Private equity generated €52.220 billion in revenue in Spain in 2021, up 87% year-on-year

Private equity generated €52.22 billion in revenue in Spain in 2021, up 87%

Fernando Rodriguez | The Private Equity market in Spain recorded a new all-time high in activity in 2021, after two years of falling investment volumes due to the Covid-19 pandemic. According to data from Mergermarket included in the report by the law firm Cuatrecasas “Trends in the Iberian Private Equity Deal Market”, the sector achieved a turnover of 52.220 billion euros in Spain last year. This was 87% more in value compared to transactions made in 2020, and a 63% increase in terms of the number of transactions – 387 -.

The report states that “Several factors have contributed to this success: the investment appetite of large funds in Spain, an increase in the size of larger transactions and, in particular, the impulse of the middle market.

As regards the sources of investment, the market “remains dominated by cross-border transactions”, both in number – 59% were of this type – and in value – 93% – . That said, domestic deals have increased compared to 2020.” As in previous years, international investors continued to focus on high value deals, while local players participated in “lower value” ones .

By sector, deals in the technology sector predominated – 17% of the total -, followed by those concluded with service companies – 12% -, health sciences – 11% -, consumer and distribution – 10% -, industry – 9% – and energy – 7% -.

All sectors grew compared to 2020, with the exception of energy and agriculture. The increases were notable in transactions involving leisure businesses – up 240% – construction – up 188% – media – up 133% – services – up 130% and IT – up 91%.