Global investment bank and asset management firm Alantra has held the second close of the Alantra Debt Fund II at EUR150 million.
After reaching a EUR110 million first close in August 2018, the Fund has increased its target size up to EUR175 million – with a EUR200 million 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,” says 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 EUR25 million to EUR200 million and EBITDA of more than EUR3 million.
With tickets of between EUR5 million to EUR25 million, 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 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 EUR140m 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 per cent, 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 per cent and 6.13 per cent, respectively. The returns obtained by Alantra’s team are especially relevant in 2018’s difficult context for fixed income assets.