DealMaker Q&A

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TTR DealMaker Q&A with Allen & Overy Partner Ignacio Hornedo

Ignacio Hornedo is a partner within the corporate department at A&O Spain. His practice encompasses all aspects of corporate transactions including M&A, disposals, private equity, joint ventures, corporate reorganizations and commercial contracts. He regularly advises both listed and unlisted companies and acts for corporate purchasers, private equity bidders and financial advisors.

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TTR – How would you describe the M&A activity in Spain in 2019?

I. H. – It has been another strong year in terms of activity. While mega-deal volumes were slightly lower than the year before, we have experienced lots of activity in our key sectors such as private equity, energy, infrastructure and telecoms. PE houses continue to be fully-loaded and to seek investment opportunities, aiming at pre-empting processes to avoid the difficulties and uncertainties of an auction. Our starring PE practice has had another great year advising key players as EQT and ICG, supplemented by a very significant reach in the energy space: the renewables sector has shown real market heat with a lot of development projects now forming a sophisticated project-M&A market, where players are able to price the different stages of a project yet to be built. Foreign investors including German, French and Chinese energy players, as well as infrastructure funds, are looking for assets at development phases and they bring risk appetite and value-creation proposals to differentiate themselves.

TTR – How would you describe the relationship of the Spanish M&A market with its neighbouring countries?

I. H. – We compare more than well to our neighbour countries. Out of the Southern Europe jurisdictions, we are probably the most comparable one with the UK M&A style. We can confidently say that we are more flexible and simultaneoulsy more rigourous than our immediate neighbouring countries. In terms of trends, we do see now more interest in Portugal and we provide Iberian coverage to our international clients looking at particular assets there, specially in the energy and infrastructure sectors. 

TTR – What do you think about the performance of Private Equity and Venture Capital segments in 2019 in Spain?

I. H. – Private Equity houses are all over the place and the vast liquidity pushes a fierce competition also with more sector strategic investors. Transactions as the sale of BT España evidence that -for a while now- PE houses compete in equal terms with industrial players.  

TTR – Real Estate is again the most targeted sector in the year, why do you think is that?

I. H. – Assets have still benefitted from the post-crisis price adjustment and the usual suspects on REOs acquisitions are more and more sophisticated in their valuation mechanisms. We are now starting to see these key players turning their strategy in Spain to rotating their portfolios, with their investment teams turning sight to other jurisdictions. Certainly the next big thing in real estate is all the Madrid Nuevo Norte project, where the leading characters are positioning themselves towards investors’ interest in the short to mid term. 

TTR – What can we expect to happen in the Spanish M&A market in 2020?

I. H. – We expect 2020 to continue with strong levels of activity. While political uncertainties continue to be a top concern for any Investment Committee and the new government is yet to be assessed, the vast liquidity keeps pushing the market forward. Renewable assets continue to attract foreign investment interest. Large corporates who are key players in other energy sources are now deploying large amounts of capitals to build green energy platforms. This trend will continue to incentivise assets’ development activity, market consolidation for operating plants and more and more transactions. It is yet to be seen how the market absorbs the enormous interest of all kind of investors, some of which may face difficulties if projects in their initial phases do not reach the relevant milestones at the expected pace.

DealMaker Q&A

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TTR DealMaker Q&A com Maria Elisa Gualandi Verri, sócia do TozziniFreire Advogados

Membro do Comitê Executivo de TozziniFreire, corresponsável pela prática Societária e de Fusões e Aquisições do escritório e pela área de Investimento Social Corporativo, Maria Elisa cultivou sempre uma visão multidisciplinar do direito, destacando-se na área contratual – conhecimento que vem utilizando em aquisições e vendas de empresas. Também possui ampla experiência na coordenação de assessoria a empresas em geral, notadamente em assuntos contratuais e societários.

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TTR: Como você caracterizaria a atividade de M&A no mercado brasileiro até agora este ano?

A atividade de M&A veio em um crescente ao longo do ano, aproximando-se das expectativas que existiam com a chegada do novo governo. Além disso, incertezas econômicas e políticas vêm sendo superadas com um progressivo aquecimento. Conforme os números apresentados nos relatórios da TTR em 2019, o valor total de transações já é superior em relação ao ano passado e há boa expectativa para os próximos meses.

