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A&G completes its investment in the student residence segment

A&G completes its investment in the student residence segment

A&G, a financial firm, has announced the completion of its investment in student residences and the liquidation of the remaining assets in its A&G PBSA I, FCR-PYME venture capital fund. This milestone comes after the sale of its last student residence, a decision driven by the current volatile market conditions, according to a company statement.

The fund, launched in September 2020, just six months after the start of the pandemic, involved a joint venture with Grupo Moraval. The objective was to build, develop, and operate student residences in various Spanish cities. Alejandro Núñez, Director of Alternative Investments at A&G, praised Moraval as an efficient partner and a key player in executing the project during a challenging market period.

The asset portfolio was sold to different investment funds to maximize its value based on the project type. The company emphasized that clients achieved an annual net internal rate of return (TIR) of 60% and a multiple of over 2.5 times the invested capital.

Although the investment period was shorter than typical for alternative investments, the company deemed the exit timing appropriate, with higher profitability than initially estimated and the avoidance of potential risks that could have affected the asset sale price.

Núñez concluded by stating, “I believe we made accurate market assessments, accompanied by a well-structured approach that allowed us to mitigate construction risks and capture a significant portion of the value in a short period, accelerating divestment in the current volatile context.”

In recent years, A&G has launched two other private equity funds, Renewables Iberian Solar I and Energy Transition Tech Fund, as well as an alternative fund of funds, A&G Global Private Equity I.

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