Sherpa Capital, a private equity manager specializing in medium-sized companies, has secured the commitment of its investors for a new 150 million euro fund called Sherpa Capital Private Equity, the firm's third fund (after Sherpa Capital I and Sherpa Capital II).
The new fund will focus on taking holdings, usually majority, in profitable and growing small and medium-sized companies with EBITDA between 1 and 5 million euros. It will focus mainly on companies with good results that are in the process of expansion, and on opportunities in sectoral concentration processes (buy and build).
The fund is expected to make between 8 and 10 investment operations in total, each with between 10 and 20 million euros in capital. The companies targeted for investment by the fund will be primarily located in Spain and Portugal (Iberian Peninsula), although investing in companies based in the rest of Europe is also a possibility.
The new investment vehicle will have a broad base of institutional investors and family offices, most of whom are investors in previous Sherpa Capital funds. Notably, investors have committed to the new fund in a very short period of time, just a few weeks.
With this new fund, the total volume of assets managed by the firm will be 250 million euros. This venture will establish the firm as one of the leaders in the segment of medium-sized mid-market Spanish companies. The new fund is supported by the success of the previous funds, which have yielded returns well above the industry average.
With the introduction of this fund, the fund manager will have two differentiated investment strategies: its traditional strategy of investing in companies in special situations, and a new fund focused on profitable companies of small and medium size.
Continuing the strategy of its former special situations fund, Sherpa Capital will also assign its internal management team (portfolio management) to create value in its investees, a differentiating element in the Spanish private capital market that is unique to private equity firms and has been an important source of value creation for Sherpa companies in the past.