Spanish mid-market firm Impala Capital, originally founded by Spanish businesswoman Ana Patricia Botin, is understood to be under pressure to restructure its model after failing to raise more than a quarter of its original fund target.
Impala has only managed to secure €75m in commitments, according to Spanish media agency Finanza. The firm had originally set out with a target of €400m in 2007, though this was soon revised to €300m.
Impala publicly announced it had secured €150m in commitments in June 2008, but subsequent events look to have dramatically affected its anticipated LP base.
Candover and Permira are two headline names to have had to restructure their funds in different ways as a result of defaulting LPs. Impala now looks set be forced to follow a similar route.
“It’s a problem others have had, which is when they come to draw down commitments from investors the investors say ‘we can’t do it’,” commented one Spanish private equity GP.
According to Finanza, the firm has thus far declined to comment on the situation.
Fund terms could cause Impala further problems, with drawdowns often becoming more difficult when a firm has failed in the objectives outlined to investors in the original fundraising.
Impala’s debt fund produced a mixed performance. While its investment in Spanish tin food can manufacturer Mivisa resulted in a 4.6 times return on exit in 2004, transport business Paconsa went into receivership in October 2005.
Natural stone company Levantina, another investment from the firm’s first fund, is understood to have been hard hit by the collapse of the construction industry in Spain.