Elementos essenciais para o fortalecimento da confiança no país são as Reformas da Previdência e Tributária, que contribuirão de maneira significativa para aumentar a movimentação no mercado brasileiro. 

Outro fator que impulsionará a atividade de M&A nos próximos anos é a agenda de privatizações, concessões e parcerias público-privadas (PPPs), cenário no qual é possível acompanhar um crescimento já em 2019. 

TTR: Como o clima político atual está impactando a tomada de decisões em fusões e aquisições?

O primeiro ano de governo é um momento de transição e há muitos desafios políticos e econômicos, mas o país não perdeu seu papel relevante no panorama global e continua sendo um dos mercados emergentes mais promissores para os investidores estrangeiros. 

Vale destacar duas décadas de estabilidade política, com uma democracia estabelecida, com instituições sólidas e controle da inflação. Além disso, o atual governo está implementando reformas sobre as quais havia expectativa e que se fazem prementes para manutenção da estabilidade econômica. 

Existe também uma expectativa em relação ao crescimento no ambiente econômico que favorece um cenário de interesse para investidores estrangeiros, o que nos leva a apostar no aquecimento da atividade de M&A no Brasil. 

TTR: Qual o impacto da Lei de Liberdade Econômica na atividade de M&A no país?

A Lei da Liberdade Econômica busca desburocratizar a atividade empresarial e estimular o empreendedorismo e a inovação, o que naturalmente traz reflexos positivos para a atividade de M&A.

Regras mais claras sobre responsabilidade do sócio/acionista e da pessoa jurídica, a possibilidade de sociedades unipessoais, regras envolvendo desburocratização de documentos e procedimentos, estão na esteira de um movimento que aproxima o ambiente de negócios no Brasil ainda mais aos padrões internacionais.

TTR: Como a tendência crescente da responsabilidade social corporativa afeta as decisões de investimento?

Cada vez mais as empresas têm levado em consideração questões de responsabilidade social e compliance em suas decisões estratégicas. O crescente escrutínio da sociedade e do mercado tem colocado as empresas sob o holofote, tornando sua cadeia de valor ainda mais suscetível a riscos de imagem e financeiros, entre outros. 

Ao avaliar um investimento, já não é suficiente considerar apenas fatores de natureza econômica. Práticas de responsabilidade social corporativa, de posicionamento da empresa na sociedade e seu nível de compliance são hoje elementos valiosos na tomada de decisão. 

A conscientização nesse sentido é parte de um ciclo virtuoso que movimenta empresas que buscam investimento e desinvestimento, com engajamento em iniciativas que trazem mudanças concretas nas boas práticas empresariais e na sociedade. 

TTR: Como as necessidades de consultoria de investimentos socialmente diferentes diferem das necessárias para qualquer outra transação?

O investimento social de impacto veio para ficar e requer habilidades negociais, transacionais e legais similares àquelas aplicáveis a qualquer outro investimento. De qualquer modo, há de se ter o olhar apurado para o resultado final; ou seja, para o impacto que se visa gerar na sociedade.

DealMaker Q&A

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TTR DealMaker Q&A con Hugo Écija, Socio Fundador y Presidente Ejecutivo de Ecija

Considerado como el Mejor Abogado Español en Derecho de los Medios y en Propiedad Intelectual, por los más prestigiosos rankings y directorios del sector legal (Best Lawyers, Chambers and Partners, Legal 500, Best of the Best), ha participado en las mayores fusiones y operaciones de concentración en el sector de los medios.

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TTR: ¿Cómo describiría la actividad del mercado de M&A español en lo que va de 2019? 

2019 ha sido un año positivo para el mercado español de M&A. El volumen de transacciones ha aumentado casi un 6% el año pasado. Asimismo, las empresas españolas han incrementado sus inversiones en el extranjero. Algunas cifras dicen que las transacciones aumentaron un 13,4% entre enero y septiembre de este año. Sin embargo, estos datos contrastan con la disminución, en número y valor, de las inversiones realizadas por empresas extranjeras en empresas españolas. 

Somos optimistas dado el protagonismo que han adquirido los fondos de private equity en el cierre de transacciones corporativas. Seguimos viendo interés por adquirir participaciones en compañías tecnológicas y disruptivas; así como un apetito por activos de calidad en el mercado. Todo esto nos lleva a esperar una mejora de la actividad transaccional. 

