What is Direct Lending?
The entry into force of the new banking regulations and the process of deleveraging banks is forcing them to lower their corporate credit activity, leaving a large gap in the business financing market in Spain, an economy that has historical been heavily dependent on bank financing.
Within this context, the objective of TREA Direct Lending (TDL) is to become the benchmark partner for Spanish and Portuguese SMEs by providing flexible financing solutions for the growth, stabilization or restructuring of their balance sheet.
TDL has the flexibility to invest through different debt instruments, including senior debt and senior convertible debt.
Objectives of the fund
The fund’s objective is to generate appealing returns for its investors in the middle and long term, with a strong focus on preserving capital, diversification and risk control.
Investment criteria
Loan structure
3- to 7-year term
Tickets over €5 million
Cash interest or payment-in-kind (PIK) or combination of both
Bullet or amortizing
Uses of Financing
Financing growth
Financing acquisitions
General refinancing
Balance sheet restructuring
Buyouts of minority shareholders
Instruments
Senior loans
Senior convertible loans
Investment Criteria
Minimum 5 years of activity and 2 years of audited accounts
Strong, defensible market position
Positive EBITDA (above €2 million)
Important, identifiable company value
Experienced management team outside the company
Spanish or Portuguese companies
All sectors except financial and real estate promotion institutions
Competitive advantages
Flexibility and creativity
We have the capacity to design and execute all kinds of financing solutions, even in complex situations.
Approachability and quick responses
We have offices in Barcelona and Madrid with an experienced team that is familiar with the business world. We offer companies a clear contact person, unlike other institutions, where there are multiple contacts with differing degrees of decision-making power.
Sense of belonging
Trea and the TDL management team are among the leading investors in all TDL vehicles, which leads to a sense of belonging and a total alignment of interests with our investors.
Active Investment
TDL is not a traditional passive investor. We focus on the financial stability and value creation of the companies in which we invest by offering advice and strategic support.
Speed
We are able to analyze a situation, structure a transaction and close it quickly. We are not subjected to onerous approval procedures or excess bureaucracy.
Team
Our top professionals
Management Team
Antonio Muñoz-Suñe
Managing Partner/CIO
Ignacio Díez
Head, Direct Lending
Martin Monreal
Principal, Direct Lending
Eduardo Llopis
Associate, Direct Lending
Blanca Gorri
Associate, Direct Lending
The TDL management team has extensive experience both in Spain and Portugal and abroad, as well as in-depth knowledge of the Spanish and Portuguese markets.
Investments
€130 Million |
Capital Invested |
18 |
Investments |
12 |
Companies |
Recognitions
