Alantra raises €150m for second debt fund

The firm has increased its fundraising target owing to investor demand and a strong pipeline of potential deals.

Spanish asset manager Alantra Private Debt has held a close of its second debt fund and increased its target.

The Alantra Debt Fund II has held its second close on €150 million after holding a first close on €110 million in August 2018. The fund has increased its target to €175 million with a €200 million hard cap, saying there is strong investor appetite.

Fund investors include a range of public institutions, including the European Investment Fund and Spanish Export Development Finance Institution, financial institutions including pension funds and insurance companies and family offices.

Alantra’s fund will aim to finance export-oriented Spanish mid-market companies with revenues of between €25 million and €200 million and EBITDA of €3 million or more. Ticket sizes will range between €5 million and €25 million and primarily be in the form of senior debt.

It will provide financing for capex, acquisitions, refinancing or shareholder reorganisation.

The fund has already closed its first deal, providing financing to support a leveraged buyout of an unnamed 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. Our team is currently analysing a large number of investment opportunities and we expect to make two more deals during Q1 2019,” said Luis Felipe Castellanos, managing partner of Alantra Private Debt.

Though the fund will predominantly focus on opportunities in Spain, it also has flexibility to invest in other European jurisdictions, with Castellanos saying there are attractive deals available in France, Portugal and Italy.

Alantra’s previous vehicle closed in 2015 with €140 million of assets and has recently completely its 15th deal for Spanish plastics industry supplier Kompuestos. The fund has so-far completed four divestments. Alantra Private Debt was set up in 2014 by investment bank and asset manager Alantra and has approximately €300 million in assets under management.