Para nosotros está siendo un año muy dinámico, ya que estamos liderando transacciones en sectores en auge como la tecnología y los medios de comunicación. También hemos visto un crecimiento de los acuerdos en territorios donde tenemos una fuerte presencia y actividad; como Portugal y América Latina.

TTR:¿Qué opinión le merece el apetito de inversores internacionales por empresas españolas? ¿Qué sectores cree que son más atractivos en la actualidad? 

España continúa siendo un mercado atractivo para los inversores internacionales. Según el informe anual del Organismo de Naciones Unidas para el Comercio y Desarrollo, España ha esquivado la fuerte caída de las inversiones en Europa, que fue prácticamente del 50%, y se ha consolidado como el tercer mayor receptor europeo de inversión extranjera, tras Holanda y Reino Unido. Se trata de la cifra más alta para España desde 2008, principalmente favorecida por adquisiciones empresariales transfronterizas. 

La tendencia del último año ha estado marcada por una clara orientación hacia los sectores de los medios y la tecnología; teniendo en cuenta las fintech, big data, ciberseguridad, movilidad, biotecnología, etc. También se ha fortalecido el sector industrial, inmobiliario y de energías renovables. Estos son algunos de los sectores en los que ECIJA ha asesorado a clientes durante el último año.  

TTR: Uno de los segmentos de mercado que continúa registrando bastante actividad en 2019 es el del Venture Capital. ¿A qué cree que se debe esta circunstancia? 

La inversión en capital riesgo ha alcanzado en el primer semestre del año 4.060 millones de euros, un 21,3% más que en el mismo periodo de 2018. Lo que representa un récord histórico, que se basa sobre todo en la entrada de fondos internacionales en empresas españolas. Estos fondos internacionales mantienen el apetito inversor, tanto en private equity como en venture capital, porque disponen de liquidez y creen que España es un mercado atractivo para invertir. En este contexto, la rentabilidad que ofrece el capital riesgo genera mucho interés.  

El interés de los fondos internacionales se ha atribuido a factores como la calidad de las empresas, las infraestructuras, la preparación del capital humano y el nivel de los servicios profesionales españoles, que son comparables a los de los países más avanzados de Europa.

De la misma forma, se da un notorio cambio de estrategia de grandes y medianas empresas a la hora de acceder a nuevas tendencias, innovación o conocimiento.  La feroz competitividad comercial ha hecho que estas compañías presten especial atención a oportunidades de expansión, buscando la creación de sinergias productivas con un significativo ahorro en costes. El objetivo es fomentar un sistema efectivo con modelos de negocio y soluciones creativas e innovadoras que permitan lograr rápidamente una ventaja competitiva en los mercados en los que tienen presencia o explorar nuevas oportunidades en otros mercados.  

TTR: La mayoría de las operaciones de Venture Capital que se registran en España son rondas Seed o Early Stage. ¿Hay cabida en España para operaciones de Venture Capital de mayor volumen? ¿Estamos convergiendo a los registros de países con mayor tradición en este tipo de operaciones? 

Por supuesto, el mercado de Venture Capital en España está evolucionando a un ritmo muy rápido. Todos los integrantes del ecosistema emprendedor están aportando una parte esencial hacia su dinamización. Esto está permitiendo que cada vez haya más y mejores proyectos invertibles, así como que el dinero bajo gestión de fondos de capital riesgo sea mayor y que las oportunidades de desinversión sean cada vez mejores. 

Actualmente, vemos una clara tendencia hacia la internacionalización de proyectos emprendedores, a los que se les ha quedado insuficiente operar únicamente en el mercado español. Esto ocurre porque hay inversión profesional que apoya este crecimiento y un tejido emprendedor cada vez más preparado y profesionalizado al frente de estos proyectos. 

Además, las condiciones del mercado español junto con el talento existente (y asequible) son casi una situación perfecta para que las empresas tecnológicas establezcan sus centros en el país.

Cabe hacer hincapié en que hemos visto que se ha incrementado la actividad en el intervalo de inversión comprendido entre los 5 y 10 millones de euros y las estimaciones muestran también un gran movimiento en el llamado middle market, con operaciones comprendidas entre 10 y 100 millones de euros. Los volúmenes de inversión están siendo marcados por las considerables rondas de financiación que se están realizando en las start-ups, por lo que es probable una continuación de esta tendencia, alcanzando nuevos máximos históricos. 

