcelona and Madrid.
He was previously managing director for Inversiones Novae and executive director for Goldman Sachs.
Carlyle’s development in Spain will be boosted by an increasing demand for capital in the Spanish market being driven in part by changes in private equity legislation and the benefits of a single European currency. Investment in Spanish companies by private equity funds increased significantly in 2000 by 55.9 per cent to reach e1.17 billion, according to ASCRI, the Spanish private equity association. The amount of capital raised for new funds tripled to reach e2.35 billion.