Exclusive: ProA to close fund on €350m hard-cap

The Madrid-based firm has stopped fundraising and will officially close before year-end

ProA Capital has reached its €350 million hard-cap on its second fund, PEI has learnt.

The Madrid-based firm, which officially came to market in June, has stopped fundraising and is currently wrapping up the legal documents, according to a source familiar with the matter. The vehicle will officially close before year end.

ProA, which targeted €325 million for the vehicle, held a €255 million first close in September. It is understood the fund had significant support from existing investors. The firm also attracted new investors, a source told PEI in August.

It is understood that Park Hill is assisting ProA with the fundraising. Park Hill declined to comment, while ProA did not respond to a request for comment at press time.

ProA typically invests in companies in Spain and Portugal which have an enterprise value of between €20 million and €200 million. In 2007, the firm raised €250 million for its maiden fund. That vehicle, which is fully invested, comprises of seven portfolio companies.

ProA was founded by a number of former N+1 Private Equity executives. Fernando Ortiz, ProA’s managing partner, was a former partner at N+1 Private Equity, a Spanish firm that has since merged with Mercapital and is now called N+1 Mercapital. Santiago Gómez and Carlos Gordillo, partners at ProA, also worked at N+1 before co-founding ProA, as well as Fernando Elío, an investment director at ProA. Another partner, Alberto Yanci, joined ProA in 2008 from Madrid-based Mercapital.

News of ProA’s fundraise comes as investor appetite for Spain has improved in recent months. In September, Portobello raised €375 million for its third fund. In the same month, Miura Private Equity closed its second fund, Miura Fund II, at its €200 million hard-cap.

Meanwhile, Madrid-based Corpfin Capital, which came to market last summer, is still attempting to collect €200 million for its fourth fund. It has already collected more than half of its target, PEI reported in September.