Kenta Capital, a national leader in debt advisory, and Elkargi, a financial institution created by and for companies, have launched a debt fund to support the growth of small and medium-sized enterprises (SMEs) in the Basque Country and Navarra. The fund will provide loans of up to €4 million under competitive terms with a bullet structure (single repayment at maturity) and maturities of 5 and 7 years.
This is the first fund on the market offering financing under these terms in terms of deal size, repayment structure, and competitive pricing with a specific local focus.
The primary objective of the fund is to drive both organic and inorganic growth of companies in the Basque Country and Navarra with revenues of up to €50 million, a solid position within their sectors, and stable financial standing. While the fund prioritizes support for industrial companies, service companies that meet the established criteria will also be eligible.
Through this initiative, the sponsors aim to bring a new source of financing to SMEs, helping them diversify their funding sources and strengthen their financial position. This will allow companies to optimize cash flow, reinforce long-term capital structures, and seize new growth opportunities without giving up equity.
The fund, totaling €50 million, is supported by a group of private investors led by Mirai Investments – the investment arm of the management team at Sidenor – and includes investors with predominantly family office profiles as well as institutional investors such as Kutxabank and Unicaja, who will also participate in financing the vehicle. Additionally, the fund will benefit from the support of CERSA, Compañía Española de Reafianzamiento, a government-backed entity under the Ministry of Industry, through Elkargi.
Kenta Capital, acting as the fund advisor, will lead the origination, analysis, and structuring of investment opportunities. Mirai and other local investors will contribute their expertise and knowledge of the Basque and Navarrese economic environment. Elkargi will play a key role as guarantor of each loan and by providing insight into the local business ecosystem.
The fund responds to a growing market need in which, due to bank consolidation, some projects face limited traditional financing options. It offers a financing solution tailored to companies that previously had no viable alternatives due to deal size, repayment structure, or financing costs. However, this debt is not intended to replace bank financing but to offer companies a complementary solution.
Borja Bertrán, Managing Director & Co-founder of Kenta Capital, stated: “At Kenta Capital, as experts in alternative financing, we understand the needs of a constantly evolving market. This fund allows us to be part of the development of the business ecosystem in the Basque Country and Navarra, collaborating with key partners such as Elkargi and Mirai. Our goal with this fund is to support the growth of SMEs, positioning it as a driver for their development.”
Zenon Vázquez, CEO of Elkargi, added: “As a financial institution created by and for companies, driven by a culture of proximity, technical rigor, neutrality, and a clear commitment to strengthening our environment, we aim to offer financing, consultancy, and financial training solutions tailored to each stage of the business cycle. With the launch of this fund, we expand and strengthen the range of financing solutions available to companies, particularly SMEs.”
Companies can apply for financing directly through Kenta Capital or via Elkargi’s usual channels, which will assess the suitability of each transaction through a thorough analysis of the companies involved.
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This pioneering initiative is designed to support both organic and ino...
