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Private Equity News Spain Overview: A Record-Breaking Year

The private equity industry in Spain had a record-breaking year in 2022, with a record number of deals completed and the second-highest total capital invested in the country.

According to data from PitchBook, there were 381 Spanish PE deals in 2022, up 12.4% from the previous year.

The total capital invested was €32.6 billion ($35.3 billion), down by just over 35% from 2021.

The largest deal of the year was the €2 billion acquisition of Spanish fiber optics company Lyntia by AXA IM Alts and Swiss Life Asset Managers.

Other notable deals included the €1.8 billion acquisition of Spanish restaurant chain Telepizza by KKR and the €1.5 billion acquisition of Spanish renewable energy company Solaria by Brookfield Asset Management.

The strong performance of the Spanish PE industry in 2022 was driven by a number of factors, including:

The continued economic recovery in Spain, which led to increased investment activity across all sectors.

The growing popularity of private equity as an investment vehicle among institutional investors.

The availability of attractive investment opportunities in Spain, particularly in the technology, healthcare, and consumer sectors.

Private Equity News Spain Overview

The outlook for the Spanish PE industry in 2023 is positive, but there are some challenges that could temper growth. These challenges include:

The rising cost of capital, which could make it more difficult for PE firms to raise funds.

The ongoing war in Ukraine, which could have a negative impact on the global economy and investment sentiment.

Despite these challenges, the Spanish PE industry is expected to remain resilient in 2023. The country's strong economic fundamentals and attractive investment opportunities should continue to attract investors.

In addition to the factors mentioned above, the following are some other trends that are shaping the Spanish private equity industry:

Private Equity News Spain Overview

The growing importance of ESG investing. PE firms are increasingly focusing on investments that meet environmental, social, and governance criteria.

The increasing use of technology in PE transactions. PE firms are using technology to improve their due diligence processes, manage their investments, and source new deals.

The growing importance of cross-border deals. Spanish PE firms are increasingly investing in other countries, and foreign PE firms are increasingly investing in Spain.

The Spanish private equity industry is a dynamic and growing market. The factors mentioned above are expected to continue to shape the industry in the years to come.

Private Equity News Spain: Latest Developments and Investment Opportunities

Private equity has been making waves in Spain in recent years, with a record number of deals completed and billions of euros invested in the country.

The sector has seen significant growth and development, and has attracted both domestic and international investors.

An overview of private equity in Spain reveals a thriving market, with a diverse range of players and investment opportunities. Private equity firms are investing in a range of sectors, from technology and healthcare to consumer goods and services.

Private Equity News Spain Overview

The sector has also been impacted by digital transformation, with firms adopting new technologies and strategies to stay competitive.

Investment trends in Spanish private equity show a growing interest in mid-market deals, as well as a focus on value creation and operational improvements. Financial institutions and venture capital firms are also playing a key role in the sector, providing funding and expertise to help drive growth and innovation

With a supportive regulatory environment and a range of industry associations, private equity in Spain looks set to continue its upward trajectory.

Key Takeaways

• Private equity in Spain has seen significant growth and development in recent years, with a record number of deals completed and billions of euros invested in the country.

• The sector is diverse and dynamic, with investment opportunities in a range of sectors and a focus on mid-market deals and value creation.

• Financial institutions, venture capital firms, and a supportive regulatory environment are helping to drive growth and innovation in the Spanish private equity market.

Private Equity News Spain Overview

Overview of Private Equity in Spain

Private equity is a type of investment that involves the purchase of shares or ownership stakes in private companies. In Spain, the private equity industry has been growing rapidly in recent years, with record levels of investment and deal activity.

According to a report by The Corner, the private equity market in Spain turned over €52.220 billion in 2021, up 87% year-on-year, marking a new historical record of activity. The report also notes that the market had experienced two years of declines in investment volumes due to the Covid-19 pandemic.

High-value transactions (more than €500 million) were the most significant in the PE market in Spain, covering almost 80% of the total value of PE transactions in 2020 and around 36% of the total transaction volume in Spain, according to a report by Practical Law. These trends continued to set the pace in the PE market in Spain during 2021.

