Oquendo Capital, the Madrid-based debt fund manager which targets the Spanish lower mid-market, is set to announce a first closing on its third fund at €180 million within the next week according to market sources. The firm itself declined to comment on fundraising.
The fund had a target of €150 million and is expected to reach its hard cap of €200 million within the next couple of months according to the same sources.
All investors which committed to the fund’s 2013-vintage second fund, which raised €157 million, are understood to have re-upped into the new fund. The investor base comprises mainly institutional investors.
According to PDI data, the second fund included commitments from the European Investment Fund, AXIS Participaciones Empresariales and Banca March.
It is understood that the third fund already has two investments lined up, with one expected to complete within the next two weeks.
Sources say some of the key attractions of the Oquendo offering include a fast pace of deployment for its second fund, the ability for investors to access co-investments, and a growing opportunity within the non-sponsored deal market.
In Oquendo’s second fund, 60 percent of the deals were sponsored and 40 percent non-sponsored. In the new fund, it is understood that the proportion of each is likely to be 50/50.
The fund will make investments of between €5 million and €30 million in a range of strategies across the capital structure including senior, mezzanine, preferred equity and minority equity.
With a conventional ten-year total lifespan, the fund is expected to make its investments within the next three to four years.