Black Toro Capital (BTC) has launched its second mixed debt and equity fund with a target of €350 million. Allstate Investments, the investment arm of US insurer Allstate, has committed €73 million to the new vehicle as lead investor, the Spanish capital provider announced.
The new commitment brings Allstate’s total investment with the firm to €111 million, BTC said.
The firm expects to reach a first close on around half the €350 million target in the first quarter of 2016, it is understood. The vehicle is targeting internal rate of returns of around 25 percent and the general partners have also invested €10 million into the strategy. The manager is focused on raising capital from institutional investors in Europe and the US.
Black Toro makes debt and equity investments into Spanish companies with good business models but which are facing liquidity constraints or other misalignments, creating opportunity for the investor.
The firm has invested €80 million over the past 12 months into four deals; Antibióticos de León, Carbures Group, Irestal Group and Papeles El Carmen.
Offering a combination of debt and equity to find the best solution for capital constrained corporates differentiates BTC from the many other investment firms seeking to gain exposure to Spain, said Jose Manuel de la Infiesta, a partner with BTC.
The first investment from the second fund is currently closing, added de la Infiesta.
The firm did not disclose how much it raised for its first fund, a 2013-vintage vehicle that had a target of €350 million and a €500 million hard-cap, as reported.
Black Toro Captial has offices in Barcelona, Madrid and London. It seeks to partner with and take controlling stakes in companies facing difficulties that investment using debt, equity or quasi-equity facilities will solve in combination with leadership.