Intermediate Capital Group, the UK-based mezzanine finance provider listed on the London Stock Exchange, has confirmed the opening of a Madrid office to handle business in the expanding Iberian market.
The firm, which already has offices in the UK, France, Scandinavia, Germany, Benelux, Switzerland and Hong Kong, will set up an initial team of three in Madrid, led by investment director Jose María Vegas Cordobés.
The Madrid office has a broad sector focus and will look to do transactions from €10 million up to €400 million ($13 million to $511 million) of mezzanine. Last June, ICG invested €75 million in the Spanish company Codere, as part of Codere’s financial restructuring and expansion plan. This was the largest mezzanine financing ever in the Spanish market.
In a statement today, ICG said it was planning to play a major role in the expansion of the LBO market across the Iberian peninsula, generating opportunities from both the traditional sponsor-led LBO transactions and corporate acquisition or refinancings. According to data from ICG, the Spanish LBO market is expected to more than double from its current size to over €2.5 billion within the next three years.
ICG announced last year that it was planning to open a permanent office in Madrid by the end of 2003. The firm is also underway with its latest European mezzanine fund, Mezzanine Fund 2003, with a target of €750 million. Fundraising for a vehicle investing in Asia is also underway.
ICG, set up in 1989, has funds under management in excess of €4.5 billion, investing both from its own capital and funds managed on behalf of third parties.