Late stage venture LBO/MBO/MBI/LBU Growth Start-up + other early stages Others Stage distribution of middle market investments 3,000 2,000 1,000 0 2023 2020 2021 2022 Source: SPAINCAP/webcapitalriesgo € Millions Seed In recent years, the middle market has been one of the key growth drivers of the Venture Capital and Private Equity sector, and therefore of the Spanish economy, thanks to the attractive offer of mid-sized companies in the growth stage offered by the Spanish business fabric, investor appetite of international funds and the equity available from Spanish GPs specializing in the middle market and that have excellent experience and track record in this market segment. In 2023 and the first quarter of 20246, despite the unique environment for this activity, this segment has maintained its momentum, albeit at a slower pace, highlighting the ability of Venture Capital and Private Equity to adapt to a complex framework. Looking ahead to the coming months, the middle market will remain robust as it will combine the support of Venture Capital and Private Equity GPs with the portfolio of investees to minimize the impact of the current macroeconomic situation and create value through different strategies, including the so-called “buy and build”7 with the financing of mid-cap companies in search of growth opportunities, all under an economic framework that experts agree will improve in the second half of 2024 to the extent that interest rates are adjusted. Notes