Welcome to the latest edition
of Private Equity Spotlight, the
monthly newsletter from Preqin
providing insights into private equity
performance, investors, deals and
fundraising. Private Equity Spotlight
combines information from our online
products Performance Analyst,
Investor Intelligence, Fund Manager
Profiles, Funds in Market, Secondary
Market Monitor, Buyout Deals Analyst
and Venture Deals Analyst.
May 2015
Volume 11 - Issue 4
Private Equity Spotlight
May 2015
Feature Article
Sovereign Wealth Funds and Their Investments in Private Equity
In conjunction with the publication of Preqin’s seventh Sovereign Wealth Fund Review, this
month’s Spotlight turns to the community of sovereign wealth fund investors and looks at
their level of activity within the private equity space.
Page 3
FEATURED PUBLICATION:
Lead Article
The 2015 Preqin Sovereign
Wealth Fund Review
The 2015
Preqin Sovereign Wealth Fund Review
Buyout Holding Periods
The average time taken to exit private equity-backed buyout investments has increased
year-on-year since 2008. We conduct an in-depth analysis of buyout holding periods.
Page 7
Preqin Industry News
In association with:
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To find out more, download
sample pages or to purchase your
copy, please visit:
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As the average size of early stage funding (including angel/seed/series A financings)
continues to climb, we take a look at the latest news stories for deals and funds focused on
early stage venture capital.
Page 11
The Facts
Buyout Fundraising - Analysis of current fundraising statistics. Page 13
New York:
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New York, NY 10165
+1 212 350 0100
Investor Fund Searches and Mandates - Investors’ latest fund searches. Page 15
Latin American Venture Capital Deals - Latest statistics for this growing space. Page 17
Secondaries Investing in Venture Capital - Investigating buyers’ appetite. Page 19
London:
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San Francisco:
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Early Stage Venture Capital Performance - Latest data for index comparisons. Page 20
Conferences - Upcoming private equity conferences around the world. Page 22
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The 7th Annual SuperReturn Emerging Markets 2015
The Leading Emerging Markets Private Equity & Venture Capital Conference
29 June – 2 July 2015, Hotel Okura, Amsterdam
15% Reader Offer
Dear Spotlight reader,
Meet 300 international private equity attendees, including 120+ LPs in Amsterdam 29 June – 2 July 2015.
Hear from 100 speakers including:
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Courtney Villalta, Teacher Retirement System of Texas
Hemal Naran, Government Employees Pension Fund (GEPF)
Ruulke Bagijn, PGGM
Tim Dattels, TPG Capital
Anouk van der Boor, Cambridge Associates
Nick O’Neil, Macquarie Infrastructure & Real Assets (MIRA)
Neil W. Harper, Morgan Stanley Alternative Investment Partners
See the attendee list and schedule meetings 2 weeks beforehand plus attend several social and networking
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Mark O’Hare
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Feature Article
Download Data
Sovereign Wealth Funds and Their Investments in Private Equity
Sovereign Wealth Funds and Their
Investments in Private Equity
In conjunction with the publication of Preqin’s seventh Sovereign Wealth Fund Review, this month’s Spotlight turns to
the community of sovereign wealth fund investors and looks at their level of activity within the private equity space.
3.95
3.59
3
3.07
3.22
Hydrocarbon
Total Assets under
Management
2
1
Mar-15
Dec-13
Dec-12
Dec-11
Dec-10
Dec-09
Dec-08
0
Source: 2015 Preqin Sovereign Wealth Fund Review
70%
60%
51%
47%
50%
60%
59%
57%
54%
40%
2013
2014
33%
31%
30%
24%
20%
10%
N/A
0%
Private Debt*
Non-Commodity
86% 86%
81%
Hedge Funds
4
82%
Infrastructure
Other Commodity
4.62
80%
Real Estate
5.38
5
90%
Private Equity
6
100%
Fixed Income
6.31
Public Equities
Aggregate SWF Assets under
Management ($tn)
7
Fig. 2: Proportion of Sovereign Wealth Funds Investing in
Each Asset Class, 2013 vs. 2014
Proportion of Sovereign Wealth Funds
Fig. 1: Aggregate Sovereign Wealth Fund Assets under
Management ($tn), 2008 - 2015
Source: 2015 Preqin Sovereign Wealth Fund Review
*Please note: Preqin has only been collecting private debt information on sovereign
wealth funds since 2014.
