According to the first estimates obtained by Spanish private capital trade body ASCRI through the European platform EDC, the volume of private capital investment in Spain during the first half of 2019 reached EUR4.06 billion in 328 deals.
During the period, nine megadeals (transactions of more than EUR100 million) were closed in eight companies accounting for EUR2.907 billion (72 per cent 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 JeanologÃa, Platinum in IBERCONSA and PAI Partners in Areas.
International funds are responsible for 82 per cent of the total volume invested in 56 deals, a historic record in the number of transactions. Domestic private capital funds, meamwhile, 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 EUR10 million and EUR100 million) showed great dynamism, with a total volume of EUR818.4 million in 31 investments. Of the total number of transactions recorded, 82 per cent received less than EUR5 million in equity.
By stage of development of the target companies, the investments in buy-outs stood out, with a total volume of EUR3.286 billion in 28 investments. Meanwhile, 53 growth capital deals were made, adding up to EUR310 million.
The investment of Venture Capital funds recorded a volume of EUR357.5 million 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 per cent), Hospitality and Restaurants/Leisure (14 per cent), and Industrial Products and Services (9 per cent). 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 EUR625M, 24.7 per cent 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 EUR903.4M (at cost) in 129 deals.
Around 32.5 per cent of that volume was disinvested through “Repurchase of shareholders”, 31 per cent through “Sale on the Stock Exchange” and 26 per cent through “Sale to another Private Capital Entity”.
