2008 Pan-European Private Equity & Venture Capital Activity EVCA, The Voice of European Private...

2008 Pan-European Private Equity & Venture Capital ActivityEVCA, The Voice of European Private Equity Industry since 1983

2

Funds raised and investments - evolution

25

48

40

28 27 27

72

112

81 79

25

35

2428 29

37

47

71 74

54

0

20

40

60

80

100

120

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

€ billion Funds raised Investments (industry statistics)

Source: PEREP_Analytics for 2007 & 2008; Thomson Reuters/PwC for previous years

3

Private equity activity – quarterly evolution (Q1 2007 = 100)

20

30

40

50

60

70

80

90

100

110

2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2 2008-Q3 2008-Q4

Funds Raised

Investment

Divestment

Source: PEREP_Analytics

4

Private equity funds raised - evolution (industry statistics – incremental closings during year)

25.4

48.0

40.0

27.5 27.0 27.5

71.8

112.3

81.4 79.6

0

20

40

60

80

100

120

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

€ billion


5

Funds raised – quarterly evolution (Q1 2007 = 100)

20

30

40

50

60

70

80

90

100

110

120

2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2 2008-Q3 2008-Q4

Venture capital

Buyout & growth

All private equity


6

Funds raised > €1 bn accounted for €51.3 bn in 2008

Firm Name Fund name

Amount raised during 2008

(€ bn)

CVC Capital Partners CVC European Equity Partners V 10.8

Advent International GPE VI 6.6

PAI Partners PAI Europe V 5.4

Bridgepoint Bridgepoint Europe IV 4.8

Nordic Capital Nordic Capital Fund VII 4.3

Charterhouse Capital Partners Charterhouse Capital Partners IX 3.6

Bain Capital Bain Capital Europe III 3.5

Candover Investments Candover 2008 Fund 2.9

Altor Equity Partners Altor Fund III 2.0

Oaktree Capital Management OCM European Principal Opportunities Fund II 1.8

HgCapital HgCapital 6 1.5

Exponent Private Equity Exponent Private Equity Partners II 1.1

Advent International ACEE IV 1.0

Ares Life Sciences AG Ares Life Sciences 1.0

Summit Partners Europe Private Equity Fund 1.0


7

Funds raised by fund stage focus(incremental closings during year)

0

10

20

30

40

50

60

70

Early-stage Later stageventure

Balanced Total venture Growth capital Buyout Mezzanine Generalist

€ billion

2007 2008


8

Funds raised by type of investor (incremental closings during year)

2007

Government Agencies5.3%

Pension Funds17.5%

Private Individuals4.6%

Unknown24.5%

Capital Markets7.3%

Endowments and Foundations

1.6%

Family Offices1.5%

Corporate Investors2.4%

Other Asset Managers* 4.4%

Academic Institutions0.3% Banks

11.5%

Insurance Companies8.1%

Funds of Funds11.1%

*(including PE houses other than Funds of Funds)

2008

Funds of Funds14.4%



Pension Funds25.1%


Unknown17.5%

Banks6.7%

Academic Institutions0.2%

Other Asset Managers* 6.4%


Family Offices4.2%


4.5%

Capital Markets1.6%


9

Funds raised by type of investor in 2004-2008 (incremental closings during year)

Academic Institutions1.8% Banks

13.1%

Fund of Funds14.5%


Pension Funds23.6%


Unknown12.8%


Other Asset Managers*

2.4%


Family Offices1.3%


1.4%

Capital Markets2.8%



10

Funds raised by type of investor – 5 year trends(incremental closings during year)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008

Academic Institutions

Banks

Capital Markets

Corporate Investors


Family Offices

Fund of Funds

Government Agencies

Insurance Companies


Pension Funds

Private Individuals

Unknown



11

Funds raised by type of investor in 2008 – by country(incremental closings during year)

0%

20%

40%

60%

80%

100%

Europe

United K

ingdom

Franc

e

Sweden

Switzer

land

Germ

any

Spain

Academic Institutions

Banks

Capital Markets

Corporate Investors


Family Offices

Fund of Funds

Government Agencies

Insurance Companies


Pension Funds

Private Individuals

Unknown



12

New funds raised - by geographic origin (LP country) and by fund country in 2008

0.0

46.3

10.8

6.6

3.1 2.4 2.2

24

11

6

1

5 41

0

5

10

15

20

25

30

35

40

45

50

USA United Kingdom France Sweden Switzerland Germany Spain

€ billion

By country of private equity firm By country of origin


13

Funds raised in 2008 – independent funds by fund stage focus (cumulative amount at final closing)