Sovereign wealth funds, despite being small in number and secretive
in nature, continue to capture attention as a result of their ever
growing assets under management and corresponding influence on
global financial markets. Today, the total assets of sovereign wealth
funds top $6.31tn (Fig. 1), more than double the capital these entities
represented in 2008, the year Preqin launched its first Sovereign
Wealth Fund Review.
Since the previous Preqin Sovereign Wealth Fund Review, launched
in October 2013, these institutions have grown by over $900bn
despite commodity and oil prices, the source of funding for many
of the largest sovereign wealth funds, falling over 2014. Instead,
the growth in assets of sovereign wealth funds has been driven by
continued funding from governments and reserves as well as from
investment returns generated by these investors in their continued
hunt for long-term yield in a low interest rate environment.
In previous years, growth in the sector has been partially driven by
the creation of new sovereign wealth funds; however, in 2014 just
a single new sovereign wealth fund was formed. Ireland Strategic
Investment Fund (ISIF) was created in 2014 with the mandate to
invest its resources in areas that will support economic activity and
employment in Ireland. However, future sovereign wealth funds
continue to be planned. The Government of Hong Kong has been
recommended by a working group within the region to allocate up to
a third of its annual budget surpluses into a proposed ‘Hong Kong
Future Fund’, in order to meet the growing expenses resulting from
an ageing population.
Despite Fall in Oil Prices, Most Sovereign Wealth Funds Grow
over 2014
Twenty-nine percent of sovereign wealth funds have seen their
assets fall in size since 2013; of those that have lost assets over this
time, half derived their capital from hydrocarbons. Falling oil prices
over the second half of 2014 have led to significant withdrawals from
some sovereign wealth funds by governments highly funded by such
assets in order to provide stabilization or prevent recession, and also
to fill funding gaps.
For example, the combined assets of Russia’s National Wealth
Fund (NWF) and Reserve Fund have declined by over $20bn since
2013. The effect of falling oil prices, as well as the impact of events
such as the Ukraine conflict, have caused the Russian economy to
shrink, leading to growing deficits in the country and the withdrawal
of international funding for projects either as a result of uncertainty
in the region or as a result of international sanctions. Russia has
withdrawn capital from its sovereign wealth funds to cover deficits
and to stimulate the economy through capitalizing banks in order
to provide funding for infrastructure investments and lending. Other
governments, such as that of Ghana and its Stabilization Fund, have
indicated they will also be raiding sovereign wealth funds in order to
cover shortfalls in oil revenue.
However, despite the negative impact of oil prices on some
sovereign wealth funds’ assets, since October 2013, 59% of
sovereign wealth funds tracked by Preqin have accumulated more
assets under management. One of these sovereign wealth funds is
Norway’s Government Pension Fund Global (GPFG), which grew
To find out more and to order your copy, please visit: www.preqin.com/swf
3
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
Feature Article
Download Data
Sovereign Wealth Funds and Their Investments in Private Equity
Fig. 3: Five Largest Sovereign Wealth Funds Investing in Private Equity by Total Assets under Management
Fund Name
Location
Total Assets ($mn)
MENA
773,000
China Investment Corporation
Asia
650,000
State Administration of Foreign Exchange
Asia
567,900
Abu Dhabi Investment Authority
Kuwait Investment Authority
Hong Kong Monetary Authority
MENA
548,000
Asia
414,661
Source: 2015 Preqin Sovereign Wealth Fund Review
by almost $43bn over this period. However, this is a relatively small
increase in its total assets compared to the previous year, when it
added nearly $180bn in assets under management. The fund was
established to safeguard Norway’s assets from oil production for
future generations, rather than to provide short-term stabilization for
Norway’s economy. Therefore, even though inflows have slowed,
and falling oil prices may continue to impact short-term distributions
to the fund, it currently looks set to remain a long-term investor in
its pursuit to meet the Norwegian Government’s objectives. As the
fund’s vast assets under management make it an influential market
participant on a global scale, many will be paying close attention to
the fortunes of the sovereign wealth fund and the impact of oil prices
on this most influential investor.
the $31bn Texas Permanent School Fund State Board of Education
(SBOE), which has its private equity investments managed in four
limited partnerships, each with an external investment manager.
A number of sovereign wealth funds choose to invest in private
companies directly and therefore avoid fees charged by fund
managers. Direct investment in companies allows for greater
operational control over portfolio companies, which is especially
attractive if the sovereign wealth fund has broader social and
economic goals in a particular area. RAK Investment Authority,
for example, has a preference for direct investment in domestic
companies and has previously entered into joint ventures in order
to form partnerships that are of benefit to the local economy of Ras
Al Khaimah.
