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Private equity fund focus on minority stakes in growing companies

Investment in different companies for the portfolio of the PE fund within a structured strategy for searching the targets THE VECTOR COMPANY advised Q CAPITAL on 5 transactions over a period of 2.5 years

General Overview

Q CAPITAL is a Spanish private equity fund with many years of experience in investing in growing companies

Q-Growth I fund aimed to invest in Spanish companies in the lower middle-market that basically meet one of the following investment thesis: i) companies operating in market niches or ii) companies operating in massive markets but with a high disruptive business model

The fund had a large experience in identifying trends in this type of business.

On the other hand, it is one of the few PE funds that generally invests in minority stakes so it is especially structured to invest and create value  in growing companies environments from a minority stake. Additionally, the PE fund had defined a very clear win-win investment proposal for closing the deals in terms of the investment agreement structure, the valuation systems, the creation of incentive packages for the managers,…

Strategic Rationale

The PE fund was looking for a reliable financial advisor, with the capacity to reach the fastest growing SMEs in the lower middle-market segment in Spain, with the ability to arouse the interest of the target companies and with the commitment to assume a high level of dedication with the aim of building a medium-term relationship with the PE fund that would allow it to tackle an ambitious acquisition plan.

The PE fund structured its own target research system but at the same time THE VECTOR COMPANY, having understood the investment criteria of Q CAPITAL, was engaged for looking for other companies that could match the investment thesis and the investment parameters.

Key learnings

The mutual commitment of the PE fund and the financial advisor enabled a win-win working dynamics, which would result in a relevant success for the mandate.

Q CAPITAL finally invested in 4 target Companies and one add-on with the advisory of THE VECTOR COMPANY during a period of 2.5 years.