Renta Corporación brings 3i into its shareholding
3i, one of the world’s most prestigious private equity management companies, has acquired a 10% stake in Renta Corporación by means of a capital increase by Renta Corporación, thereby becoming the latter’s benchmark financial partner. Following this agreement and once the 2004 financial year has come to an end, company equity will climb to around 65 million euros at the end of FY2004.
The arrival of this British group provides firm backing to Renta Corporación’s business model, helps speed up the process of institutionalisation started by the company, improves its financing capacity when planning for growth and also helps to increase its market presence.
An excellent track record – Renta Corporación’s size and profitability have increased in leaps and bounds since its birth. Mark Heappey, the Managing Director of 3i, paid tribute to the company’s excellent track record and had the following words to say on 3i’s recent stake in the shareholding: “We have complete faith in Renta Corporación’s ability to progress even if the economy slows down, since its business model allows it to move in a countercyclical direction”.
3i will have a representative on the Renta Corporación Board – The agreement between the parties means that 3i will be entitled to appoint a director to represent it on Renta Corporación’s Board of Directors. 3i has chosen Carlos Tusquets, a member of its own Advisory Board in Spain. Carlos will also acquire a minority stake of around 1.5% in the equity of Renta Corporación.
A crucial step on the company’s path to institutionalisation – 3i has arrived on the scene at a key juncture for the company, which has been carrying out an important process of institutionalisation. Having Anna M. Birulés joing us as Vice President is a determining factor in Renta Corporación’s current process of strategic and corporate planning and development.