Alternative Investments
100%
100%
88%
90%
80%
72%
70%
57%
60%
50%
40%
32%
30%
20%
13%
10%
$250bn or
More
$100-249bn
0%
$50-99bn
Different sovereign wealth funds approach their investments in
different ways. Emirates Investment Authority (EIA), for example,
invests in private equity through direct and fund investments; the
sovereign wealth fund considers investments in vehicles that focus
on a diverse range of industries across the MENA region, but it will
also consider investing globally. Other sovereign wealth funds access
the asset class via separate account mandates. This is the case with
Fig. 4: Proportion of Sovereign Wealth Funds Investing in
Private Equity by Total Assets under Management
$10-49bn
Preqin’s analysis shows that almost half (47%) of all sovereign wealth
funds invested in private equity in 2014. The long-term investment
approach and vast pools of capital available to sovereign wealth
funds often make them suitable investors in the private equity asset
class. The highly illiquid and relatively risky nature of private equity,
though unmanageable for many other institutions, is far less of a
concern for sovereign wealth funds, which do not need to consider
short-term obligations.
The five largest sovereign wealth funds that invest in private equity
have combined assets under management of almost $3tn; three of
these are based in Asia and two in the MENA region. The largest
sovereign wealth fund that invests in the asset class is Abu Dhabi
Investment Authority (ADIA), which manages total assets of $773bn
$1-9.9bn
Suitability to Private Equity
Sovereign Wealth Funds Investing in Private Equity by Total
Assets under Management
Less than
$1bn
Traditional investments, such as equities and fixed income securities,
are widely used by sovereign wealth funds and are a relatively stable
part of the portfolios of these investors (Fig. 2). Alternative assets
have emerged as an increasingly important portion of the portfolios
of many sovereign wealth fund investors over recent years, as these
investors seek to diversify their portfolios and acquire assets that
can generate yield and help them meet their long-term objectives.
Conversely, there are a notable proportion of sovereign wealth funds
that are not as compatible to the private equity asset class; 42%
of sovereign wealth funds are known not to include private equity
as part of their investment strategy. Funds with their own liquidity
concerns and anticipation of economic stress often favour more
liquid assets such as public equities and fixed income instruments,
as exemplified in the investment strategy of Fundo Soberano do
Brasil (FSB).
Proportion of SWF Investors in
Private Equity
The nature of sovereign wealth funds, with their longer term
investment horizons and, in general, lack of short-term liabilities,
allows them to take not only significant stakes in the funds and
securities in which they invest, but also to maintain investments for
longer periods of time. Sovereign wealth funds’ capital allocations
both directly to securities or assets, as well as to funds, can be
characterized as among the “stickiest” of all institutional investors’
allocations as they seek returns over long periods and have less
need to disinvest in times of crisis or turmoil.
Total Assets under Management
Source: 2015 Preqin Sovereign Wealth Fund Review
To find out more and to order your copy, please visit: www.preqin.com/swf
4
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
Feature Article
Download Data
Sovereign Wealth Funds and Their Investments in Private Equity
and has a target allocation to private equity of approximately 8.0%.
The largest Asia-based sovereign wealth fund investing in private
equity is China Investment Corporation (CIC), which has total assets
under management of $650bn. In general, the larger the sovereign
wealth fund, the more likely it is to be a private equity investor. Fig.
4 shows that of sovereign wealth funds with total assets under
management of less than $1bn, only 13% invest in private equity.
There are, however, exceptions; most notably, GPFG (whose
$818bn makes it the largest sovereign wealth fund in the world
by total assets) is not permitted to invest in private equity due to
restrictions imposed by the Government of Norway. Its investments
are directed towards public markets and real estate.
Outlook
Despite a reduction in the price of a barrel of oil, sovereign wealth
funds’ assets continue to grow in aggregate. Investments made
by sovereign wealth funds account for an increasing proportion of
aggregate private equity capital raised, with 14% of institutional
capital raised by private equity funds coming from sovereign wealth
funds. This is a significant increase compared with the levels
witnessed in 2013 and 2014.
The ability to deploy large amounts of capital and the lack of
liabilities when compared with other institutional investors makes
sovereign wealth funds well suited to the private equity asset
class. The established economies of North America and Europe
offer the greatest choice of fund managers and strategies, and a
higher deal flow than regions where private equity is still relatively
immature. However, there has been a shift towards a global focus
for investment in the asset class, with increasing proportions of
sovereign wealth funds targeting investments further afield than the
traditional markets. The larger sovereign wealth funds are attracted
to the long-term returns these markets can provide, and seize the
opportunity to diversify risk away from their primary national revenue
source. Many of the larger funds do, however, have the resources
to source their own deals. With this we see a continued appetite for
direct investments, allowing funds to reduce the cost of fees and
carry. As sovereign wealth funds grow, data would suggest that they
will likely commit more capital to the private equity asset class.
