Private equity activity in 2023 faced a 34 percent drop in value while capital deployed reached 6,110 million euros. This decline is measured against 2022, a record year for the sector with revenues exceeding €9.2 billion, according to the latest SpainCap report. SpainCap is the trade association that unites the leading fund managers, advisors, and investors, with support from the European Data Cooperative (EDC). [SpainCap report, 2023]
The sector, which gathers both the consolidation of existing companies through private equity and the creation of new ventures via venture capital, recorded 781 investments in the last twelve months, marking an 18 percent decrease from 960 in the prior year. [SpainCap report, 2023]
“2023 saw reduced economic activity amid global macroeconomic uncertainty,” notes the report. Yet international investor confidence remains, and private national fund managers anticipate a more upbeat 2024, particularly in the second half of the year. A healthy intake of new capital shows LPs continuing to invest in Spanish alternative asset managers, who are delivering consistently strong returns. The expectation is that 2024 could mark a turning point, underscoring the value private capital adds to the Spanish economy by supporting innovation, employment, and sustainability,” remarked Oriol Pinya, president of SpainCap. [SpainCap, 2023]
The majority of investments, around 80 percent, amount to €4.7 billion spread across 183 operations. While this remains the fourth best year on record, activity levels have not matched the peak observed in 2021 when transactions surpassed €6 billion. [SpainCap report, 2023]
Oriol Pinya
and others highlighted the sector’s role in sustaining employment and fostering innovation within Spain’s economy. The statements emphasize the market’s resilience, even when volumes decline, and point to continued confidence among international executives in the private equity landscape.
The sector, including companies where venture capital funds have stakes, employs more than half a million people. Since 2021, employment has grown by 6.7 percent, a rate five percentage points higher than the broader Spanish economy. [SpainCap report, 2023]
Fundraising remains steady
The most encouraging sign for the venture capital segment is its sustained fundraising appetite. In 2023, private national capital raising totalled €2,606 million, roughly equal to the €2,620 million raised in 2022, with a slight dip. Last year marked the third-highest fundraising year, behind 2021 and 2022. [SpainCap report, 2023]
Among managers that closed fundraising rounds, Arta Capital, Stellum Growth, Diana Capital, Miura, Proa Capital, Nexxus, and Suma Capital stand out. Other notable venture capital names include Bonsai Partners, Mundi Ventures, Cardumen Capital, Inveready, Swanlaab, GoHub Ventures, Kanoar Ventures, Nzyme, and Actyus. The landscape shows a diverse set of players continuing to attract capital and deploy capital across sectors. [SpainCap report, 2023]
Overall, the private equity and venture capital ecosystem in Spain remains a major employer and a critical source of funding for innovation. The gains in employment, the steady fundraising, and the continued flow of capital indicate a market poised for strategic growth in the medium term, supported by international investors and local fund managers alike. [SpainCap report, 2023]
Notes: The figures reflect activity across private equity, venture capital, and related investment platforms within Spain. The data should be interpreted in the context of broader European market trends and macroeconomic conditions prevailing through 2023. [SpainCap report, 2023]