Spain is experiencing a structural succession crisis: over 5 million workers will retire in the next decade, including hundreds of thousands of business owners with no formal succession plan. This creates a vast, underserved market of profitable SMEs (€500K–€3M EBITDA) that conventional private equity ignores. Mestral Ventures' hybrid model combines the intensity of a search fund with PE-style diversification and institutional structure. Rather than replacing founders, the firm deploys embedded teams who modernize and digitize operations to boost growth, creating a partnership that benefits both owners and investors.
The firm targets a specific momentum: business owners planning to sell in 4-5 years who currently lack digitalization and modern technology. This is the point where operational investment creates large returns. To scale this vision, Ernest Sanchez and the Mestral team have turned to Roundtable for international opportunities that demand Luxembourg-based vehicles, tax transparency, and seamless investor onboarding. Roundtable's ease of use and competitive pricing, together with the team's prompt support, have made it a natural fit for Mestral Ventures' SPV deals.
In this interview, Ernest explains how Mestral's hybrid model works, why Roundtable became their vehicle of choice for complex deals, and how the partnership enables them to move fast in Spain's defining moment of generational ownership transfer.
Key takeaways:
- Mestral Ventures targets Spain's succession economy: a market opportunity of 400,000+ family-owned SMEs whose founders don't have clear successors. This creates demand for flexible capital structures that accommodate international investors and co-investments.
- Rather than building infrastructure in-house, Mestral partnered with Roundtable to handle cross-border compliance, KYC, and investor onboarding, allowing the firm to focus on what they do best: operational transformation and value creation.
- Mestral's operationally embedded approach (deploying teams to transform and modernize portfolio companies) requires capital flexibility. SPVs allow multiple investors to co-invest in specific deals, quickly turning promising opportunities into portfolio pieces.
Roundtable: Can you introduce yourself and Mestral Ventures to our readers?
Ernest Sanchez: I started my career as an entrepreneur, launching a group of companies in the telecom business in the early 2000s. I sold a couple of those companies to major operators, and then set up B1 Telecom, the first cloud voice-over-IP operator based in Barcelona with a full license. While it didn't fully succeed, it was a valuable learning experience.
After that, I became an angel investor during the early days of Barcelona's tech scene, about 20 to 25 years ago, when there was almost nothing related to venture capital in the city. I continued investing as the industry started growing.
I then moved to Brazil for a few years, where I focused on M&A and learned how to work with companies at that level. I received a call from Entrée Capital in London, where I ran operations in Spain and Europe for several years, working with their portfolio companies and learning how to identify investments that could become unicorns.
In 2017, I decided to focus on a more regional approach between France, Spain, and the UK. We set up Nekko Capital, a Fund Management Manco, with offices in Barcelona, Madrid, Paris, and London. However, after Brexit in 2020, the environment became challenging, so I shifted my focus back to entrepreneurship. I joined Nuclio as a managing partner and founding partner, where we rebuilt the company around a venture builder model, alongside an investment fund.
Eventually, Nekko Capital merged with Encomenda Capital Partners, and I remain a board member, member of the investment committee and shareholder.
A year ago, I decided to start Mestral Ventures, first as an opportunity investment vehicle for doing particular deals using SPVs. Our main goal is to launch a regulated fund dedicated to SMEs and succession companies, helping business owners navigate the transition when they're ready to retire or considering offers for their company. We help digitalize these businesses, put in a support team, and ensure both the company and the owner can realize significant upside.
Roundtable: Can you tell us more about your investment thesis and focus?
Ernest Sanchez: Geographically, we focus on Spain. There are around 400,000 family companies in Spain alone, so there's a substantial market and lots of opportunity. We aim to complete 10 to 12 deals with our first fund.
In terms of verticals, we're industry-agnostic, but we focus on what some might call "boring companies" which don't have significant capex requirements. We want companies with solid fundamentals, a strong background, intellectual property, and a consistent track record. We typically target companies generating between €500,000 and €3 million in EBITDA, but crucially, they need to have achieved those numbers consistently over the last five to ten years.