The 2015 Preqin Sovereign Wealth Fund Review
This article is an extract from the recently released Preqin 2015 Sovereign Wealth Fund Review,
our largest and most comprehensive review of sovereign wealth funds and their investment activity yet,
featuring detailed profiles for 73 sovereign wealth funds worldwide.
The 2015 Preqin Sovereign Wealth Fund Review is a vital tool for all professionals seeking investment
or looking to work with this influential investor class, and provides a comprehensive source of information
for anyone seeking to find out more about this previously opaque group of investment funds.
The 2015
Preqin Sovereign Wealth Fund Review
In association with:
alternative assets. intelligent data
This year’s Review contains information on the following areas:
•
•
•
•
•
•
•
Private Equity
Public Equities
Fixed Income
Hedge Funds
Real Estate
Infrastructure
Private Debt
Produced in association with PwC, this year’s edition has been fully updated, with more content than ever before. The Review contains
exclusive information gained via direct contact with sovereign wealth funds and their advisors, plus valuable intelligence from filings,
financial statements and hundreds of other data sources.
For more information, to download sample pages or to order your copy, please visit:
www.preqin.com/swf
5
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
Lead Article
Download Data
Buyout Holding Periods
Buyout Holding Periods
The average time taken to exit private equity-backed buyout investments has increased year-on-year since 2008.
Anna Strumillo and Ciantelle Lawrence conduct an in-depth analysis of buyout holding periods.
Data from Preqin’s Buyout Deals Analyst shows that the average
holding period has increased substantially in recent years. The shift is
unsurprising given the tough economic conditions faced in the postcrisis era, leading to buyout fund managers finding it increasingly
difficult to make a profitable exit from their investments.
Fig. 1: Proportion of Number of Active and Realized Private
Equity-Backed Buyout Deals* Globally by Investment Year,
2006 - 2015 YTD (As at 23 April 2015)
100%
90%
39%
80%
Proportion of Total
Private equity investments are traditionally long-term investments
with typical holding periods ranging between three and five years.
Within this defined time period, the fund manager focuses on
increasing the value of the portfolio company in order to sell it at a
profit and distribute the proceeds to investors. This in turn determines
how quickly and how much the investors can recycle back into the
asset class through new fund commitments. Therefore, the holding
period of portfolio companies can have a significant effect on private
equity firms’ ability to raise future funds as well as on the whole
private equity cycle in general.
70%
33% 30%
23%
15%
7%
1%
3%
0%
52%
Realized
60%
50%
40%
61%
30%
20%
67% 70%
77%
85%
99% 100%
93% 97%
Active
48%
10%
0%
However, despite this overarching longer term trend, the exit
environment appears to be fervent with the number and total value of
private equity-backed exits in 2014 reaching their highest levels on
record. In fact, Preqin’s latest 2015 YTD exit data shows a reduction
in the average holding period which may indicate a significant
milepost has been reached.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
Investment Year
Source: Preqin Buyout Deals Analyst
*Figures exclude add-on investments.
Average Holding Period
Deals Yet to Be Exited
Based on the traditional practice of private equity firms holding their
investments for three to five years, it was expected that the majority
of portfolio companies purchased during the buyout boom of 20062007 would have been exited by now. However, as Fig. 1 shows,
48% of companies acquired in 2006 are yet to be fully realized, while
the corresponding proportion for those investments made in 2007
currently stands at 61%. This is in comparison to 57% and 67%,
respectively, a year ago.
