Help a start-up grow, boost the profitability of a real estate investment or finance the international leap of a Spanish company. These are some of the elections for which more than five hundred Spanish wealthy families who have been customers of Banca March have opted in recent years.
The entity chaired by Juan March de la Lastra has managed more than 1.200 million euros in co-investment products in real economy since this service was launched in 2008. The bank makes an active search and an individualized analysis of attractive investment opportunities with which its clients can diversify their investment portfolio with alternative products to the equity and debt markets.
«Beyond the stock market and debt»
Over the last few years, they have chosen bets as varied as Pepe Jeans, Mecalux, BBVA offices in the Paseo de la Castellana in Madrid, or the ABC Serrano shopping center in Madrid. It is about identifying alternative investments to the stock market or the debt markets with which to obtain attractive returns.
The formula designed by the team of José Cloquell, co-investment director of Banca March, is based on the choice of attractive investments for its clients in which the bank also invests. "That way we commit ourselves to assume the same risks as our customers," he explains.
Because, yes, this investment model is not suitable for all audiences. It is limited by the risk of the long term, investments do not fall below five years and the average is about eight. But, above all, they have the handicap of illiquidity. In case of problems it is not easy to sell the share and recover even part of the investment. "The profile of the investor must be that of someone capable of assuming the risk of losing all the investment in case things go wrong," Cloquell warns.
«You need a minimum investment of 250.000 euros»
So far, those selected have been half a thousand customers, many of them regular Banca March, all with considerable assets. The minimum investment required is around 250.000 euros, and that amount must also be, at most, 10% of your funds available for investment.
With all the precautions ahead, the result of the management of Banca March is, so far, far from those losses. As Cloquell explained, from 2008 up to now 450 millions of euros have been disinvested with a return that in some cases has reached 20%.
«Investment in start-ups»
The investments chosen have been varied. At 2008, this proposal began with the risk capital manager of Banca March Artá Capital. The Deyá Capital fund was created to look for medium-sized Spanish companies that entered as a majority partner. He has also opted during these years to invest in start-ups, "but only in those that already had a proven product in the market and needed capital to grow and obtain profitability," explained José Cloquell.
In addition to venture capital in medium-capitalization companies and innovative companies, real estate, student residences and energy supply companies such as Gas Network, among others, are among the sectors that most bet on Banca March.