0

10

20

30

40

50

60

Early-stage Later stageventure

Balanced Totalventure

Growthcapital

Buyout Mezzanine Generalist

€ billion

0

10

20

30

40

50

60

70

# of funds

2007 Amount

2008 Amount

2007 Number of funds

2008 Number of funds


14

Funds raised in 2008 – independent funds by country(cumulative amount at final closing)

0

5

10

15

20

25

30

35

40

United Kingdom France Sweden Switzerland Germany Spain

€ billion

0

200

400

600

800

1,000

1,200

1,400

Amount

Average fund size

# Number of funds

# 33

# 24

# 5

# 6 # 17 # 8

€ million


15

Funds raised in 2008 – independent venture capital fundraising (cumulative amount at final closing)

0

200

400

600

800

1,000

United Kingdom Germany France Norway Finland Spain

€ million

0

20

40

60

80

100

120

140

160

180

Amount

Average Fund Size

# Number of funds

# 8

# 9

# 9

# 1# 3 # 3

€ million


16

Funds raised in 2008 – independent buyout & growth fundraising (cumulative amount at final closing)

0

10

20

30

40

United Kingdom France Sweden Switzerland Italy Norway

€ billion

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Amount

Average Fund Size

# Number of funds

# 22

# 12

# 2

# 5 # 3 # 4

€ million


17

Funds raised in 2008 – independent funds by stage focus (cumulative amount at final closing)

Average fund sizes

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

Business and industrial products and services

Consumer products, services and retail

Energy and environment

Financial services

ICT

Life sciences

No sectoral focus

Independent funds raised

in € million

All private equity

Venture Capital

Buyout, Growth &Mezzanine


18

Investments - evolution(industry statistics)

25.1

35.0

24.327.6 29.1

36.9

47.1

71.273.8

54.1

0

10

20

30

40

50

60

70

80

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

in € billion

0

2,000

4,000

6,000

8,000

10,000

12,000

Number of companies financed

Amount invested

Number of companies


19

Investments by stage - evolution(industry statistics)

0

10

20

30

40

50

60

70

80

2004 2005 2006 2007 2008

€ billions

Seed

Start-up

Later stage venture

Growth capital

Replacement capital

Buyout


20

Investments by stage focus - evolution

% of amount(industry statistics)

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008

Seed

Start-up

Later stage venture

Growth capital

Rescue/Turnaround

Replacement capital

Buyout


21

Investments by stage focus - evolution

% of number of companies financed(industry statistics)

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008

Seed

Start-up

Later stage venture

Growth capital

Rescue/Turnaround

Replacement capital

Buyout


22

Investments by stage focus in 2008 – by country

% of amount(market statistics)

0%

20%

40%

60%

80%

100%

Europe UnitedKingdom

France Germany Sweden Italy Spain

Seed

Start-up

Later stage venture

Growth capital

Rescue/Turnaround

Replacement capital

Buyout


23

Investments by stage focus in 2008 – by country

% of number of companies financed(market statistics)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Europe UnitedKingdom

France Germany Sweden Italy Spain

Seed

Start-up

Later stage venture

Growth capital

Rescue/Turnaround

Replacement capital

Buyout


24

Investments by stage focus in 2008

% of amount (market statistics)

Start-up4.6%

Later stage

venture7.9%

Growth capital13.5%

Rescue/ Turn-

around0.5%

Replace-ment

capital2.8%

Buyout70.1%

Seed0.6%

% of number of companies financed(market statistics)

Start-up30.1%

Growth capital11.6%

Rescue/ Turn-

around1.1%

Replace-ment

capital2.9%

Buyout18.2%

Later stage

venture26.1%

Seed10.0%


25

Investments by sector focus in 2008

amount as % of total private equity (market statistics)

0% 20% 40% 60% 80% 100%

Unknown

Transportation

Real estate

Life sciences

Financialservices

Energy andenvironment

Consumerservices: other

Consumergoods and retail

Construction

Computer andconsumer

Communications

Chemicals andmaterials

Business andindustrial


Agriculture

venture deals buyout deals


all private equity - % of amount (market statistics)