As illustrated in Fig. 2, the average holding period for portfolio
companies for private equity buyout fund managers has increased
significantly over recent years, from 4.1 years in 2008 to 5.9 years
in 2014. This increase further alludes to the difficulties found in
exiting companies acquired at high valuations during the buyout
boom. While not a full year figure, Preqin’s latest data shows that the
average holding period for portfolio companies exited in 2015 YTD
has dropped to 5.5 years. This goes to underline the favourable exit
conditions which on the one hand have created a sellers’ market,
Fig. 2: Global Average Holding Period by Year of Exit, 2006 2015 YTD (As at 23 April 2015)
Fig. 3: Breakdown of Holding Periods by Year of Exit, 2006 2015 YTD (As at 23 April 2015)
100%
6
5.1
4.5
4.4
4.1
5.5
5.8
5.9
4.3
4
3
2
70%
60%
43%
49%
50%
30%
7 - 9 Years
4 - 6 Years
Under 4 Years
61%
54%
53% 56%
38%
32%
10%
1
53% 41%
39%
32%
10 Years or More
40%
20%
32% 32%
26% 30%
2007
2008
2009
2010
2011
2012
2013
2014
Year of Exit
2014
2013
2012
2011
2010
2009
2015
YTD
2015 YTD
2006
2008
2006
0%
0
Year of Exit
Source: Preqin Buyout Deals Analyst
7
80%
5.5
3% 3% 3% 5% 6% 6% 6% 8% 7% 4%
12% 14% 12% 8%
12% 13% 14%
25%
22%
29%
24% 33%
32% 27%
2007
5
5.3
90%
Proportion of Total
Average Holding Period (Years)
7
Private Equity Spotlight / May 2015
Source: Preqin Buyout Deals Analyst
© 2015 Preqin Ltd. / www.preqin.com
Download Data
Buyout Holding Periods
2013
2014
Europe
Asia
1
0
2015
YTD
Rest of World
Source: Preqin Buyout Deals Analyst
and on the other, an opportunity for buyout managers to deploy
some of the estimated $469bn in dry powder at their disposal via
secondary buyouts.
The additional breakdown provided in Fig. 3 reveals that while just
over half (53%) of portfolio companies fully exited in 2006 had been
held by private equity firms for under four years, this proportion
dropped to 26% of all companies exited in 2012 and currently stands
at 32%. The opposite trend can be observed for companies held by
private equity firms for seven to nine years: in 2006, the portfolio
companies fully exited after being held for this period accounted for
12% of all companies exited that year; this proportion increased to
29% in 2014 and stands at a quarter of all companies exited in 2015
YTD.
4.3
2
Year of Exit
North America
4.4
Energy & Utilities
2012
4.6
Clean Technology
2011
4.7
Real Estate
2010
4.9
Infrastructure
2009
5.0
Healthcare
2008
5.0
3
0
2007
5.1
4
1
2006
5.2
Business Services
2
5.2
Information
Technology
4.7
5.3
Materials
4.7
4.9
5.3
5
Food & Agriculture
5.5
5.2
5.1
4.8
5
4.7
4.5
4.6
4.4
4.4 4.4 4.3
4.4
4.2
4.1
3.9
4
3.8 3.9 3.9
3.6
3.5
3.4
3.1
3
5.5
5.1
5.7
5.6
5.3
5.0
6
Telecoms & Media
6
6.2
6.1 6.0
5.8 5.8
5.5 5.3
5.5 5.5
Industrials
Average Holding Period (Years)
7
Fig. 5: Global Average Holding Period by Industry for All Exits,
2006 - 2015 YTD (As at 23 April 2015)
Consumer & Retail
Fig. 4: Regional Average Holding Period by Year of Exit, 2006
- 2015 YTD (As at 23 April 2015)
Average Holding Period (Years)
Lead Article
Source: Preqin Buyout Deals Analyst
Geographic Variations
There are notable geographical variations in average holding
periods for private equity-backed deals. As shown in Fig. 4, since
2006, the average holding period for portfolio companies based in
North America increased from 4.4 years in 2006 to a high of 6.0
years in 2014. Europe, however, has the longest average holding
period of all regions at 6.2 years for deals exited in 2014, compared
to a European low of 4.1 years in 2008. The holding period for Asiabased portfolio companies has increased from 3.4 years in 2007 to
5.6 years for companies exited so far in 2015, while holding periods
in the Rest of World region increased from a low of 3.1 years in 2008
to a high of 5.5 years in 2012 and 2013.
Holding Periods by Industry
Nonetheless, there are some notable investments which are
exceptions in the trend of longer holding periods, such as Warburg
Pincus’ investment in JHP Group Holdings, Inc. Warburg Pincus held
the company for just over a year and in early 2014 sold it to TPGbacked Par Pharmaceutical Companies, Inc., reportedly reaping
three-times their investment. Similarly, earlier this year, Clearlake
Capital Group made a quick three-times return on their investment
in PrimeSport, Inc. after holding a stake in the company for less than
12 months.
