Private capital is beginning to recover activity levels prior to the pandemic, supported by existing liquidity, a favorable macroeconomic environment and the reduction of uncertainty in the evolution of the pandemic. With three quarters elapsed, venture capital and venture capital already exceed 6,000 million euros invested in Spain.
This was revealed in the eighth edition of the LPs & GPs Spanish Conferencewho celebrated EY and Ascri at the headquarters of the first In this sense, the volume of investment in Spain has reached in the third quarter of the year close to 4,850 million in a total of 618 investments, 18.4% more than in the same period of 2020, while the venture capital has exceeded the maximum recorded, with almost 1,250 million in a total of 512 investments.
Close to 300 investors and funds from the sector participated in the meeting between the professional services firm and the private capital employers.
The messages that were transferred were very positive for the industry. Ignacio de la Torre, chief economist at Arcano Partners, concluded that “the understanding of monetary policy leads to the conclusion that we will live through a period of five to ten years of negative real rates, and that will cause one of the largest shifts in history to private capital.”
The data compiled by Ascri show that, depending on the type of investor, the appetite of international funds is maintained, both private equity like venture capital, which have abundant liquidity and maintain interest in Spain. In the first nine months of the year, they contributed more than 80% of the total volume invested in Spanish companies, maintaining the weight of recent years.
On his side, “the data reflects the trust that international investors continue to place in Spanish managers, who have made a great effort during the pandemic to support and encourage their investees for their survival and to prepare them for the subsequent rebound”, highlighted Aquilino. Peña, president of Ascri.
Impact and sustainability were also highlights. “All the players of this industry assure that, at this time, the creation of value is a requirement for any investor and this goes beyond the simple requirement of the reporting not financial. Much of the literature shows us how there is a positive correlation between this value creation and the financial and operational performance of the company”, said Juan López del Alcázar, partner in charge of the EY Strategy and Transactions area and the Private Equity sector.