* 40 million euro rights issue starts on Monday
* To invest 60 million-70 million euros over next 2 years
By Tracy Rucinski and Tomas Gonzalez
MADRID, Nov 23 (Reuters) - Dinamia, Spain's only listed private equity fund, sees opportunities to make acquisitions as the country's battered economy bottoms out, a director told Reuters ahead of a rights issue on Monday.
Dinamia unveiled a 40 million euro ($59.7 million) share issue last week to fund acquisitions after several quarters of losses due to difficulties in selling assets and provisions against the falling value of its equity stakes.
The rights to its 10 euro per share issue, offered at an 8.3 percent discount, begin trading on Monday. The share issue has not been underwritten but shareholders owning 27 percent of the company have already said they will back it.
"We think the economic and corporate cycle has touched bottom. We don't know whether growth will come fast or slow, but this could be the best time to buy," Federico Pastor, chief executive of the Nmas1 Private Equity firm which manages Dinamia's investment portfolio, said in an interview.
Private equity firms have had a tough time raising funds from cash-strapped investors and the lifespan on asset rotations has typically been extended due to difficulties in selling during the downturn.
Dinamia could double its 40 million euro cash pile, if the rights issue is successful, providing financing for its investment business over the next 18 months to two years without the need to sell holdings in its portfolio.
"With 80 million euros, we could either make tree buys worth some 20 million euros, or maybe one big deal and two or three small ones," Pastor said.
Dinamia is targeting defensive, anti-cyclical sectors such as health and services, and will steer clear of consumer sectors.
"(Spain) is going to have a lot of unemployed, and people whose dole is running out. Some businesses are emerging from the crisis, but we don't know when others will touch bottom We're not looking for the desperate seller, but (companies with) strength and visibility, companies that have touched bottom and now can grow," he said.
Divestments may take a bit longer. "We'd like to take it slow and wait a year or so, although it's true that if a buyer comes along and offers a decent valuation for these times we would listen. But the board doesn't think the next two years will be a good time to divest," Pastor said.
(Editing by Erica Billingham) ($1=.6697 Euro) ((tracy.rucinsk@thomsonreuters.com; RM tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153))