Fig. 6: Average Holding Period for Private Equity-Backed
Portfolio Companies by Deal Value, 2006 - 2015 YTD (As at
23 April 2015)
Fig. 5 displays the average holding periods for the period 2006-2015
YTD, broken down by the portfolio company’s industry. It is apparent
that portfolio companies in the industrials, and consumer & retail
sectors have on average had the longest holding period of 5.3 years,
while the companies operating within the energy & utilities industry
have on average been held for one year less, with an average
holding period of 4.3 years.
Fig. 7: Private Equity-Backed Exits by Type, 2006 - 2015 YTD
(As at 29 April 2015)
7
No. of Exits
6
5
4
3
500
1,600
450
1,400
400
350
1,200
300
1,000
250
800
200
600
150
400
100
200
50
0
0
2
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
YTD
Year of Exit
Small Cap (Less than $250mn)
Large Cap ($1bn or More)
Mid Cap ($250-999mn)
Source: Preqin Buyout Deals Analyst
8
1,800
Private Equity Spotlight / May 2015
Aggregate Exit Value ($bn)
Average Holding Period (Years)
8
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
Year of Exit
IPO
Sale to GP
Aggregate Exit Value ($bn)
Restructuring
Trade Sale
Source: Preqin Buyout Deals Analyst
© 2015 Preqin Ltd. / www.preqin.com
Lead Article
Download Data
Buyout Holding Periods
Size of Deals
Exits
On average, deals across all size classes have seen holding periods
lengthen over recent years, but large cap deals ($1bn or more)
have seen the largest change since 2006 (Fig. 6), reporting a low of
three years in 2008 and a high of seven years in 2014. A significant
amount of large cap deals took place prior to 2008, with fund
managers purchasing companies at peak prices during the buyout
boom. Large cap deals accounted for 12% of the number and 79%
of aggregate deal value in 2006, compared with 2009 when they
accounted for only 3% of the number and 39% of aggregate deal
value. The average holding period for mid cap deals ($250-999mn)
increased from just 3.2 years in 2006 to 6.4 years for portfolio
companies fully exited in 2014; and for small cap deals (less than
$250mn) this increased from 3.5 years in 2008 to 5.8 years in 2014.
Although fund managers are largely holding onto portfolio companies
for longer, the number and aggregate value of private equity-backed
exits have been on an upward trend, with 2014 witnessing a record
number and aggregate value of private equity-backed exits. Last
year, 1,686 exits valued at a total of $442bn took place, indicating
that GPs are still capitalizing on suitable exit opportunities for their
investments. This positive trend can somewhat be attributed to the
increasing prominence of partial exits in recent years. Such exits
accounted for a third (33%) of all exits in 2014 in terms of number
of exits, compared with just 21% of all private equity-backed exits in
2006 and 19% in 2008.
Subscriber Quicklink
Preqin’s Buyout Deals Analyst provides comprehensive information on over 41,300 buyout deals worldwide.
Subscribers can click here to view detailed information on over 500 exits that have taken place so far in 2015. Use the Potential
Exits feature to identify aging portfolio companies that are yet to be fully realized and may be suitable targets for a sale or secondary
buyout.
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Preqin Industry News
News
Download Data
Preqin Industry News
As the average size of early stage funding (including angel/seed/series A financings) continues to climb, Jessica
Duong takes a look at the latest news stories for deals and funds focused on early stage venture capital.
Early Stage Venture Capital Funding
Chart of the Month
Data from Preqin’s Venture Deals Analyst shows that although the
increase in the average size of early stage venture capital deals is
significant, it is still some way behind the high of $5.2mn seen in
2007. However, with impressive innovation in the venture capital
space, portfolio companies’ need for investments to rapidly grow
their business, plus the appetite of GPs to find the next Whatsapp
or Nest Labs, this upward trend is likely to continue.
Deals
Average Value of Early Stage Venture Capital Deals,
2007 - 2015 YTD
6
5.1
5
Average Deal Size ($mn)
Early stage venture capital financings (seed, angel, series A/round
1) are typically relatively modest amounts of capital provided to
start-up companies to finance the early development of a new
product or service. It is interesting then, to observe the positive
trend of average deal size for such financings. The Chart of the
Month shows that for early stage venture capital deals in 2014,
the average size was $3.3mn, 57% greater than in 2012. In 2015
YTD, this climbs higher still, to a mean of $4.1mn. Comparatively
large deals in Q1 2015 – such as the $116mn seed funding of 21
Inc., a California-based digital currency start-up, and the CNY
500mn ($86mn) series A financing of China-based travel insurance
provider, Ins110.com – have driven up the mean.
