New funds raised by Spanish PE&VCs according to geographic breakdown of investor (LP) in 2023 Private Equity Funds Venture Capital Funds Source: SPAINCAP/webcapitalriesgo 1.5% 2% 8% 3% 8% 3% 16% 4% 1% 19% 34% 33% 20% 3% 3% 10% 9% 23% 40% 35% 30% 25% 20% 15% 10% 5% 0% Financial Institutions Pension funds Insurance Companies Fund of funds Corporate investors Family office Government agencies Other asset managers Other Fundraising Family offices are the primary source of total funds raised by domestic private entities. As regards capital raised by Spanish private PE&VCs, by type of investor (LP), family offices stood out –they were the main source of new funds for the fourth consecutive year–, accounting for 33.4% of the €2,702M raised in 2023. Specifically, Spanish family offices contributed €771.5M compared to €129.9M by international family offices, reflecting the performance of these investors (in the last five years, Spanish family offices have contributed around 32% of new funds raised), making them the leading LP in funds raised by Spanish private Venture Capital and Private Equity GPs. The involvement of family offices stood out in terms of volume and number of GPs in which they invested; of the 68 firms that were raising funds, 54 received commitments from family offices. This was followed in second place by the public sector,14 where the allocation of Fond-ICO Global15 (investment vehicle for Venture Capital and Private Equity funds managed by Axis Participaciones Empresariales/ICO) stood out, together with that of the European Investment Fund (EIF)16, representing 20.7% (€559.5M) of funds contributed out of total funds raised. These were followed by funds of funds which accounted for 12% (€332M) of funds contributed. International funds of funds stood out in this area with €291.7M. Corporations and non-financial companies have typically had limited participation as investors in Spanish funds. However, implementation of the new Next Tech fund of funds drove an increase in this type of investor, contributing €178M in 2023 (6.6% of total funds raised), with domestic companies standing out with €344M. Pension funds were the sixth largest contributor, accounting for 6.6% of total new funds raised (€172M) and returning to 2021 levels. For the fourth consecutive year, domestic pension funds recorded relatively high participation rates in this asset class, investing €60.8M of the €172M contributed by this type of investor in 2023. A majority of the commitments by pension funds focused on private equity vehicles. Nonetheless, the participation of domestic pension funds in Spanish PE&VC vehicles is still far from their international peers, with average annual contributions between 15% and 30%17 of total funds raised at the European level. Insurance companies contributed 6% of the total, with international insurance companies making, unlike last year, the largest participation totaling €100M of the total €165.6M contributed by this type of investor in 2023. With €276M, family offices were the main contributor of new funds raised for Venture Capital vehicles in 2023 (€841.5M), followed by public investors (€190.5M) and non-financial companies/corporations (€161M). Notes