Private equity expects its retail funds to be ready from fall

The employers' association of the sector begins a new stage and changes its name from Ascri to SpainCap

Clara Dawn

The employers of private capital and 'venture capital' in Spain renews its corporate image. And it does so with the aim of conveying the dynamic role that the sector can have for the national economy at a time of fear due to the slowdown in growth, high inflation and the shift in monetary policies to deal with rising prices.

Against this background, the Spanish Association of Capital, Growth and Investment (Ascri) has been renamed SpainCap, with the idea of ​​promoting the evolution of the private capital sector towards investment "for a sustainable future". During the presentation of the process of this new strategy -managed by the consulting firm BrandFor- those responsible for SpainCap expressed hope that the Create and Grow Law, one of the regulations that will transform the sector, will be approved "before or after the summer".

Among other things, this new law, which closed the amendment period in February, will allow retail investors to invest in private equity funds from 10,000 euros, compared to the current 100,000 euros, on the condition that they are advised and that the investment does not exceed 10% of your portfolio.

Against this background, and taking into account the "traffic jam" of regulations that Congress is currently experiencing, SpainCap considers that "in the autumn, at the earliest", the first funds of this type could be available for sale among retailers.

"We will need a learning process, both in the sector and among the investors themselves, but it is a decisive step for the industry," said Oriol Pinya, president of the association and CEO of Abac Capital. "We do not want someone who does not understand the product to invest in it," they insist from the employers' association, where they have set themselves the goal of "leading, influencing and serving" to demonstrate their positive impact on a "more sustainable and digital" economy.

The change in employers also occurs at a time when the slowdown in economic growth, high inflation and the shift in monetary policies can hinder the activity of venture capital managers. However, from SpainCap they indicate that the high levels of liquidity allow to be optimistic in this sense, although they recognize that the average period of maturation of the operations "is going to lengthen".

Something else is worrying about the rise in interest rates in Europe, since possible falls in the stock market would force large institutional investors to withdraw their money from the funds by law.

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