News archivos - Arada Capital Partners

The Search Fund Arcadio Capital acquires LIBNOVA: the global leader in digital preservation

Posted on 09/18/2023 by Javier Puig

Translation of elEconomista newspaper aticle.

Arcadio Investments, the search fund created with the purpose of facilitating generational transition for a spanish SME business owner, has acquired the software company Libnova.

Libnova is the global leader in digital preservation with a presence in 20 countries across five continents. The investment firm, supported by Arada Capital Partners, has completed its acquisition after evaluating over 1,000 Spanish companies across multiple sectors.

The founder and CEO of Arcadio Investments, Jacobo Vera, has assumed the role of the new CEO of the Spanish company, specializing in supporting businesses and organizations in safeguarding their digital content. The co-founder of Libnova, Guillermo Martínez, remains as a shareholder alongside Arada Capital Partners and other American and European investors. Furthermore, he will continue to be involved in the new phase of the company.

Following the investment, Jacobo Vera has initiated an ambitious growth plan. “The expansion of digital preservation is unstoppable, and our goal is to ensure that our product reaches every corner of the world,” explains Vera to elEconomista.es. “We are already market leaders, but we aim for more. We will strengthen our teams to continue delivering the service our customers expect, further enhance our products, and expand our international presence.”

Founded in 2009, Libnova’s mission is to proactively and systematically safeguard digital content, ensuring its accessibility, usability, and authenticity over time. The company, with over 70 clients, generates 65% of its revenue internationally, with the United States leading in revenue contribution at over 40% of the total.

Among its clientele, Libnova boasts prominent public and private institutions globally, including the British Library, Stanford University, Princeton University, Oxford University, Cambridge University, and organizations like Bayer, CERN, and the U.S. Department of Energy. In 2021, Libnova was selected for the Archiver project, funded by the European Union and led by CERN, to develop a solution for preserving large-scale research data sets. As a result, this year, the company has been nominated as a candidate for the European Technology Award in the category of R&D, with the winners to be announced in late 2023.

Javier Puig, investor and advisor of Arada Capital Partners, explains, “We have been studying the digital preservation industry for some time, and the market fundamentals are very positive. With this operation, Arada Capital Partners expands and diversifies its portfolio. The private equity managed by Tressis operates in five different geographical regions. Among its ongoing operations, one that stands out due to its advanced stage is the acquisition of an internationally oriented industrial company based in Portugal.

Arada Capital Partners has a current portfolio of 17 search funds operating in five different geographic regions (Spain, France, Portugal, Italy, and the United Kingdom). and two portfolio companies: IESMAT, a Spanish leader in applied technological solutions, and Libnova, the company mentioned in this article.

Search funds whet investor appetite

Posted on 06/19/202306/19/2023 by Javier Puig

We are delighted to have been able to collaborate with Capital & Corporate on the publication of this article in the latest issue of their magazine. We agree with them that Search Funds are a fascinating asset class, not only for investors, but also for entrepreneurs around the world.

The below article published by Capital & Corporate, a reference for private equity and M&A professionals in Spain, explains to professional investors how Search Funds connects experienced entrepreneurs with investors, and how this model is emerging as the new asset class for investing in SMEs.

Positioned by many somewhere between venture capital and traditional private equity, Search Funds offers average returns of 30% by investing in operational companies with proven business models. With over 40 registered search funds, Spain is positioning itself as one of the leading markets globally, thanks to its strong presence in the low middle market.

In the article, Arada Capital Partners, as an international institutional investor with presence in various geograhies, discusses the advantages of the Search Fund model and why it is a very interesting vehicle for both investors and highly qualified entrepreneurs.

Search-Funds_Revista-Capital-Corporate-64-1 Download

Arada Capital Partners, Tressis’ private equity firm, invests in 14 Search Funds in Europe

Posted on 02/23/202304/26/2023 by AradaAFM

Arada Capital Partners completes first closing of its venture capital fund focused on Search Funds
The fund invests in European entrepreneurs to facilitate the succession of SMEs.

https://www.eleconomista.es/capital-riesgo/noticias/12154400/02/23/Arada-la-sociedad-de-capital-riesgo-de-Tressis-invierte-en-14-fondos-de-busqueda-en-Europa.html

Arada Capital Partners, the private equity firm advised by Javier Puig and managed by Tressis Gestión, announces its first closing with commitments close to 60% of the target capital, estimated at €15 million. The firm has an initial portfolio made up of 14 national and international Search Funds and a first company: IESMAT. In its first year, the privat equity firm has consolidated its presence in 4 geographies (Spain, UK, Portugal and France) and is finalising its entry into Italy before the summer, thus becoming one of the institutional investors of reference in the Search Funds ecosystem in Europe.

