SPAIN Law and Practice Contributed by: Ignacio Sanjurjo, Ignacio Echenagusia, Alejandro Espín and Román Cantín, Deloitte Abogados y Asesores Tributarios, S.L.U.
Deloitte Abogados y Asesores Tributarios, S.L.U. Plaza Pablo Ruiz Picasso 1 28020 Madrid Spain Tel: +34 915 14 50 00
Email: isanjurjo@deloitte.es Web: www2.deloitte.com/es
1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General Despite the impact on total M&A investment in Spain of the current global geopolitical climate – particu - larly the Israel-Palestine and Russia-Ukraine conflicts – and the ongoing political volatility within the Span - ish government, these challenges have not prevented the continued growth of the Spanish M&A market. According to the Annual M&A Report in Spain 2024, prepared by Capital & Corporate, 2024 closed with a total investment volume of EUR100.5 billion, an increase of 27.6% compared to 2023 and the second highest figure recorded to date. Record Levels of PE Investment and VC Transactions As reflected in a report published by the Spanish Ven - ture Capital and Private Equity Association (Spain - Cap) for 2024, total private equity (PE) and venture capital (VC) investment in Spain reached a peak in 2019, with a total investment volume of EUR8,527 million, representing an increase of EUR2,514 million over the previous year. However, due to the COVID-19 pandemic, total investment fell in 2020 to EUR6,275 million, before rising again to EUR7,573 million in 2021 and reaching a new peak in 2022, with a total investment volume of EUR9,238 million – a milestone that was decisively driven by the emergence from the COVID-19 pandemic (later decreasing to EUR6,709 million in 2023).
In 2024, according to the above-mentioned SpainCap report, total PE and VC investment in Spain amounted to EUR6,538 million, representing a 2.6% decrease compared to 2023. Nevertheless, a positive trend was observed throughout 2024: investment activity was moderate in the first half of that year due to the com - plex economic and geopolitical environment but, in the second half of 2024, investment levels recovered to those of 2023 as a result of improved market condi - tions (eg, the European Central Bank lowered interest rates on 12 June 2024, encouraging investment). In total, 725 investments were completed in Spain in 2024, compared to 844 in 2023 according to the SpainCap report. Divestments in PE and VC trans - actions increased by 113% in 2024 compared to 2023, with 211 divestments in 2024 (total amount of EUR2,902 million versus EUR1,362 million in 2023, distributed across 316 divestments). This is mainly due to the portfolio turnover among investors, which has reached its highest level in the past five years. Major Market Challenges As previously noted, most PE and VC investments in 2024 were carried out by Spanish fund managers, but the total investment amount by foreign fund managers was also significantly higher than previously. Notwith - standing the foregoing, the volume of investment by foreign fund managers in PE and VC transactions in Spain decreased by 5% in 2024 compared to 2023 (EUR4,800 million versus EUR 5,000 million), and the number of investments carried out by foreign fund managers also fell by 2% in 2024 compared to 2023 (163 versus 166 investments). Therefore, while the
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