Frux Capital closes €350M fund, readies €200M data centre vehicle
What's the deal? Spanish private debt manager Frux Capital InvestmentsDealroom has a profile for this one. Try Dealroom → has closed its third fund with €350 million in commitments, 60% more than its predecessor, and is preparing a separate €200 million vehicle focused on data centres.
What's the endgame? Frux has already deployed €200 million of the third fund across 13 deals, including financing for the luxury villas tied to the Six SensesDealroom has a profile for this one. Try Dealroom → hotel in Ibiza. Founder Itamar Volkov expects to invest the rest next year, reaching 20 positions.
Why now? Volkov said the firm is "preparing a new fund dedicated exclusively to data centres with a target of €200 million" (translated from Spanish). He pointed to strong demand driven by artificial intelligence but a "financial bottleneck" in the pre-construction phases, such as electrical connections and permits.
He predicts the Spanish data centre market will "multiply by three or four in the next five years." Before construction begins, developers face months of payments and paperwork, making early-stage financing critical.
By the numbers: Founded in 2015, Frux operates in the mid-market with loans of between €10 million and €50 million. It has handled around €1 billion in managed, closed, and advised transactions.
Its first fund, launched in 2019, raised €65 million; the second gathered €220 million. Both are fully invested and being wound down. Senior loans with mortgage collateral make up 99% of its portfolio, with an average loan-to-value below 50%.
The expansion: Present in Spain and Portugal, Frux is moving into Germany and Italy. Volkov sees room to grow, noting that "in Spain, private credit represents only between 15% and 20% of the real estate market."
The signal: AI's infrastructure demands are reaching alternative lenders, opening a niche in the capital-hungry early stages of data centre development. Frux's new vehicle bets that the financing gap before construction is where mid-market debt can carve out an edge.
Read more: expansion.com
Image credit: cellanr
