Muzinich Iberian Private Debt Fund reaches €80m first close

The Spain and Portugal focused fund will lend to SMEs with revenues of between €50 million and €500 million.

Muzinich & Co. has reached a first close of €80 million on its Muzinich Iberian Private Debt Fund. The closed-end fund is focused on financing small- and medium-sized enterprises in Spain and Portugal, according to an announcement by the New York-based firm.

Investors include both local and international institutional investors and the fund is structured as a Luxembourg SICAV-SIF. It will target companies with revenues of €50 million and $500 million and minimum EBITDA of around €7.5 million.

The fund’s strategy is to finance SMEs seeking long-term growth financing, with emphasis on backing companies with international expansion programs. Muzinich is working with Arcano, a Madrid based investment and advisory firm on the fund.

Earlier this month, PDI reported that Muzinich & Co expects to hold a first close on a UK private debt fund in the new year. It is Muzinich’s third European private debt fund in the market.

US-headquartered Muzinich held first close on its Italian fund in April on €156 million. It is aiming to raise around $400 million, as previously reported by PDI and fundraising is due wrap up by September 2015.

In September, Muzinich hired Rafael Torres Boulet as head of the Iberian Private Debt Fund, focused on financing small and mid-market businesses in Spain and Portugal. It is expected the fund will be smaller than that dedicated for Italy, reflecting the smaller market.

Muzinich has assets under management of $28 billion as at August 2014 and offices in New York, London, Milan, Paris, Cologne, Zurich as well as a new office in Madrid.