ASCRI: Summary of 2003

15 January 2004

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The Spanish private equity association ASCRI has produced its annual report on private equity in the country, based on preliminary statistics collated by JosÃ© MartÃ PellÃ³n from the Universidad Complutense de Madrid. The report indicates that private equity investment in Spain in 2003 reached e1.3bn, returning to 2002 levels, and showing 34% growth compared to 2002. Management buyouts representing 25% of all transactions, whilst expansion financing accounted for 65% of all investments; on the other hand, early-stage investment fell to less than 4%. According to the association, Spain is currently fourteenth in terms of global private equity, and seventh in European terms. Investment over the second half of the year rose by 39% compared with the same period in 2002, with the Supermercados Caprabo (October 2003, page 11) and Parques Reunidos (January 2004, page 13) deals accounting for a large component of this investment. The report estimates that private equity investment in Spain should reach e2-e2.5bn in the new few years, bringing into line with countries such as Italy and Germany. Funds raised in 2003 grew by 22%, reaching some e1.05bn, compared to a figure of e860m in 2002. However, the amount of funds raised in the second half of last year was lower than the same period in 2002. In terms of exit activity, the favoured exit route in 2003 was the buyback, contrasting with previous years when the trade sale was more frequent. The country also saw its first secondary buyout when ABN AMRO Capital acquired Labiana Group from 3i (January 2004, page 15), which is seen as a positive indicator for the future growth of the Spanish private equity market.