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Private Capital continues to register record levels in Spain

Press release
23/10/2019

During the first nine months of the year the volume of investment reached around €6BN for the first time ever
•A record level of investment was registered in Spain between January and September 2019 due to:
-The large number of megadeals closed during this period, with 16 transactions of more than €100M of equity
-The intense activity of international funds, which accounted for 80% of total investment volume
-The good behaviour of the middle market, with a total volume of €1,185.8M invested in 46 transactions
-National private capital firms raised 1,049.7M for new funds (fundraising)
-The divestment recorded a volume of €1,918.6M (at cost price) in a total of 188 transactions

Madrid, 22 October 2019.- According to the first estimates obtained by Spanish private capital trade body ASCRI through the European platform EDC, the volume of investment in Spain during the first nine months of 2019 reached a record level of €5.890M in 549 investments. During this period, 16 megadeals (transactions of more than €100M of equity) were closed, accounting for 70% of total investment volume. Venture capital investments amounted to €543.8M, representing a 42% increase with respect to the same period of last year.

By type of investor, international funds continue to show a great interest in Spain as they are responsible for 80% of the total volume invested in 77 deals. Domestic private capital funds, on their part, closed 396 investments, representing 19% of total volume invested, whilst domestic State-backed private capital funds led 76 investments (1% of total volume invested).

By size of the investments, the middle market (transactions with an equity investment between €10M and €100M) had an excellent behavior, with a total volume of €1,185.8M in 46 investments. Of the total number of transactions recorded, 83% received less than €5M in equity.

By stage of development of the target companies, the investments in buy outs stood out, with a total volume of €4,660.2M in 48 investments. Meanwhile, 61 growth capital deals were made, adding up to €530.3M.

Fundraising

Capital raised by domestic private capital funds amounted to €1,049.7M during the first nine months of the year, indicating the strong interest of institutional investors for the Spanish private capital sector.

Divestments

The volume of divestment amounted to €1,918.6M (at cost price) in 188 deals. Around 45% of that volume was divested through “Sale to another Private Capital Entity” and 25% via “Repurchase of shareholders”.