Private Equity News Spain

Despite the total capital invested in Spain dropping, the country saw a record number of deals completed in 2022, according to a report by PitchBook. The report notes that Spain's private equity industry completed 1,200 deals in 2022, up from 1,100 in 2021.

The Spanish Association of Capital, Growth and Investment (SPAINCAP) reports that the investment volume in Spain reached €3,005M in the first half of 2023, which is the second-best historical half-yearly record in the number of private capital investments in Spain. However, this is 46% less than in the same period of 2022, according to a press release.

Overall, the private equity industry in Spain appears to be thriving, with high-value transactions and record levels of deal activity. However, the Covid-19 pandemic has had an impact on investment volumes, and it remains to be seen how the industry will continue to perform in the coming years.

Investment Trends in Spanish Private Equity

Private equity investment in Spain has been on the rise in recent years, with a significant increase in investment volume and number of deals completed.

According to data from the Spanish Venture Capital and Private Equity Association (SPAINCAP), Spanish private equity capital investment in 2021 reached its second-highest record ever.

The volume of transactions increased by 63% in terms of the number of deals and 87% in value terms compared to the transactions completed in 2020.

In the first half of 2023, the investment volume in Spain reached €3,005M, according to the first estimates obtained by SPAINCAP through the European EDC platform. This was a 46% decrease compared to the same period in 2022, but still the second-best historical half-yearly record in the number of private capital investments in Spain.

The Spanish market continues to be an attractive destination for private equity investors, with a growing number of international investors entering the market.

The market is characterised by a diverse range of investment opportunities, from established sectors such as real estate, healthcare, and technology to emerging sectors such as renewable energy and sustainable infrastructure.

The capital invested in Spanish private equity deals is also on the rise, with a significant increase in the average deal size.

According to data from Mergermarket included in the report from the legal firm Cuatrecasas, the average deal size in Spain increased from €45.6 million in 2020 to €82.9 million in 2021, representing a 82% increase.

Overall, the Spanish private equity market is expected to continue to grow in the coming years, driven by a favourable economic environment, a diverse range of investment opportunities, and a growing number of international investors.

Private Equity News Spain Overview

Significant Deals and Transactions

According to PitchBook data, Spain saw a record number of private equity deals completed in 2022.

Despite a drop in the total capital invested in the country, the private equity industry completed a record-breaking number of deals.

This indicates that the middle market in Spain is still thriving, and investors are finding opportunities to invest in the region.

In 2021, the private equity sector turned over €52.220 billion in Spain, which was an 87% increase in value compared to the previous year. This was according to data from Mergermarket, as reported by The Corner.

The report also stated that there was a 63% increase in the number of deals completed in Spain in 2021, which amounted to 387 deals.

Some of the significant deals completed in Spain in recent years include the acquisition of MásMóvil by KKR, Cinven, and Providence Equity Partners for €5.0 billion. This was the largest private equity deal in Spain's history. Another notable deal was the acquisition of Gestamp Renewables by Brookfield Renewable Partners for €1.3 billion.

Private Equity News Spain

In terms of big bracket deals, the acquisition of Naturgy Energy Group by IFM Investors for €22.7 billion was the largest deal completed in Spain in 2021. This deal was completed in partnership with Global Infrastructure Partners. The acquisition of Saba Infraestructuras by Brookfield Infrastructure Partners for €5.2 billion was another significant deal completed in Spain in 2021.

Overall, the private equity industry in Spain has been active in recent years, with a record number of deals completed in 2022. The middle market in Spain is still thriving, and there are opportunities for investors to find value in the region.

Key Players in the Spanish Private Equity Market

Spain has a thriving private equity market with several key players that have established a strong presence in the country.

These players have been instrumental in driving the growth of the market and have made significant investments in various sectors.

Some of the key players in the Spanish private equity market include asset managers such as Axa IM Alts and Swiss Life Asset Managers. These firms have a strong track record of investing in private equity and have made significant investments in Spanish companies.

