Diana Capital: Strategic highlights from its CEO
Francisco Gómez-Zubeldia, CEO of Diana Capital, shares in this interview for Capital & Corporate insights on the firm’s position in the Spanish middle market, its 2024 investment plans, and the strategy behind some of its most successful deals.
Standing, from left to right: Pilar García de Rivera, Alejandro Mejías (Partner), Javier Fernández las Heras (Partner), and Julen Arana.
Seated, from left to right: Elena Pajarín (Partner), Francisco Gómez-Zubeldia (Vice Chairman and CEO), and Cristina Jiménez.
Selection of questions answered by Francisco Gómez-Zubeldia, June 24, 2024
How is the fundraising for Diana Capital III progressing? When do you expect the final closing?
“We have already completed a €160M closing, which we are comfortable with, and we are moving forward with the goal of reaching the final closing by the end of the year.”
What are the benefits of your zero-leverage model?
“Our model is not based on leveraging companies, but on providing them with enough equity through capital increases so they can grow in a safe, solid and risk-free way.”
What type of opportunities are you focusing on with your third fund?
“We prefer to strengthen companies with equity to support national and international growth plans. […] We believe the success of an investment is directly linked to the quality and commitment of the management team.”
How many investments do you expect to make with this fund and what will be the average ticket size?
“With Diana III, we expect to close between 7 and 9 transactions, targeting investments between €10M and €30M. We may go beyond that range through co-investments with our LPs.”
Are you actively looking at new opportunities in the coming months?
“There are thousands of small but profitable companies in Spain led by experienced entrepreneurs. This creates great opportunities for private equity, especially in the lower middle market.”
How was the sale of Gransolar to Trilantic?
“The sale generated a 32% IRR and a 5x return on our initial €15M investment, making it a highly profitable exit for Fund II.”
How do you see the first half of 2024?
“Despite uncertainty, we believe 2024 will be a positive year for investments, especially in the second half. The middle market and growth capital will continue to show strong activity and offer excellent opportunities.”
Interested in reading the full interview with Francisco Gómez-Zubeldía? Access it through the following link