0%5%10%15%20%

Unknown

Transportation

Real estate

Life sciences

Financial services


Consumer services: other

Consumer goods and retail

Construction

Computer and consumer electronics

Communications

Chemicals and materials

Business and industrial services

Business and industrial products

Agriculture

26

Investments by sector focus in 2008 – by segment

buyout & growth - % of amount (market statistics)

0% 5% 10% 15% 20% 25%

Unknown

Transportation

Real estate

Life sciences

Financialservices




Construction


Communications




Agriculture

2007 2008

venture capital - % of amount (market statistics)

0%5%10%15%20%25%

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture


27

Investments by sector focus in 2008 – by segment

buyout & growth% of number of companies financed

(market statistics)

0% 5% 10% 15% 20% 25%

Unknown

Transportation

Real estate

Life sciences

Financialservices




Construction


Communications




Agriculture

2007 2008

venture capital% of number of companies financed

(market statistics)

0%5%10%15%20%25%

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture


28

Equity value vs. transaction value by buyout deal size in 2008

0

20

40

60

80

100

120

Small Mid-market Large Mega Total buyout

€ billion

0

200

400

600

800

1000

1200

Amount (PE funds participation)

Transaction value

Number of companies


Market statistics

29

Investments by number of employees in 2008as % of number of companies financed (market statistics)

all private equity

0 - 1938.4%

20 - 9930.6%

100 - 19910.1%

200 - 2493.0%

250 - 4996.6%

500 - 9995.0%

1000 - 49994.9% 5000 +

1.4%

venture capital

0 - 1953.6%20 - 99

32.3%

250 - 4992.6%

5000 +0.4%

1000 - 49991.5%

500 - 9992.1%

200 - 2491.6%100 - 199

5.9%

buyout

20 - 9927.5%

0 - 199.9%

250 - 49914.3%

5000 +3.3%1000 -

499911.3%

500 - 99910.3%

200 - 2495.5%

100 - 19918.0%


30

2008 Venture investments by number of employees

1,959

1454

1,179

789560

214

0

500

1,000

1,500

2,000

2,500

3,000

0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +

in € million

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Full-time equivalent staff by intervals

Number of companies

Amount invested

Number of companies

SMEs


Market statistics

31

2008 Buyout investments by number of employees

19364

219

534

200277

108

349

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +

in € million

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Full-time equivalent staff by intervals

Number of companies

Amount invested

Number of companies

SMEs


Market statistics

32

Investments as % of GDP in Europe - evolution

all private equity Industry statistics

0.30

7%0.

383%

0.25

3%0.