The objective of Arada Capital Partners is to acquire around twenty companies (50% in Spain and 50% in the rest of Europe and the UK) which it will manage through 30 national and international Search Funds. To raise capital, Arada Capital Partners has Tressis SV as its exclusive marketer among family offices, mostly Spanish, and entrepreneurs with experience in different sectors. Executives who are not only looking to invest but also to support entrepreneurs and new executives of investee companies.

Twenty entrepreneurs

The 14 Search Funds financed to date by Arada Capital Partners consolidate 18 entrepreneurs who are currently looking for a SME of between 1 and 3 million EBITDA, each of them in their respective geographies. The Search Fund investment model consists of acquiring one company, managing it and growing it, in many cases facilitating the succession and generational handover of family-owned SMEs. “During 2023 we plan to make several acquisitions of companies with succession issues across Europe. Although 2022 has not been an easy year, we have seen that among SMEs there is a lot of movement and very interesting investment opportunities”, confirms Javier Puig to elEconomista.es.

Arada Capital Partners’ first portfolio company is IESMAT, the Madrid-based scientific instrumentation supply, installation and support firm led by Enrique Sales, the founding partner of Signatus Capital, the Search Fund that identified and bought 100% of the Madrid-based company. “With the reinforcement of its sales and after-sales team, the upcoming opening of an office in Barcelona and the entry into Portugal, we expect a solid growth of the company during 2023,” says Javier Puig.

For the location and management of the companies in which Arada Capital Partners invests, the private equity firm finances entrepreneurs with a wide variety of profiles. “We look for sufficient commitment and experience so that our entrepreneurs can not only identify and acquire an SME, but also manage and run it later” explains Javier Puig.

Tax advantages

In addition to supporting entrepreneurs and providing a solution to the succession problem faced by many European SMEs, the private equity company “has tax advantages for investors (spanish legal entities) with a 95% exemption on dividends and capital gains received, as well as the consideration as assets used for economic activities for those participations of more than 5% in the share capital of the firm,” says José María Mingot, director of legal and tax advice at Tressis.

JC Partners, the Search Fund created and led by entrepreneurs Juan Pablo Ocampo and Chaid Neme, explains to elEconomista.es the alignment of interests between entrepreneurs, sellers and investors that favours this investment model. “On the one hand, the investor diversifies his portfolio while making a long-term investment with historical returns of more than 25%, while ensuring the continuity of companies with succession problems. On the other hand, entrepreneurs, in addition to the potential economic returns, have the opportunity to live a unique experience together with their investors by undertaking the acquisition and management of a stable company with a proven business model”.

After several months of looking for a company, JC Partners explains that, in the current situation of uncertainty, business owners who had not previously considered divesting are starting to think about selling their companies “as an attractive option, which translates into new investment opportunities in the market”.

Another Search Fund in which Arada Capital Partners invests and which is currently looking for an SME to acquire in Spain is Pleamar Partners, led by José Luis Soria and Carlos Gómez de Iturriaga. “We are doing an agnostic Search, with no restrictions on sectors or specific geographies. A clear trend is that we have identified younger owners who, despite being far from retirement age, want to turn their lives around or undertake new business projects. In both cases, the Search Fund model is well received. Sellers and entrepreneurs like to put faces and eyes on the people who will give continuity to their business projects,” they add.

Translated by Arada Capital Partners.

The ‘search fund’ Arcadio Investments facilitates the generational replacement of SMEs.

Posted on 04/19/202204/26/2023 by AradaAFM

(Translation of the article of elEconomista newspaper)

The search fund ecosystem continues to grow in Spain with an increasing acceptance of this entrepreneurial model through the acquisition of a single company. Arcadio Investments was created with the purpose of facilitating the generational handover to a businessman who wants to preserve his legacy and essence of his company. To this end, the new firm led by entrepreneur Jacobo Vera is actively seeking a unique partnership with the founder of a small and medium-sized enterprise (SME) to actively manage it and grow the business over the long term.

Under this investment proposal, Arcadio Investments looks for companies in sectors with growth prospects, sustainable returns, low exposure to external factors (regulation and economic cycle), with a niche or high added value product/ service and a stable and diversified client portfolio. Specifically, Arcadio Investments focuses on businesses between 5 and 20 million euros with a track record of growth and stable revenues.

The search fund takes an active role in the company in which it invests. “We join the management team full time and travel to their headquarters to manage the day-to-day operations. Unlike traditional private equity, we dedicate 100% of our time, energy and capital to the continued success and growth of the one company acquired” explains Vera.

Investment Base

Arcadio Investments is backed by more than 20 partners, institutional and individual investors, both national and international, with an outstanding experience as businessmen, investors, and entrepreneurs. As partners in the project, they will assist the searcher in the investment decision-making, through Arcadio’s investment committee, and subsequently in they will support the Jacobo in the operational management of the company, through the board of directors.