A nivel europeo, podemos decir que este resultado es muy positivo, ya que España ha logrado reducir la diferencia con respecto a terceros países ya habituados a este tipo de inversión, como Reino Unido, Alemania y Francia. En este sentido, España supera la media europea de inversión. 

TTR: Como experto en Derecho Audiovisual y de los Medios, ¿diría que hay mercado para pequeñas startups en el sector? ¿Veremos inversiones de Venture Capital?

Como se ha mencionado anteriormente, se están realizando inversiones en todos los sectores, incluyendo la industria audiovisual y de los medios de comunicación. En particular, los OTT (Netflix, HBO, etc.) han desplegado un gran conjunto de producciones en España, destinado a todo mercado de habla hispana. La inversión de capital riesgo se centra, principalmente, en empresas tecnológicas innovadoras con un ADN de transformación digital o disruptivo. En este escenario, el sector audiovisual se está posicionando como una alternativa de inversión; especialmente dado el impulso y los beneficios fiscales que se están dando a las producciones audiovisuales y a las artes escénicas nacionales.  

En conclusión, sin duda, veremos próximamente inversiones en la industria audiovisual. Por todo ello, España es ahora un hub europeo de producción audiovisual, principalmente para series, documentales, animación y cine.

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English version:

TTR: How would you describe the 2019 M&A market activity in Spain? 

2019 has been a positive year for the Spanish M&A market. The volume of deals has increased nearly 6% last year. Likewise, Spanish companies have incremented their investments abroad. Some figures say that the deals increased 13.4% between January and September. However, this data contrasts with the decrease, in number and value, of the investments carried out by foreign companies on Spanish companies. 

We are optimistic about the future of the M&A market given the relevant leading role acquired by private equity funds in the last months. We continue to see interest in acquiring stakes in tech and disruptive companies; as well as an appetite for quality assets in the market. All this leads us to expect an improvement in transactional activity. 

For us, it has been a very dynamic year since we are leading transactions in the mid-market and booming sectors such as technology and media. We have also seen a growth of deals in territories where we have a strong presence and activity; such as Portugal and Latin America.

TTR: What is your opinion of international investors’ appetite for Spanish companies? What do you think are the most attractive sectors?

Spain continues to be an attractive market for international investors. According to the United Nations Agency for Trade and Development’s annual report, Spain has avoided the sharp drop in investment in Europe reaching almost 50%, and has consolidated itself as the third largest European recipient of foreign investment, following the Netherlands and the United Kingdom. This is the largest figure for Spain since 2008, mainly favoured by cross-border mergers and acquisitions. 

The trend in the last year has been marked by a clear orientation towards media and tech sectors; considering fintech, big data, cybersecurity, mobility, biotech, etc. Industrial, real estate and renewable energy sectors have also been strengthened. These are some of the sectors where ECIJA has been advising clients for the last year.

TTR: The Venture Capital segment continues being very active in the Spanish market in 2019. What are the reasons for this circumstance?

Venture capital investment has reached 4,060 million euros in the first half of the year, which represents a 21.3% increase in comparison to the same period in 2018. This stands out as an all-time record which is based mainly on the entry of international funds into Spanish companies. These international funds have investment appetite with both private equity and venture capital, now that they have liquidity and believe that Spain is an attractive market to invest in. In this context, the return offered by the venture capital generates a lot of interest for funds.  

The interest of international funds can be attributed due to the quality of companies, the infrastructure, the skills of human capital and the level of Spanish professional services, which are comparable to those of the most advanced countries in Europe.

In addition, there is a noticeable change in strategies carried oud by large and medium-sized companies when it comes to accessing new trends, innovation and knowledge.  The fierce commercial competitiveness has made those companies pay special attention to expansion opportunities by seeking the creation of productive synergies with significant cost savings. The goal is to foster effective systems with creative and innovative business models; as well as solutions that can quickly achieve a competitive advantage in markets where they have a presence to explore new opportunities in other markets.  

TTR: Most Venture Capital transactions registered in Spain are Seed or in Early Stage rounds. Is there room in our country for deals of a higher volume? Are we approaching countries with a longer-standing tradition in this kind of deals? 

