No. inv. > 100M€ Investments > 100M€ Investments < 100M€ Source: SPAINCAP/webcapitalriesgo 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 20 18 16 14 12 10 8 6 4 2 0 6 7 9 13 19 9 4 2023 2014 2017 2012 2015 2018 2020 2013 2016 2019 2021 2022 Investments by international entities in Spain (by size of investment) € Millions No. investments 9 8 11 15 Notes Large Market. International GPs International funds maintain their commitment to the Spanish Large Market. After two consecutive years of record highs, large transactions (>€100M in equity1, also known as megadeals), decreased by 20% from 2022 to 2023, with investment totaling €3,988M. This decrease is explained in part by increased financing costs as well as decreased visibility and diverging expectations of sellers and buyers for asset prices. Following the trend of previous years, international managers led this type of investment thanks to their investment capacity, made possible by the size of the funds they manage, and which enables them to take on large investments. In 2023, 10 large transactions were closed: KKR (IVIRMA Innovation), CPP Investment Board (FCC Medio Ambiente), Cinven (Amara Nzero), EQT Partners (SNFL Mediterráneo), Bridgepoint (Windar Renovables), Apax (Palex Medical), Keensight Capital (Inke APIs), Charterhouse (Kids&Us), Platinum (Iberconsa) and Stirling Square (Gestión Tributaria Territorial). These transactions represented 59% of total investment in Spain (€6,709M). Average equity or capital invested per transaction in this segment totaled €499M, a level slightly lower than in 2021 (€333M). Investment of international Venture Capital and Private Equity funds in Spain: fourth highest on record behind the all-time high reached in 2022. There’s no doubt that Spain has been attracting Venture Capital and Private Equity investments by international funds thanks to a diverse selection of appealing projects in terms of size, stage and activity. As a reflection of this interest, new international GPs that have not carried out any previous transactions continue to enter the Spanish market every year (44 in 2023). Thanks to the intense activity carried out by these funds, the Venture Capital and Private Equity sector, and therefore the Spanish business fabric, keeps on gaining in size and maturity. In 2023, despite the difficulties faced due to the monetary policy currently being implemented to control the deficit and to an ongoing geopolitical context of uncertainty, total investment of international Venture Capital and Private Equity funds in Spanish companies reached €5,041.9 (compared to €7,046M in 2022), the fourth best on record, accounting for 75% of total Venture Capital and Private Equity investments in Spain. Of this amount, €3,988M were in megadeals, €771.5M were middle market transactions (equity investments between €10M and €100M from both Venture Capital and Private Equity) and the remaining €282.2M were transactions involving equity investments of less than €10M. The attractiveness and confidence in the potential of the Spanish economy and its business fabric have been reflected in the number of companies financed by international funds, which, although not surpassing last year’s record, still remains much higher than over the last decade. In 2023, these funds closed a total of 166 investments (58 less than the previous year), 99 of which were new investments2 (59.6%) and 67 extensions (40.4%), maintaining the percentages recorded in recent years. The number of international Private Equity & Venture Capital funds active in the Spanish market has not stopped growing and in 2023 a total of 4195 firms had Spanish investees in their portfolios, compared to 379 in 2022. 10