GED targets €150m for fifth buyout fund

The Spanish mid-market firm will target buyout and growth investments in industrial companies expanding internationally.

Spanish mid-market firm GED Capital has launched its seventh fund and fifth buyout vehicle, it said.

GED V España has raised €80 million in commitments toward a target of €150 million and expects to hold a final closing in 2016. Its investors include the fund of funds of Spanish Bank Instituto de Crédito Oficial, FondICO, and a number of insurance companies, mutual funds and several family offices.

The new fund expects to make two to three investments in the coming months, GED said.

It targets mainly majority stakes with some minority investments in buyout and growth capital deals, focusing on lower mid-market industrial companies with an EBITDA of more than €3 million. It will invest €15-25 million and focus on companies pursuing international expansion with experienced management teams. These will be market leaders with growth potential in sectors with consolidation potential, GED said.

GED has €800 million of assets under management and has made 56 investments in Spain, Portugal and Eastern Europe since it was established in 1996. Its other funds include real estate and infrastructure.

Its 36 portfolio companies include Spanish ceramic manufacturer Azulev; Mega Food, Burger King’s franchise in Southern Spain; and Romania’s Continental Hotels and travel company Happy Tours Group.