Banco Espírito Santo transfers Magnum stake

Magnum Capital I is a €866m fund that is fully invested in companies including fragrance producer Iberchem and K-12 private education company NACE Schools.

The now defunct Portuguese bank, Banco Espírito Santo, has transferred its stake in Iberian private equity manager Magnum Capital I, according to a UK regulatory filing.

The fund stake was transfered to Novo Banco, which reportedly acquired all of Espírito Santo’s healthy assets since Espírito Santo began restructuring last month in a €4.4 billion bailout. The Portuguese bank had been caught up in fraudulent funding schemes of its companies and former executives have also been accused of committing potentially criminal acts during the bank’s last days standing. Espírito Santo’s good assets were transferred to the newly-created Nova Banco. Toxic assets were left to troubled shareholders and junior bondholders and will eventually be liquidated.

Magnum Capital I is a 2007-vintage €866 million fund managed by Magnum Capital Industrial Partners, according to PEI’s Research and Analytics division.

Magnum invests in Spain or Portuguese-based companies in the industrial and services sectors. Each company typically has an enterprise value of between €100 million and €800 million, according to the firm’s website.

Fund I is fully invested, according to PEI data. Magnum’s portfolio companies include civil engineering consulting company Eptisa, K-12 private education company NACE Schools and fragrances and flavors producer Iberchem, according to the website.

Magnum launched its second fund with a €500 million target (the same size as Fund I) earlier this year. The firm was unavailable to comment by press time.