Performance of EBRD Private Equity Funds Portfolio to 31st … · 2013-03-19 · EBRD in Private...
Transcript of Performance of EBRD Private Equity Funds Portfolio to 31st … · 2013-03-19 · EBRD in Private...
Performance of EBRD Private Equity
Funds Portfolio to 31st December 2011
Portfolio Overview
EBRD in Private Equity
EBRD’s portfolio of funds: 20 years of investing in the asset class
• 137 funds
• 92 fund managers*
• EUR 3.0 billion in commitments (USD 3.7 billion) to funds
with capital of EUR 15.0 billion (USD 19.0 billion)
• 1,199 underlying investments, up to 70% exited.
Largest PE Fund investment program dedicated to the region
• Current portfolio of 85 active funds managed by 62** fund
managers for EUR 2.3 billion in commitments (with funds
capital of EUR 13.0 billion).
* Excludes 14 managed donor funds, ** Excludes 6 managed donor funds
Note: EBRD tracked portfolio only, to end 2011, excludes real estate funds, excludes 3 funds signed but not yet disbursed
Note: The number of underlying investments exclude regional investments, and opt-outs
© EBRD 2013, all rights reserved 3
EBRD Commitments by Vintage
© EBRD 2013, all rights reserved 4
Note: Vintages prior to 2011 refer to signing year whereas 2011 vintage refers to year of first disbursement.
Note: The 2010 vintage shows one less fund than it did in the 2010 presentation – this relates to a backdated reallocation.
Note: Volumes are based on EBRD commitments at latest fund closing.
2
4
11
12
6
11 11
7
6
4 4 4 4
5
9
13
5
6
8
5
0
2
4
6
8
10
12
14
0
50
100
150
200
250
300
350
400
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Nu
mb
er
of
Fu
nd
s
EU
R M
illio
n
Vintage Year
CEE Russia/CIS SEE Number of Funds
Fund Raising vs. Investment
© EBRD 2013, all rights reserved 5
Note: Vintages prior to 2011 refer signing date whereas post 2011 vintages refer to date of first disbursement. By signing date the 2011 total is approximately €300m
30%
23%
34%
59%
74%
28% 24%
22%
27%
20%
35%
29%
14% 14% 14% 13%
11%
20%
26% 28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
500
1,000
1,500
2,000
2,500
3,000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
% o
f T
ota
l F
un
d C
ap
ital
EU
R M
illio
n
Vintage Year
Fund Capital Gross Investment Cost EBRD Share of Fund Capital
Gross Commitment by Fund Strategy
Other include: Distressed/Turnaround funds, funds of funds, mezzanine and infrastructure funds
© EBRD 2013, all rights reserved 6
9
112
12
7
1
10
100
1000
0
2,000
4,000
6,000
8,000
10,000
12,000
Buyout Growth /Expansion
Other Seed / Start-up
Co
mm
itm
en
ts (
EU
R M
illi
on
)
Fund Size EBRD Commitment Number of Funds
8
73
9
5
1
10
100
0
1,000
2,000
3,000
4,000
5,000
6,000
Buyout Growth /Expansion
Other Seed / Start-up
Co
mm
itm
en
ts (
EU
R M
illi
on
)
CSE Region
1
39
3
2
1
10
100
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Buyout Growth /Expansion
Other Seed / Start-up
Co
mm
itm
en
ts (
EU
R M
illi
on
)
Russia/CIS Region
EBRD Portfolio
EBRD Commitment by Fund Size
© EBRD 2013, all rights reserved 7
EBRD Portfolio CSE Region
Russia/CIS Region
22
43
45
17
9
4
0
5
10
15
20
25
30
35
40
45
50
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
0-20 20-50 50-150 150-300 300-500 500+
Co
mm
itm
en
ts (
EU
R M
illio
n)
Fund Size (EUR Million)
Total Fund Capital EBRD Capital Number of Funds
17
26
32
11
6 3
0
5
10
15
20
25
30
35
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0-20 20-50 50-150 150-300 300-500 500+
Co
mm
itm
en
ts (
EU
R M
illio
ns)
EUR Million
5
17
13
6
3
1
0
2
4
6
8
10
12
14
16
18
0
200
400
600
800
1,000
1,200
1,400
1,600
0-20 20-50 50-150 150-300 300-500 500+
Co
mm
itm
en
ts (
EU
R M
illio
ns)
EUR Million
Fund Investment and Exit Activity by Year
© EBRD 2013, all rights reserved 8
EBRD Portfolio CSE Region
Russia/CIS Region
0
20
40
60
80
100
120
140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Nu
mb
er
of
Tra
nsacti
on
s
Investments Exits (excl. WOs) Write-Offs
0
10
20
30
40
50
60
70
80
90
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Nu
mb
er
of
Tra
nsacti
on
s
0
5
10
15
20
25
30
35
40
45
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Nu
mb
er
of
Tra
ns
acti
on
s
0
1
2
3
4
5
6
7
8
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
Years
0
1
2
3
4
5
6
7
8
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
Years
0
1
2
3
4
5
6
7
8
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
Years
Holding Period by Investment Vintage
Note: EBRD tracked portfolio only as of end 2011
Note: Vintages have been limited to 2007 to provide meaningful data
Average Holding Period: 5.3 yrs Average Holding Period: 5.2 yrs Average Holding Period: 5.6 yrs
© EBRD 2013, all rights reserved 9
EBRD Portfolio CSE Region Russia/CIS Region
EBRD
Returns
© EBRD 2013, all rights reserved 10
EBRD Net Horizon Returns: All Funds
Source: Cambridge Associates, EVCA/Thomson Reuters, Bloomberg and EBRD
* EBRD tracked portfolio pooled end-to-end return, net of fees, expenses, donor grants and carried interest. Excludes property funds, and includes liquidated partnerships.