Of course, venture capital’s market in Spain is evolving at a very rapid pace. All members of the entrepreneurial ecosystem are contributing to start-ups’ dynamization. This is enabling more and better investment projects; along with increased money under venture capital fund management and better opportunities for disinvestment. 

Currently we see a clear trend towards the internationalization of entrepreneurial projects which are showing needs to not only operate in the Spanish market. This is due to the professional investment that supports this growth, and an increasingly prepared and professionalized projects. 

In addition to this, the conditions of the Spanish market along with the existing (and affordable) talent are almost a perfect situation for technology companies to establish their hubs in the country. 

On top of that, we have seen that the activity in the investment range between 5 and 10 million euros has increased and the estimates also show a large movement in the so-called middle market with operations between 10 and 100 million euros. Investment volumes are being marked by the considerable rounds of financing that are being made in start-ups. It is likely to keep this positive trend and reach new all-time highs. 

At a European level, we can say that this result is very positive. Spain has managed to reduce the difference regarding other countries which have already accustomed to this type of investment. These countries include the United Kingdom, Germany and France. In this regard, Spain exceeds the European investment average. 

TTR: As an expert in Audiovisual and Media Law: Do you think there is room for small start-ups in the sector? Will there be Venture Capitalinvestments in it?

As previously mentioned, investments are taking place in all sectors, including audiovisual and media industries. In particular OTTs (Netflix, HBO, etc.) have deployed a large production set in Spain intended to produce all content to Spanish speaking countries. Venture capital investment mainly focuses on innovative technology companies with a disruptive or digital transformation DNA. In this scenario, the audiovisual sector is positioning itself as another alternative when it comes to investing; especially given the momentum and tax benefits that are being given to audiovisual productions and the national performing arts.  In conclusion we will certainly see investments taking place within the audiovisual industry coming soon. For all of this, Spain is certainly now an European hub for audiovisual production, mainly for series, documentaries, animation and movies.

DealMaker Q&A

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TTR DealMaker Q&A with Machado, Meyer, Sendacz e Opice Advogados Partner Guilherme Bueno Malouf

Machado, Meyer, Sendacz e Opice Advogados Partner Guilherme Bueno Malouf is Head of the Business Law Department, which covers our M&A and Private Equity, Corporate, and Capital Markets practices. Expert in M&A transactions, private equity investments, organization of structured investment funds, especially Equity Investment Funds (FIP), Real Estate Investment Funds (FII), and Credit Rights Investment Funds (FIDC). Has extensive experience in the food and beverage, steel, cement, real estate, energy, services, technology, and retail. Part of the Asian Desk of the firm.

TTR – To begin with, Mr. Malouf, could you give us your opinion on the progress of the Brazilian M&A market in 2019?

It has been a good year for M&A, with a high number of transactions. Most active sector has been technology, but other sectors, such as oil&gas, health, education, real estate and timber have also been active.
We have seen some interesting high-end transactions involving Petrobras, Hapvida, Positivo, Madero and Cecrisa and our firm has been involved in a number of them.

TTR – You have advised in M&A deals in the technology sector, the most active in the country in recent years. So, what can you tell us about the evolution of this sector?

We have seen lots of deals and increasing competition in Brazil. Many of these transactions have been consummated in record-breaking timeframes. In terms of evolution, I would say that many players, who initially approached these transactions with a venture capital mindset (i.e., less concerned about liabilities and indemnification) realized that in Brazil tax and labor issues require a deeper analysis, not only to validate the business model of the enterprise, but also to identify potential liabilities and allow the investor to negotiate a suitable protection (i.e., indemnity and collateral). 

TTR – What other sectors do you think can follow in its footsteps and why?

I think actually it is the other way around. The tech world is now balancing more and adjusting to the more traditional M&A standards. It is not impossible, however, that the fast-moving approach commonly seen in tech deals be replicated in other sectors, but this still remains to be seen.

TTR – Following from the previous question, and as an expert in the field, how has the development of the technology sector affected the legal concept of Intellectual Property? What new challenges arise from it?

Technology development and centricity on data are bringing questions about the extension of ownership and intellectual propriety rights. Issues related to ownership of personal data databases, scrapping information from public available sources, fair use with respect to copyright and disputes what constitutes unfair competition will become more and more frequent and complex. A bigger issue to be addressed is related to copyright in connection to works created by Artificial Intelligence, which is already a reality. To what extent such works will be copyrightable in light of the fact that are not human creations? We are not yet close to any consensus about how to deal with several of those issues but the implications to the intellectual property concept are evident.

