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Does venture capital disinvest?


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BY : Diego GutiérrezJuly Thu, 2013

According to data provided by ascri.org, during the first half of 2013, the difficulty of disinvestment on the part of the private equity: 113 operations of sales by volume (at cost) of 570M€ (-28% compared to the first half of 2012).

More money goes out of venture capital than comes in

The same source informs us that the private equity have raised €428MM during H12013, which is less than the €570MM divestments (at cost). Assuming that these divestments are used to repay the contributions to the funds' LPs, this would mean that the money coming in is less than the money going out.

Average amount of divestitures increases

"In 2012 the average amount per transaction bottomed out at an average of €3.5MM. In this first half of the year we are seeing an improvement, returning to a level slightly above €5MM, almost similar to that of 2010 (€5.4MM)" says Diego Gutierrez, corporate finance expert at ABRA INVEST.

Staying periods are increasing

"A clear symptom of the difficulty in divestment for funds is this increase in terms. In 2012, for the first time since 2000, the average tenure exceeded 6 years, whereas the average for the previous 7 years was around 5.5 years".

Most relevant divestments

Among the most notable divestments were those carried out by Miura Private Equity and Talde Gestión in Noa Visual Group, MCH Private Equity in Televida & Home Health & Social Care company dedicated to the elderly and disabled, Suma Capital in CTC Outsourcing, Capital Alliance in Iberchem, Espiga Capital in Softonic, Active Venture Partners at Telemedicine Clinic, Explorer Investment in Probis Plastics, 3i in Xey, Madrigal in Siro Group and Catalana d'Iniciatives in Soundub Sound and Dubbing.

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