2014/2015 Perspectives on European private equity 15 January 2015

Dörte Höppner, Chief Executive, European Private Equity and Venture Capital Association

Neujahrsempfang 2015

Members

700 Affiliates

500

About the EVCA

Team of 25 based in

Brussels • Public Affairs

• Communications

• Research

• Events

• Support/Membership

Founded at instigation of EU

1983 Members cover

• The full range of private equity

activities from early-stage

venture capital to the largest

private equity firms

• Investors such as:

– Pension funds

– Insurance companies

– Fund-of-funds

– Family offices

– Associated professions

Voice of European private equity

industry for GPs and LPs

We create a more favourable

environment for equity

investments & entrepreneurship

Close collaboration with national

private equity and venture capital

associations

2

Source: EVCA / PEREP_Analytics

Fundraising geographic breakdown — All PE

3

2013 (2012) — % of total amount

€54bn raised in 2013

compared to €25bn

in 2012

56% of funds raised from

outside Europe 9.9% (9.3%)

14.1% (20.8%)

0.2% (0.2%)

Rest of world

5.3% (0.6%)

Australia

Asia

14.3% (13.3%)

North America

36.2% (24.3%)

Unclassified Europe

8.1%

(10.5%)

5.5% (9.3%)

1.5% (2.9%)

5.0% (8.8%)

€24bn raised in Q1 – Q3 2014

4

Investor type — All PE

2009-2013 — Europe and Germany

Fund of funds & Other asset

managers 18%

Family offices & Private individuals

12%

Banks 10%

Sovereign wealth funds

9%

Government agencies

9%

Insurance companies

9%

Academic inst./ Endowments/ Foundations

3%

Corporate investors

3%

Capital markets

2%

Pension funds 25%

Fund of funds & Other asset

managers 22%

Family offices & Private individuals

21%

Banks 17%

Sovereign wealth funds

0%

Government agencies

13%

Insurance companies

8%

Academic inst./ Endowments/ Foundations

3%

Corporate investors

7%

Capital markets

0% Pension funds

9%

Europe Germany

5

Europe Investments — All PE

2007 – Q3 2014 - Market statistics - Amount & Number of companies

€ Billion

Number of

companies financed

Amount – Venture Capital Amount – Buyout Amount – Growth Amount – Other

No. of companies – Venture Capital No. of companies – Buyout No. of companies – Growth

6.0 6.3 3.8 3.7 3.7 3.2 3.4 2.1

57.2

38.4

12.7

29.7

34.5

28.1 27.7

20.4

4.3

6.7

5.1

6.3

5.2

4.0 3.6

3.7

69.8

53.4

24.3

41.9 44.9

36.8 35.7

26.8 1,299 1,161

615 783 881 896

812

598

348

593 775

994 932 1,066 1,131

717

3,339

3,667

3,155 3,039

2,965 2,981 3,034

1,945

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

0

10

20

30

40

50

60

70

2007 2008 2009 2010 2011 2012 2013 Q1-Q3 2014(preliminary)

6

Germany Investments — All PE

2007 – Q4 2014 - Market statistics - Amount & Number of companies

€ Billion

Number of

companies financed

Amount – Venture Capital Amount – Buyout Amount – Growth Amount – Other

No. of companies – Venture Capital No. of companies – Buyout No. of companies – Growth

0.8 1.1 0.7 0.7 0.7 0.6 0.7 0.4

9.3

7.4

1.7

3.2

5.1 5.3

3.8 3.8

0.2

0.8

0.5

0.7

0.6 0.7

0.3 0.6

10.4

9.6

3.0

4.9

6.7 6.6

4.9 4.8

172 172

88 108 117 116 94 77 48 98

143 240

255

374

463

340

864

1,044

929 966

884

780 738

518

0

200

400

600

800

1,000

1,200

0

2

4

6

8

10

12

2007 2008 2009 2010 2011 2012 2013 Q1-Q3 2014(preliminary)

7

Investments as % of GDP— All PE

2013 - Market statistics

% of GDP 0.7

39%

0.5

04%

0.4

30%

0.4

09%

0.3

93%

0.3

41%

0.3

13%

0.2

70%

0.2

53%

0.1

94%

0.1

94%

0.1

92%

0.1

80%

0.1

73%

0.1

54%

0.1

03%

0.0

99%

0.0

98%

0.0

90%

0.0

71%

0.0

58%

0.0

49%

0.0

28%

0.0

24%

0.0

14%

0.0

03%

0.000%

0.200%

0.400%

0.600%

0.800%

1.000%

1.200%

1.400%

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Private equity (incl. venture capital) is a mature fully regulated asset class

8

For more information visit

www.evca.eu/policy/key-topics/

Regulation impacting

both fund managers

and their investors

European Union:

Changes across the three institutions

9

European

Council

European

Commission

European

Parliament

EU 2014

“

Putting Europe back on growth track

We are launching an

investment offensive. A

major new initiative to get

Europe growing again and

get people back to work.

