Investment Approach

  • Target Companies and Sectors

    MCH invests in Spanish and Portuguese private, mid-sized companies, with a solid position within its niche in defensible markets. MCH analyzes different aspects and other characteristics to assure that a company is attractive for a potential investment, such as:

    - Growth potential, both organically and also through M&A

    - Ability to improve operating margins or balance sheet structure

    - Proven ability of cash flows generation

    In term of target sectors, MCH look for industries with good mid-term evolution, those that are undergoing consolidation processes, or specific sectors where MCH can provide further added value. In the past, MCH has invested in sectors such as Specialised Industry, Agribusiness, Health Care & Elderly Services, or Business Services. Sectors such as Real Estate, Banks, Weaponry, Pornography, “GMO” (Genetically Modified Organisms), Tobacco, Gambling or any other directly related to the former ones are explicitly excluded by the by-laws of the Fund.

  • Investment size per deal

    As a general policy, and in line with MCH Funds' by-laws, MCH does not invest in start-ups, but rather in mature projects where investment typically falls in the range between €15 and €45 million. Existing co-investment agreements enable in specific cases to exceed that upper limit. 

  • Investment horizons

    In general, there is flexibility in investment horizons, with divestments taking place when the confluence of the company situation within its path of value creation and market conditions favor the divestment process. In any case, given the temporal character of MCH investor, the objective is to perform latent capital gains in the mid-term, usually between 4 to 6 years.