Talde launches a Debt Fund to support SME as part of the new ecosystem fostered by the Government of Biscay

June 29, 2018
  • After 41 years of activity investing in Private Equity, Talde launches a new Investment Fund focused on providing financing to SMEs in Europe.
  • The new Fund, which will be called Talde Alternative Debt, has already received capital commitments from institutional investors surpassing 20 million euros out of a target amount of 100 million euros.
  • The new Fund plans to provide financing to 7 to 12 companies for an amount of 5 to 15 million euros each.

The pioneering Private Equity company, Talde, with more than 41 years of history, launches a Debt Fund called Talde Alternative Debt aimed at providing financing to SMEs to support their long-term growth perspectives.

The aim of the new Fund is to support European companies in their growth and consolidation phase, which are led by a committed management team and have a consistent generation of cash; companies which are seeking consolidation and need financing to acquire other companies or companies with investment projects that enhance their international development. Additionally, the fund will provide a liquidity alternative to companies with a particular shareholder structure, as for instance is the world of cooperatives, and also to companies which are not willing to open up their capital to external shareholders or find difficult to accept the drag along mechanisms which are common to Private Equity funds. The Fund will provide financing to 7 to 12 companies for an amount of 5 to 15 million Euro each.

With this fund, Talde expands its offer of financial products to companies, fitting its goal with European guidelines to make available to SMEs complementary or alternative options for their financing.

The financing provided to these companies will be structured in several ways (senior debt, subordinated debt, convertible debt, participative loan, hybrid loan, etc.) and  for maturity periods of 5 to 7 years.

The Fund will have a target size of 100 million euros, from which Talde has already obtained commitments of up to 20 million euros. The Fund will be particularly attractive for retail investors from Biscay and Arava, because it will be constituted according to the recently approved tax legislation which provide exemptions in the Wealth Tax and the Inheritance Tax. The Fund will take the specific form under the local legislation of a European Long Term Investment Fund (ELTIF) for the support of the financing of the economic activity and is part of the effort of the Biscay Government to generate an ecosystem that fosters such funds.