MDF Family Partners, a manager of large patrimonies, has launched a new vehicle. The firm, led by José María Michavila, former Justice Minister during José María Aznar’s first term, and brother of the president of GAD3, along with Daniel de Fernando, former global head of asset management and private banking at BBVA, has secured approval from the National Securities Market Commission to launch its twenty third venture capital company, Hedu 33.
Hedu 33 is a bespoke vehicle that will subscribe exclusively to several entities controlled by a family group, with a paid-in capital of 1.2 million euros, according to the prospectus filed with the regulator. This venture capital company will invest with a medium to long term horizon, though not indefinitely, in non financial, non listed companies.
Investment Strategy
These investments will be funneled through other entities or venture capital funds, though there is a possibility of direct participation by one of the vehicles or a startup in an early growth phase that shows strong potential. The family group will contribute capital to vehicles that invest in OECD countries and in companies in venture capital, growth, or buyout stages.
These private equity funds in which MDF will participate are designed to have no fixed duration. They will exit when their portfolio companies go public, reach maturity, fail to deliver expected returns, or according to the fund mechanics. Hedu 33 will not invest more than 25 percent of its capital in a single company, nor more than 35 percent in companies belonging to the same group.
The venture capital entity will not rely heavily on debt, using leverage only in exceptional and temporary situations, for periods under one year, and never exceeding 20 percent of the total invested capital.
New MDF Board of Directors
In recent weeks the investment manager for large patrimonies strengthened its board. Eduardo Cepeda, who led J.P. Morgan in Mexico until 2020, and Pedro Fontana, vice president of Banco Sabadell, together with Juan Carlos Álvarez Mezquíriz, a member of the Álvarez family that owns Vega Silicia winery, joined the board. Existing members include Javier Muguiro, former head of J.P. Morgan in Spain until 2002, Wenceslao Bunge, co chair of global investment at JLL, and María José García Beato, a state attorney and adviser to Banco Sabadell, ACS, and Grupo Iberpapel.
When approached for comment, MDF Family Partners declined to respond to questions from the press.
[Citation: MDF press materials and CNMV filing, obtained by the newsroom in 2024.]