•The sector ended the financial year with a new record of 8,513M€ in terms of investment volumes (over 680 operations) thanks to:
-The intense activity of international funds, that represent 80.7% of the total investment volume
-Historic high in the middle market (operations between 10 and 100M€), with a total volume of 1,990M€ distributed in 69 investments.
•18 megadeals (operations over 100M€) closed in this period. Historic high both in volume and in number of investments.
•National private entities attracted new funds (fundraising) worth 1,813.4M€
•Divestments amounted to 2,260.3M€ (at cost price) after closing 258 deals
Madrid, January 16th 2020. According to the initial estimates obtained by the Spanish private capital trade body ASCRI through the European platform EDC, investment volumes in Spain reached a new record of 8,513M€ in 680 transactions.
As ASCRI’s President, Miguel Zurita, points out, “it is the first time that Spain has recorded results within the European average in terms of annual investment relative to GDP. Even though the majority of investments have been made by international managers that see the great growth potential of Spanish companies, the maturity of the middle market sector is worth noting, where the lead positions are taken by local managers and a dynamic Venture Capital ecosystem that is amongst the most important in Europe”.
With respect to types of investors, international funds continue to show great interest in Spain being responsible for 80.7% of the total investment volume after making 115 investments. Private national investors, on their part, closed a total of 475 investments, whilst their public counterparts closed 90.
By size of the investments, the middle market reached historic highs, recording a volume of 1,990M€ in 69 investments, demonstrating its relevance for the dynamism of the market. From the total number of investments, 84% of them received an equity contribution of less than 5M€. Furthermore, 18 megadeals (transactions of over 100M€) were closed, for a total of 5,824M€ (68.4% of the total value).
Regarding the investment phase, buyouts take centre stage, with a volume of 3,374M€ across 71 operations. In the growth capital investment sector, 77 deals were made during the period for a value of 750M€.Venture capital
Venture capital funds maintained a high level of investment, confirming the trend showed in previous terms, recording a volume of 737M€ across 517 transactions during 2019, of which 79 deals were closed by international venture capital funds, 362 by national venture capital funds, and the remaining 76 by public funds.
For the Spanish Venture Capital & Private Equity sector as a whole, the sectors that recorded the highest investment volumes were Other services (25%), Energy and Natural Resources (21%), and Consumer products (12.7%). In terms of number of operations, the most relevant sectors were IT (293 operations), Consumer Products (68) and healthcare (60).
Funds raised by national private capital firms amounted to 1,813.4M€, highlighting the increased interest shown by institutional investors in the Spanish private capital sector.
The 2019 divestment volume is estimated in 2,260.3M€ after the closing of 258 transactions. 46% of that volume was divested through “sale to another private equity entity”, 14% through “stock repurchase” and 12.5% via “sale in the stock market”.
José Zudaire, General Director at ASCRI, underlined “the industry’s commitment to good government practices and to the Sustainable Development Objectives”. For that matter, ASCRI will present, together with PwC on February 5 the Guide to responsible investment in the Private Equity & Venture Capital sector in Spain, according to ESG/SDO criteria.
Notes to editors:
The Spanish Capital, Growth and Investment Association (ACRI) represents the Venture Capital & Private Equity industry in Spain. It is chaired by Miguel Zurita, consists of 130 national and international firms in the Venture Capital & Private Equity sector, 80 service providers and 20 institutional investors. Its objectives include to represent the sector before the government and institutions, to provide updated statistical information and to publicize the contribution of the sector to the Spanish business fabric.