Nexxus chases after Spanish retail: the fund targets fashion to invest up to 20 million

New investor looking for opportunities in Spain. Nexxus Iberia has started the search for deals in the fashion retail arena in Spain and Portugal after raising 130 million euros. The fund wants to take positions in a Spanish fashion player, in which it plans to inject between fifteen- and twenty million euros, as explained by the managing partner of Nexxus Iberia, Maite Ballester.

Nexus Iberia is a venture capital firm founded in 2016 backed by Nexxus Capital, a Mexican investment group set up in 1995 with a track record of 25 investments and investment commitments of 1,360 million dollars.

Nexxus Iberia has just completed its first closing, with 130 million euros, and has one more year to reach 200 million euros. Among the first-closing investors are institutional investors, as well as family offices and individual investors from Mexico, Spain and Axis, the venture capital firm of Spain’s state-owned Instituto de Crédito Oficial, attached to the Ministry of Economic Affairs, Industry and Competitiveness.

Nexxus Iberia seeks small- and medium-sized Spanish companies with valuations ranging from 30 million to 100 million euros

The asset management group is already in an investment phase and the first deal is expected to be closed in the short term, according to Ballester, who has a long career working for investment companies such as 3i. Nexxus Iberia plans to carry out investments in eight to ten Spanish firms, 20% of them focused on retail, including fashion, catering or furniture, among others. Fashion will be covered by at least one one of the fund deals.

Nexxus, led by Ballester, Pablo Gallo (also former executive of 3i) and Alejandro Diazayas, seeks small- and medium-sized Spanish companies with valuations from 30 million to 100 million euros, with a forecasted tenure of between five and seven years. The fund considers both majority- and minority stakes, and investments will always target parent companies.

One of the main requirements of the fund is that companies are profitable, with earnings before interest, taxes, depreciation and amortization (ebitda) in the range of four-five million euros. “Retail is a sector with the possibility of being scaled, hence our interest”, said Ballester, adding that fashion is “the most difficult business to export”. Nexxus Iberia looks for companies that have already started operations abroad, with the aim of boosting their presence outside of Spain, especially in Mexico, Southern United States, Central America and Colombia.

The fund will rely on its Mexican partners to promote the rollout of its future investees in America. In fashion, invested companies must have a price positioning aimed at the Mexican middle class. Among Nexxus Capital’ investments is Moda Holding, a Mexican holding of brands with a distribution network in the country that could support new investments.