SPAIN Trends and Developments Contributed by: Ignacio Sanjurjo, Ignacio Echenagusia, Alejandro Espín and Román Cantín, Deloitte Abogados y Asesores Tributarios, S.L.U.
Introduction This chapter presents a comprehensive analysis of private equity (PE) activity in Spain throughout 2024 and the first half of 2025, and outlines the main trends and legal developments anticipated for the second half of 2025, all within the framework of the current extraordinary global context. Although transactional M&A investment activity declined in 2023 in comparison to other recent years – particularly 2022, which had the best figures in history – the market experienced a strong rebound in 2024, closing the year with a total investment of EUR100.5 billion. This represents a 27.6% increase over fiscal year (FY) 2023, making it the second-highest figure on record. In contrast, PE funds are adopting a more prudent approach, marked by increased scrutiny of potential transactions and a higher proportion of aborted or non-closed deals compared to previous years. Overview of 2024 Historic record of investment by PE and venture capital (VC) in Spain Following a market slowdown after the record levels of 2019, primarily caused by the impact of COVID-19 pandemic, PE and VC investment in Spain peaked in 2022, having the best figures in history according to the Spanish Venture Capital and Private Equity Associ - ation (SpainCap), despite a changing macroeconomic environment and growing geopolitical uncertainty. In 2023, heightened geopolitical tensions led the PE and VC sector to adopt a cautious stance, awaiting more favourable investment conditions and reaching a total investment of EUR6,709 million. In 2024, total PE and VC investment in Spain amount - ed to EUR6.538 billion, representing a 2.6% decrease compared to 2023 and confirming the downward trend in the market. This reduction was mainly due to mod - erate investment activity in the first half of 2024, driven by persistent economic and geopolitical uncertainty. Nevertheless, investment levels rebounded in the sec - ond half of 2024, returning to figures comparable to 2023, largely due to market-stimulating measures.
However, it is important to highlight that investment activity by Spanish entities remains solid, as most transactions were led by domestic fund managers, both public and private. Finally, total divestments in PE and VC transactions increased by 113% in 2024 compared to 2023, reach - ing EUR2.902 billion across 211 divestments versus EUR1.362 billion across 316 divestments in the previ - ous year. This increase is mainly due to the portfolio turnover among investors, which reached its high - est level in the past five years, reflecting a significant improvement in their ability to generate returns. 2024 deal activity SpainCap reported the following trends in Spain dur - ing FY 2024. • In terms of sectors, the technology and internet sector was the leading area for PE and VC invest - ment, attracting approximately 40% of the total funds raised – a sharp increase compared to the figure of around 10% in the previous year. The services and healthcare sectors were the next most attractive, each receiving between 10% and 20% of the total funds raised. • In terms of the number of investments, the technol - ogy and internet sector was once again the leading sector in 2024, accounting for approximately 30% to 40% of all deals, followed by the healthcare sector, representing between 20% and 30% of all deals, and then by the services sector, which accounted for around 10% of the total transac - tions. A TTR Data report published in 2024 breaks down the data for PE and VC. In relation to PE investments, the internet, software and IT sector had the highest number of transactions in 2024, with a total of 45 deals (representing a 2% decline compared to 2023), followed by the manufacturing subsector, which reg - istered 36 transactions (representing a 38% increase compared to 2023), the renewable energy sector with 33 transactions (an increase of 43% from 2023) and finally the business and professional support services sector, also with 33 transactions (30% decrease com - pared to the previous year).
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