Banco Santander is accelerating its alternative investment strategy, channeling €9 billion into diverse areas such as SME financing, venture capital, and trade finance. This initiative comes amidst a shifting financial landscape as falling interest rates push banks toward higher-yield opportunities.
The bank recently merged its two alternative investment divisions into a single streamlined entity, now headed by Carlos Manzano, formerly of Deutsche Bank. This consolidation, overseen by wealth management head Javier García Carranza, aims to enhance efficiency and capitalize on growing demand for alternative assets.
Santander’s commitment to alternative investments is not new but has gained momentum in recent years. The bank has contributed €6 billion of its own funds, 60% of which has already been invested, with the remainder raised from third-party investors.
The cornerstone of Santander’s alternative investment strategy is Tresmares, a platform launched in 2019 in partnership with former Qualitas executives. Tresmares focuses on SMEs by offering both debt and equity solutions, with the platform managing nearly €3 billion to date.
The bank has also pursued other niche opportunities:
- Fremman Capital: A 30% stake in the venture capital firm, which focuses on private equity investments.
- Atempo Growth: Specializing in venture debt for startups across Europe and the UK, with backing from the European Investment Bank.
- Mouro Capital: Formerly Santander Innoventures, this fintech-focused fund has grown to manage $400 million since its inception in 2014.
- Seaya Capital: Santander has taken a minority stake in this venture capital firm, known for backing Spanish unicorns like Glovo and Cabify.
- Atgro: A €500 million agricultural investment platform launched in partnership with Atitlan’s Elaia division, targeting innovative farming projects.
Santander is also expanding its global reach, notably through a partnership with Forgepoint Capital, a U.S.-based venture capital firm specializing in cybersecurity. This collaboration involves a €300 million investment across three initiatives: a new venture capital fund for cybersecurity startups in Europe, Latin America, and Israel; participation in Forgepoint’s upcoming North American fund; and a joint investment program.
By blending its expertise with targeted partnerships, Santander aims to unlock new opportunities in alternative investments while supporting entrepreneurship and innovation. With its platforms and alliances, the bank is well-positioned to capitalize on evolving market dynamics and drive growth across emerging sectors.
