Newton Equity Partners, an investment firm headquartered in Madrid and specializing in Search Fund investments, has launched an investment fund based in Spain with a target size of €30 million. The Fund, named Golden Parrot Fund I, aims to promote the development of the Search Fund ecosystem worldwide by investing in SMEs led by a new generation of entrepreneurs from top business schools across the globe.
Newton Equity Partners has chosen Spain as the strategic platform for this first Search Fund investment fund, leveraging the country's status as the most established Search Fund market outside the United States. The establishment of the investment firm and the Fund has been supported by Bufete Barrilero y Asociados, the firm's advisor.
The Fund plans to invest in approximately 100 Search Funds and about 25 SMEs over the next five years, initially focusing on Europe, North America, and Latin America. Newton M. Campos, a Brazilian founding partner of Newton Equity Partners and Professor of Entrepreneurship at IE University, emphasizes that "our goal is to support entrepreneurs who want to grow small and medium-sized enterprises sustainably, while generating attractive returns for investors." The minimum investment in the Fund will be €200,000, aiming to acquire minority stakes (up to 20%) in companies with a revenue range of up to €30 million.
Newton Equity Partners has also identified a significant market niche in the succession problem of SMEs. Globally, 67% of SMEs face real risk due to the lack of succession plans, according to World Bank data, while in Spain, this proportion reaches 86%. The founders of Newton Equity Partners offer their network of investors and entrepreneurs to preserve and grow these companies. "Renewed leadership and a combination of capital, management, and strategic guidance are crucial for these SMEs to continue growing," says Newton M. Campos.
Investing Globally from Spain
The choice of Spain as a base is one of the strategic decisions for the new global fund. "Spain," says Luis Prados de la Guardia, a Madrid native and partner at Newton Equity Partners, "has become a leading Search Fund market outside the United States, with more than 70 Search Funds to date. Spain is home to three of the most important business schools in the world, and this solid ecosystem has not only fostered the growth of this investment model but has also positioned Spain as a global reference for Search Funds."
In addition to a favorable regulatory environment, Spain has first-class infrastructure, including specialized legal advice, financial services, auditors, and a well-established network of investors with a deep understanding of this investment model.
Technology and Sustainability
Technology, ethics, and sustainability will also be decisive elements in the new fund's investment strategy. Vani Nadarajah, a British partner at Newton Equity Partners, sees Search Funds as the ideal path to building responsible, technology-oriented companies that achieve high returns with lasting sustainable impact.
For the Partners, promoting a new generation of value-driven leaders who can grow sustainable companies, create meaningful jobs, and leave a legacy of investments with significant social impact is the goal to strive for.
Investment Strategy and Global Focus
Search Funds have proven to be a highly profitable investment option worldwide, offering returns superior to those of Private Equity, with significantly lower risk than Venture Capital. An entrepreneur's ability to acquire stakes in high-potential SMEs is one of the main attractions of this model.
In addition to offering attractive returns, the Fund aims to promote positive social and environmental impact, as well as drive technological advancement through and inthe SMEs in which it invests. "Our philosophy is that long-term value creation comes from aligning investment returns with ethical practices and technological innovation," adds Luis Prados de la Guardia.
About Newton Equity Partners
Newton Equity Partners is a global investment firm specializing in Search Funds, SME acquisitions, and Growth Capital. With the goal of investing in 1,000 SMEs in the next decade, Newton Equity Partners combines attractive returns, ethical principles, sustainability, and technological innovation to foster a future-oriented ecosystem in Search Fund investments.
For more information: Global Comunicación. 616 93 96 90www.newtonequity.com
"LEGAL NOTE: The Fund was incorporated on November 12, 2024, but is pending registration with the CNMV."
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