** Pooled end-to-end return, net of fees, expenses, and carried interest. “The "Since Inception" figure represents the net pooled IRR since inception for funds formed between
1980 and 2011. Includes Russia. Inception is consistent with 31.12.1992
© EBRD 2013, all rights reserved 11
Returns as at
December 31 2011
Three
Years
Five
Years
Ten
Years
Fifteen
Years
Since
Inception**
EBRD Private Equity Portfolio* ($) 7.22% 6.32% 20.92% 11.87% 11.77%
Cambridge Global Emerging Markets PE & VC
Index 18.50% 10.12% 11.23% 7.96% N/A
Cambridge Emerging Asia PE & VC Index 21.29% 11.42% 11.38% 8.39%
N/A
MSCI Asia Index 19.87% 2.87% 12.49% 3.04%
N/A
EBRD Private Equity Portfolio* (€) 10.21% 7.23% 14.04% 10.17% 10.05%
EVCA, All Private Equity (€) 7.50% 1.55% 5.62% N/A 9.23%
EBRD Net Horizon IRRs by Region
Returns as at
December 31 2011
Three
Years
Five
Years
Ten
Years
Since
Inception**
USD EBRD Private Equity
Portfolio - All 7.22% 6.32% 20.92% 11.77%
CSE -3.74% 1.48% 15.14% 8.85%
Russia/CIS 23.54% 11.7% 26.99% 14.98%
CSE/Survivors* -1.01% 3.99% 16.75% 11.99%
Russia/CIS Survivors* 24.34% 11.98% 26.89% 20.16%
EUR EBRD Private Equity
Portfolio - All 10.21% 7.23% 14.04% 10.05%
CSE -1.11% 2.58% 9.69% 7.77%
Russia/CIS 27.17% 12.35% 18.62% 12.50%
CSE Survivors* 1.44% 4.67% 11.18% 10.69%
Russia/CIS Survivors* 27.90% 12.69% 20.48% 17.59%
*Note: See “Definitions” page
**Inception differs over criteria and region
© EBRD 2013, all rights reserved 12
Net Returns by Vintage
© EBRD 2013, all rights reserved 13
Note: TVPI is defined as the ratio of Total Value (fair value plus distributions) to Paid-In Capital
Note: DPI is defined as the ratio of Distributions to Paid-In Capital
Note: Data to 2010
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Mu
ltip
les
EUR TVPI EUR DPI
4,367 5,247
475
1,459 3,056
6,542
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Investment CostEUR 7,899m
Investment ValueEUR 13,248m
EU
R M
illi
on
Fully Realised
Partially Realised
Unrealised
4,531 5,255
817
2,610
3,466
7,105
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Investment CostEUR 8,814m
Investment ValueEUR 14,970m
EU
R M
illi
on
Fully Realised
Partially Realised
Unrealised
Gross Snapshot
Note: EBRD tracked portfolio only; Data as of end 2011
FR 2.17x
20.17%
PR 3.07x
26.45%
UR 1.20x
6.68%
© EBRD 2013, all rights reserved 14
All 1.70x
17.73%
FR 2.05x
19.65%
PR 3.20x
25.55%
UR 1.16x
5.19%
2011 2010
FR 1.72x
17.83%
Evolution of Returns
Note: Number of Investees reflect unrealised investments including partially realised; EBRD tracked portfolio only.