TTR – Another of your areas of expertise is capital markets. After its start at the beginning of the year, how do you rate its operation so far in 2019? What is your forecast for the end of the year?

2019 has been a very good year for capital markets. CVM (the Brazilian SEC) has registered 14 public offering of equity securities, totaling more than R$35 billion. This is a huge increase from the average of the previous years.  In addition, a total of 38 “limited effort” public offering of equity securities (known as “476 offerings”) have already been completed and involved a total of R$32 billion. Our debt market (debentures) has remained hot as well.

We continue very active and our projections are for a very active end of 2019 and beginning of 2020.

TTR – Finally, also considering your experience in Private Equity, how do you expect that type of investment to progress?

Structure-wise, the use of FIPs (our private equity investment fund) by foreign PE firm has been under a huge scrutiny of tax authorities. My perception, though, is that the current administration wants to foster foreign investments, including PE investments, and that a middle ground solution will be set. The enactment of the “economic freedom act” is an indication of that.

Venture and Seed Capital investors tend to be more innovative, and many times structure their investments either through an offshore vehicle (whose sole asset is the investment in the Brazilian target) or through loans or debt securities. Such structures allow the investor not only an easier exit but also enhanced protection against liabilities of the target companies (that in Brazil many timed pierce the corporate veil and are attributed to shareholders).

DealMaker Q&A

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TTR DealMaker Q&A con José María Gil-Robles, socio de DLA Piper

José María Gil-Robles es socio responsable del departamento de Corporate de DLA Piper en España. Tiene amplia experiencia en operaciones de fusiones y adquisiciones y reestructuración de deuda asesorando a inversores de capital riesgo y Hedge Funds. Así mismo es muy activo en situaciones especiales de crisis financiera y de reestructuración.

TTR – ¿Cómo describiría la actividad de M&A en España en lo que va de año?

El año, como no podía ser de otra manera, está resultando complicado. Nuestro crecimiento es mayor que el de muchos países de nuestro entorno, la deuda pública está (por el momento, y a la espera del resultado de las elecciones de noviembre) estable, la prima de riesgo se mantiene en los niveles de los últimos años y se sigue creando empleo, factores todos ellos que ayudan a que España siga en el radar de los inversores internacionales. Pero al mismo tiempo los indicadores macroeconómicos llevan meses deteriorándose: todos los días nos desayunamos con la llamada a la cautela de algún organismo internacional, no somos inmunes a factores de riesgo de la economía mundial que todos conocemos y hemos tenido un año cargado de elecciones (que nunca son buenas para la actividad de M&A), y que todavía no ha finalizado.

Teniendo en cuenta lo anterior, es previsible que acabemos el año por detrás de 2018 en cuanto a número de operaciones y, a expensas de lo que pueda ocurrir en relación con procesos como la venta de Ferrovial Servicios, también en cuanto a volumen. Dicho esto, no creo que quienes nos dedicamos a asesorar en operaciones de M&A tengamos motivo alguno para la queja, aunque la actividad se ralentice, el año va a ser bueno, muy bueno. Me gustaría equivocarme, pero creo que 2020 será un año más complicado y en el que añoraremos el nivel de actividad que estamos disfrutando.

TTR – Como experto en operaciones de private equity, ¿qué diagnóstico haría del mercado español? ¿Considera que se encuentra en un buen momento? 

Mi sensación es que, en cuanto al volumen de inversión, el año será tan bueno como el pasado o incluso mejor: se han ejecutado ya o están a punto de cerrarse tres operaciones de public to private (Telepizza, Natra y Parques Reunidos), sólo el primer semestre se han cerrado más de 8 mega deals (que en España, y de acuerdo con la clasificación de Ascri, son aquellas operaciones de más de €100 millones) y en la segunda mitad del año ya se han cerrado o se cerrarán previsiblemente algunas transacciones de cuantía muy significativa que pueden llevar el volumen de inversiones por encima del alcanzado 2018. 

Pero si eliminamos el efecto de los mega deals y nos fijamos en el número de operaciones, vemos que el mercado de private equity también se está ralentizando, menos que el mercado de M&A en su conjunto por la necesidad que tienen los operadores de encontrar acomodo a los importes bastante significativos que los inversores han puesto en sus manos en estos últimos años, pero si empezamos a ver menor actividad.

