MADRID, 9 Feb. (-) –
Private equity closed last year with record investments of 9,190 million, 19.6% more than the previous year, thanks in large part to the 40 operations above 100 million in value, according to the report prepared by Capital & Corporate.
The study highlights that the uncertainty generated by the geopolitical context on the economy could not stop the “frantic pace” of the sector, which has managed to exceed 8,890 million euros in 2019.
Among the most notable transactions, Capital & Corporate has highlighted the investment of CVC in LaLiga for 1,994 million, the purchase of Altadia by Carlyle for more than 1,900 million, and the acquisition of ITP Aero by Bain Capital for around 1,800 million euros .
The ‘buyouts’ once again prevailed by volume invested, with 4,913 million euros, 53.5% of the total invested. The large financing rounds once again boost venture capital, which closed 2022 with 2,472 million invested in 396 operations, 26.9% of the total analyzed.
The historic moment on the investing side contrasts with the slowdown in larger divestments: only 99 operations of this type were closed for 1,712 million euros.
Regarding the number of ‘deals’ in general, the operations analyzed by Capital & Corporate have grown by 62% to 621 transactions, compared to 383 deals in 2021. The increase is explained by the increase in ‘low middle’ operations market’ and small financing rounds in the venture capital segment, according to the report.
By sectors, technology, renewables, health, food, education, the pharmaceutical industry or biotechnology stood out. Others such as catering, leisure, distribution or tourism have also stood out.
CAUTION FOR 2023
Capital & Corporate maintains that facing the coming months “the sector must be patient and analyze the opportunities more calmly.”
“The good investment figure for 2022 should not hide the complexity of the exercise. The ‘gap’ between the different price expectations of buyers and sellers and the poor visibility of the evolution of the different macroeconomic indicators, together with the complex evolution of geopolitical conflicts and rising debt prices make it even more difficult to estimate what will happen in the near future.Everything seems to indicate that private equity investment activity will gradually pick up as the weeks go by, but there is a noticeable slowdown in the announcement of deals,” the report states.
Some operations that are scheduled to close this year are the purchase of IVI by KKR for 3,000 million euros, EQT’s commitment to the agricultural market with SNFL and its subsequent American ‘build up’ IFG, valued at around 1,600 million, and the acquisition of Garnica Plywood by Carlyle for around 500 million euros, as well as the takeover of Kids & Us by Charterhouse for 280 million.