Alteralia Debt Fund FIL, a hedge fund investing in private debt, has topped the rankings for its category in 2018, according to data from the Spanish Association of Investment and Pension Funds (Inverco).
With an annual return of 6.43 per cent, the class C of Alteralia Debt Fund led the ranking in the Spanish hedge funds category last year. It was followed by class B and class A of Alteralia Debt Fund, which generated returns of 6.28 per cent and 6.13 per cent, respectively. The returns obtained by Alantra’s team are especially relevant in 2018’s difficult context for fixed income assets.
Alteralia Debt Fund, managed by Alantra Private Debt, finances export-oriented Spanish companies with revenues of between EUR25 to 200 million and EBITDA of more than EUR3 million.
With tickets of between EUR5 to 25 million, Alteralia Debt Fund invests primarily in senior debt (preferred in order of priority payments). This financing is used for capex, acquisitions, refinancing and/or reorganising the shareholding structure of companies.
Alantra Private Debt closed its first private debt fund in 2015 with 140 million euros under management. Since then, it has made 15 deals, positioning the vehicle as the most active senior debt fund in Spain. Moreover, the fund has successfully completed four disinvestments so far.
Currently, Alantra Private Debt is raising its second debt fund, Alteralia Debt Fund II, which reached a first close in August 2018 and is now managing almost 150 million euros. Alantra Private Debt’s second vehicle follows an investment strategy similar to its predecessor, with greater flexibility to invest in other European countries. Alteralia Debt Fund II has a target size of EUR175 million and a hard cap of 200 million euros. The vehicle expects to make an additional close during the first half of 2019.
Alteralia Debt Fund II has a diversified investor base, including public institutions (European Investment Fund and Spanish Development Finance Institution Cofides), institutional investors (pension funds and insurance companies) as well as family offices.