© EBRD 2013, all rights reserved 15
309 Investees
81 Funds
312 Investees
84 Funds
331 Investees
88 Funds
353 Investees
90 Funds
5.95%
7.67%
11.51%
12.47%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2008 2009 2010 2011
EU
R M
illi
on
Carrying Value Gross IRR of Investees in Active Funds Portfolio
Portfolio Breakdown
© EBRD 2013, all rights reserved 16
Gross Investments by Country by Investment
Cost
Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and
Herzegovina and Kosovo, Slovak Republic
Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine
Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan
Baltic countries include: Latvia, Lithuania and Estonia
© EBRD 2013, all rights reserved 17
Russian Federation
32.8%
Poland 21.3%
Romania 8.5%
Czech Republic 7.0%
Hungary 6.0%
Bulgaria 5.1%
Others 7.0%
Baltics 4.5%
Western CIS & Caucasus
4.5%
Central Asia 3.4%
Since Inception to End 2011
Russian Federation
24.6%
Poland 24.5%
Hungary 12.6%
Czech Republic 11.8%
Ukraine 9.2%
Turkey 5.2%
Romania 2.5%
Latvia 2.2%
Croatia 2.1%
Lithuania 1.7%
Bulgaria 1.4%
Slovenia 0.9%
Azerbaijan 0.6%
Kazakhstan 0.5%
2011
Russian Federation
48.8%
Turkey 11.7%
Romania 11.5%
Ukraine 11.2%
Poland 8.6%
Czech Republic 3.9%
Croatia 2.6%
Estonia 1.3%
Hungary 0.5%
2010
Note: EBRD tracked portfolio only as of end 2011
Gross Investments by Country by Investment
Value
© EBRD 2013, all rights reserved 18
Russian Federation
38.4%
Poland 19.6%
Czech Republic 8.5%
Romania 8.4%
Hungary 4.7%
Bulgaria 3.8%
Others 4.7%
Baltics 2.5%
Western CIS & Caucasus
3.5% Central
Asia 5.9%
Since Inception to End 2011
Russian Federation
33.8%
Poland 22.1%
Hungary 10.2%
Western CIS & Caucasus
9.4%
Czech Republic 8.1%
Others 7.8%
Baltics 3.9%
Romania 2.3%
Bulgaria 1.8%
Central Asia 0.6%
2011
Russian Federation
59.1%
Turkey 10.9%
Ukraine 9.2%
Poland 6.9%
Romania 6.0%
Czech Republic 3.5%
Croatia 2.9% Estonia
0.9% Hungary
0.7%
2010
Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and
Herzegovina and Kosovo
Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine
Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan
Baltic countries include: Latvia, Lithuania and Estonia
Note: EBRD tracked portfolio only as of end 2011
Gross Investments by Sector by Investment
Cost
© EBRD 2013, all rights reserved 19
Services 28.2%
TIM 25.8%
Wholesale & Retail 9.2%
Consumer 8.8%
Pharma & Medical
8.1%
Primary & Energy 6.3%
Construction 6.0%
Manufacturing 5.6%
Agriculture & Forestry
2.2%
Since Inception to End 2011
Services 37.2%
Consumer 17.6% Pharma &
Medical 14.8%
Wholesale & Retail 10.3%
Primary & Energy 10.0%
TIM 6.5%
Construction 2.8% Manufacturing
0.8%
2011
Services 44.6%
Pharma & Medical 15.8%
Agriculture & Forestry
13.9%
TIM 12.5%
Manufacturing 5.6%
Construction 2.1%
Primary & Energy 2.0%
Wholesale & Retail 1.8%
Consumer 1.7%
2010
Note: EBRD tracked portfolio only as of end 2011
Gross Investments by Sector by Investment
Value
© EBRD 2013, all rights reserved 20
TIM 36.7%
Services 25.8%
Consumer 7.8%
Primary & Energy 7.5%
Pharma & Medical
6.1%
Wholesale & Retail 5.7%
Manufacturing 5.1%
Construction 3.8%
Agriculture & Forestry
1.5%
Since Inception to End 2011
Services 37.2%
Consumer 16.8% Pharma &
Medical 15.0%
Wholesale & Retail 11.4%
Primary & Energy 8.4%
TIM 7.3%
Construction 2.9% Manufacturing
0.9%
2011
Services 48.1%
Agriculture & Forestry
13.6%
TIM 12.8%
Pharma & Medical 12.1%
Manufacturing 6.0%
Construction 2.9%
Primary & Energy 1.9%
Consumer 1.9%
Wholesale & Retail 0.6%
2010
Note: EBRD tracked portfolio only as of end 2011
Fund Strategy Evolution (by Investment Cost)
Note: EBRD tracked portfolio only; Data as of end 2011.
Note: As measured by investment cost
© EBRD 2013, all rights reserved 21
0
100
200
300
400
500
600
700
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EUR
Mill
ion
Expansion Other Buyout Seed
Note: EBRD tracked portfolio only; Data as of end 2011.
