Realza Capital holds second close

Debut fund from deal veterans finds a place in the sun as investors shrink from committing to mega funds and shift focus to smaller deals.

Realza Capital, a Spanish spin-out from rival buyout firm Mercapital, has held its second close on its targeted €150 million debut fund. Its focus on the low end of the Spanish mid-market has attracted commitments of more than €110 million.

It plans to hold its final close towards the end of the first quarter.

Etienne Deshorme, founder and partner of Elm Capital Associates, a placement agent advising Realza, said: “The Realza team has been around in Spain since the 1980s working for larger firms. They decided to set up a smaller firm where there was less competition from large pan-European firms.”

He said the fund had been well received by international investors who represent about 85 percent of its investor base. “We want to build some momentum. Some investors were waiting on the sideline to see who else came in. Now investors who wouldn’t have looked at a debut fund are coming back keen to invest at the lower end. There has been a shift of resource.”

Realza Capital was launched in 2007 by Alfredo Zavala and Martin Gonzalez del Valle. Zavala was for17 years with the Spanish firm, Mercapital. Gonzalez del Valle was previously head of Spain for Investindustrial and also spent 6 years at Mercapital.

They now have a team of seven supported by an industrial board.

Realza Capital plans to make control investments in Spanish firms with an enterprise value of less than €100 million. The fund made its first investment in October 2007 buying Perio, a chain of high-end dental practices in Madrid.

SJ Berwin is advising on fund formation.