A new record figure in the first six months
•9 megadeals have been closed in this period (investments that exceeded €100M of equity)
•The period was characterised by an intense activity of international funds, which accounted for 82% of total investment volume.
•The middle market was very dynamic, with a total volume of €818.4M invested in 31 transactions.
•National private capital firms raised €626.5M for new funds (fundraising).
•The divestment recorded a volume of €903.4M (at cost price) in a total of 129 divestments.
Madrid, 17 July 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 half of 2019 reached €4,060M in 328 investments. During this period, 9 megadeals (transactions of more than €100M) were closed in 8 companies accounting for €2,908.6M (72% of total volume): CPPIB and Bridgepoint in Dorna Sports, Permira in Laureate International Universities, ICG in Grupo Konecta, EQT Partners in Igenomix, KKR in Telepizza, Carlyle in Jeanología, Platinum in IBERCONSA and PAI Partners in Areas.
By type of investor, international funds continue to show a great interest in Spain as they are responsible for 82% of the total volume invested in 56 deals, a historic record in the number of transactions. Domestic private capital funds, on their part, closed 227 investments, whilst domestic State-backed private capital funds led 45 investments.
By size of the investments, the middle market (transactions with an equity investment between €10M and €100M) showed great dynamism, with a total volume of €818.4M in 31 investments. Of the total number of transactions recorded, 82% 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 €3,286M in 28 investments. Meanwhile, 53 growth capital deals were made, adding up to €310M.
The investment of Venture Capital funds recorded a volume of €357.5M in a total of 242 investments. Of these, 172 were led by national private capital funds, 33 by State-backed private capital funds and 37 by international funds. The maturity of these segment has been confirmed with 48 investments in late stage venture capital, doubling the amount registered during H1 2018.
For the Spanish Venture Capital & Private Equity industry as a whole, the sectors that received the greatest volume of investment were: Other Services (45%), Hospitality and Restaurants/Leisure (14%), and Industrial Products and Services (9%). By number of investments, IT (133 investments), Industrial Products and Services (40) and Consumer Products (29) stood out.
Capital raised by domestic private capital funds reached €625M, 24.7% less than in the same period last year. This is because the majority of Spanish middle market private capital firms raised new funds during the last four years.
The volume of divestments continues to progress at a good pace, recording an estimated €903.4M (at cost) in 129 deals.
Around 32.5% of that volume was disinvested through “Repurchase of shareholders”, 31% through “Sale on the Stock Exchange” and 26% through “Sale to another Private Capital Entity”.
ACHIEVEMENTS OF ASCRI IN 2019
– More than 200 Members
– Proposals to dynamize the growth of SMEs and startups
– Collaboration agreements signed with counterpart associations in Italy and Peru
– In preparation, an “ESG&ODS Good Practices Guide” with PWC
– More than 3,000 followers on LinkedIn and Twitter