Dicho esto, el momento que vive el sector es muy bueno y durante unos cuantos meses todavía vamos a estar ocupados.

TTR – ¿Qué tipo de compañías diría usted que resultan más atractivas para los inversores de private equity en este momento? ¿Qué sectores destacaría?

En el corto plazo creo que los sectores sanitario, residencias para la tercera edad, alimentación, fintech, alimentación y hostelería, retail y empresas de tecnología seguirán protagonizando muchas de las inversiones de los operadores de private equity. También educación, donde hemos visto muchas operaciones en estos dos últimos años, y energías renovables y otras inversiones sostenibles.

A medio plazo los temas estrella para los inversores van a ser, en mi opinión, la inteligencia artificial, el envejecimiento de la población, la automatización de procesos, la ciberseguridad, la sostenibilidad (los recursos naturales) y la digitalización.

TTR – Cuenta usted también con experiencia en la transmisión de carteras de deuda. ¿Qué tipos de carteras de deuda son los más demandados? ¿Qué tipo de players existen en este mercado? 

El número de compradores de carteras se mantiene estable desde hace varios años, pero la tipología es algo distinta. En sus orígenes los inversores tenían un perfil marcadamente oportunista, algunos desinvirtieron cuando España empezó a salir de la crisis y no han vuelto, y otros, como Lone Star, han regresado con energías renovadas tras varios años sin pisar nuestro país. Junto a ellos tenemos inversores “industriales” y también algún fondo de pensiones, como CPPIB.

En general el apetito es mayor por las carteras de inmuebles y de hipotecas que por las carteras de deuda unsecured, que en estos momentos tienen un universo de potenciales compradores más limitado (Gescobro, Axactor, Intrum o Cabot, por ejemplo) que el de compradores de hipotecas.

En cuanto a la deuda hipotecaria, las carteras más complicadas son las de hipoteca residencial, por las incertidumbres en cuanto a su ejecución que la reciente resolución C-260/18, de 3 de octubre, del Tribunal de Justicia de la Unión Europea debería ayudar a despejar. Es difícil saber con qué rapidez empezaremos a ver más procesos de venta de este tipo de carteras, para cuya compra los fondos de pensiones deberían estar mejor posicionados que el resto.

Para el resto de hipotecas no van a faltar compradores, porque incluso operadores que tradicionalmente sólo invertían en deuda unsecured ahora tienen apetito por deuda secured.

TTR – Sin duda las compraventas de carteras de deuda son muy frecuentes en nuestro mercado. ¿Qué factores explican esta frecuencia? ¿Se mantendrá el ritmo de operaciones de este tipo en el medio/largo plazo? 

La elevada frecuencia de operaciones en España es muy sencilla de explicar: hay una oferta de activos non-performing (NPEs) estimada en torno a €300.000 millones, de los que dos tercios son inmuebles (REOs) y el resto son non-performing loans (NPLs), y hay también mucha demanda. 

En cuanto al lado de la oferta, es verdad que tanto los bancos españoles como (en menor medida) Sareb han hecho un esfuerzo desinversor descomunal desde que empezó la crisis, pero una parte importante de dichos activos (casi el 45%) tienen que ser todavía objeto de desinversión por parte de los inversores que los han comprado, desinversión que en muchos años se producirá mediante la venta de carteras a nuevos inversores (las operaciones de mercado secundario eran rara avis hace unos años y ya hemos visto algunos activos cambiar de manos una tercera vez). Y los bancos españoles y Sareb siguen siendo propietarios de NPEs por más de €100.000 y €36.000 millones, respectivamente, de los que tienen que desprenderse sin prisa pero sin pausa, de manera que lo previsible es que la oferta se mantenga en los niveles actuales en los próximos 5 años.

Respecto a la demanda, hay mucho apetito por este tipo de activos y muchos fondos levantados para adquirirlos, por lo que es difícil pensar que la demanda vaya a retraerse en los próximos años.

English version

TTR – How would you describe the M&A market in Spain year-to-date in 2019?

