Private equity in Spain confirms its ability to generate value with a net IRR of 11.1%

Spanish Private Equity and Venture Capital Funds Show Strong Resilience and Adaptation in a Global Environment of Economic Uncertainty

Spanish private equity and venture capital funds have demonstrated a strong capacity for resilience and adaptation in a global environment of economic uncertainty. This is the main conclusion of the 4th Study on Private Equity Returns in Spain 2024, jointly prepared by EY-Parthenon and SpainCap, with the support of Webcapitalriesgo.

As of the end of 2024, the aggregated return of Spanish private equity, measured in terms of net Internal Rate of Return (IRR), stands at 11.1%, with a Total Value to Paid-In (TVPI) multiple of 1.6x. These results confirm the stability of the sector and its ability to generate consistent long-term returns, even in an environment marked by a slowdown in divestments and market volatility.

By fund type, Private Equity funds maintain an IRR of 11.6%, with nearly 50% of distributions already realized, while Venture Capital funds report a return of 8.9%, affected by delays in exits and valuation adjustments—a trend aligned with other international markets.

Compared with other asset classes, Spanish private equity continues to deliver superior performance. Over the 2006–2024 period, its annualized return exceeds the IBEX 35 by almost five percentage points and the Euro Stoxx 600 by more than 50%, while also standing more than eight points above the 10-year Spanish government bond.

The study also reflects the sector’s sustained growth. Between 2006 and 2024, assets under management of national private equity funds have grown 2.4 times, surpassing €20.2 billion, driven by a historic fundraising record in 2024.

The report’s sample has expanded to include 52 fund managers and 187 funds, representing 49% of managers and 66% of committed capital in the sector since 2006, reinforcing the robustness and representativeness of the results.

In the field of sustainable investment, funds classified as Articles 8 and 9 under the SFDR Regulation stand out for their higher returns, with a net IRR of 15.2%, compared to 11.1% for the market as a whole. This performance confirms that the integration of ESG criteria is compatible with attractive financial returns.

Juan López del Alcázar, Managing Partner at EY-Parthenon, states:
"The study highlights the ability of Spanish Private Equity and Venture Capital funds to generate value across different economic cycles, as well as their adaptation to a context marked by slower divestments and the search for new liquidity solutions."

Elena Rico, Chairwoman of SpainCap, adds:
"As SpainCap, we want to emphasize our strong commitment to sustainable growth. Spanish private equity is today a key driver for the real economy: it promotes innovation, supports the expansion of companies of all sizes, encourages the internationalization of the productive sector, and generates more than half a million direct jobs. We believe it is essential to continue strengthening public-private collaboration and to keep attracting national and international institutional capital to enable our companies to compete in a demanding global environment."