The Carlyle Group is further strengthening its position in Europe, opening an office in Madrid that is being headed by Pedro de Esteban, the newly appointed managing director for buyouts in Spain. Carlyle is now present in the European Big Five countries.
In Spain, the firm will be focusing on investments in family businesses that 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 investments include Riello, an Italian leader in boilers and burners for heating; Honsel, the German automotive component manufacturer and Figaro, the French newspaper.
“A strong partnership between investor and family members is key in ensuring that the objectives of both parties are met,” said de Esteban
De Esteban joined Carlyle in April and has been busy 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% to reach ?1.17 billion, according to ASCRI, the Spanish private equity association. The amount of capital raised for new funds tripled to reach ?2.35 billion.