Balboa Ventures, S.C.R., S.A. (“Balboa Ventures” or the “Company”), a newly incorporated Spanish private equity company (sociedad de capital riesgo), announces its intention to proceed with an initial public offering (the “Offering”). The Company intends to raise gross proceeds of €100 million (although the size of the Offering may be increased), and to apply for admission to listing of its ordinary shares (the “Shares”) on the Madrid, Barcelona, Bilbao and Valencia stock exchanges (the “Spanish Stock Exchanges”) for trading through the Automated Quotation System or Mercado Continuo of the Spanish Stock Exchanges (the “Admission”).
INFORMATION ON THE COMPANY
Balboa Ventures is a newly created Spanish public limited liability company (sociedad anónima or S.A.) incorporated as a private equity company (sociedad de capital riesgo).
The Company will be externally managed by Arcano Capital S.G.I.I.C., S.A.U. (“Arcano Asset Management” or the “Investment Manager”). Arcano Asset Management is the wholly-owned asset management subsidiary of Arcano Asesores Financieros, S.L. (“Arcano Partners”).
Balboa Ventures intends to raise gross proceeds of €100 million (although such amount may be increased to €150 million), to invest:
(i) in top and emerging venture capital funds typically focused on early stage technological companies through primary commitments and secondary transactions, and
(ii) to a lesser extent, directly into technological companies in relatively more mature stages.
From a geographic perspective, the Company will target mainly investments in the U.S, with a relevant focus on Europe and Israel, and opportunistically it will invest in other regions such as China and Southeast Asia, preferably through U.S. venture capital managers.
The Company will enter into an Investment Management Agreement with Arcano Asset Management, pursuant to which the Investment Manager will actively deploy and manage the Company’s investments and will be in charge of the day to day management. The management team will be led by Mr. Álvaro de Remedios (founder and Executive Chairman of Arcano Partners), Mr. Jaime Carvajal (CEO of Arcano Partners) and Mr. José Luis del Río (co-CEO of Arcano Asset Management).
The Company expects to take advantage of both Arcano Partners’ and Arcano Asset Management’s business strengths:
Strong track record of the Investment Manager in alternative assets globally: the Investment Manager is one of Spain’s most recognizable alternative asset managers. Since inception it has managed and advised more than €6,300 million in alternative investments, mainly private equity, venture capital entities, credit, real estate and sustainable infrastructure funds. With over 13 years of experience in private equity fund investments, Arcano Asset Management has returned a consolidated internal rate of return of 12% through the 11 private equity vehicles that has launched since inception, including primary, secondary and co-investment strategies. The Investment Manager also has a proven track record and expertise investing in venture capital with a consolidated internal rate of return of 38% as of 30th June 2019.
Global Focus: since its inception in 2006, Arcano Asset Management has maintained its geographical focus within the North American and European private market ecosystems through its offices strategically located in Madrid, Barcelona New York and Los Angeles, resulting in a broad network and strong relationships with placement agents, intermediaries, investment managers and investors globally, providing a solid base for investment opportunities.
Access to a valuable and highly experienced fund investment platform: through the Investment Manager, the Company will have access to Arcano Partners, the management team and its professionals. The members of the management team are well known within the international private equity and venture capital markets.
Strong and differentiated culture: Arcano Asset Management is a private market investor specialist with a global perspective to approach private opportunities with historical insight and cultural sensitivity. The Investment Manager’s aim is to establish close and collaborative, mutually beneficial relationships with both investors and the managers of the funds in which it invests.
Privileged access to investment opportunities, through differentiating deal flow sourcing: Arcano Asset Management maintains active deal flow from a variety of strategic relationships through its global offices, which help to enhance sourcing capabilities in its target geographies. The Investment Manager started to invest in venture capital in 2011 and since then has developed several strategic relationships with venture capital managers through specific investment vehicles and advisory mandates. This together with the experience of the three Key Managers and the External Advisor, will facilitate the Company access to the Silicon Valley ecosystem as a highly valuable partner for other venture capital firms.
Proven ability to provide value added strategies for investors: the Investment Manager has a proven track-record of identifying new investment themes, discovering attractive investment opportunities and dealing with complexity, as well as investments across different asset classes and cycles. As such, Arcano Asset Management leverages on its skills at sourcing, executing, implementing and exiting its investments.
The governance of the Company is led by a highly experienced Board of Directors: comprised of members who have considerable experience in private equity, venture capital and financial markets, including investment experience in primaries, secondaries and co-investments. Additionally the Directors bring broad experience in the governance of publicly listed companies. A majority of the Company’s Board is comprised of Directors that are independent of the Investment Manager.
Arcano Partners’ founder and Executive Chairman, Álvaro de Remedios, said:
“Balboa Ventures will enable Investors to take part in the digital revolution that is disrupting all aspects of the economy. We will bridge the gap between Private and Public Markets by allowing investors hard to access Venture Capital opportunities and participate in the considerable value creation that the asset class is experiencing.”
DETAILS OF THE OFFERING
The Offering will comprise a primary offering of new ordinary Shares by the Company.
Gross proceeds of the Offering are expected to be €100 million, although the Company may increase the size of the Offering up to €150 million.
The Company intends to use the proceeds to fund the Company’s venture capital investments in accordance with its investment strategy as well as to fund the Company’s structural expenses. The Company expects to have fully invested or committed the proceeds within approximately 24 months following Admission.
JB Capital Markets S.V., S.A.U. and Banco Santander, S.A. are acting as the Joint Global Coordinators and Joint Bookrunners for the Offering, and Arcano Valores, A.V., S.A.U. is acting as Bookrunner (together, the “Managers”).
The Company will agree to customary lock-up arrangements with the Managers subject to certain exceptions.
Further details of the Offering will be included in the prospectus to be filed by the Company in connection with the Offering. The approval process of the prospectus by the CNMV is still ongoing. Any acquisition of Shares in the company should be made solely on the basis of the prospectus approved by the CNMV. The approval of the prospectus by the CNMV does not constitute an evaluation of the merits of the transaction proposed to investors.
FOR INVESTOR ENQUIRIES
+34 91 702 71 70