Private equity remains an underexplored investment alternative in Spain and much of Europe. The data speaks for itself: “In Europe, less than 0.5% of companies are listed on the stock market; therefore, there is a vast universe of attractive businesses that can only be accessed through private equity. It is true that this investment does not offer the liquidity of listed markets, but in return, it provides an illiquidity premium that has historically ranged between 350 and 500 basis points,” Sergio explained during the session with Expansión readers.
The current macroeconomic environment is also conducive to investment, particularly in small and medium-sized enterprises, which form the backbone of Europe’s productive fabric. “The dynamism in Spain and Europe lies in the lower mid-market segment, in SMEs, where the best investment opportunities and differential returns emerge.”
According to Sergio, now is a very favorable time to invest in private equity, not only because of the attractive long-term returns but also due to recent regulatory changes that allow non-professional investors and small savers to access the market. “Retail investors can now invest in diversified portfolios with a more affordable initial commitment, following the trend that began in the United States and other Anglo-Saxon countries, with the added benefit of favorable tax treatment if the investment is made through a corporate entity,” he explained.
Sergio García also provided interesting insights into the specific dynamics of investing in private markets. He identified three key differentiating factors: “The investment strategy, entry prices, and debt levels used. At Qualitas Funds, we currently hold nearly a thousand companies in our portfolio across Europe and the United States, purchased at around 8 times EBITDA when the market average is between 12- and 14-times x EBITDA. Our leverage levels are around 1–2x net debt to EBITDA, compared to a market average of 4–7x. Naturally, lower entry prices and more moderate leverage help reduce volatility.”
You can read the full Q&A here: https://www.expansion.com/encuentros/sergio-garcia/2025/09/11/index.html