The Spanish investment fund market shows signs of wanting to grow further, judging by activity levels. Despite a regulatory environment marked by uncertainty, transactions are becoming increasingly sophisticated, portfolios more complex, and value-creation strategies more elaborate.
At the same time, managing competition risk is no longer just a checkbox—it has become a top-tier strategic risk. In recent years, the CNMC has intensified its supervisory activity, sending a clear message: the authority expects proactive prevention, not just ex post reaction.
Funds are accustomed to dealing with competition authorities, typically in the context of merger control. However, problems increasingly arise afterward. Examples include information exchanges between portfolio companies, inadvertent cartelization of subsidiaries, and alignment of commercial strategies between formally independent firms. These and other “surprises” are becoming more common.
And the proverbial writing on the wall is clear: neither the mere existence of a control structure nor the absence of intent exempts one from liability. Funds are increasingly likely to bear the consequences of their portfolio companies’ entanglements—and the stakes can be significant: up to 10% of turnover.
In portfolio company scenarios, traditional compliance approaches show their limitations. Classic audits are no longer sufficient or efficient to detect risks hidden in millions of emails, chats, presentations, or internal documents. This is where technology—and in particular artificial intelligence applied to competition compliance—makes a real difference, as it enables the analysis of millions of unstructured communications in a matter of hours, identifying patterns, anomalous behaviors, and risk signals that would be practically impossible to detect manually.
This is essential in an environment where competition authorities value the existence of effective and verifiable controls. Regulators expect technology applied with legal judgment.
Funds can benefit from this because it reduces the likelihood of fines and enforcement proceedings, protects the exit value of portfolio companies, strengthens the fund’s position with co-investors and LPs, and provides traceability and credibility in sale or refinancing processes—among many other advantages.
Ultimately, when it comes to competition, early detection is not just about avoiding sanctions; it is about protecting value.
By:Joaquín Hervada, Miguel Higuero Ureña y Javier Huerta
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Addleshaw Goddard (AG), the London-headquartered international law fir...
