What to expect from Spanish Private Equity in 2020
In general, low interest rates will continue to spur the growth of the Private Equity sector in Spain, despite the climate of possible deceleration with which the year has begun.
We will continue to witness a greater penetration of Private Equity throughout the manufacturing framework, with another potential record of money attracted, and also new fiscal measures aimed definitively at boosting the development of the industry, such as those in the Basque Country. Thus, in 2020, several Private Equity Houses will once again close funds with several hundred million euros as "ammunition" for new projects.
In addition to the above, other trends in the Spanish landscape should be highlighted, trends that do not exclusively affect Private Equity, but are related to the current situation of extraordinary liquidity in the markets:
- The growing number of debt funds, with a variety of approaches, in search of a % of the "banked" market of business financing.
- New PE Houses entering the market, with funds below €100M designed to operate in the lower middle-market, a market niche traditionally least attended by the sector, and in which, in recent years, we have increasingly witnessed interest from European Private Equity.
- A greater role of Family Offices, choosing to make more and more direct investment, also in the lower middle-market.
- The (still token) entry of search funds, with its original formula sometimes distorted, but with a growing number of operations on the market.