Information on the Target

NAZCA CAPITAL, a private equity firm focusing on investing in unlisted small and medium-sized enterprises (SMEs) in Spain, has recently appointed Ramón Garnica and Emilio Manchón as partners. Both individuals have a decade’s worth of experience within the company and will contribute to the ongoing leadership led by founding partners Carlos Carbó and Álvaro Mariátegui, alongside senior professionals such as Carlos Pérez de Jáuregui, Celia Pérez-Beato, Ignacio Portela, Daniel Pascual, and Juan López de Novales.

The recent appointments of Garnica and Manchón come alongside NAZCA's strategic expansion, having hired six additional professionals in 2019, bringing the total staff count to 33. The firm has also enhanced its digital capabilities through the recruitment of Olga San Jacinto, who joins the Industrial Advisory Council and brings expertise in digital transformation from her previous roles at Google.

Industry Overview in Spain

Spain's private equity market has seen dynamic growth, particularly in its middle market segment, where firms like NAZCA thrive. The landscape for private equity in Spain remains robust, driven by a mix of domestic and international investors seeking lucrative opportunities within SMEs, which are a substantial contributor to the national economy.

The need for capital among SMEs in Spain continues to rise, especially as they navigate through digital transformation and operational challenges in a post-pandemic economy. Investment firms focusing on SMEs have an opportunity to drive innovation and growth in this essential sector, presenting a conducive environment for investment.

In 2019, NAZCA completed its transition into a multi-fund private equity manager by successfully raising Fund V, amounting to €150 million, aimed specifically at smaller SMEs. This fund operates concurrently with Fund IV, which raised €275 million and targets larger companies, collectively showcasing a wide range of investment opportunities from €7 million to €80 million.

Over the past years, NAZCA has established itself as a leading player in the Spanish private equity market, conducting 69 transactions, which include direct investments, acquisition add-ons, and exits. This track record signifies not just operational strength but also a strategic focus on enhancing the portfolio value of its investments.

The Rationale Behind the Deal

The appointment of Ramón Garnica and Emilio Manchón as partners at NAZCA is part of the firm’s strategy to bolster its leadership team and expand its investment capabilities. Their decade-long experience within the firm aligns with NAZCA’s goals to continue fostering growth in the Spanish SME sector.

This strategic move demonstrates NAZCA's commitment to enhancing decision-making processes and deepening the expertise available to its portfolio companies. By promoting experienced professionals, the firm aims to leverage their insights and networks to uncover new investment opportunities and drive superior returns.

Information about the Investor

NAZCA CAPITAL is a distinguished private equity management firm specializing in the Spanish middle market. Since its establishment in 2001, the firm has successfully executed numerous investment strategies with significant returns, making it a leader in the local market. NAZCA's funds include those specifically targeting SMEs, illustrating the firm’s dedication to supporting smaller companies and their growth potential.

With a history of investing across various sectors, including hospitality, healthcare, and consumer goods, NAZCA continues expanding its reach and influence in the private equity landscape. NAZCA's current portfolio comprises 10 companies in diverse industries, recognizing the value these SMEs bring to the economy.

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The decision to appoint Ramón Garnica and Emilio Manchón as partners at NAZCA is a sound investment strategy. Their long-standing association with the firm and proven track record in executing investments will undoubtedly enhance its operational capabilities, making this a prudent move for future growth.

The rapid expansion of NAZCA's team and its foray into digital expertise with the addition of Olga San Jacinto reflects a strategic alignment with industry trends, especially concerning the digital transformation of SMEs. This positioning uniquely prepares the firm to capitalize on emerging opportunities and adapt to a fast-evolving market landscape.

Furthermore, NAZCA’s shift towards a multifund structure allows for flexible investment approaches that can cater to the varying needs of SMEs. This flexibility is crucial in today’s market where businesses seek tailored strategies to navigate challenges and foster resilience.

Overall, with its solid groundwork, robust investment strategy, and an expanded leadership team, NAZCA is well-positioned to continue generating attractive returns for its investors while positively contributing to the growth of the Spanish SME sector.

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