We invest in Spanish middle-market companies from a variety of industrial and service sectors. The companies are generally family-controlled businesses that have ambitious expansion plans or are facing generational transition, and normally need our operating and financial experience in order to boost growth and carry out operational and managerial improvements. Diana Capital seeks conservative financial policies that guarantee the success of a business plan through an optimization of working capital and a moderate use of debt.
We invest between € 10 million and €25 million per company, generally through a capital increase, but also considering replacement transactions.
We search for companies that meet the following criteria:
- Market leaders with significant growth potential: we invest in companies that have a well-established market position and proven competitive advantages within their industries or geographies and plan to capitalize on their strong foothold to expand and generate rapid growth linked to:
– an international focus,
– prospects for new product introductions and
– opportunities for consolidation and add-on acquisitions in highly fragmented sectors.
- Family-controlled businesses in a phase of transition: we invest in businesses that have historically been controlled and run by families or entrepreneurs and are in a stage of generational transition or are in the process of implementing a major strategic change such as entering new markets or developing new products or services. In addition to funding, these businesses seek the assistance of a partner in order to accelerate operational managerial and financial changes.
- Financially committed shareholders and management teams: the Firm consistently seeks for the previous owners to retain a significant ownership stake in the company, indicating that the owner wishes to remain active and to continue to manage the business.
- Controlling influence: we are always the lead investor in our portfolio companies. While the family or entrepreneur with whom Diana Capital co-invests generally retains a significant stake in the company, the Firm consistently ensures that it has a controlling influence over the most important strategic and managerial decisions.
The Firm targets growth capital investments, but will also consider opportunities in replacement transactions with low financial leverage.
We invest through capital increases aimed at funding plans to accelerate growth or facilitate a strategic change in the company
We sometimes partner with management teams and entrepreneurs in transactions that require replacing a shareholder. We structure this type of transactions in a very conservative way.