We're looking for companies that have plateaued but have growth potential. Our strategy is to help them change trajectory by improving EBITDA and then exiting at a better multiple. A flat company commands a low multiple, but a growing company becomes attractive to the market at a higher valuation. This aligns our interests with those of the business owners.
Roundtable: Beyond these points, what other selection criteria do you have? What are you typically looking for in a company?
Ernest Sanchez: The right momentum is critical. We're not looking for business owners who want to sell immediately. We're looking for those who are planning to sell in four or five years out but currently lack innovation, digitalisation, and internationalisation. That's the perfect moment for us to add value.
If a business owner is already set on selling, it's much harder to make a difference. And if a company is too small, we can't structure an effective SPV. But when we can structure an SPV to acquire and build up the company, that strategy works well for everyone involved.
Roundtable: Can you give us an example of successful deals you're particularly proud of?
Ernest Sanchez: Mestral Ventures is still young, so I can't talk about many deals yet, and the initial deals were mainly to prove the business case. But there are a couple I'm excited about. We did a minority stake investment in the Hofman Culinary School, a culinary and pastry school with an in-school experience plus a Michelin Star restaurant. We helped them implement online courses and improve operations, and we've multiplied their EBITDA several times over in just a couple of years. That was real proof that we can make a difference.
The second investment is an online tattoo academy (TATTOOX) based in Spain with operations in the US. We structured an SPV using Roundtable to finance their US expansion, which was very helpful given the international complexity. We're continuing to help them grow.
Roundtable: How did you first find out about Roundtable?
Ernest Sanchez: I was aware of other players in the market, which I'd worked with in the UK, but I found Roundtable much easier to use. It's frictionless and straightforward.
Roundtable stays very close to its customers, which I really appreciate: even though everything is automated online, you have a very strong team backing the company. The support has been impressive, and the platform is very easy to use.
Roundtable: What were the main alternatives you considered before choosing Roundtable?
Ernest Sanchez: The alternative would have been creating a regulated fund or an alternative investment company down the road. But when you're targeting a single deal, especially with investors from outside Spain who want the security and tax transparency of Luxembourg, an SPV is much simpler. Even though I could use my mandate, Roundtable makes a lot more sense for specific deals.
And, in my case, all investors were international, from Europe and the UK. The structure gives us compliance across borders and tax transparency, which are significant advantages.
Roundtable: What would you say are the main operational benefits of Roundtable?
Ernest Sanchez: Ease of use, full compliance, and strong KYC processes, which are demanding but also easy to navigate. And the pricing is very competitive for the services you provide.
Roundtable: Can you tell us more about your experience with the Roundtable team?
Ernest Sanchez: At the very beginning, I didn't know how to manage and navigate the platform; when you're dealing with money and setting up a platform, you need to be very careful. The team provided a lot of support: they were always available and responded very quickly to my requests. That was extremely helpful.
Roundtable: Did you hear any feedback from your investors about the platform?
Ernest Sanchez: Yes, our investors told me they were happy with the process. It was very transparent and convenient for them. I think the functioning of the platform is very clear and well explained. When you're asking investors to put money into a vehicle they don't know through a platform they've never heard of, that's a big ask. But the transparency of the process and the clarity of the platform create confidence. Nothing felt hidden or opaque.
Roundtable: Was there anything that surprised you about Roundtable?
Ernest Sanchez: Everything positively surprised me. If I need to highlight one thing, that would be the team. The platform is already very good, but the Roundtable team is absolutely fantastic. They're very helpful and professional, from the CEO to the business developers. Everyone has been exceptionally supportive, and I think you're moving in the right direction. I look forward to continuing to work with you in the future.
Roundtable: How do you envision your future partnership with Roundtable?
Ernest Sanchez: Right now, I'm building a regulated fund that will be registered in Spain under Encomenda Capital Partners, and for which we won't be able to use Roundtable. However, whenever we find opportunities outside our main thesis (i.e. companies that don't fit the fund but could work as a part of our portfolio), we'll definitely create SPVs and structure those deals via the platform, and I'm looking forward to working with your team on them.
{{clients_banner}}