10

“ The €315 billion of total

expected investment is not

a ceiling. If we are

successful, as I believe we

will be, we can even go

beyond this.

“ Europe can offer hope both

to its future generations

and to the rest of the

world, as a promising,

attractive hub for jobs,

growth and investment. Jean-Claude Juncker, President of the European Commission

Investment Plan for Europe

Information based on European Commission website : http://ec.europa.eu/about/juncker-commission/structure/index_en.htm

PRESIDENT JEAN-CLAUDE JUNCKER

Luxembourg, EPP

FIRST VICE-PRESIDENT

Frans Timmermans Better Regulation, Inter-Institutional

Relations, the Rule of Law and the

Charter of Fundamental Rights

The Netherlands, S&D

HIGH REPRESENTATIVE

Federica Mogherini High Representative of the Union for

Foreign Affairs and Security Policy /

Vice-President

Italy, S&D

VICE-PRESIDENT

Kristalina Georgieva Budget & Human Resources

Bulgaria, EPP

VICE-PRESIDENT

Andrus Ansip Digital Single Market

Estonia, ALDE

11

COMMISSIONER

Johannes Hahn European Neighbourhood Policy

& Enlargement Negotiations

Austria, EPP

COMMISSIONER

Neven Mimica International Cooperation

& Development

Croatia, S&D

VICE-PRESIDENT

Maroš Šefcovic Energy Union

Slovakia, S&D

VICE-PRESIDENT

Jyrki Katainen Jobs, Growth, Investment

& Competitiveness

Finland, EPP

VICE-PRESIDENT

Valdis Dombrovskis Euro & Social Dialogue

Latvia, EPP

COMMISSIONER

Dimitris Avramopoulos Migration & Home Affairs

Greece, EPP

COMMISSIONER

Vera Jourová Justice, Consumers

and Gender Equality

Czech Republic, ALDE

COMMISSIONER

Vytenis Andriukaitis Health & Food Safety

Lithuania, S&D

COMMISSIONER

Margrethe Vestager Competition

Denmark, ALDE

COMMISSIONER

Tibor Navracsics Education, Culture, Youth and

Citizenship

Hungary, EPP

COMMISSIONER

Günther Oettinger Digital Economy & Society

Germany, EPP

COMMISSIONER

Jonathan Hill Financial Stability, Financial Services

and Capital Markets Union

United Kingdom, ECR

COMMISSIONER

Violeta Bulc Transport

Slovenia, ALDE

COMMISSIONER

Carlos Moedas Research, Science and Innovation

Portugal, EPP

COMMISSIONER

Pierre Moscovici Economic and Financial Affairs,

Taxation and Customs

France, S&D

COMMISSIONER

Elżbieta Bieńkowska Internal Market, Industry,

Entrepreneurship and SMEs

Poland, EPP

COMMISSIONER

Cecilia Malmström Trade

Sweden, ALDE

COMMISSIONER

Phil Hogan Agriculture & Rural Development

Ireland, EPP

COMMISSIONER

Marianne Thyssen Employment, Social Affairs,

Skills and Labour Mobility

Belgium, EPP

COMMISSIONER

Miguel Arias Cañete Climate Action & Energy

Spain, EPP

COMMISSIONER

Karmenu Vella Environment, Maritime Affairs

and Fisheries

Malta, S&D

COMMISSIONER

Christos Stylianides Humanitarian Aid & Crisis

Management

Cyprus, EPP

COMMISSIONER

Corina Creţu Regional Policy

Romania, S&D

European Commission: New leadership

Activity Data in a European Context IPO activity soars

Capital Markets Union

12

EVCA European Private Equity and Venture Capital Association

Bastion Tower

Place du Champ de Mars 5

B – 1050 Brussels – Belgium

www.evca.eu

Tel: +32 2 715 00 20

Dörte Höppner

dh@evca.eu