Financial Services - Madrid, Community of Madrid, Spain
Despite decent fundamentals, a large number of Spanish companies have had to endure the financial crisis with increasing levels of financial and operational stress. Small and Medium Enterprises (SMEs) are often particularly ill-equipped to deal with such stress, since access to capital becomes increasingly difficult and they often lack the expertise to turn the situation around. As a result, these businesses can offer excellent investment opportunities. There is a large, untapped potential in Spain for equity investments in this type of SMEs. Ker Capital focus on this highly attractive opportunity. The team has significant experience of special situations and turnaround investments, bringing excellent analytical and due diligence capabilities, as well as strong relationships with the key stakeholders in all the necessary processes. Ker Capital will only pursue investments in Spanish SMEs (mainly in the industrial sector, with revenue ranging from €10-100m) offering controlling equity stakes in businesses which have under-utilized capacities, high leverage, low profitability compared to their sector peers and which have the potential to grow through financial and/or operating restructuring. Investments will usually be in the €1-4m range, though larger investment sizes could be considered. The investment holding period is expected to be between one and three years. In order to deliver a rapid turnaround and subsequent sale, Ker Capital will look to bring in first-class managers and advisors both from within the business, as well as from outside. Ker Capital comprises a unique, tight-knit team of highly experienced individuals in both private equity investment and corporate special situations. Ker Capital´s team brings an impressive pipeline of quasi-proprietary deal-flow, based on a long track record of trust, honesty and transparency across the entire spectrum of Spanish stakeholders, such as Banks, unions, judges, lawyers, advisors and managers.