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Aurica Search Fund, the co-investment platform for searchers of private equity manager Aurica Capital, has announced the closing of its first fund. The fund was oversubscribed, bringing total capital raised to €50M. With this final closing, Aurica Search Fund I becomes one of the largest investment vehicles in the European SF segment.
Aurica Search Fund I aims to invest in 15 companies, primarily European SMEs with profitable business models, strong growth potential, and recurring cash flow generation. The fund will prioritize sectors with structural tailwinds, including services, healthcare, technology, and education.
To date, the fund has completed 4 transactions, the most recent in November, when it participated in the acquisition of an 80% stake in Hispania, a Spanish language school for foreign students. The other portfolio companies include CSP, a UK-based company specializing in safety and traffic management for major sporting events; Alfavet, a German company focused on the manufacturing and commercialization of pet nutraceuticals; and SOS Software Service, a German software distributor.
Regarding searchers, Aurica has already backed around 30 across Europe’s main economies, as well as the UK, Mexico, and Brazil. Recent commitments include Adarve Partners, Fairmile Partners, H&B Mittelstandspartner, Covadonga Capital Partners, Lakeview Partners, and Preludio Partners.
According to Ricardo Velilla, Partner at Aurica Capital and Investment Director of Aurica Search Fund, “Europe, and Spain in particular, offers very attractive opportunities for the search fund model. We are identifying numerous SMEs with strong potential that require an orderly succession process and more professionalized management, as well as the right talent to lead them. With this first fund, our goal is to bring Aurica’s investment philosophy to smaller companies: profitable businesses in a growth phase with strong cash flow generation.”
Aurica Search Fund follows a hands-on investor approach, actively participating on boards of directors and supporting new CEOs in the professionalization and growth of their companies.
