More than 30 SFs have successfully acquired a company in Spain in the past 4 years

Albion Capital, Almond Capital, Aqua Capital Partners, Arcadio Investments, Aretê Management & Capital Partners , Axias Partners, Luceiro Capital, Nobis Capital, Somontano Capital, Surca Capital, Versa Capital and Verus Inversiones share a common trait: they are among the 12 SFs that successfully acquired a SME in Spain in 2023. This represents a two-fold increase in acquisitions compared to the previous year, overcoming the record set in 2021 when nearly a dozen players successfully completed their acquisitions.

It is evident that the activity in the sector is in full swing, with a very strong concentration of deals over the past 3 years. Three sectors predominantly stand out: Healthcare, Technology & Software, and Industrial. All signs point to the likelihood that acquisitions will continue at a brisk pace in the future, considering that there are currently around thirty active searchers in Spain.

Furthermore, over the last 18 months, there has been a surge in the arrival of new institutional investors. Additionally, we observe a growing interest in this type of asset class from family offices, who are increasingly venturing into the sector and joining the numerous private investors that have been the main source of funding for many SFs over the last decade. In short, there is a significant amount of fresh capital available, which should encourage other prospective entrepreneurs to follow suit (currently, there are about twenty in the fundraising phase). For the record, Spain might reach, in 2024, the milestone of having created 100 SFs locally since inception.

Some historical investors are starting to wonder if Spain might soon experience a certain saturation. Is it a case of too much money chasing too few deals? Only time will tell, but most new entrants are confident and believe that the market still has many good years ahead.

Source: Search Funds News