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Gala Capital Desarrollo

DIRECT INVESTMENT DIVISION

Multi-asset class investments, in private and publicly traded companies.

GALA CAPITAL DESARROLLO

Independently performing our private equity activities.

 

GALA VENTURES

Providing equity to digital technology early-stage startups.

 

GALA CAPITAL DESARROLLO

Our private equity activities are performed independently by Gala Capital Desarrollo SGEIC. Founded in 1998, it is one of Spain’s oldest and most experienced management companies. Gala Capital is registered with the Spanish regulator, the CNMV.

Gala Capitals’s equity is owned in its majority by its executive team.

PHILOSOPHY


We invest in companies that are in growth stage, led by management teams that inspire our trust and in which we can add value through our knowledge of the local market and expertise, our flexibility in structuring transactions and our execution speed. We select our investments according to socially responsible principles, considering potential for long-term profitability and social impact.

Gala Capital Desarrollo SGEIC’s corporate capacity is based on the following values:

Independence

We are independent from any industrial or financial group.

Commitment

Full commitment and alignment of objectives with our investors. The management team provides an elevated percentage of the fund’s commitments. Additionally, our Direct Investment Division also holds an elevated stake in all of our funds.

Teamwork

We encourage strong teamwork. An important aspect of our incentives policy is based on the capacity for leadership and making joint efforts.

Social Impact

The generation of positive social impact is an important element that is taken into account when considering investments.

Flexibility

A flexible investment thesis gives us the capacity to invest in a large spectrum of private equity deal typologies, as well as allows us to react in an agile way to the constantly changing market conditions.

STRATEGY


Gala Capital Desarrollo invests in companies according to the following strategy:

Strategic Mid-Market Focus

We consider that in Spain this is a market with a much higher degree of professionalization, lower competition and attractive valuations.

Exclusive Operations

Our private network of intermediaries and the expertise of our team allow us to have priority access to deals over other investors.

Generalist Sector Approach

We consider investing in every sector (excluding the real estate and financial sectors, which are considered by Gala’s Direct Investments Division). We prefer markets that are undergoing a transformation process as a consequence of the introduction of innovative processes. We like to focus vertically in the sectors in which we invest because our in-depth knowledge of a specific sector allows us to develop synergies between our portfolio companies and identify new opportunities to gain an advantage over our competitors.

Value addition

We select investment opportunities in which we can add value, such as having established privileged agreements with management or a local partner with proven experience in a specific geography.

Reasonable use of leverage

Our mission is to promote sustained growth for our portfolio companies by reinvesting a high percentage of the generated cash flows. This excludes excessive levels of debt.

Internationalization

We seek companies with a healthy balance between their local business and their exports.  Our understanding of the Spanish market uniquely positions us to source and select the best investment opportunities.

In addition, our active presence in the Middle East allows us to maintain a direct relationship with investors, expand the presence of our portfolio companies and take advantage of opportunities to encourage investment by Middle Eastern companies in Spain.

Long-Term Outlook

We have a long-term outlook.  We prefer to establish a lasting relationship with the management of companies and funds in which we invest, independent of the current economic cycle.

WHY GALA CAPITAL


Our private equity division offers investors and portfolio companies a combination of advantages within the Spanish market:

Successful Track Record

The Team has demonstrated the ability to make investments efficiently, obtaining high returns, mostly through corporate sales and strategic transactions. An outstanding ability to successfully source, negotiate, execute, monitor and exit investments has already been proven over the last few years.

The Team has invested approximately 2 billion € in over 80 national and international companies, with an average investment ticket of just over €30 million. The returns for our investors have historically been above the market average.

Unique, Proprietary Deal Flow

The Team’s personal and professional contacts, experience and reputation are expected to be a major source of proprietary transactions. Its extensive insight into several strategic subsectors and its network of Specialized Senior Advisors positions Gala Capital as a preferred partner for management teams as well as for co-investors seeking knowledgeable and value-adding shareholders.

Unparalleled Private Equity Experience

Gala Capital features one of the most experienced, cohesive, and well-balanced private equity teams in Spain. The Team has an excellent reputation in the Spanish market and has successfully developed a wide network of personal and professional relationships within the corporate and financial community in Spain and internationally.

During the last 6 years, the Team has been concentrating its investment efforts in innovation-intensive models. Gala Capital has built a valuable network and developed wide expertise within difficult-to-access subsectors.

Deep Industry Knowledge

We work closely with experts across Gala Capital’s vast relationship network to gain deep insight and expertise across industry sectors. Our team’s strong experience investing in the industries in which we focus serves as an advantage to management teams. We can provide access to third-party resources and industry experts to provide insights into industry trends and competitive dynamics.

Value Enhancement

We act as value-adding partners with management and other stakeholders. Our team assists management in identifying and executing value enhancement initiatives. We limit involvement to initiatives expected to cause measurable improvements in value creation and measure success through value enhancement instead of fees or use of captive services.

Significant Social Impact

 We select our investments according to socially responsible principles, considering potential for long-term profitability and social impact.  We strongly believe that funds and companies with high ethical standards also provide superior economic returns.

 

INVESTMENT PROFILE


TRANSACTION TYPE:

  • Growth equity
  • Acquisition capital

INVESTMENT CRITERIA

  • Desired Investment Size: between 20 and 100 million €
  • Aligned management team
  • Geography: Focus on Spain but with ability to invest in OECD countries
  • Sectors:Generalist (excluding financial and real estate).
  • Estimated investment period:between 3 and 6 years.

INVESTMENT ROLE

  • Lead investor
  • Reinforced minorities
  • Co-investor