Flexible Financing for the Southern Europe Lower-Mid Market
Oquendo Capital stands out as a key player in providing preferred equity and debt instruments tailored for family-owned businesses and financial investors. Whether it’s funding acquisitions, fueling growth, or managing shareholder reorganizations, Oquendo’s solutions are designed to meet those specific needs. Founded back in 2007 in Madrid, this independent firm has been a pioneer in private debt management across Europe. Their focus? Long-term financing for small and medium businesses across Spain, France, Italy, and Portugal. The investment toolkit is broad, including common equity, preferred equity, PIK loans, mezzanine debt, and unitranche debt—each structured to fit the unique demands of the market.
Main Benefits of Oquendo’s Approach
What really sets Oquendo apart? Here’s a quick snapshot:
- Experience: Over €1.2 billion invested since 2008 in more than 100 companies, primarily in the Spanish lower mid-market.
- Market Knowledge: Deep understanding of the Iberian, French, and Italian markets, backed by a seasoned team.
- Flexibility: Customized financing solutions tailored to each company’s and shareholder’s unique needs.
- Independence: Owned by its management team, Oquendo avoids conflicts of interest by focusing solely on investment activities.
- Reliability: Streamlined decision-making ensures quick, transparent feedback and a proactive approach to due diligence.
Investment Strategies That Cover the Entire Capital Structure
Oquendo is all about long-term investment. They offer both senior and junior private credit solutions, covering the full capital stack. Their sweet spot? Profitable, market-leading businesses with committed shareholders and professional management teams. The firm is situation-agnostic, often stepping in during LBOs, growth phases, or shareholder restructurings. Sector-wise, they’re generalists, working with companies boasting EBITDA between €2 and €40 million. Ownership can vary—from private equity firms to family businesses.
Who Does Oquendo Work With?
Their partnerships span a few key groups:
- Private Equity Funds: Financing aimed at optimizing returns in LBO/MBO transactions, backed by strong relationships with financial institutions for smooth execution.
- Family-Owned Businesses: Long-term, flexible capital to support growth, acquisitions, or shareholder reorganizations—without piling on debt or diluting control.
- Minority Shareholders: Solutions for those looking to boost equity ownership or gain majority stakes, using preferred equity and mezzanine debt as flexible, less dilutive alternatives.
Different Types of Financing Solutions
Oquendo manages multiple investment strategies, offering a wide range of financing options tailored to businesses of varying sizes:
- Senior Debt: Long-term senior financing, often alongside banks, typically “bullet” debt with maturities around 5 to 7 years, used for LBOs, growth, or refinancing.
- Flexible Capital / Junior Debt: Customized solutions that may include mezzanine debt, PIK loans, Holdco PIK, preferred stock, convertible loans, or minority shareholding—usually alongside shareholders seeking non-dilutive capital.
- Impulsa – Small Business Financing: Tailored capital for small businesses with limited bank access, using similar instruments as above to provide flexible financing options.
Project Impact and Sustainable Development Goals (SDGs)
- SDG 8: Decent Work and Economic Growth – Supporting SMEs and family businesses to grow sustainably.
- SDG 9: Industry, Innovation, and Infrastructure – Facilitating investment in market-leading companies.
- SDG 10: Reduced Inequalities – Providing flexible financing options that empower minority shareholders and family businesses.
- SDG 17: Partnerships for the Goals – Collaborating with institutional investors, private equity funds, and family businesses to drive economic development.
Why Oquendo’s Model Works
At its core, Oquendo’s success comes down to alignment and adaptability. The capital they manage is sourced from a diverse group of institutional investors—pension funds, insurance companies, non-profits, and both public and private investors. What’s more, Oquendo invests significantly alongside its clients, ensuring incentives are perfectly aligned. This approach fosters trust and long-term partnerships. Plus, their independence means decisions are made swiftly and transparently, without any conflicting interests muddying the waters. It’s a model that’s proven effective across multiple countries and market conditions, making Oquendo a go-to for flexible, reliable private debt solutions in Southern Europe’s lower mid-market.
