Spain’s alternative financing ecosystem shows clear signs of middle-market consolidation, with 56.7% of alternative debt funds focusing their activity on transactions between €5 million and €10 million — a notable increase from 48% in the previous edition — according to the 5th Alternative Financing Funds Barometer published by BDO, one of the world’s leading professional services firms. This evolution, along with ongoing technological transformation, highlights a moment of consolidation for the alternative financing ecosystem in Spain.
This trend reflects strategic alignment with the Spanish corporate structure, dominated by SMEs and mid-sized companies that require tailored solutions — in contrast to larger transactions, which represent only 10% of the market and require an average financing volume of €50 million.
On the other hand, technological progress marks a significant milestone for the sector. According to BDO, 63.3% of the surveyed funds already use artificial intelligence and Big Data tools at an intermediate level in their analysis processes, compared to 72% that did not use these technologies in the previous report. This shift reflects a transition toward more efficient and differentiated analytical processes.
Business resilience and economic outlook
The perception of Spanish companies’ health has improved significantly. Only 23.3% of funds detect an increase in distress situations — a sharp drop from 64% in the previous edition — suggesting greater resilience in the Spanish business fabric.
Macroeconomic expectations remain positive: 73.3% of funds anticipate moderate GDP growth in Spain, while 23.3% expect stronger performance than the Eurozone. Interest rates (26.7%) and the geopolitical environment (23.3%) are seen as the main factors influencing investor appetite.
Credit quality and investment criteria
Credit quality remains exceptionally strong, with 63.3% of funds reporting zero default rates in 2024. Additionally, 23.3% report moderate default levels between 0.1% and 2%, confirming the effectiveness of origination and risk management policies across the sector.
When approving transactions, cash generation capacity is the top factor (35.3%), followed by collateral structure (20%) and expected return (15%). According to BDO, qualitative elements are gaining weight, such as the reputation of the financial sponsor or management team (28.3%) and technological and digital capabilities (20%), which are increasingly influencing investment decisions.
The new geopolitical context
Today’s geopolitical environment is reshaping approaches to responsible investment. According to the BDO study, 53.3% of participating funds express willingness to invest in sectors traditionally excluded by ESG criteria — such as defense or non-green energy — though subject to ethical analysis and case-by-case review. This flexibility contrasts with the more restrictive stances seen in previous years.
Fundraising and attractive sectors
Fundraising shows a positive trend, with 43.3% of funds reporting significant increases and another 43.3% maintaining stable levels. No funds report a decrease in their fundraising capacity.
By sector, Technology and Software lead investor preferences (73.3%), followed by Healthcare/Biotechnology (70%) and Industry/Manufacturing (66.7%). Conversely, Hotels, Tourism, and Leisure have lost attractiveness, dropping from 60% to 43.3%.
Pablo Simón, Partner in charge of the Debt Advisory & Restructuring area at BDO Spain, noted: “We are witnessing an unprecedented transformation in the sector. The strengthening of the middle market allows funds to be more agile and closer to the real needs of Spanish companies, while the technological evolution — with the widespread adoption of artificial intelligence and Big Data tools — shows that digitalization has become an essential competitive necessity to remain relevant in today’s market.”
Finally, funds identify flexibility in structure (46.7%) and speed in analysis and deal execution (50%) as their main competitive advantages over traditional bank financing, reinforcing their differentiated value proposition in the market.
About BDO
BDO is one of the world’s leading professional services organizations, offering Audit & Assurance, Advisory, Tax & Legal, and BSO (Outsourcing) services. BDO’s global network includes 1,800 offices in 166 countries and 119,611 professionals.
In Spain, BDO currently employs over 1,480 professionals across its offices in Alicante, Barcelona, Bilbao, Madrid, Málaga, Seville, Las Palmas de Gran Canaria, Pamplona, Valencia, Vigo, A Coruña, Zaragoza, and Valladolid.
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