The global economic situation has continued to affect the private equity sector, particularly with regard to large operations that require a substantial financial leverage. According to the Spanish Venture Capital Association (ASCRI), in Spain the sector hit rock bottom in 2009 giving way to a new period in which sector firms have taken a stand with a view to the recovery. The year closed with 865 operations and an investment volume of EUR 1,617 million.
The figures show the decline of large operations, which I mentioned, because although the overall operations only dropped by 5.2% compared to 2008, the volume of investment registered a 45% decline. This is because 93% of the transactions accounted for an investment of less than EUR 5 million. This implies a strengthening of the middle market, the segment in which it Catalana d'Iniciatives operates.
The forecast for the current year and for the coming years points to a slow increase, at least until the debt market returns to normal.
More than ever, our sector will continue to be an essential tool in the expected recovery, for the promotion of projects and companies, to boost their growth, offer them a larger scale and therefore to provide the companies with significant importance which will allow them to opt for consolidation and growth in the current global scenario.
Catalana d'Iniciatives is a cutting-edge firm in Spain in the private equity sector with more than 20 years' experience, that has allowed it to develop remarkable experience curves, which are the basis of its performance. Over the last two decades, the productive public/private partnership among its shareholders and sustained growth experienced, have also proved to be crucial to become a growth accelerator for its investees.
Our strategy includes essentially adding value to companies in which we have invested, not only in terms of capital and financing formulas, but also in talent, intellectual and management capital, as a way of obtaining the required return from any business project. All this without forgetting the application of socially responsible criteria, always ruled by ethics and the transparency of our investments.
In order to reach these goals, Catalana d’Iniciatives has the support of its shareholders -that include institutions and the main Spanish industrial and financial groups- when promoting and boosting projects in which we are involved. Our ultimate goal is to promote initiatives that will strengthen the business and industrial fabric of our country.
MAIN MAGNITUDES OF THE VENTURE CAPITAL IN SPAIN
(1986-2009)
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