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 4 6 7 9 13 19 9 4 2011 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 Notes 1 All investment amounts published by SpainCap refer to the equity or capital invested. Large Market. The International GP in Spain International funds expand their commitment to the Spanish Large Market. Following the recovery of the large market segment (transactions >€100M in equity1, also known as megadeals) in 2021, all records were broken in 2022, with investment totaling €4,999.9M. Transactions in the large market continue to be carried out by international GPs thanks to the size of the funds they manage. In 2022, 15 large transactions were closed: CVC Capital Partners (La Liga), The Carlyle Group (Esmalglass), Bain Capital (ITP Aero), KKR (GeneraLife), CVC Capital Partners (Neolith), Ardian (Aire Netwroks), Advent International (Seedtag), The Carlyle Group (Grupo Garnica Plywood), Pai Partners (Uvesco), TA Associates (Espublico), ICG (Grupo Konecta), Natra (CapVest), Trilantic Capital Partners (Grupo Gransolar), Goldman Sachs (Fever) and Vitruvian Partners (Civitatis Group). The above-mentioned transactions represented 54% of total investment in Spain (€9,238M), which was a determining factor in surpassing last year’s investment volume and setting a new record high. Average equity or capital invested per transaction in this segment totaled €333M, a level slightly lower than in 2021 (€370M). Investment of international Venture Capital and Private Equity funds in Spain set a new record high. The range of opportunities offered by Spain has progressively attracted a growing number of international funds that are investing in all types of projects by size, stage and sector. New international GPs that have not carried out any previous transactions enter the Spanish market every year (49 in 2022). Thanks to the intense activity carried out by these funds, the Venture Capital and Private Equity sector, and therefore the Spanish business fabric, is gaining in size and maturity. Specifically, in 2022, despite the new geopolitical context and its effects on the global economy, the activity of international Venture Capital and Private Equity funds in Spanish companies broke all records, investing €7,406M (compared to €6,097.9M in 2021), representing 80% of total Venture Capital and Private Equity investments in Spain. Of this amount, €4,999.9M were in megadeals, €2,033.7M were middle market transactions (equity investments between €10M and €100M from both Venture Capital and Private Equity) and the remaining €372M 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 2022, these funds closed a total of 224 investments (12 less than the previous year), 145 of which were new investments2 (65.7%) and 79 extensions (34.2%), maintaining the percentages recorded in 2020 and 2021. In 2023, investor appetite of international funds is expected to be sustained, although their activity may be affected by the new macroeconomic landscape in larger transactions due to tighter bank lending conditions. However, international funds have abundant liquidity thanks to their leading role in the record high fundraising in recent years,3 as well as experience in deploying different financing structures in an increasingly thriving credit market, as an alternative to bank debt.