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Spain’s Arcano sees ‘attractive conditions’ for latest secondaries fund

Secondaries deals Arcano has backed include a €50m tender offer involving German GP Emeram and the restructuring of Duke Street Capital VI.

Spain’s Arcano Asset Management has set the target for its latest private equity secondaries fund amid an attractive pricing environment for portfolios due to the pandemic.

The Madrid-headquartered firm is seeking €300 million for Arcano Secondary Fund XIV, which will target attractively priced deals brought about by the covid-19 crisis, according to a statement.

The fund can allocate up to 20 percent to direct co-investments and will mainly focus on the mid-market of Europe and the US. Its target LPs are institutional and private banking investors.

“In the current economic situation, for several reasons, private equity portfolios are being sold at very attractive conditions for investors such as Arcano,” said managing director and chief investment officer Ricardo Miró-Quesada.

This is Arcano’s fourth dedicated secondaries fund, following 2011-vintage Arcano Secondary Fund, 2014-vintage Arcano Secondary Fund II and 2016-vintage and Arcano Capital X, the statement noted.

Arcano secondaries and funds of funds are considered part of the same series and are numbered accordingly, a spokesperson told Secondaries Investor.

Fund X was €180 million in size, surpassing its €150 million target, according to Secondaries Investor data.

Among the deals Arcano has backed are a €50 million tender offer on 2013-vintage, Germany-focused buyout fund Emeram Capital Partners Fund I and the restructuring of 2016-vintage Duke Street Capital VI, alongside Goldman Sachs Asset Management.

Secondaries fundraising in the first half exceeded $50 billion, higher than any full-year total on record, Secondaries Investor reported.