Spain’s private capital market is experiencing a notable shift. While alternative assets still make up a small portion of investment portfolios, steady growth indicates an increasing appetite for diversification among investors.
I spoke with Josep Martínez Pascual, CFO of Alternative Products at Trea Asset Management. We discussed his extensive experience in finance, current trends shaping the private capital market, and the opportunities that lie ahead for investors in Spain.
Q: Tell me a little about your personal and professional background, and how you got to where you are today?
I have more than 15 years of experience in finance and strategy. My career in alternative investments has allowed me to work across various asset classes, such as direct lending, private equity, venture capital, and real estate, with a constant focus on adding value and creating customized solutions.
I bring a comprehensive perspective that spans investment, risk, operations, fundraising, and legal and compliance. I apply all of this experience in my role at Trea Asset Management, aiming to develop innovative solutions in private markets that create value for our investors.
Currently, I lead the alternative products unit at Trea, where I oversee all key areas of the business unit. I have contributed to the creation of investment vehicles in Spain and Luxembourg, as well as establishing international strategic alliances with private asset managers.
Trea has been a pioneer in the Spanish market, launching the first direct lending fund in the country and developing innovative products, such as funds focused on healthcare and sustainable vehicles. What truly sets us apart is our close client approach and our ability to tailor solutions to each investor’s or customer’s specific needs.
Before joining Trea, I worked in strategic consulting and transaction services at leading firms such as Strategy& and EY, as well as at a boutique consulting firm specializing in restructuring. My education includes an MBA from the Darden School of Business and both a Bachelor’s and Master’s in Finance from ESADE.
Q: What are the key trends shaping the private capital market in Spain?
The private capital market in Spain is undergoing a significant transformation. Although the penetration of alternative assets in investment portfolios remains low — 5% compared to the global average of 15% — sustained growth reflects a rising interest in diversification and greater sophistication among local investors. This environment presents a clear opportunity.
On a global scale, the market is consolidating around large, diversified platforms that offer a wide range of asset classes, benefiting from economies of scale and cross-selling capabilities.
At the same time, there’s growing interest in specialized strategies, which historical data shows can deliver superior returns. This outperformance comes from strong networks and deep sector expertise. Investors in this space can close deals more effectively and add greater value through operational improvements, compared to generalist investors.
At Trea, we have been innovators in product development, including the launch of the first direct lending fund in Spain. Our extensive expertise in private markets further reinforces our position. As a result, the firm is positioned as a leader in differentiated products and innovative solutions, addressing high-potential niche markets and international asset managers looking to enter the Spanish market, allowing us to structure products tailored to the specific needs of the Spanish market.
Q: Which asset types are expected to perform best in the coming years, and why?
Private debt is one of the most promising segments in Spain. As companies shift toward alternative financing sources amid banking restrictions, demand for private debt strategies — such as senior loans, mezzanine financing, and bridge loans — is increasing. These products offer flexibility in structuring and speed in execution, making them a key tool for diversifying capital sources. Additionally, they provide investors with higher returns compared to publicly traded debt.
At Trea, our strong expertise in private debt has enabled us to develop innovative solutions. One example is a bridge loan fund, designed to meet the growing need for flexible and fast business financing. It offers attractive returns to investors with a clear focus on capital preservation.
Secondary market opportunities, both single-asset and portfolio deals, present compelling investment prospects in a low-liquidity environment. The market offers high-quality assets at discounted valuations, providing investors with greater returns.
In private equity, specialized funds will continue to be a strong bet. Sectors like healthcare and technology present unique opportunities, delivering alpha to sophisticated investors seeking exposure to specific niches. Trea has extensive experience in product innovation, allowing us to design tailored strategies for each project and investor.
Evergreen funds are transforming access to alternative investments by offering liquidity and long-term benefits such as compounding. These vehicles are designed to meet the needs of high-net-worth individuals (HNWIs) looking for flexible solutions without the complexity of traditional funds. Nonetheless, there are regulatory limitations that must be understood and addressed when structuring such a vehicle in Spain.
Q: How will market conditions and regulations influence Spain’s private capital market, especially investment growth from HNWIs?
Spain’s regulatory environment, along with specific tax incentives, creates an attractive framework for private asset investment by family offices and HNWIs. Sociedades de Capital Riesgo (SCRs) offer not only significant tax benefits but also the ability to structure vehicles tailored to the specific needs of each family office. Trea provides highly flexible and customized services to meet these requirements.
Additionally, evergreen structures are emerging as a key solution for HNWIs, allowing them to access alternative investments with greater flexibility. These structures eliminate the need for long-term capital commitments and offer a simpler operational setup compared to closed-end funds. They also help mitigate the impact of the J-curve effect and enhance investment compounding, making them an ideal option for HNWI clients.
Our ability to design innovative and customized solutions positions us as an ideal strategic partner for international asset managers and investors looking to capitalize on growth opportunities in the private capital market.
