Alantra is plotting the launch of its second direct lending investment vehicle with the aim of raising up to €200 million.
So far, 80 percent of the €140 million first fund has been invested in the Spanish market across eight transactions and the fund is preparing for a successor vehicle which it aims to launch in the second quarter. It is targeting between €150 million and €200 million and a first close is expected to take place in the fourth quarter.
It will be the first fund Alantra has launched since it was renamed from N+1 in September and the firm is looking to expand its geographical mandate across Southern Europe.
“We’re a local player, and we haven’t made much noise overseas but the aim of our next fund is to try be able to invest in Southern Europe. The rate of deployment has been pretty rapid and there are a lot of opportunities for local, niche players,” said Luis Felipe Castellanos, managing partner at Alantra.
Castellanos explained that the firm’s strategy is to operate under the radar of the international debt funds, which as a result of raising increasingly larger funds are looking at larger transactions.
The firm has predominantly focused on sponsorless transactions in the first fund with around two-thirds of transactions completed without private equity backers.
Alantra looks at tickets between €10 million and €25 million and recently closed an investment in the helicopter operator company Habock on the upper limit. The seven-year loan is a bullet structure that enables the firm to refinance its existing debt and begin a long-term strategy of growth, with an openness to acquisitions. The coupon is in the high single digits and there are a full set of covenants.
Explaining the attraction of Habock, Castellanos said: “The company receives medium and long-term contracts from public administrations meaning there is certainty over the revenues. Helicopters are highly liquid assets and depreciate very little in value.”
Furthermore, Habock is active in fire extinguishing activities and operates in both Europe and Latin American during the summertime, meaning the company is active throughout the year.
Alantra is a Spanish investment bank headquartered in Madrid, but with offices in the US, Asia, Latin America. The bank has an asset management arm, which has €3.5 billion in assets, that invests in private equity, active funds, debt and real estate.