Private equity turned over 52.220 billion euros in Spain in 2021, up 87% year-on-year

Private EquityPrivate equity turned over 52.22 bn euros in Spain in 2021, up 87%

Fernando Rodríguez | The market for Private Equity in Spain clocked up a new historical record of activity in 2021, after two years of declines in investment volumes due to the Covid-19 pandemic. According to data from Mergermarket included in the report from the legal firm Cuatrecasas “Market Trends in Iberian Private Equity Transactions”, the sector turned over 52.220 billion euros in Spain last year. This was 87% more in value terms compared to the transactions completed in 2020, and a rise of 63% in terms of the number of deals – 387 -.

The report flags that “various factors contributed to this success: the investment appetite on the part of the large funds in Spain, an increase in the size of the bigger deals and, in particular, the drive from the middle market.”

With regard to the sources of investment, the market “is still dominated by cross-border transactions”, both in terms of numbers – 59% were of this type – and in terms of value – 93% – . That said, domestic operations increased versus 2020.” As in past years, international investors continued to focus on deals with high added value, while local players participated in those with “lower added value”.

By sectors, operations in the technology sector predominated – 17% of the total -, followed by those closed with services companies – 12% -, health sciences – 11% -, consumption and distribution – 10% -, industry – 9% – and energy – 7% -.

All sectors grew compared with 2020, except energy and agriculture. The increases were outstanding in transactions involving leisure companies – up 240% – construction – up 188% – media – up 133% – services – up 130% and IT – up 91%.