Among the investors that have supported Arcadio Investments, Arada Capital Partners has supported Jacobo Vera since the very beginning. Arada Capital Partners invests in search funds globally. Combining the traditional private equity model with aspects of entrepreneurship, Arada Capital invests through an innovative collaborative model of “entrepreneurial acquisitions”, capable of generating superior returns for investors and entrepreneurs.

Arada Capital Partners, based in Madrid, invest and advises search funds and similar vehicles. Through the “search funds” it takes minority but relevant stakes in small and medium-sized companies. In addition to investing, Arada Capital Partners also actively supports search funds in the search for their companies, in the subsequent acquisition and value creation process – once acquired – and in the final exit (final divestment).

Growing ecosystem

Javier Puig, international investor in the ecosystem and advisor at Arada Capital Partners, explains that Spain is one of the main players in the search fund ecosystem thanks to the multiple factors driving the proliferation of this type of investment vehicle. “The typical target of search funds are SMEs with an ebitda between 1 and 3 million euros. Companies with a track record of profitability and growth, which, due to succession issues or other reasons, their owners want to sell. This type of operation is viewed favorably by banks when it comes to financing the acquisition and their new strategic plan, as they are proven and solvent businesses with a good financial structure”, he explains. In his opinion, after the baby-boomer generation, a simple demographic reasoning makes it obvious that the opportunities for companies/SMEs to be acquired are very high. “Although there are many search funds in Spain, competition is still limited and much lower than in segments of the market where acquisitions are larger”, he concludes.

Arada’s latest investments also include Signatus Capital, the search fund led by Spanish entrepreneur Enrique Sales. Last December Enrique’ acquired IESMAT, the Spanish leader in applied technology solutions. With the operation, the industrial engineer has assumed the functions of CEO of the group and acquired a significant stake in the company together with other private investors, with the aim of promoting a new phase of growth.

IESMAT: Arada Capital Partners first acquisition

Posted on 01/17/202204/26/2023 by AradaAFM

We are excited to announce the first acquisition of Arada Capital Partners. Thanks to the incredible work done by Enrique Sales and his Search Fund team at Signatus Capital, we have been able to acquire an incredible company with a great growth potential: IESMAT.

From Arada Capital Partners, we are very proud to be partners of our new CEO Enrique and excited for this next phase of our journey together.

With more than 15 years in the sector, IESMAT supplies, installs and gives support in the world of scientific instrumentation. IESMAT distributes in Spain products with exclusivity from some of the main brands and producers within the scientific instrumentation sector.

Arada Capital Partners | Support, guide, mentor and invest in Search Funds

Posted on 12/21/202103/29/2022 by Javier Puig

Arada Capital Partners invests through Search funds in solid and profitable companies with a history of growth, with the aim of implementing a strategic plan and looking for an exit after a few years.

We invest with the objective of getting involved and add value in everything that is necessary for the Search Funds. Our goal is to have a limited number of exceled Search Funds in our portfolio, allowing us to provide the maximum added value to each of them in a personalized way, and therefore acquire great businesses with even greater management.

We support, guide, mentor and invest in Search Funds

Bring maximum value to both our Search Funds and Investors

We want to add value to the Search Funds. We invest willing to help and support during all stages and for this we make available to the Search Funds in which we invest a wide variety of resources:

During the search of opportunities, Arada Capital Partners aims to help entrepreneurs in the search by providing the necessary tools, contacts and framework to maximize their potential.
Arada Capital Partners, with its M&A expertise, strongly helps Search Funds during both the acquisition and sell process. We help with the structuring of the bilateral or competitive process, preparing a valuation model, due diligence organization, VDR preparation, site visits organization, preparation of management presentations, preparation of legal documents, and in any other tasks that the Searchers might need help with.
Arada Capital Partners provides to the new management, through its multidisciplinary management and advisory team, support, guidance and mentoring to the Searchers and the company acquired.

We invest globally, with a special focus in Europe and the UK

Deal by Deal Analysis: potential investments will be analyzed objectively and in isolation, regardless of which sectors or countries are already active in the Arada Capital Partners portfolio.

The Search Funds in which we invest looks for and acquires solid and profitable companies with a solid growth trajectory. Jointly with the Search Funds, we aim of implement a strategic plan and expand the acquired companies to a next level.

The Search Funds seeks to give continuity to the fundamental pillars of the success of the acquired company, building on the founder’s legacy with the help and advice of its investors to materialize the next phase of growth.

In addition, Arada Capital Partners invests in sustainable companies that generate a positive impact on society (oriented towards ESG impact).

Category: News