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Private equity and venture capital investment in Spain hits record high

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Data from the association shows that, in 2019, there were more than 680 private equity and venture capital transactions in Spain.

International funds accounted for 80.7 per cent of the total investment volume, after making at total of 115 investments. Private national investors closed a total of 475 investments, while public national investors closed 90 investments, ASCRI said.

The middle market recorded a historic high, with investment of €1.9 billion across 69 transactions.

A total of 84 per cent of the investments involved an equity contribution of less than €5 million. Meanwhile, there were 18 megadeals (transactions of over €100 million), according to ASCRI, with a total value of €5.8 billion (or 68.4 per cent of the total value).

Buyouts accounted for €3.4 billion of the investment (across 71 deals), while in the growth capital investment sector, 77 deals were completed for a total value of €750 million.

Venture capital funds made investments with a total value of €737 million across 517 transactions in 2019, of which 79 deals were closed by international venture capital funds, 362 by national venture capital funds, and the remaining 76 by public funds.

The sectors that recorded the highest volume of investments were energy and natural resources (21 per cent) and consumer products (12.7 per cent). In terms of the number of deals, the most important sectors were IT (293 investments), consumer products (68) and healthcare (60).

Meanwhile, funds raised by national private capital firms totaled €1.8 billion, which ASCRI said, highlighted the “increased interest shown by institutional investors in the Spanish private capital sector”.

ASCRI estimated the 2019 divestment volume to be in the region of €2.3 billion after the closing of 258 transactions – 46 per cent of the total volume was divested through “sale to another private equity entity”, 14 per cent through “stock repurchase” and 12.5 per cent via “sale in the stock market”.

ASCRI president Miguel Zurita, who is managing partner of Altamar Capital Partners, said: “It is the first time that Spain has recorded results within the European average in terms of annual investment relative to GDP. Even though the majority of investments have been made by international managers that see the great growth potential of Spanish companies, the maturity of the middle market sector is worth noting, where the lead positions are taken by local managers and a dynamic venture capital ecosystem that is amongst the most important in Europe”.

ASCRI’s membership includes 130 national and international firms in the venture capital & private equity sectors, 80 service providers and 20 institutional investors.

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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