277%

0.28

8% 0.35

4% 0.41

9%

0.59

8%

0.58

1%

0.41

8%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

as %

of

GD

P


33

Investments as % of GDP in 2008 – by country

all private equity Industry statistics

1.24

1%

1.02

2%

0.45

0%

0.41

8%

0.39

4%

0.30

1%

0.28

4%

0.25

8%

0.23

9%

0.23

8%

0.20

7%

0.19

4%

0.19

3%

0.18

9%

0.16

8%

0.14

2%

0.08

2%

0.07

3%

0.04

3%

0.03

2%

0.03

0%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

United K

ingdom

Sweden

Franc

e

Europe

Switzer

land

Nether

lands

Germ

any

Finlan

d

Norway

Portu

gal

Denmar

k

Belgium Ita

ly

Poland

Spain

Greec

e

Austri

a

Romania

Irelan

d

Czech

Rep

ublic

Hungar

y

as %

of

GD

P


34

Investments as % of GDP in 2008 – by country

all private equity Market statistics

0.74

2%

0.67

4%

0.48

9%

0.46

6%

0.44

9%

0.42

3%

0.40

4%

0.40

4%

0.37

0%

0.35

2%

0.34

1%

0.31

2%

0.29

7%

0.21

5%

0.21

4%

0.20

4%

0.19

8%

0.16

5%

0.15

5%

0.12

5%

0.11

5%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

United K

ingdom

Sweden

Denmar

k

Franc

e

Nether

lands

Hungar

y

Europe

Finlan

d

Germ

any

Norway

Italy

Switzer

land

Czech

Rep

ublic

Portu

gal

Spain

Belgium

Romania

Poland

Irelan

d

Greec

e

Austri

a

as %

of

GD

P


35

Venture investments as % of GDP in 2008–by country

venture capital Market statistics

0.14

5%

0.09

1%

0.08

3%

0.07

0%

0.07

0%

0.06

6%

0.06

5%

0.05

9%

0.05

5%

0.05

3%

0.04

7%

0.04

2%

0.04

2%

0.04

1%

0.03

1%

0.02

4%

0.02

1%

0.01

9%

0.01

4%

0.01

4%

0.01

2%

0.0%

0.0%

0.0%

0.1%

0.1%

0.1%

0.1%

0.1%

0.2%

Sweden

United K

ingdom

Irelan

d

Finlan

d

Denmar

k

Spain

Nether

lands

Norway

Franc

e

Europe

Switzer

land

Belgium

Germ

any

Portu

gal

Czech

Rep

ublic

Romania

Hungar

y

Austri

a

Poland

Italy

Greec

e

as %

of

GD

P


36

Buyout investments as % of GDP in 2008– by country

buyout Market statistics

0.65

1%

0.52

8%

0.42

0%

0.41

1%

0.40

2%

0.38

4%

0.35

1%

0.33

4%

0.32

8%

0.32

7%

0.29

4%

0.26

6%

0.26

4%

0.17

4%

0.17

4%

0.16

2%

0.15

1%

0.14

8%

0.11

2%

0.09

6%

0.07

3%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

United

King

dom

Sweden

Denmar

k

Franc

e

Hunga

ry

Nethe

rland

s

Europ

e

Finlan

d

Germ

any

Italy

Norway

Czech

Rep

ublic

Switzer

land

Portu

gal

Roman

ia

Belgium

Poland

Spain

Greec

e

Austri

a

Irelan

d

as %

of

GD

P


37

Investments - industry versus market statistics in 2008

22.5

8.8

7.1

3.4 3.11.8

13.5

9.1 9.2

2.2

5.4

2.3

0

5

10

15

20

25

United Kingdom France Germany Sweden Italy Spain

€ billion

Industry statistics (by country of private equity firm)

Market statistics (by country of portfolio company)


38

Investments by country of portfolio company (market statistics)

0 2 4 6 8 10 12 14 16 18 20 22

United Kingdom

Germany

France

Italy

Netherlands

Spain

Sw eden

Denmark

Norw ay

Sw itzerland

Finland

Belgium

Poland

Hungary

Czech Republic

Portugal

Austria

Greece

Ireland

Romania

€ billion

2007 2008

United Kingdom25.8%

Germany17.6%

France17.4%

Italy10.4%

Netherlands5.1%

Spain4.5%

Sw eden4.3%

Rest of Europe15.0%


2008

39

Investments in 2008 - regional market share(by % of amount)

Market statistics

Benelux7.0%

CEE4.6%

DACH19.8%

France17.1%Nordics

9.9%

Southern Europe15.8%

UK & Ireland25.8%

Industry statistics

Benelux4.9%

DACH15.2%

France15.5%

Nordics9.1%

Southern Europe10.0%

UK & Ireland40.0%

Non-European

3.2%

CEE2.1%


40

Geographical flows of investments in 2008

50.9 50.9

3.2 1.3

0

10

20

30

40

50

60

Industry statistics (location of private equityfirm)

Market statistics (location of portfoliocompany)

€ billion

Local PE firms investing into portfoliocompanies outside the country

Foreign PE firms investing in portfoliocompanies in the country

Domestic investments by local PE firms


41

Divestments at cost - evolution(by country of private equity firm)

8.6 9.1

12.510.7

13.6

19.6

29.8

33.1

27.1

13.9

0

5

10

15

20

25

30

35

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

in € billion

0

1000

2000

3000

4000

5000

6000

Number of exited companies

Amount at cost

Number of companies


42

Divestments at cost - evolution(by country of private equity firm)

0

5

10

15

20

25

30

35

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

€ billion

Divestment by Trade Sale

Divestment by Public Offering

Divestment by Write-Off

Repayment of Silent Partnership

Repayment of Preference Shares/Loans

Sale to Another Private Equity House

Sale to Financial Institution

Sale to Management (Buy-back)

Divestment by Other Means


43

Divestments by exit route in 2008(by country of portfolio companies)

