FOND-ICO GLOBAL reactivates the Spanish private equity market

FOND-ICO GLOBAL reactivates the Spanish private equity market

ICO's chairman, Román Escolano, has announced the names of the eight recipient funds of FOND-ICO GLOBAL's second round of investments.

The amount committed for investment in Spanish companies as a result of FOND-ICO GLOBAL's first two rounds of investment totals €1.33 billion, three times the amount of funds raised by the entire private equity sector in Spain in 2012.

FOND-ICO GLOBAL's third round of investments will include two new categories: incubator funds and debt funds.

 At a press conference this morning ICO's chairman, Román Escolano, announced the results of the second tender organised by FOND-ICO GLOBAL, stressing that it had "triggered even greater interest than the first round, with 24 candidates applying for funding, 15 seeking growth capital and nine, venture capital".

The candidates selected in the venture capital category are: Axon Capital e Inversiones SGECR S.A., Caixa Capital Risc SGECR S.A., Forbion III Management B.V. and Seaya Capital Gestión SGECR, S.A.,Espiga Equity Partners SGECR S.A., Oquendo Management S.A.R.L., PAI Partners and Trilantic Capital Partners, meanwhile, have been earmarked investment commitments in the growth capital category.

FOND-ICO GLOBAL will invest €248 million as part of this second round. The candidate funds selected for investment in this round have committed to investing €665 million in Spain.

What does FOND-ICO GLOBAL mean for the private equity industry in Spain?

The funds mobilised by FOND-ICO GLOBAL since its launch are unquestionably reactivating the private equity market in Spain. The private equity sector as a whole raised total funding of €447 million in 2012.

As ICO's chairman stressed, the first two rounds of investment allocated by FOND-ICO GLOBAL in 2014 "have mobilised total commitments to invest in Spanish companies of €1.33 billion, marking very substantial growth with respect to the €447 million raised in all of 2012".

The ultimate goal of FOND-ICO GLOBAL, endowed with €1.2 billion, is to invest in over 40 private equity funds in a bid to mobilising some €5 billion of investment in Spain over the next four years.

Third FOND-ICO GLOBAL tender

During today's press conference, Román Escolano explained that the third round of investments will encompass four categories. In addition to the venture capital and growth capital categories included in the first two rounds, the entity will also invest in incubator funds and debt funds as part of this third round. As a result, FOND-ICO GLOBAL will diversify into new private equity formats.

ICO's president insisted, however, that the candidates opting for these new categories "must be duly incorporated and supervised private equity management companies".

The third round will launch on 11 July and the deadline for presenting applications is 12 September. Funds will be committed to two venture capital funds, three growth capital funds, two incubator funds and two debt funds.