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What inspired you to launch Iniginy Capital and focus on investing in search funds?
After more than two decades building, scaling, and ultimately exiting Telematel, launching Iniginy Capital felt like a very natural next step—both from a personal and professional perspective.
I come from a family with a strong entrepreneurial background. My grandfather was in textiles, and my father built an electrical manufacturing business that he later sold to Schneider in the 90s. That “entrepreneurial DNA” has always been there, and for me, being close to the real economy—the SME ecosystem—has always been what I enjoy the most.
At Telematel, we were very focused on building a vertical software company, with a strong emphasis on standardization. We grew organically for many years and didn’t really engage in M&A. That changed later in our journey, particularly after the 2008 crisis, which hit us hard, as many of our customers were in construction. It forced us to rethink the business, diversify, and become more resilient.
We launched various projects with an “intrapreneurial” mindset, running them independently and later integrating them if they proved successful. Many potential buyers approached us, but the real turning point came with Valsoft, with whom we shared the same vision and who valued the effort we had made in reinvesting all our profits to start our transition to the cloud. Not only did we structure our exit with them in 2021, but we also learned a tremendous amount during our journey together—about product development, continuous delivery, implementing Scrum, and especially M&A (we acquired companies in Spain and Italy) and integration. That experience opened my eyes.
Before the exit, we had most of our eggs in one basket, so for the next stage we wanted to diversify. While exploring wealth management and different investment strategies, we discovered search funds. It immediately clicked. It combines investing with something I deeply enjoy: working alongside entrepreneurs, contributing operationally, and giving back what I’ve learned over the years.
It was also clear to me that the ecosystem needed more operators. The fit was almost immediate. After the first few months of research, we were already backing searchers. Over the past 15 months, we have been actively exploring the sector. We are not a fund; we are a small family office investing our own capital.
What is the core investment thesis behind Iniginy Capital, and what kinds of opportunities are you most interested in backing? What qualities do you look for in the entrepreneurs you back, and what makes a searcher the right fit for Iniginy Capital?
Our investment thesis has evolved quite a bit since we started, essentially at the end of 2024 after the IESE Conference.
Initially, we were thinking about geographic diversification, mainly investing outside Europe, with a special interest in Latin America. But we quickly realized that if we wanted to add value, we needed to focus on regions where we had real experience. That led us to concentrate on Europe—primarily Spain, Italy, and the UK, markets I’ve known very well over the years.
In terms of sectors, we are generally cautious with software due to high multiples, although we still like highly specialized vertical niches where the entrepreneur deeply understands the customer’s pain points. Technology alone is not sufficient—distribution and commercial execution are often as important.
When it comes to searchers, we tend to prefer profiles with real operating experience, who are generally well suited to negotiate with sellers, as they very well understand the seller’s entrepreneurial profile. People who have managed teams and understand how businesses actually run, especially in small companies with blue-collar environments.
We also think carefully about team structure. Duos can work well, especially when they are complementary (operator + dealmaker), but alignment can become a challenge over time. Generally, they gain more traction during the search phase. Singles, on the other hand, often fit better with smaller deals, which aligns well with our typical ticket size.
In an increasingly competitive search fund market, what do you believe will make Iniginy Capital a distinctive partner for searchers? How do you see the opportunity set evolving across different markets?
What truly differentiates us is that we come from the operator side.
We are very hands-on, approachable, and genuinely enjoy rolling up our sleeves. We’ve gone through integrations, managed SMEs and, importantly, we’ve also been on the seller side. That last point is sometimes underestimated—it gives us a very different perspective when working with founders during acquisitions.
We try to bring a mindset of ownership, discipline, and humility. We love searchers who are “hungry but humble” and very cost-conscious.
Geographically, we see different dynamics across markets. Spain is becoming more competitive, but there are still strong opportunities in niche sectors. Italy is particularly attractive to us due to its highly fragmented SME landscape. The UK is more challenging, with many deals running through competitive brokered processes but still interesting for us.
We are also interested in markets like Poland, where we see strong cultural alignment and work ethic. In the future, in LatAm, Brazil is a market we find appealing and are open to exploring.