All private equity - % of amount at cost

Other Means6.6%

Public Offering

5.4%Write-Off

5.8%

Repayment of Silent

Partnership1.0%


4.6%Sale to Financial Institution

5.2%

Sale to Another

Private Equity House27.0%

Repayment of Preference

Shares/Loans

6.2%

Trade Sale38.3%

Venture capital - % of amount at cost

Trade Sale39.4%


Shares/Loans6.8%

Sale to Another Private Equity

House10.0% Sale to

Financial Institution

2.9%


9.1%

Repayment of Silent

Partnership3.3%

Write-Off10.2%

Public Offering9.6%

Other Means8.6%


Buyout & growth - % of amount at cost

Trade Sale38.0%


Shares/Loans6.0%

Sale to Another Private Equity

House31.1%

Sale to Financial Institution

5.8%


3.5%

Repayment of Silent

Partnership0.4%

Write-Off4.7%

Public Offering4.3%

Other Means6.2%

44

Divestments at cost in 2008 - by country

5.2

2.4

1.8

1.00.9 0.9

0.4

3.5

2.52.2

1.0

0.6

1.1

0.4

0

1

2

3

4

5

6

United Kingdom France Germany Netherlands Sweden Italy Spain

€ billion

by country of private equity firm

by country of portfolio company


45

Divestments at cost in 2008 - by exit route

amount at cost as % of total private equity(by country of portfolio company)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total divestment

Divestment by other means

Sale to management (MBO)

Sale to financial institution

Sale to another private equity house

Repayment of principal loans

Repayment of silent partnerships

Divestment by write-off

Divestment by public offering

Divestment by trade sale

venture capital

buyout & growth


46

buyout & growth - % of amount (by country of portfolio company)

0% 10% 20% 30% 40%

Other means






Write-off

Public offering

Trade sale

2007 2008

Divestments at cost by exit route - by segment

venture capital - % of amount (by country of portfolio company)

0%10%20%30%40%50%

Other means






Write-off

Public offering

Trade sale

47

buyout & growth % of number of exited companies (by country of portfolio company)

0% 10% 20% 30%

Other means






Write-off

Public offering

Trade sale

2007 2008

Divestments at cost by exit route - by segment

venture capital% of number of exited companies

(by country of portfolio company)

0%5%10%15%20%25%

Other means






Write-off

Public offering

Trade sale

48

Divestments at cost in 2008 - by sector focus (by country of portfolio company)

0

500

1,000

1,500

2,000

2,500

3,000

Agricu

lture

Busin

ess a

nd in

dust

rial p

roduc

ts

Busin

ess a

nd in

dust

rial s

ervic

es

Chemica

ls and

mate

rials

Communic

ation

s

Computer

and

cons

umer

elec

tronic

s

Constru

ction

Consumer g

oods a

nd re

tail

Consumer s

ervic

es

Energ

y and

env

ironm

ent

Financia

l ser

vices

Life

scien

ces

Real esta

te

Trans

porta

tion

Unknown

€ million

0

50

100

150

200

250

300

350

400

450

Number of exited companies

Amount at cost

Number of companies


49

Divestments at cost in 2008 - by sector focus (by country of portfolio company)

amount as % of total private equity

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total divestment

Transportation

Real estate

Life sciences

Financial services


Consumer services


Construction


Communications




Agriculture

venture capital buyout & growth


50

Divestments at cost by sector focus – by segment

buyout & growth - % of amount (by country of portfolio company)

0% 5% 10% 15% 20% 25%

Unknown

Transportation

Real estate

Life sciences

Financialservices




Construction


Communications




Agriculture

2007 2008

venture capital - % of amount (by country of portfolio company)

0%5%10%15%20%25%

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

51

Divestments at cost by sector focus – by segment

buyout & growth % of number of exited companies (by country of portfolio company)

0% 5% 10% 15% 20% 25%

Unknown

Transportation

Real estate

Life sciences

Financialservices




Construction


Communications




Agriculture

2007 2008

venture capital % of number of exited companies

(by country of portfolio company)

0%5%10%15%20%25%

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

52

Geographical flows of divestments in 2008

13.3 13.3

0.6 0.2

0

2

4

6

8

10

12

14

16

Divestment by location of private equityfirm

Divestment by location of portfoliocompany

€ billion

Local PE firms divesting portfolio companieslocated outside the country

Foreign PE firms divesting portfoliocompanies in the country

Domestic divestments by local PE firms


2008 Pan-European Private Equity & Venture Capital Activity EVCA, The Voice of European Private...

Documents

Transcript of 2008 Pan-European Private Equity & Venture Capital Activity EVCA, The Voice of European Private...