In a recent fireside chat, José Epalza, Co-Founder and CEO of Altamar Advisory Partners, shared his insights on the evolution of the private equity sector in Spain. With over 25 years of experience in the industry, Epalza provided a unique perspective on the changes in the market and the role of advisors in the current landscape.
Key Takeaways:
Maturing Market: Epalza believes that the private equity market in Spain has evolved significantly over the past 25 years, with an increase in the number of local and international funds operating in the country.
Specialization: There is a trend towards specialization in the market, with funds focusing on specific niches such as healthcare, technology, and AGRO.
Deal Flow: The deal flow has become more complex, with a greater emphasis on co-investments and secondary transactions.
Advisor’s Role: The role of advisors has become more critical, with a greater need for seniority, expertise, and a focused approach to deal-making.
Exit Strategies: Epalza expects to see an increase in exit activity in the next 12-18 months, driven by a more normalized interest rate environment and the dry powder available in the market.
Secondaries Market: The secondaries market is expected to see significant growth, driven by the increasing demand for alternative assets.
Quotes:
- “The market has evolved significantly… we’re close to being a mature market.”
- “Companies and family-owned businesses have also evolved… they understand much better what private equity can bring to the table.”
- “The role of an advisor has evolved… you need seniority in the table, an advisor with the appropriate skill set and expertise.”
Overall, Epalza’s insights provide a valuable perspective on the evolution of the private equity market in Spain and the role of advisors in the current landscape.
Key timestamps:
00:09 Introduction to the Fireside Chats
00:38 Jose’s Background and Career Path
02:10 Transition from Investment Banking to Advisory
03:47 Evolution of Private Equity in Spain
05:00 Growth of Local and International Funds
09:33 Trends in Fund Strategies and Specialization
13:33 Value Addition in Private Equity Investments
16:17 Impact of COVID-19 on Private Equity
18:27 Future Outlook for Exits in Private Equity
20:08 M&A Advisory Trends and Future Directions
21:50 Evolving Role of Advisors in Private Equity