The year, as it could not be otherwise, is proving complicated. Our growth is greater than that of many surrounding countries, public debt is (for the time being, and pending the outcome of the November elections) stable, the risk premium remains at the levels of recent years and employment continues to be created, all factors that help Spain remain on the radar of international investors. But at the same time the macroeconomic indicators have been deteriorating for months, every day we have breakfast with the call for caution from some international body, we are not immune to risk factors of the global economy that we all know and we have had a year full of elections (which are never good for the M&A activity) that has not yet ended.

Bearing this in mind, it is foreseeable that we will end the year behind 2018 in terms of the number of operations and, at the expense of what may happen in relation to processes such as the sale of Ferrovial Servicios, also in terms of volume. Having said that, I don’t think that those of us who are involved in advising on M&A operations have any reason for complaint, although the activity is slowing down, the year is going to be good, very good. I would like to make a mistake, but I think 2020 will be a more complicated year and we will miss the level of activity we are enjoying.

TTR – As a private equity expert, what do you think about the Spanish market? Are we in a good moment?

My feeling is that, in terms of investment volume, the year will be as good as last year or even better: three public to private operations (Telepizza, Natra and Parques Reunidos) have already been executed or are about to be closed, more than 8 mega deals have been closed in the first half of the year (which in Spain, and according to Ascri’s classification, are those operations of more than €100 million) and in the second half of the year some transactions of a very significant amount have already been closed or are expected to be closed, which could bring the volume of investments above that reached in 2018. 

But if we eliminate the effect of mega deals and look at the number of operations, we see that the private equity market is also slowing down, less than the M&A market as a whole because of the need for operators to accommodate the significant amounts that investors have put in their hands in recent years, but if we start to see less activity.

Having said that, the moment the sector is going through is very good and for a few months we are still going to be busy.

TTR – What kind of companies do you think are more attractive to private equity investors at the moment? What are the most prominent sectors, in your opinion?

In the short term, I believe that the healthcare, nursing homes, food, fintech, food and hospitality, retail and technology sectors will continue to be the focus of many of the investments made by private equity operators. Also education, where we have seen many operations in the last two years, and renewable energies and other sustainable investments.

In the medium term, the star topics for investors are going to be, in my opinion, artificial intelligence, population ageing, process automation, cybersecurity, sustainability (natural resources) and digitisation.

TTR – You also have a track record advising in debt portfolio transactions. What kind of debt portfolios are the most in demand? What kind of players are operating in this market?

The number of buyers of portfolios has remained stable for several years, but the typology is somewhat different. Originally, investors had a markedly opportunistic profile, some disinvested when Spain began to emerge from the crisis and have not returned, and others, such as Lone Star, have returned with renewed energy after several years without stepping foot in our country. Along with them we have “industrial” investors and also some pension funds, such as CPPIB.

In general, the appetite is greater for real estate and mortgage portfolios than for unsecured debt portfolios, which currently have a more limited universe of potential buyers (Gescobro, Axactor, Intrum or Cabot, for example) than mortgage buyers.

With regard to mortgage debt, the most complicated portfolios are those of residential mortgages, due to the uncertainties regarding their execution that the recent resolution C-260/18, of 3 October, of the European Court of Justice should help to clear. It is difficult to know how quickly we will begin to see more processes of selling this type of portfolio, for the purchase of which pension funds should be better positioned than the rest.

For the rest of the mortgages there will be no shortage of buyers, because even operators who traditionally only invested in unsecured debt now have an appetite for secured debt.

TTR – There is no doubt that purchases and sales of debt portfolios are very frequent in our market. What factors account for this? Do you think these transactions will keep up in the middle to long term?

The high frequency of operations in Spain is very simple to explain: there is an estimated supply of non-performing assets (NPEs) of around €300,000 million, of which two thirds are real estate (REOs) and the rest are non-performing loans (NPLs), and there is also a lot of demand. 

On the supply side, it is true that both Spanish banks and (to a lesser extent) Sareb have made a huge disinvestment effort since the crisis began, but a significant part of those assets (almost 45%) have yet to be disinvested by the investors who bought them, a disinvestment that in many years will occur through the sale of portfolios to new investors (secondary market operations were rare a few years ago and we have already seen some assets change hands a third time). And the Spanish banks and Sareb continue to own NPEs for more than €100 billion and €36 billion, respectively, which they have to release slowly but steadily, so supply is expected to remain at current levels over the next 5 years.

Regarding demand, there is a lot of appetite for this type of assets and many funds raised to acquire them, so it is difficult to think that demand will shrink in the coming years.