- Aim to provide long-term sustainability to companies with profitability problems, lack of management, succession issues and complex divestments and carve-outs.
- Objective of supporting companies from a financial, operational and managerial standpoint.
April 20th, 2020 in Madrid. Phi Industrial, through its management company PHI Asset Management Partners, launches a new fund, PHI Fund III. The fund has the capacity to invest €80M with the same approach as previous funds, namely to acquire companies in special situations.
The fund is backed by European and American institutional investors, and started its investment activity on April 1st, 2020.
PHI Industrial is a leading special situations fund in Spain, where it started to operate in 2006. Since then, it has acquired more than 25 companies with a clear focus on active management and providing viability to businesses with profitability problems or non-strategic assets for their shareholders. For this purpose, Phi Industrial has an operations task-force team specially dedicated to supporting the portfolio companies with extensive experience in complex situations.
Situations in which PHI Industrial invests include:
- Companies with limited profitability, operational and management issues.
- Corporate divestments that usually involve complex carve-outs and transitions.
- Lack of management team able to provide continuity to the company plans, or need of professionalization, help and support.
- Other types of special situations such as lack of succession, high concentration of customers/suppliers, concentration of key employees, business transformations, etc.
Phi Industrial can provide both operational and financial support for companies with problems or challenges to reach their potential, or who are struggling from a financial or managerial standpoint.
Some of the main characteristics of the new fund are:
- Acquisition of controlling stakes.
- Geographical scope: Western Europe with special focus on Spain, Portugal, Italy (office since 2014) and the United Kingdom (office opening in 2020).
- Market sectors: All, except real state or financial, with a strong focus on the industrial field.
- We expect to make between 7-8 acquisitions with an average ticket of 5-10M€ per transaction, with the ability of deploying higher and lower amounts.
Phi Industrial expects to continue growing with PHI FUND III as it has during the past 15 years, where it has managed to turnaround and provide viability to a large number of companies and businesses. Phi Industrial will continue to be a close and active investor in its portfolio companies and provide the necessary support to achieve long-term sustainability of its companies.