Alantra, a middle-market investment bank and asset manager, has raised 150 million euros for its second debt fund. Alantra’s Debt Fund II’s target is 175 million euros with a hard cap of 200 million euros. The fund’s investors included public institutions, pension funds, insurance companies and family offices.
Madrid, 26 February 2019 – Global investment bank and asset management firm Alantra has announced today that it has reached a second close of €150m for Alantra´s Debt Fund II. After reaching a €110m first close in August 2018, the Fund has increased its target size up to €175m –with a €200m hard cap- encouraged by its quick deployment rate as well as by strong investor appetite.
The Firm has closed the first deal from Alantra’s Debt Fund II after providing long-term financing for the leveraged buyout (LBO) of an undisclosed Spanish company. “Our pipeline shows the growing popularity of private debt as a tool for Spanish mid-market companies – many of which are family-owned – to diversify their financing sources,” said Luis Felipe Castellanos, managing partner of Alantra Private Debt. “Our team is currently analysing a large number of investment opportunities and we expect to make two more deals during Q1 2019,” he added.
Alantra Private Debt’s second vehicle follows an investment strategy similar to its predecessor, offering attractive returns by financing export-oriented Spanish companies with revenues of between €25m to €200m and EBITDA of more than €3m.
With tickets of between €5m to €25m, Alantra´s Debt Fund II invests primarily in senior debt (preferred in order of priority payments). This financing is used for capex, acquisitions, refinancing and/or reorganising the shareholding structure of companies.
Alantra´s Debt Fund II has a diversified investor base, including public institutions (European Investment Fund and Spanish Export Development Finance Institution, Cofides), institutional investors (pension funds and insurance companies) as well as family offices.
The second fund has greater flexibility to invest in other European jurisdictions than its predecessor. “Even though our fund is focused on financing Spanish mid-market companies, we are also finding attractive deals in neighbouring countries such as France, Portugal and Italy,” said Alantra Private Debt’s managing partner Luis Felipe Castellanos.
Alantra´s Debt Fund I backs Spanish company Kompuestos
Alantra Private Debt also announced today that it has completed the 15th transaction of its maiden vehicle Alantra’s Debt Fund I with a long-term loan to Kompuestos, a Spanish company that designs and manufactures colour masterbatches, additives and mineral fillers for the plastic industry.
Alantra Private Debt closed its first private debt fund in 2015 with €140m under management. Since then, Alantra´s Debt Fund I has made 15 deals, positioning the vehicle as the most active senior debt fund in Spain. Moreover, the fund has successfully completed four divestments so far.
Alteralia Debt Fund FIL, the hedge fund investing in Alantra´s Debt Fund I, led the ranking of its category in 2018, according to data from the Spanish Association of Investment and Pension Funds (Inverco).
With an annual return of 6.43%, the class C of Alteralia Debt Fund led the ranking in the Spanish hedge funds category. It was followed by class B and class A of Alteralia Debt Fund, which generated returns of 6.28% and 6.13%, respectively. The returns obtained by Alantra’s team are especially relevant in 2018’s difficult context for fixed income assets.
About Alantra Private Debt
Alantra Private Debt, created in 2014 to promote different debt funds, currently has around 300 million euros under management. With 16 deals completed so far, Alantra Private Debt is one of the most active private debt firms in the Spanish mid-market.
Alantra is a global investment banking and asset management firm focused on the mid-market with offices across Europe, the US, Asia and Latin America.
Alantra’s Asset Management division has €4.4 billion of assets under management (AuM) in Private Equity, Active Funds, Private Debt, Real Estate and Wealth Management.
Its Investment Banking division employs over 330 professionals, providing independent advice on M&A, debt advisory, financial restructuring, credit portfolio and capital markets transactions.
Alantra is a publicly-traded partnership.