Secured loans continue to be the predominant source of funding for companies worldwide. However, it is difficult to know what has a significant impact on the financial market.
While traditional banks still play an essential role in the credit market, direct lenders and private equity funds and activity in Spain are particularly prominent. The rise of these alternative financing providers has become particularly popular among players in the low middle market. Such an important interest represents the fact that it is more important than any of the major companies in the world.
The small and medium market is quite broad, with a wide variety of investment opportunities. There is a large number of companies with great growth potential that are currently not widely known by investors. The challenge, of course, is to find them. In Spain, as in many other EMEA countries, some industries are getting better results than others.
Technological services: whether they are based on the development of services within the internet of things or software solutions, these services have increased their strategic importance. Venture capital companies that invest in technology can not be limited to the quality of the management team, but also to the ability of the target company to compete in a sector that can change completely in as little as 2 years. Adding leverage to such a scenario and success could be assured.
Investment in real estate: in the current environment of low interest, many private equity funds and family offices have recycled their money back into real estate assets in search of competitive returns. The key element for any real estate investor in Spain is to be able to predict predictable cash flows, measure CAPex and obtain control of the portfolio to an appropriate strategy of asset management. Bringing all this together, with a large portfolio of post-crisis assets, leads to a new era of investment in the real estate market in Spain, with reasonable leverage and minimum risk.
PropTech: unites the previous sectors. These newcomers have quickly emerged as an almost perfect option for investors. No one can ignore the fact that its creators are currently transforming the multi-billion dollar industry, mainly by offering effective solutions, flexibility, security and protection around real estate transactions.
The above article was written and published in Spanish and has been translated into English. Click here to read the original article.
Join us in Bangkok from the 28th of February to the 1st of March for the 22nd Property Portal Watch Conference. The theme for this year is The Future of Online Real Estate Marketing – Getting Closer to the Transaction.