Does alternative finance in Spain have room to grow?

It is a fact that alternative financing in Spain is still lagging behind the Anglo-Saxon world, but it is also a fact that the reasons for this are being alleviated year after year.

            The vast majority of the capital used in our country for this purpose, such as that which manages and intermediates DEXTERThe number of funds with purely Spanish capital is still low, and these large international funds tend to be massive vehicles with European or global strategies. In addition, these first large funds tend to be massive vehicles with European or global strategies and only do transactions above a certain size, for which there is not an excessive demand in Spain.

            On the other hand, in most of our neighbouring countries there is a consensus in society and in the political class that private property and agreements between parties are sacred as long as they do not go against the law, something that is culturally different in Spain.

            In other words, and thinking about collateral, in our country and in certain scenarios, it is not always feasible to enforce it (whether mortgages or pledges of shares) when the borrower defaults on his obligations, and this tends to create insecurity among financiers.

            As the vice-president of DEXTERAlfonso Merlos, "Indeed, there are regulatory and cultural elements in Spain that could favour a stronger promotion of alternative financing with private capital, but because they are what they are today, the sector is growing step by step; with a clear direction, but with short steps in relation to other countries, especially in the Anglo-Saxon world"..

            Even so, and according to a macroeconomic and strategic analysis, the opportunity for growth will always be in the short to medium term, given that banks are, and will deliberately remain, very limited in their ability to lend money.