Portobello Capital: Driving Growth and Industry Leadership in Iberian Private Equity

Portobello Capital has cemented its position as the leading mid-market private equity firm in Spain, with over €2bn deployed across multiple funds. Since its founding in 2010, the firm has developed a systematic and replicable investment approach, known as the Portobello Playbook, which has consistently delivered strong returns. With a track record of 3.4x gross CoC and a 20percent IRR across realised investments, Portobello continues to shape industry leaders across Spain and Southern Europe.

A Proven Investment Strategy

Portobello focuses on acquiring high-quality, stable businesses in underpenetrated and growing market niches. The firm prioritises proprietary transactions, corporate carve-outs, and high-growth opportunities within four core sectors: food value chain, services & outsourcing, health & leisure, and industrial niches. With 80percent of its deals being primary and proprietary, the firm secures below-market entry multiples, averaging 7.2x EBITDA, and exits at an average multiple of 10x.

The firm systematically identifies inefficiencies and asymmetries in the market, leveraging its deep industry network to source opportunities before they become widely available. By partnering with entrepreneurs and management teams, Portobello gains privileged access to primary deals, often at a discount to market valuations. This ability to source deals at attractive entry multiples provides a strong foundation for value creation.

Value Creation and Market Impact

Portobello’s investment strategy is driven by international expansion, industry consolidation through M&A, and operational improvements. On average, portfolio companies have grown international sales by 3.5x, and each has executed two add-ons under Portobello’s ownership. The firm places a strong emphasis on strategic acquisitions to drive scale and increase market share.

A key feature of the Portobello Playbook is its focus on professionalising and digitalising portfolio companies. This involves enhancing governance structures, optimising financial management, and implementing digital transformation initiatives. By doing so, the firm strengthens its portfolio companies’ competitive positioning and long-term sustainability.

Additionally, Portobello actively supports its companies in identifying and executing growth initiatives. This includes market expansion, new product launches, and operational efficiency improvements. As a result, many of its investments have successfully transitioned from local players to regional or even international market leaders.

Recent Investments and Exits

Portobello’s latest investments include Plexus, Plenergy, and Clínicas Mi, all chosen for their high growth potential and strong industry positioning:

• Plexus is a technology services firm well-positioned to capitalise on the digitalisation trend across multiple industries.
• Plenergy is Spain’s leading low-cost, automated energy station operator, with a robust expansion strategy that includes solar energy integration and EV charging stations.
• Clínicas Mi is a fast-growing private healthcare provider in Spain, focused on expanding its footprint through acquisitions and strategic partnerships.

On the exit front, USA Group and Blue Sea generated significant investor returns:

• USA Group delivered a 4.4x return in 4.5 years, having successfully diversified its client base and expanded into new geographies, including the US and China.
• Blue Sea, a value-for-money hotel operator, saw EBITDA growth from €6m to nearly €30m under Portobello’s ownership, driven by strategic acquisitions, digitalisation initiatives, and operational improvements.

ESG Commitment and Sustainable Investment Practices

Portobello integrates Environmental, Social, and Governance (ESG) principles into its investment strategy. The firm achieved a 91percent score in the UN PRI assessment, placing it among the highest-ranked private equity firms in its asset class.

Its ESG framework includes:

• Sustainable operational improvements across its portfolio companies, reducing environmental impact and enhancing long-term resilience.
• Governance enhancements to ensure transparent and responsible business practices.
• Social impact initiatives, such as professional development programmes and community engagement.

By embedding ESG considerations into its value creation strategy, Portobello ensures that its portfolio companies are not only financially successful but also aligned with broader sustainability goals.

A Team of Excellence

Central to Portobello Capital’s ongoing success is its exceptional team. The firm is powered by a group of highly experienced professionals with deep expertise across private equity, investment banking, and consulting. With over 20 investment professionals and a leadership team that has worked together for more than two decades, Portobello fosters a high-performance culture rooted in collaboration, discipline, and innovation.

This cohesive team is the engine behind Portobello’s ability to source unique opportunities, manage complex transactions, and deliver superior outcomes. The firm also places strong emphasis on professional development, diversity of thought, and institutional best practices, ensuring that talent and expertise remain at the heart of its strategy. It is this dedication, insight and teamwork that consistently delivers value to investors and drives transformational change across portfolio companies.

The Future of Portobello Capital

Looking ahead, Portobello remains well-positioned to capitalise on Spain’s 2.6percent projected economic growth, stabilised interest rates, and increased M&A activity.

The firm is expected to continue its strategy of targeting mid-market businesses in Spain and Southern Europe, with a focus on high-growth industries. Its disciplined approach to deal sourcing, active portfolio management, and strategic exits will likely ensure continued strong returns for investors.

As the foremost private equity player in Iberia, Portobello will remain a key driver of economic growth and industry consolidation, creating sustainable long-term value for investors and portfolio companies alike.