Antin Infrastructure Partners is another key player in the market, with a focus on infrastructure investments. The firm has made several investments in Spanish infrastructure assets, including airports and toll roads.

Oakley Capital is a private equity firm that has made several investments in the Spanish market. The firm has a focus on technology and has invested in several Spanish technology companies.

Private Equity News Spain Overview

Brookfield Asset Management is a global asset management firm with a significant presence in the Spanish market. The firm has made several investments in Spanish real estate and infrastructure assets.

These key players have been instrumental in driving the growth of the Spanish private equity market and have made significant investments in various sectors. Their expertise and experience have helped to attract other investors to the market and have contributed to the overall success of the industry.

Investment in Specific Sectors

Private Equity (PE) investment in Spain is growing significantly, with record numbers of deals completed in recent years. In 2021, Spain's private equity industry saw a record number of deals completed, despite the total capital invested in the country dropping.

According to data from Mergermarket included in the report from the legal firm Cuatrecasas, the sector turned over 52.220 billion euros in Spain last year, which was 87% more in value terms compared to the transactions completed in 2020, and a rise of 63% in terms of the number of deals.

PE investment in specific sectors is also growing, with some sectors experiencing more investment than others.

According to the report from Cuatrecasas, the hot PE sectors in Spain include enterprise software, digitization, energy, media, and technology. These sectors are attracting significant investment due to their potential for growth and profitability.

One of the sectors that is attracting significant PE investment in Spain is enterprise software. This sector is experiencing significant growth due to the increasing demand for software solutions in various industries. PE firms are investing in companies that provide software solutions for businesses in different sectors, including financial services, healthcare, and manufacturing.

Private Equity News Spain Overview

Digitization is another sector that is attracting significant PE investment in Spain. This sector is experiencing growth due to the increasing demand for digital solutions in various industries. PE firms are investing in companies that provide digital solutions for businesses in different sectors, including retail, healthcare, and logistics.

Energy is another sector that is attracting significant PE investment in Spain. This sector is experiencing growth due to the increasing demand for renewable energy solutions. PE firms are investing in companies that provide renewable energy solutions, including solar and wind power.

Media is another sector that is attracting significant PE investment in Spain. This sector is experiencing growth due to the increasing demand for digital media solutions. PE firms are investing in companies that provide digital media solutions, including online streaming platforms and digital advertising.

Technology is another sector that is attracting significant PE investment in Spain. This sector is experiencing growth due to the increasing demand for technology solutions in various industries.

Private Equity News Spain Overview

PE firms are investing in companies that provide technology solutions for businesses in different sectors, including financial services, healthcare, and manufacturing.

In summary, PE investment in Spain is growing significantly, with specific sectors such as enterprise software, digitization, energy, media, and technology attracting significant investment due to their potential for growth and profitability. PE firms are investing in companies that provide solutions for businesses in various industries, including financial services, healthcare, and manufacturing.

In Spain, the private equity industry is also embracing digital transformation.

According to SpainCap, the investment volume in Spain reached €3,005M in the first half of 2023, with a significant portion of this investment going towards digital transformation initiatives. Private equity firms in Spain are investing in technology companies that are developing innovative solutions to transform traditional industries.

Private Equity News Spain Overview

The impact of digital transformation on private equity is not limited to investment decisions. It also extends to the management of portfolio companies. Private equity firms are using enterprise software to streamline their portfolio company operations, automate processes, and improve collaboration between teams.

This has resulted in improved efficiency, increased productivity, and better decision-making.

In conclusion, the impact of digital transformation on private equity is significant.

Private equity firms that embrace digital transformation are better positioned to identify investment opportunities, improve portfolio management, and increase returns. The use of technology and enterprise software is becoming increasingly important for private equity firms in the US, Spain, and other countries to stay competitive and achieve success in the digital age.

Role of International Investors and Venture Capital

International venture capital played a significant role in the growth of private equity in Spain in recent years.

