Why we invest only in Spain

When people learn that Blue Mountain invests exclusively in Spain, the first reaction is almost always the same: “Why limit yourself?” In a world where capital flows freely across borders and technology has eliminated many of the traditional barriers to international investment, concentrating all activity in a single country appears to be a self-imposed constraint.

It is not. It is our most important competitive advantage.

The case for geographic focus

The investment industry celebrates diversification. Spread your capital across geographies, sectors, and asset classes, and you reduce risk. This is true for passive investors managing a portfolio of listed securities. It is far less true for active investors who buy controlling stakes in private companies and create value through operational engagement.

In private investment — particularly in the middle market — the quality of information, relationships, and local knowledge is the primary determinant of returns. And these assets are inherently local. They cannot be acquired by reading reports or hiring consultants. They are built over years of presence, engagement, and reputation.

What geographic focus gives us

Deal flow. After more than fifteen years of investing exclusively in Spain, we have built a network of relationships with business owners, advisors, intermediaries, lawyers, bankers, and accountants that generates a steady flow of proprietary opportunities. Many of the best transactions we have completed came to us before they were marketed — because the advisor trusted us, the business owner had heard of us, or a portfolio company CEO made an introduction.

Due diligence depth. When we analyse a company, we understand the regulatory environment, the labour market, the tax landscape, the competitive dynamics, and the cultural nuances at a level that a generalist international investor cannot match. This depth of understanding translates directly into better investment decisions and fewer negative surprises.

Operational value-add. Post-acquisition, our ability to support portfolio companies is amplified by our local presence. We can attend board meetings in person, connect portfolio companies with relevant contacts, and intervene quickly when issues arise. Physical proximity matters in relationship-driven investment.

Reputation. In the Spanish middle market, reputation is currency. Business owners talk to each other, advisors share experiences, and word travels. Our track record — of how we treat companies, employees, and the entrepreneurs who sell to us — is known. This reputation opens doors that no amount of capital can.

The opportunity set

Some might argue that Spain’s middle market is too small to justify an exclusive focus. The data says otherwise. Spain has more than 55,000 companies with revenues between 3 and 50 million euros. The annual volume of middle-market M&A transactions exceeds 700. And the succession-driven supply of quality family businesses shows no signs of abating.

We are not constrained by the size of the opportunity. We are constrained by our own capacity to analyse, execute, and manage — which is exactly as it should be.

What we give up

Honesty requires acknowledging what geographic focus costs us. We miss opportunities in other markets. We cannot diversify country risk. We are exposed to Spain-specific economic, political, and regulatory developments.

We accept these trade-offs deliberately, because we believe the advantages of focus — better deal flow, deeper understanding, stronger relationships, and higher-quality execution — more than compensate for the concentration risk. Our returns over fifteen years support this conviction.

Conclusion

Investing exclusively in Spain is not a limitation — it is a strategy. It is the foundation of everything we do: the relationships we build, the knowledge we accumulate, the reputation we maintain, and the value we create. In a market as rich and as deep as Spain’s middle market, focus is not a constraint. It is the key to competitive advantage.