Independent value society and wealth manager Tressis reaches 170 million euros under management in alternative assets, focusing on private equity exposure. In total, the firm has launched five vehicles dedicated to private equity, infrastructure, venture capital, and impact investing.
“Our plan is to keep expanding the fund lines we already have in progress and to keep adding new strategies hand in hand with the partners who already support us,” says Sonsoles Santamaría, chief executive of business, founding partner and board member of Tressis, in an interview for this newspaper.
In 2021, Tressis launched its first private equity fund, Tressis Capital Tech I FCR, which targets investments in another 15–20 venture capital and private equity vehicles focused on technology companies. The fund, developed with 3WiseMen, centered on Spain and Israel and reached a size of roughly 25–30 million euros.
In the same year, together with former Société Générale investment banking vice president Javier Puig, they created another vehicle, Arada Capital Partners. This venture capital firm invests in growing small and medium-sized enterprises, many of which have social or environmental impact, or face succession issues in the European Union and the United Kingdom. Last year, jointly with AYO Social Ventures, they launched another fund of 25–30 million euros focused on startups addressing current economic and social challenges.
In April 2023, after closing an agreement two years earlier with the French manager Cedrus & Partners, they launched their first fund of funds in private equity and infrastructure, with a capital of 30 million euros, followed by another fund in the same month with 40 million in commitments and a similar focus. “This strategy combines stable infrastructure returns with higher private equity profitability,” Santamaría explains.
Wealth holders are incorporating private capital strategies
Tressis entered private equity as a response to falling interest rates and rising market volatility. “It made sense to add venture capital to clients’ portfolios through fund of funds managed by nearby managers, with Tressis acting as advisor,” Santamaría notes.
The private market sector, excluding real estate, remains nascent in Spain, contrasting with other countries where growth has accelerated in recent years. The general director of business at Tressis believes there is still much to be done by both investors and companies: “Corporate appetite to finance through public markets has declined due to volatility and strict regulations, which has driven increased interest in private markets.” This shift has led to more private market investments in recent years; EY and SpainCap report nearly 600 private equity operations in 2022, up from 303 in 2006.
Tressis recommends clients start with an exposure of about 5% to 10% of their portfolios to private equity, given the product’s long horizon and sometimes ten-year-plus timeframes. Regular contributions are advised, just as with other more liquid assets like fixed income or equities. “Understanding the investor is crucial. Private equity and venture capital are different animals. It’s not a stand-alone asset but one that depends on the cycle and the investor profile,” concludes the Tressis executive.