According to a report by the Spanish Association of Capital, Growth and Investment (ASCRI), foreign investment in Spain reached a record high of €1.575 billion in 2021.

This represents a 248% increase from the previous year. The report also highlights that the number of investments made by international venture capital firms increased to 173 in 2021.

The strong performance of the Spanish economy, coupled with the country's attractive investment opportunities, has made Spain an attractive destination for international investors.

Many international investors have recognized the potential of Spain's fast-growing technology sector, which has attracted significant venture capital investment.

The Spanish government has also taken steps to encourage foreign investment in the country, including the introduction of new tax incentives and the simplification of administrative procedures.

Private Equity News Spain Overview

The role of venture capital in the Spanish private equity market has also been significant. Venture capital firms are typically focused on investing in early-stage companies with high growth potential. In Spain, venture capital investment reached €1.6 billion in 2021, which represents a 67% increase from the previous year.

The Spanish start-up ecosystem has been growing rapidly in recent years, and venture capital firms have played a crucial role in supporting this growth.

International venture capital firms have also played a significant role in the development of Spain's private equity market.

Many international venture capital firms have established a presence in Spain, either by opening local offices or by partnering with local firms. This has helped to bring new capital into the Spanish market, as well as providing local companies with access to international networks and expertise.

In summary, the role of international investors and venture capital has been crucial in the growth of Spain's private equity market.

The Spanish economy's strong performance, coupled with the country's attractive investment opportunities, has made Spain an attractive destination for international investors.

Venture capital investment has also played a significant role in supporting the growth of Spain's start-up ecosystem. International venture capital firms have been instrumental in bringing new capital into the Spanish market and supporting the development of local companies.

Private Equity News Spain Overview

Influence of Financial Institutions on Private Equity

Private equity in Spain has been significantly influenced by financial institutions such as banks, insurance companies, and pension funds.

Prior to the 2008 financial crisis, the Spanish debt market was primarily controlled by banks and savings banks, which limited the presence of alternative lenders and the size of the debt capital market.

However, the crisis led to a significant shift in the market, with private equity emerging as a viable alternative for investors.

Banks have played a significant role in the private equity market in Spain, with many banks establishing their own private equity divisions.

For instance, BBVA, one of Spain's largest banks, has its own private equity arm, BBVA Capital Privado, which invests in companies across various sectors. Similarly, Santander has a private equity division, Santander Private Equity, which focuses on investing in small and medium-sized enterprises.

Insurance companies and pension funds have also played a crucial role in driving the growth of the private equity market in Spain.

These institutions have been attracted to private equity due to its potential for higher returns than traditional investments. For instance, Mapfre, one of Spain's largest insurance companies, has a private equity division that invests in companies across Europe and Latin America.

Despite the significant influence of financial institutions on the private equity market in Spain, there have been concerns about the potential risks associated with these investments.

For instance, some critics have argued that private equity investments may be too risky for pension funds and insurance companies, which are responsible for managing the retirement savings of millions of Spaniards.

Overall, financial institutions have played a significant role in the growth of the private equity market in Spain.

While there are concerns about the potential risks associated with these investments, many institutions continue to view private equity as a viable alternative for generating higher returns than traditional investments.

Private Equity News Spain Overview

Regulatory Environment and Associations

Private equity and venture capital in Spain are subject to regulations and guidelines from various entities, including the European Development Fund (EDC), the Spanish Association of Capital, Growth and Investment (ASCRI), and the Spanish government.

These regulations aim to ensure fair competition, protect investors, and promote transparency in the industry.

The regulatory environment for private equity in Spain is generally considered to be favourable.

According to a report by Chambers and Partners, M&A transactions are not subject to restrictions or regulatory filings in Spain. However, some regulations apply to private equity firms, such as those related to disclosure requirements and anti-money laundering measures.

ASCRI is the main association representing the private equity and venture capital industry in Spain.

It has over 100 members, including private equity firms, venture capital firms, and institutional investors. ASCRI provides a platform for members to share knowledge and best practices, and it also promotes the industry to policymakers and the public.

