Axon launches its fifth VC fund with a focus on listed European technology companies, ISETEC V

22/02/2022

Press release

AXON LAUNCHES ITS FIFTH VC FUND WITH A FOCUS ON LISTED EUROPEAN TECHNOLOGY COMPANIES, ISETEC V.

This fifth Axon fund follows a new strategy (Significant Investments in Listed Technology Companies, ISETEC) developed by the firm, which focuses on innovative companies listed on European alternative stock markets. The main thesis of this new strategy revolves around the great opportunity that exists in European technology small caps. These companies are growing at over 25% per yera, with revenues aboive €50 million and more attractive valuations than their private market counterparts. These are companies typically with positive EBITDA and in most cases with a dividend distribution policy, which makes this fund liquid as well as a very attractive risk-adjusted return. These companies operate in exactly the same way as their private counterparts, usually with a controlling majority in the hands of an entrepreneur, so the added value that Axon can bring is similar to what it already brings in pure private technology venture capital strategies.

Although these are listed companies, ISETEC’s modus operandi is similar to that of venture capital, given that significant stakes will be taken, working with management on their corporate growth. In other words, it is not a matter of «value» or «stock picking» strategies, but rather direct management of investments in listed companies. Axon will participate in the decision-making bodies of the companies, contributing its experience in governance, business development and corporate strategy.

The ISETEC strategy will be carried out by a new team, exclusively dedicated to it, led by Francisco Velázquez, Alfonso de León and managed by Juan Jimenez.

Juan Jimenez will act as Portfolio Partner for the entire ISETEC strategy. Juan and Francisco have worked together since 2000, and in particular Juan has been collaborating with Axon since 2012 when he joined the firm’s investment committee while acting as senior portfolio manager of the European absolute return strategy of the Canadian pension fund PSP, one of the largest in the world with over $200 Bn under management.

This first fund of the ISETEC strategy will have a target of 150 million euros, of which approximately 50 million euros have already been committed for the launch of the fund, with numerous Spanish financial institutions and leading family offices already involved. The fund expects to close its first investments in the second quarter of this year.

«We have been working on this concept for several years and we believe that due to Axon’s accumulated experience and the market opportunity, now is the perfect time to launch it decisively. With ISETEC, we intend to create a new investment line whose positioning is somewhere between VC and value funds, thus achieving a very good balance between profitability, risk and liquidity,» says Francisco Velázquez.

Juan Jimenez says, «I have known Axon since it was founded; Francisco and I worked together back in 2000 during the dotcom era. For me this is a challenge that I want to take on after having been managing global hedge funds with exposure to companies with high technology and innovation content. The European smaller companies sector is highly attractive and dynamic and has performed extraordinarily well over the last 20 years for the sophisticated investor.”

About Axon:

Axon Partners Group is a global Investment, Alternative Asset Manager and Advisory firm with presence and experience worldwide. Axon’s reputation for excellence is well known among investors and clients all around the world. Axon combines the flexibility and speed of boutiques, with a proven track record in the digital economy sector, energy, and healthcare. It was founded by entrepreneurs with extensive financial and business development experience. Axon has grown to create a team of more than 85 experts in our offices in Madrid, Istanbul, Mexico City, Bogotá, Riyadh, and Seville.

Nuevos informes y series de datos: El Capital riesgo Informal en España 2021 / Informe de Impacto Económico y Social del Capital Privado en las operaciones de Middle Market en España. 2018 (ASCRI) / Informe de Impacto Económico y Social de los préstamos otorgados por Enisa

Otros informes destacados: Madurez del Venture Capital en España.  (English version)/ Financiación de startups de Energía en España / El tiempo de las desinversiones en Private Equity en España (English version)

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