Note: As measured by Exit Proceeds
© EBRD 2013, all rights reserved 22
Fund Strategy Evolution (by Exit Proceeds)
0
100
200
300
400
500
600
700
800
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EUR
Mill
ion
Expansion Other Buyout Seed
LP Data
© EBRD 2013, all rights reserved 23
Investor by Type – Trend
© EBRD 2013, all rights reserved 24
12% 13%
2%
15% 17%
17%
7%
10%
2%
41% 24%
55%
9%
18%
13%
16% 18% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1992-2000 2001-2008 2009-2011
Vintage Year
Fund of Funds
Other
IFIs &GovernmentAgencies
CorporateInvestor
Banks &Insurance
Pension Fund
Evolution of IFI Contributions
0%
10%
20%
30%
40%
50%
60%
70%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
IFI &
GA
Fu
nd
rais
ing
Co
ntr
ibu
tio
n
Vintage Year
IFI & Ga per year 7 year rolling average
© EBRD 2013, all rights reserved 25
Note: EBRD tracked portfolio, excludes donor funds
* International Financial Organisation & Government Agency
*
Investors by Origin by Vintage Year
Note: EBRD tracked portfolio
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Co
mm
itm
en
t EU
R M
illio
ns
Vintage Year
EBRD USA Other Europe
© EBRD 2013, all rights reserved 26
General Information
© EBRD 2013, all rights reserved 27
2011 PE Investment as a % of GDP
*Baltic Countries include: Estonia, Latvia, Lithuania
**Other CEE Countries include: Croatia, Slovak Republic, Slovenia
Source: EVCA/PEREP Analytics, RVCA and EBRD Estimates
© EBRD 2013, all rights reserved 28
0.8
8%
0.6
8%
0.5
9%
0.4
8%
0.4
8%
0.4
4%
0.3
5%
0.3
3%
0.2
7%
0.2
7%
0.2
6%
0.2
5%
0.2
4%
0.2
2%
0.1
9%
0.1
9%
0.1
9%
0.1
5%
0.1
4%
0.1
1%
0.0
9%
0.0
6%
0.0
5%
0.0
3%
0.0
2%
0.0
1%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
1.00%
EBRD Database
• Best available sample of PE performance in central and south eastern Europe (CSE), Russia and CIS
• Tracks all “gross” investments made by a basket of EBRD invested funds as well as “net” returns to EBRD (“tracked portfolio”)
• Measured in both EUR and USD
• Obligatory reporting by fund managers, analysed by EBRD
• reflects comprehensive performance
• No “survivor bias” resulting from only best fund managers reporting
© EBRD 2013, all rights reserved 29
Definitions
EBRD Sponsored Funds – funds established at EBRD's
initiative in countries where no private sector funding was available for
private equity funds. These funds are supported with significant donor
grants, and EBRD investment represents usually over 90% of fund capital.
Institutional Quality Funds (IQs) – identified based on
criteria established by Cambridge Associates. These include the
characteristics of the investors in the fund, fund size relative to peers, and
availability of data.
Survivor Funds – funds managed by managers who have raised
or are expected to raise follow-on funds.
© EBRD 2013, all rights reserved 30
EBRD Region
• CSE Countries – Albania, Bosnia & Herzegovina, Bulgaria,
Croatia, Estonia, FYR Macedonia, Hungary, Latvia, Lithuania, Kosovo,
Poland, Montenegro, Romania, Slovak Republic, Serbia, Slovenia,
Turkey.
• SEE Countries – Albania, Bosnia & Herzegovina, Bulgaria, FYR
Macedonia, Montenegro, Romania, Serbia
• CEE Countries – Croatia, Hungary, Poland, Slovak Republic,
Slovenia, Czech Republic*
• Baltic States – Latvia, Lithuania, Estonia
• CIS Countries – Armenia**, Azerbaijan, Belarus**, Georgia,
Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation,
Tajikistan**, Turkmenistan, Uzbekistan**, Ukraine and Mongolia.
* Czech Republic ceased to be a country of operation in 2007 but some funds remain exposed to investees in the country.
**There are no fund sub-investments in these countries as of end 2011.
© EBRD 2013, all rights reserved 31
Copyright 2013 EBRD. All rights reserved
This material is for the recipient’s private information. No part of this
document may be reproduced or transmitted in any form or by any
means, including photocopying and recording, without the written
permission of the Bank. Such written permission must also be
obtained before any part of this publication is stored in a retrieval
system of any nature. While the information contained herein was
compiled by the EBRD, we do not guarantee its accuracy or
completeness. We accept no liability in relation to the use of this
information. Copyright 2013 European Bank for Reconstruction and
Development. All rights reserved.
© EBRD 2013, all rights reserved 32