Iberian fund reaches second close

Espirito Santo Capital, the private equity arm of Banco Espirito Santo, and Sigefi Private Equity has reached a second close in its cross-border fund SES Iberian Fund I.

The fund, which is advised by Spanish firm SES Iberia Private Equity, closed on €27.5m and aims to reach €50m. Most of the capital raised so far (85.5%) has been committed by institutional investors and 14.5% by private investors and family offices.

The fund launched in June 2004 and is hoping for a final close in May, although Oscar Martínez-Cubells Leyún, managing director of SES Iberia Private Equity, said that if current negotiations with a potential investor are successful, it could be closed sooner.

The fund is expected to invest mainly in Spanish SMEs but also in Portuguese and French SMEs located in the south west of the country that have developed or plan to develop significant activities in the Iberian Peninsula.

The fund will take both minority and majority stakes either through investing development capital or backing buyouts. It will not specialize in specific business sectors and will invest in companies with revenues ranging from €10m to €100m.

No investments have been made but a number are expected shortly.