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Business


The year 2018 points to another record year in investment volume of private capital


  • The estimate for the first semester is estimated at more than 3,000 million euros.
  • Four mega deals have been closed in this period (investments that exceeded 100 million euros of equity) in five companies.
  • The period has been characterized by intense activity by international funds (representing 77% of the total investment volume).
  • The national private entities raised new funds (fundraising) worth 783.6 million.
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According to the first estimates obtained by the Association of Capital, Growth and Investment ( Ascri ) through the European platform EDC, the volume of investment in Spain reached in the first half of 2018 the figure of 3,064 million euros in 334 investments.

During this period, four megadeals (operations of more than 100 million) were closed in five companies (CVC Capital Partners in Gas Natural, Orient Hontai Capital in Imagina Media Audiovisual, Ardian in Grupo Monbake, Cinven in Planasa and TowerBrook Capital, Torreal and Penninsula Capital in Aernnova).

According to the type of investor, international funds continue to show great interest in Spain, being responsible for 77% of the total volume invested in a total of 50 deals. Private national investors, meanwhile, closed 214 investments, while public national investors staged 70 investments.

Due to the size of the investments, the middle market (operations with an investment in equity between 10 and 100 million euros) reached a historic maximum, capturing a total volume of 961.4 million in 32 investments, of which 85% received less than 5 million in equity. In addition, a total of four megadeals were closed, amounting to 1,820 million (60% of the total volume). According to the development stage, the investment in buy outs stood out, with a volume of 2,297 million in 26 investments. Regarding the expansion capital (growth), 59 deals were made for 348 million euros.

The investment of venture capital funds registered a volume of 163 million in a total of 243 investments. Of these, 155 were carried out by private national funds, 60 by public funds and 28 by international funds.

For the whole of Spanish venture capital & private equity, the sectors that received the highest volume of investment were energy (38%), consumer products (14%) and communications (13%). By number of "deals" stood out IT (127 investments), consumer products (43) and biotechnology (26).

Acquisition of new funds

Fundraising (funds raised by private capital to invest) captured by private national investors reached 783.6 million euros, 35% less than in the same period last year.

Divestitures

The volume of disinvestment continues to operate at a good pace, registering an estimated figure (at cost price) of 609 million euros in 146 operations.

65% of the volume was divested through "sale to another private equity entity (secondary buy out)", 23% as "sale to third parties" and 7% as "repurchase of shareholders".

The Spanish Association of Capital, Growth and Investment (Ascri) represents the venture capital & private equity industry in Spain. Chaired by Miguel Zurita, it brings together more than 100 national and international venture capital & private equity firms, 70 service providers and 10 institutional investors. Among its objectives are to represent the sector before the Government and institutions, provide updated statistical information and disseminate the contribution of the sector to the Spanish business fabric.

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SUBMITTED BY Funds Society, Madrid

Source:https://www.fundssociety.com/es/noticias/alternativos/