The Financial Sponsors sector is enjoying great momentum as a growth engine of the global economy

The Financial Sponsors sector is undoubtedly a growth engine of the global economy, driven by infrastructure investments in essential services and the global M&A activity.

If you put together the huge dry powder in the hands of financial sponsors, the high level of public debt, and the huge investments needed in mobility, energy, sustainability, digitalization, and artificial intelligence, we can see that this is a great time for this sector.

At BBVA, we are well prepared to capture this opportunity by providing the best investment banking services to our clients to facilitate the implementation of these investments.

Financial Sponsors: Key Drivers of Global Economic Growth.

In today's economic landscape, financial sponsors have become key players in global development. Their role in funding and fostering growth is more crucial than ever, in a context where, despite geopolitical uncertainty and economic volatility, the need for essential assets and sustainable investment is huge. Private equity firms, infrastructure funds and institutional investors focused on alternative assets serve as key enablers of economic transformation, driving innovation, job creation, and long-term value generation. In this context, international investment banks such as BBVA are key partners of the financial sponsors.

Why Financial Sponsors Matter Now More Than Ever.

Alternative assets (including, inter alia, infrastructure, private equity, real estate and private debt) are expected to reach USD 24 trillion in assets under management by 2028, compared to USD 15 trillion in 2022 and USD 9 trillion in 2018. The ability of financial sponsors to efficiently channel this dry powder to the real economy is unparalleled. Only in infrastructure, USD 3.7 trillion of annual investments are estimated.

Source: KKR, "Insights. An alternative perspective: past, present and future", Sep 2024.

At BBVA, we understand the transformative impact that financial sponsors have on economic development and are committed to supporting them, as a long-term partner, with tailored financing solutions and the whole spectrum of investment banking services. Leveraging its global presence, deep industry expertise and capillarity with local companies and assets, BBVA offers a wide range of capabilities, including:

• Fund Financing (Call Capital Financing) – Enhancing liquidity management for funds by offering efficient capital call solutions, ensuring operational flexibility.
• Lending and Structured Financing – Providing comprehensive financing structures to facilitate leveraged buyouts, asset acquisitions, project financing and debt restructuring.
• Advisory Services – Offering strategic insights and financial guidance to optimize investment structures and execution, as well as sourcing and execution of M&A opportunities.
• ESG and Sustainable Investment Strategies – Aligning financial solutions with sustainability goals, reinforcing the commitment to responsible investing.
• Global Markets and Credit Solutions – Providing, inter alia, portfolio financing, rates and FX derivatives.
• Global Transaction banking – Offering the best solutions for transactional needs such as cash management, guarantees, short term financing and inventory financing.

Committed to offering high-value services and solutions to financial sponsors clients.

The role of financial sponsors in shaping the global economic landscape is undeniable. By channeling capital, fostering innovation, and driving sustainable growth, they serve as key engines of the economy. In an era where tailor made financing and investment banking services are paramount, BBVA stands as a trusted partner, delivering cutting-edge solutions for sophisticated and demanding clients such as financial sponsors.