The event is one of the region’s largest gatherings of GPs and LPs. Panels covered the private equity investment cycle in Europe, the impact of artificial intelligence on investment strategies, fundraising, private credit and value creation.
Eric Halverson, Founding Partner of Qualitas Funds, took part in the panel “Best Investment Strategies in a Dynamic Environment.” He was joined by Iván Plaza Férriz (Aurica Capital), Laura de Palacio Aragón (Portobello Capital), Cristóbal de Castro (Quest Capital) and José María García-Pont (PAI Partners). The panel took on a question the industry is asking more and more often: how to invest in a demanding market that is changing very quickly.
The discussion made clear that value creation can no longer rely mainly on financial structuring. Financing is more expensive and exit activity is still slow, so company growth and the ability to transform businesses are becoming bigger drivers of returns. At the same time, investors are asking for more distributions and looking for strategies where returns depend less on leverage and debt.
The lower-middle market, an area for value creation
For Qualitas Funds, this environment makes the lower-middle market even more attractive. These companies make up most of Europe’s business landscape, yet they still receive a small share of the capital allocated to private equity. This gap between the supply and demand of capital creates inefficiencies and opens up opportunities for managers who specialize in this market. “We remain convinced that the lower-middle market is the segment where the most value can be created sustainably, with reasonable entry prices, low leverage and the opportunity to support the fastest-growing companies through operational improvements and the consolidation of still-fragmented sectors,” said Eric Halverson.
Private Equity Insights Iberia was once again a meeting point for managers and investors in Iberia. It comes at a time when specialization, investment discipline and execution capabilities matter more than ever for generating long-term value.