Similar to private equity but with less risk and more agility, these funds come from Stanford. Barrilero y Asociados will help Beka.

Similar to private equity but with less risk and more agility, these funds come from Stanford.  Barrilero y Asociados will help Beka.

Similar to private equity but with less risk and more agility, these funds come from Stanford. Barrilero y Asociados will help Beka.

An SME in a day of work.

Beka Asset Management, the manager of the Beka Finance Group, launches Beka Alpha Search Funds, a new vehicle for investment in search funds, vehicles created by one or two entrepreneurs who raise capital from a group of investors to identify, buy and manage an SME in order to lead its growth.

The search funds They have an investment model Two phases: a first in which investors help finance the search for SMEs with growth potential and a second in which they invest in the acquisition of companies.

“This model, created in the Stanford University, is especially aimed at entrepreneurs with several years of experience, in many cases from the best business schools. Due to the nature of our business fabric and the large number of graduates each year from these business schools, Spain has positioned itself as one of the world’s leading countries in this market, with more than 40 search funds launched in recent years and more than 15 companies invested through this model”, says Ignacio Álvarez-Cedrón, senior manager of Beka A.M.

The firm will make up a portfolio made up of a selection of entrepreneurs (seekers) and SMEs in Iberia and Europe. According to the group, with this formula “the execution risk is reduced, the duration of the vehicle and the profitability objectives of the private equity in a period of ten years, with estimated returns of capital from the sixth year of life of the product”, puts Ángel Blanco in context, senior manager of Beka A.M.

According to a 2020 Stanford University study, the average IRR of the investment in search funds it is 32.6%.

Help from Barrilero and Associates

The Beka Alpha Search Funds will invest during its first three years of life in search capital (search capital) of about 20 seekers and, in parallel, directly in companies through the equity gaps of entrepreneurs who need to supplement capital for their acquisition. As of the third year, investment will begin in companies identified by the seekers who have been supported from the beginning. The final diversification of the fund’s portfolio will be around 15 companies, with a maximum exposure of 15%.

To launch this new project, Beka AM has selected the Barrilero and Associates Law Firm, the leading law firm in Spain in the legal structuring of search fundswith a market share close to 50% since 2016, to provide advice in the different phases of the project.

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