Incus collects €270m on final close of Iberian debt fund – exclusive

The firm’s second fund targets investment in SMEs on the Iberian Peninsula. Deal sizes range between €10m and €30m and its IRR target is 20%.

Spanish credit specialist firm Incus Capital has collected €270 million for its second fund targeting investments in the Iberian Peninsula, PDI can reveal.

Titled Incus Capital Iberia Credit Fund II, the fund targets investments in small and medium-sized enterprises based in Spain and Portugal. Typical deal sizes range between €10 million and €30 million and the fund has a target IRR of 20 percent. The fund operates five strategies focusing on leasing, non-performing loans, real estate credit, factoring and special situations lending.

The fund has attracted commitments from pension funds, sovereign wealth funds, insurance companies and family offices from a wide geographic basis. The Fire and Police Pension Association of Colorado is one of the notable investors committing to fund, according to PDI Research & Analytics.

It has a three-year investment period, but a source close to Incus has said that the capital has been deployed at a speed much quicker than expected. So far, the fund has deployed over €100 million across 10 deals, a number of which were co-investments.

Deals concluded in the fund so far include two transactions involving GE Capital. Last month, the fund acquired a Portuguese mortgage loan portfolio with an outstanding payment balance of €80 million. In December, it acquired a portfolio of Spanish equipment leasing asset loans valued at €35 million.

Incus was also recently involved in supplying €28 million of debt financing for the construction of a yacht marina based in Barcelona. Construction on the marina began in September 2015 in the port of Marina Vela and once finished will provide space for over 200 boats to directly access open sea waters.

According to a statement from the firm seen by PDI, Andrew Newton, chief investment officer of Incus, said: “We are very pleased to have completed the fundraise on our second flagship Iberia credit fund and welcomed the strong interest received from institutional investors globally.”

He continued: “We believe that our illiquid credit strategy continues to deliver valuable non-correlated returns with significant alpha verses traditional fixed income strategies.”

Incus holds €500 million of assets under management as of July 2016 and has a strong focus on downside protection and asset-backed collateral.