Dinamia’s investment portfolio is managed by N+1 Capital Privado, one of the largest and most experienced private equity fund managers in the Spanish market.
N+1 Capital Privado’s investment approach is as follows:
1. Active investment in valuable private companies
N+1 Capital Privado identifies for Dinamia investment opportunities in private companies that are leaders in their sectors or in a niche with high entry barriers; their businesses present attractive growth potential and are run by proven management teams that are committed to execution of the growth strategies put in place.
N+1 Capital Privado supports investees in executing their business strategies through direct presence on their boards of directors; however, it never joins the management teams or becomes involved in its investees’ day-to-day management.
2. Confidence in the executive management teams
N+1 Capital Privado’s management team has invested in growth stories and corporate restructuring situations; nonetheless, its preferred transaction structures are management buy-outs and management buy-ins, based on its belief that value is maximised through the participation of the management team in the company’s equity.
3. Multi-sector approach
N+1 Capital Privado selects attractive investment opportunities to maximise returns for Dinamia regardless of business sector. However, it does not invest in the real estate, financial or insurance sectors, and it focus primarily in service sector.
4. Controlling stakes
N+1 Capital Privado prefers to take controlling stakes in its investees, unless the shareholder structure is well diversified and the company has a strong earnings track record. The optimal size (on enterprise value) of targets is between €50mn and €300mn. That being said, Dinamia has historically invested in companies valued in a range of €6mn to €600mn.
5. Guaranteed exit strategy
N+1 Capital Privado has traditionally invested in sector leaders that enable Dinamia, once targets have been met, to make a successful exit, generally via a trade sale, although without closing the door to the IPO route wherever possible. The exit strategy is typically previously agreed to with the other shareholders. Dinamia’s investment horizon is between 3 and 7 years, although there is no preset deadline.
6. Regional focus
N+1 Capital Privado invests in companies focused in Iberian markets (Spain and Portugal).