MEET: Miguel Gutiérrez, Deputy COO

I decided to study law and business administration because I thought it was the best way to have a tangible impact on society.

During my studies, one of my professors of finance lectured us about PE, how it indirectly affects the real economy, which made me reflect on my future.

Once I graduated, I was attracted most to the consulting industry. I was able to gain experience in a variety of companies and sectors,and understand the management of those firms in more detail. I joined KPMG in the dispute advisory services team and I spent five years working on various consulting projects there. I gained experience in company valuations, working with large Spanish corporations in energy, consumer goods, banking and industrial firms.

One of the projects at KPMG was at Portobello. I met the senior management and I learnt about the type of deals they made.

A few months after the project had finished, I received a call from Portobello about a vacancy. After a multitude of interviews, they offered me the position.

TDD: How do you use your experience valuing companies during your time at KPMG in your current role?

MG: My time at KPMG proved to be an invaluable part of the role, especially when it comes to valuing companies at Portobello. Every quarter I participate in the process of valuing each of our portfolio companies. Defining a specific methodology for valuing portfolio companies is really important, in particular being able to adapt the process if necessary.

TDD: You have been at Portobello now for the last six years. How do you reflect on them?

MG: I initially worked in the finance department but I soon moved to operations, where I began to work heavily on the structuring of our deals and the designing of our LPAs. This was and still is, a big part of our workflow and is an essential part of the deal making process.

The last six years have been super interesting. When I joined, Portobello managed two funds. Now, it manages seven, and is soon to manage eight or nine. We have doubled our AUM and also the number of employees within our firm. So, I have seen the company grow very quickly.

On a company level, some of the first Spanish secondary deals were completed by Portobello. These are very complex vehicles which I have had to help with structuring.

From an operations perspective, I’ve been able to witness the development of these new strategies and help the firm grow.

TDD: How have your responsibilities evolved alongside the company?

MG: I have seen a lot more activity in the fund finance space. Credit lines play such an important part in the fund’s returns and in maximising the available cash within a fund. I now work alongside a lot of banks to negotiate credit facilities, especially in the current context, where funds are not just expected to manage the traditional subscription lines, but certain more complex debt levers, such us NAV lines and bridge loan opportunities

In the future, I anticipate working even more closely with our fundraising team when it comes to the structuring of our subsequent funds.

TDD: In what way have you leveraged technology?

MG: In the last few years, we have been developing our own software to collect all the information flow within the firm. We began working with an external IT company called eCapital in 2018 and its implementation has been modular. They work with a lot of Spanish fund managers to develop their own in-house software. We’re still adapting the tool, though we have already reached the last stages.

A major part of its functions has been designed by ourselves and thanks to its intrinsic flexibility, they have developed it according to our requirements. Now, we believe it serves as a competitive advantage because it generates outputs that can help us make better decisions.

All of the data relevant to the funds and from our portfolio companies is collected, both financial and non-financial, on a monthly basis. This is really important for fund management and portfolio monitoring, and it helps to streamline our decisions.

Additionally, the software includes a deal flow module, from which we monitor all aspects regarding our deal flow, from the very first teaser from the sell-side, until the closing date, when the company is included in the portfolio.

Finally, the software also has a customer relationship management platform, from which we expect soon to be able to share all documents issued by Portobello to our LPs. In this way, the software will also become our documents management tool

TDD: What makes a successful operations team?

MG: I think that the ops function represents the engine of the company. We provide the outputs to the principal decision makers of the firm, typically to the partners. I think we need to reinforce this position. The team’s main responsibility is to collect the necessary information, generate analysis and share them to the relevant decision makers. This gives us a unique value.

Another challenge is scaling our growth. We have bought more than 18 companies in the past 6 years, we sold 7 and we raised five funds. We need to make sure our processes remain homogenous and we continue to work together as the operating engine, rather than getting siloed or working inefficiently.

I think we strive to be a point of contact within the company. I think it’s really important that if someone has a query, they are able to come to us for help. In that way, the operations team can help align all departments within the firm in one direction.

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Jet setter

Portobello opened an office in Luxembourg in April 2021, where Gutierrez frequently visits to oversee the management of the two funds domiciled there.

Gutierrez explains: “We have three permanent members of staff in our Luxembourg office, who manage the fund and perform portfolio management. I work frequently with the head of the office to oversee all of this. I go there generally on a quarterly basis, together with other members of the team.”

Since assuming this responsibility, Gutierrez recognises the importance of keeping up to date with any regulatory divergences between Luxembourg, where the two funds are domiciled, and Spain, where the headquarters of Portobello is.