Overall, we strongly believe in sector specialization rather than broad, generalist approaches.
What is your sweet spot in terms of deal size and company profile? How are you thinking about portfolio construction at Iniginy Capital—both in terms of the number of investments you want to build over time and the level of concentration you are comfortable with? Where do you believe you can add the most value?
Our typical ticket is around €300k to €500k per deal, although we remain flexible depending on the opportunity.
We focus on relatively small companies where we believe we can truly have an impact. These are situations where the searcher can take real ownership and where operational improvements can drive meaningful value.
Today, our goal is to invest in 8 to 10 search funds per year across Europe, leading to 2 to 3 acquisitions annually, and building a portfolio of around 20 companies over a 6–7 year period, maintaining a good balance across geographies and sectors while avoiding excessive concentration. So far, we have backed 10 searchers across 5 countries (UK, Italy, Portugal, Spain and Switzerland) and completed 4 acquisitions—2 in Spain, 1 in Portugal, and 1 in the UK.
Where we believe we add the most value is in the human side of the process: supporting the searcher, building trust with the seller, and helping navigate integration and early operational challenges. Our experience allows us to be pragmatic and grounded in how SMEs actually function.
Telematel grew into a leading digital platform in a highly specialized vertical. What lessons from building a vertical software business do you believe are most relevant to search fund investing? In the age of AI, do you still see software businesses as offering compelling long-term value creation opportunities?
One of the biggest lessons from Telematel is that companies are ultimately about people. Before implementing any “plan,” you need to understand the human dynamics. Communication, informal leaders, timing, transparency, and trust are critical. When you acquire a company, you are not just buying a business—you are ‘buying’ a team, often with people who have been there for many years.
The transition with the previous owner is particularly delicate. You need to gradually replace that figure while maintaining stability and trust. The first year is always a learning process, and things may become somewhat messy before they improve.
In terms of software, we still see value—especially in vertical niches. But the key is not the technology itself but understanding the customer’s problem deeply. AI is making it easier to build software, but not necessarily to maintain it, evolve it, or distribute it effectively. In many cases, the commercial side remains the true differentiator.
Having worked extensively in digitization, product data, and operational optimization, where do you see the greatest untapped value-creation opportunities in lower middle-market businesses?
We tend to be quite skeptical of certain “classic” value creation narratives.
Build-ups based purely on synergies may sound better in theory than in practice. The same goes for internationalization—it can prove to be far more complex than it appears, with cultural and operational challenges that may be underestimated.
We tend to focus on more tangible and organic levers: improving how the product is sold, optimizing sales channels, adjusting pricing where there is real value, and systematically gathering customer feedback.
Digitalization also plays a role, but in a very practical sense—eliminating inefficiencies, avoiding unbilled work, and improving internal processes.
Inorganic growth can make sense, but only if there is clear value creation post-integration. Otherwise, it can quickly destroy value.
Given your background as an operator, entrepreneur, and post-acquisition leader, how do you plan to translate that experience to support searchers? What is your perspective on the quality of boards in the SF space—what could be improved? And how important is alignment in your investment approach?
As investors, our role is to be supportive, very honest and transparent.
The first 18 months after acquisition are the most critical, and we try to stay particularly close to the searcher during that period. At the same time, we believe in balance—support without overstepping.
Boards are a key element. We believe in combining strong financial profiles with real operators. It’s also important that the board reflects the searcher’s needs—someone very operational may need more strategic perspective, and vice versa.
There is no single playbook. Each situation is different, and the board needs to adapt accordingly.
Having lived through both growth and acquisition firsthand, what do you think many investors still underestimate about backing searchers and SME acquisitions? How do you balance providing support with giving entrepreneurs room to lead?
Many investors underestimate how complex small business operations really are—and how central the human element is.
From my own experience, one of the biggest lessons has been learning to step back. At Valsoft, I learned the importance of providing tools without forcing their use. Today, I try to avoid getting into every detail, focusing instead on setting clear expectations and reporting structures.
Being involved in multiple companies also helps—you naturally learn to delegate and trust.
Ultimately, the balance is about being there when needed, without taking over: supporting the entrepreneur while still giving them the space to lead and make decisions.
