Private Capital continues to register record levels in Spain

Spanish private capital trade body ASCRI has published findings by the European platform, EDC, estimating that the volume of investment in Spain during the first nine months of 2019 reached a record level EUR5.890 million in 549 investments.

During this period, 16 megadeals (transaction of more than EUR100 million of equity) were closed, accounting for 70 per cent of total investment volume. Venture capital investments amounts to EUR543.8 million, representing a 42 per cent increase with respect to the same period of last year.
By type of investor, international funds continue to show interest in Spain as they are responsible for 80 per cent of the total volume invested in 77 deals. Domestic private capital funds, on their part, closed 396 State-backed private capital funds led 76 investments (one per cent of total volume invested).
The middle market had a total volume of EUR1,185.8 million in 46 investments. Of the total number of transactions recorded, 83 per cent received less than EUR5 million in equity.
Investments in buy-outs also stood out, with a total volume of EUR4,660.2 million in 48 investments. Meanwhile, 61 growth capital deals were made, making up to EUR530.3 million.
Capital raised by domestic private capital funds amounted to EUR1,049.7 million during the first nine months of the year, indicating the strong interest of institutional investors for the Spanish private capital sector.
The volume of divestment amounted to EUR1,918.6 million (at cost price) in 188 deals. Around 45 per cent of that volume was divested through “Sale to another Private Capital Entity” and 25 per cent via “Repurchase of shareholders”.