4.7
4.1
4
3.4
3.1
3.3
3.1
3
2.1
2.3
2012
2013
2
1
0
2007
2008
2009
2010
2011
2014
2015
YTD
Source: Preqin Venture Deals Analyst
Funds
In March 2015, Almaz Capital Partners and AVentures Capital
co-led a round of $1.1mn seed funding for Petcube, a company
that keeps people connected with their pets via a camera feed.
SOSventures and individual backers also participated in the round.
The seed funding comes after a successful Kickstarter campaign
and sold-out first batch of inventory. Now, Petcube looks to expand
to brick & mortar retail in the US and Canada.
Lux Ventures IV, focused on “futuristic science and technology
ventures”, closed in March 2015. With a final close size of $350mn,
the vehicle is the largest early stage venture vehicle to close so far
this year. The fund was oversubscribed from Lux Capital’s initial
target of $245mn and is the firm’s fourth offering. It targets emerging
technology companies which are tackling global challenges in the
energy, technology and healthcare sectors.
Goldman Sachs Merchant Banking Division led $40mn series A
funding for CompareAsiaGroup in April 2015. CompareAsiaGroup
was founded in 2013; it is based in Hong Kong but also has a
presence in a number of ASEAN states. The firm operates as a
financial comparison platform which offers overview across various
financial products. Returning backer Nova Founders Capital, with
Ace & Company, Route 66 Ventures and individual backers, also
participated in the round.
Knightsbridge Advisers is a venture capital-focused firm that
has closed its eighth fund of funds in April 2015 on $203mn.
Knightsbridge Venture Capital VIII will primarily invest in funds that
target early stage venture capital companies in the US IT industry,
and to a lesser extent, the life sciences and energy technology
industries.
Key Stats:
$11.8bn
11
Record aggregate deal
value was seen in 2014,
from 3,531 early stage
venture capital deals.
Private Equity Spotlight / May 2015
$5mn
The largest angel financing deal
of 2015 YTD was for JSwipe, a firm
that operates as a mobile dating
app that targets the Jewish
community.
23%
The healthcare industry
accounts for the largest
proportion (23%) of early
stage venture capital deals
in terms of deal value.
© 2015 Preqin Ltd. / www.preqin.com
Preqin Global Data Coverage
As of 1 May 2015
alternative assets. intelligent data.
43,073
Fund Coverage:
Funds
17,213 Private Equity* Funds
Firm Coverage:
20,448
5,125 PE Real
Estate Funds
18,182 Hedge Funds
Firms
8,931 PE Firms
2,696 PERE
Firms
7,617 Hedge Fund Firms
Performance Coverage:
19,995
1,305
PERE
Funds
11,931 Hedge Funds
16,943
1,678 Private Debt
Funds
455 Infrastructure
Firms
749 Private Debt
Firms
Funds (IRR Data for 6,004 Funds and Cash Flow Data for 2,948 Funds)
5,930 PE Funds
Fundraising Coverage:
875 Infrastructure
Funds
181 Infrastructure
648 Private Debt
Funds Open for Investment/Launching Soon
Including 2,459 Closed-Ended Funds in Market and 333 Announced or Expected Funds
1,848 PE
Funds
Deals Coverage:
920
PERE
Funds
13,657 Hedge Funds
136,100
262 Private Debt
Funds
Deals Covered; All New Deals Tracked
41,257 Buyout Deals**
Investor Coverage:
256 Infra. Funds
11,235 Infra. Deals
83,608 Venture Capital Deals***
13,002
Institutional Investors Monitored,
Including 9,152 Verified Active**** in Alternatives and 96,128 LP Commitments to Partnerships
4,975 Active Hedge
Fund Investors
5,755 Active PE LPs
Alternatives Investment Consultant Coverage:
4,909 Active RE LPs
513
1,549 Active
Private Debt
Investors
Consultants Tracked
Fund Terms Coverage: Analysis Based on Data for Around
10,390
Best Contacts: Carefully Selected from Our Database of over
Funds
318,897
Active Contacts
e
The Preqin Differenc
Plus
Comprehensive coverage of:
- Placement Agents
- Fund Administrators
- Law Firms
- Debt Providers
2,467 Active
Infra. LPs
- Dry Powder
- Compensation
- Plus much more...
- Over 200 research, support and development staff
- Global presence - New York, London, Singapore and San
Francisco
- Depth and quality of data from direct contact methods
- Unlimited data downloads
- The most trusted name in alternative assets
New York: +1 212 350 0100 - London: +44 (0)20 3207 0200 - Singapore: +65 6305 2200 - San Francisco +1 415 835 9455
www.preqin.com
*Private Equity includes buyout, venture capital, distressed, growth, natural resources and mezzanine funds.