In addition to ASCRI, other organisations play a role in regulating the industry.

For example, the EDC provides funding to private equity and venture capital firms to support the growth of small and medium-sized enterprises (SMEs) in Spain. The EDC also works with local partners to provide technical assistance and training to help SMEs become more competitive.

The Spanish government has also taken steps to support the private equity and venture capital industry.

In 2021, it introduced a new tax regime for venture capital funds, which aims to encourage investment in startups and innovative companies. The new regime provides tax incentives for investors, such as a reduced tax rate on capital gains and dividends.

Overall, the regulatory environment for private equity in Spain is considered to be favourable, with several organisations working to promote the industry and support its growth.

Private Equity News Spain Overview

Conclusion

Private equity in Spain has been growing steadily over the past few years, with record numbers of deals and capital invested in the country.

In 2021, private equity investment in Spain reached €7.49 billion, up 87% in value terms compared to the transactions completed in 2020. The number of deals also rose by 63%.

These figures are a testament to the strength of the Spanish private equity market and its attractiveness to investors.

Despite the ongoing uncertainty surrounding the government's future relationship with private equity, industry experts remain bullish about the prospects for the sector in Spain.

The country's strong economic fundamentals, including a highly skilled workforce and a favourable business environment, make it an attractive destination for investment.

Private equity firms in Spain are increasingly looking beyond traditional sectors such as real estate and infrastructure, and are exploring opportunities in emerging areas such as technology and healthcare.

This trend is expected to continue in the coming years, as investors seek out high-growth sectors with strong potential for returns.

Overall, the outlook for private equity in Spain is positive, with a growing number of opportunities for investors and a supportive regulatory environment. As the industry continues to mature, it is likely that we will see even more innovation and growth in the years ahead.

Private Equity News Spain Frequently Asked Questions

What are the latest private equity investments in Spain?

Spain has seen a surge in private equity investments in recent years. According to PitchBook, the country recorded 381 private equity deals in 2022, which is a 12.4% increase from the previous year. Some of the notable private equity investments in Spain include the acquisition of MásMóvil by a consortium of private equity firms for €5 billion, and the acquisition of Naturgy by IFM Investors for €22.7 billion.

How is the private equity industry in Spain performing?

Despite the economic challenges posed by the COVID-19 pandemic, the private equity industry in Spain has remained resilient. According to the Spanish Association of Capital, Growth and Investment (ASCRI), the investment volume in Spain reached €3,005M in the first half of 2023, which is the second-best historical half-yearly record in the number of private capital investments in Spain. However, the private equity industry in Spain still faces some challenges.

What are the challenges facing private equity firms in Spain?

One of the main challenges facing private equity firms in Spain is the lack of available financing options. Spanish banks are still recovering from the financial crisis of 2008, and as a result, they are more cautious about lending money. Another challenge is the regulatory environment, which can be complex and time-consuming. Furthermore, there is a shortage of skilled professionals in the private equity industry in Spain.

What are the regulations governing private equity in Spain?

Private equity in Spain is regulated by the Spanish Securities Market Law and the Spanish Commercial Code. Private equity firms must comply with these regulations, which include disclosure requirements, reporting obligations, and restrictions on the types of investments that can be made. Additionally, private equity firms must be authorized and supervised by the Spanish National Securities Market Commission.

What are the trends in private equity fundraising in Spain?

Private equity fundraising in Spain has been on the rise in recent years. According to the Spanish Association of Capital, Growth and Investment (ASCRI), the volume of private capital investment in Spain during 2021 reached €7.49 billion from a total of 841 investments. This represents the second-highest level of private capital investment in Spain on record.

How do Spanish private equity firms compare to those in other European countries?

Spanish private equity firms are relatively small compared to those in other European countries such as the UK and France. However, Spanish private equity firms are becoming more competitive and are increasingly seen as attractive investment opportunities. Spanish private equity firms are also more focused on mid-market investments, which can provide stable returns over the long term.

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