The Spanish manager Axon Partners reinforces its team and expands its direct investment strategy to take advantage of the existing opportunity in European technology small caps (small and medium-sized companies with low market capitalization) with the launch of its fifth Significant Investments in Companies fund Technological Listed, called Isetec V, and endowed with 150 million euros.
The first vehicle of the strategy has, as elEconomista has learned , 50 million committed by Spanish financial institutions and family offices of reference for its start-up. The fund expects to close its first investments during the second quarter of this year.
With its fifth fund, Axon adds a new investment strategy in listed companies to its technology-focused platform, completing the current offer in traditional venture capital , corporate venture capital and impact and fund of funds.
Its focus will be innovative companies listed on alternative European stock markets, a concept on which the Spanish manager has been working for years, as Francisco Velázquez, Founding Partner and President of Axon Partners Group, comments. “Given Axon’s experience and the market opportunity, this is the perfect time to launch it aggressively. The goal is to create an n, striking a very positive balance between return, risk and liquidity.”
For the launch of its fifth fund, the Spanish manager has a new dedicated team, led by Francisco Velázquez himself and Alfonso de León, founding partner, and managed by Juan Jiménez, incorporated as a portfolio partner of the strategy.
“I have known Axon since its foundation, Francisco and I worked together in the year 2000 in the dotcom era. For me it is a challenge that I want to take on after having been managing global hedge funds with exposure to companies with high technological content and of innovation. The sector of small European companies is highly attractive and dynamic, with extraordinary results in the last 20 years for the sophisticated investor,” Jiménez explained to elEconomista .
Risk adjusted return
Although these are listed companies, the Isetec fund’s modus operandi will be similar to venture capital , taking significant stakes in European technology small caps and working with management teams .in its growth. The central thesis of the new strategy is based on the great opportunity that exists to invest in these companies, with growth of over 25% per year, revenues of more than 50 million euros and more attractive valuations than their counterparts in private markets. Factors that allow the fund to have liquidity along with a very attractive risk-adjusted return.
“These are companies that grow above 25% per year, with revenues normally above 50 million euros and more attractive valuations than their counterparts in private markets. “These are companies that normally have a positive EBITDA and a dividend distribution policy , which operate in the same way as their private counterparts, with majority control in the hands of an entrepreneur.