Middle market investments by size of investment 2020 2022 2021 2023 Source: SPAINCAP/webcapitalriesgo 1,400 1,200 1,000 800 600 400 200 0 10 to 15 25 to 50 15 to 20 50 to 75 20 to 25 75 to 100 € Millions Middle Market Investments Notes In the distribution of investments by size, the €10-€15M investment range stood out in 2023 with 24 investments in total. However, it also fell the most from 2022 (17 fewer investments). This decrease can be explained by the fewer number of funding rounds for early stage companies. The €25-50M equity investment range also completed 24 investments, 12 fewer than in 2022. Both segments were led by domestic GPs. Private Equity led the middle market in 2023. Despite the tighter conditions for bank funding due to monetary policy implemented in 2022, leveraged buyouts4 stood out against other categories with €861M (49.6% of total investments) across 28 investments (7 less than 2022), of the total 74 middle market investments. Growth capital investment also decreased in 2023 with 27 investments (7 less than in 2022) totaling €577.7M (-24% from 2022). The largest decrease was investment in scale ups (late stage venture), falling from €820.5M across 31 transactions in 2022 to €216.5M in 12 transactions in 2023. As regards GPs, international funds investing in the middle market led leveraged and late stage venture transactions. Domestic funds increased their activity in the growth stage, but also maintained their focus on leveraged transactions. A list of the main middle market transactions is provided on page 40. Regarding sectors5, the following stood out: Consumer Goods (€291.6M; 16.8%), IT (€290M; 16.7% of total). Healthcare (€244.6M; 14% of total), Industrial Products and Services (€189.7M; 10.9% of total), Other Services (€145M; 8.4%) and Other Production (€113M; 6.5%). The following stand out in the sector distribution by number of investments: IT (15 investments), Consumer Goods (13 investments), Healthcare and Industrial Products and Services (7 investments each), and Other Services (6 investments).