The fund is structured through Spanish ECRs and aims to build a co-investment portfolio of 25–30 lower mid-market companies. It will also maintain its diversification strategy both geographically, allocating approximately 80% of the fund to investments in Europe and up to a maximum of 20% in the U.S., and sector-wise, investing across a broad range of industries with a particular focus on those benefiting from tailwinds and growing faster than the overall economy. 

Qualitas Funds’ co-investment vehicles invest in lower mid-market companies alongside top-tier specialized managers. Sergio García and Eric Halverson, founding partners of Qualitas Funds, highlight that the direct co-investment fund is “a highly demanded strategy among sophisticated investors, which is why we reserve preferential access for our investor base.” 

“Our third co-investment fund, with a larger maximum size than its predecessors, maintains the same investment strategy as our two previous programs: neither the number of target companies nor their size change, only the ticket invested in each company increases, which allows the strategy to remain unaltered,” García and Halverson add. 

The previous fund, Qualitas Funds Direct II, closed at its maximum size of €100 million in July of last year. This fund is now finalizing its investment period and currently has a total of 25 approved portfolio companies. 

In recent months, Qualitas Funds has taken decisive steps in its growth to become a global leader in the lower mid-market. In April, it completed its integration into P10, Inc. (NYSE: PX), the leading global platform in the middle and lower middle market. It has also recently launched its first fund dedicated exclusively to investing in North America, primarily in the U.S. Meanwhile, the Spanish private equity manager has expanded its number of partners from three to five, reinforcing its leadership to better face future challenges.