The New Fund Will be run by Managing Director Carlos Tejera – The Private Equity Ruthlessness has Reached its Final Days.
The social impact funds are opening doors in Spain. Gala Capital is responsible for the last pioneering moves in the Spanish market for this private equity investment strategy. This strategy prioritises a responsibility criteria. The managing director, Carlos Tejera, has just materialised the end of a ruthless cycle as he will seek to support companies to go through with this social focus.
Iñigo González de Luna states that the new project of the entity, called Gala Capital Premier III, has attracted more than 200 million euros. Gonzalez de Luna is the head of management of funds launched by this investment group. He also says that this new social focus has aroused strong interest with contributors. So much so that it’s had 2.4 times the expected request of €150 million.
¨These types of funds attract many investors with a corporate responsibility criteria. We haven’t had space for all of them. They do not look for high returns, but a good combination of capital return and social return,” explains the manager.
Social Focus Benefits
According to González de Luna’s experience,¨companies with high ethical standards tend to outperform the market in financial profitability. Furthermore, they usually have a lower level of volatility. Seeing as they maintain very high levels of corporate governance, there have adequate work balances and long-term growth plans.¨ He also says that having a social focus really isn’t difficult to achieve.
Gala Capital Premier III will seek investment opportunities between medium-sized Spanish companies, with an EBITDA (gross operating profit) of approximately €5 – €15 million. Furthermore, they must also include a priority objective to create positive social impact. This is to meet conditions such as intense job creation, active integration policies or innovation and environmental values, amongst other social focuses.
Gala Capital’s new fund is the manager’s ninth one. They intend to carry out eight operations, each will require between €15 and €35 million of investment. To guarantee that the social focus of these are authentic, the entity has created a method based on standardised criteria by GIIN (Global Impact Investing Network). GIIN is a non-profit organization that is used as a reference in this sector. This method will be applied by a department headed by Rodrigo Aguirre de Cárcer.