**Buyout deals: Preqin tracks private equity-backed buyout deals globally, including LBOs, growth capital, public-to-private deals, and recapitalizations. Our coverage does not include private debt and mezzanine deals.
***Venture capital deals: Preqin tracks cash-for-equity investments by professional venture capital firms in companies globally across all venture capital stages, from seed to expansion phase. The deals figures provided by Preqin are based on
announced venture capital rounds when the capital is committed to a company.
****Preqin contacts investors directly to ensure their alternatives programs are active. We emphasize active investors, but clients can also view profiles for investors no longer investing or with programs on hold.
Buyout Fundraising
The Facts
Download Data
Buyout Fundraising
High levels of distributions have resulted in increased demand for buyout opportunities over the course of the last
year. Victoria Pitman looks at the current fundraising statistics for buyout vehicles in comparison with the levels
seen during crisis years.
Fig. 1: Private Equity Buyout Fundraising by Primary Geographic Focus, 2008 - 2015 YTD (As at 28 April 2015)
North America
Europe
Asia
Rest of World
Global (Total)
No. of
Funds
Aggregate
Capital
Raised
($bn)
No. of
Funds
Aggregate
Capital
Raised
($bn)
No. of
Funds
Aggregate
Capital
Raised
($bn)
No. of
Funds
Aggregate
Capital
Raised
($bn)
No. of
Funds
Aggregate
Capital
Raised
($bn)
2008
110
116.5
72
87.2
25
17.0
23
8.7
230
229.4
2009
63
63.8
44
37.0
15
4.6
16
4.2
138
109.6
2010
64
46.4
39
17.7
15
6.9
14
7.8
132
78.8
2011
59
35.3
34
25.9
15
11.8
23
7.5
131
80.5
2012
80
48.6
37
35.8
14
7.2
18
6.8
149
98.4
2013
98
105.3
55
65.6
16
15.5
12
3.7
181
190.1
2014
104
112.5
48
41.0
21
24.0
13
7.8
186
185.3
2015 YTD
21
21.6
14
13.6
0
-
2
1.3
37
36.5
Year of
Final Close
Source: Preqin Funds in Market
Fig. 2: Breakdown of Private Equity Buyout Vehicles that
Closed Below, At or Above Their Target Size, 2008 - 2015 YTD
(As at 28 April 2015)
100%
90%
90%
31%
46%
38%
56%
70%
57%
8%
60%
50%
64%
61%
Above Target
9%
At Target
11%
40%
10%
61%
30%
20%
65%
8%
11%
53%
43%
34%
35%
24%
10%
10%
26%
9%
Below Target
30%
0%
Proportion of Funds Closed
100%
80%
Proportion of Funds Closed
Fig. 3: Breakdown of Number of Buyout Funds Closed by
Fund Size*, 2008 - 2015 YTD (As at 28 April 2015)
80%
5%
8%
5%
8%
1%
8%
20%
16%
21%
2%
9%
25%
3%
5%
28%
70%
6%
5%
11%
16%
4%
29%
18%
21%
60%
Mega
21%
Large
50%
Mid-Market
40%
30%
67%
71%
70%
64%
64%
65%
Small
58%
46%
20%
10%
0%
2008 2009 2010 2011 2012 2013 2014 2015
YTD
2008 2009 2010 2011 2012 2013 2014 2015
YTD
Year of Final Close
Year of Final Close
Source: Preqin Funds in Market
Key Facts:


Average fund size is increasing, averaging
$1.3bn in 2015 YTD, up by $150mn in
comparison with funds closed in 2014.
Average time on the road is decreasing, with
funds closed in 2014 spending an average of
14.5 months on the road, and funds closed in
2015 so far spending just 12.3 months on the
road.
Source: Preqin Funds in Market
*Buyout Fund Size Ranges: Vintage 2005-2014: Small Buyout ≤ $500mn, Mid Buyout $501mn-$1,500mn, Large Buyout $1,501mn-$4.5bn, Mega Buyout > $4.5bn
Fig. 4: Five Largest Buyout Funds Closed in 2015 YTD (As at 28
April 2015)
Fund
American Securities
Partners VII
Bridgepoint Europe V
PAI Europe VI
Crestview Partners III
61%
Eight large buyout funds accounted for $22bn
(61%) of buyout capital raised in 2015 YTD.
Francisco Partners IV
Firm
American
Securities
Bridgepoint
PAI Partners
Crestview
Partners
Francisco
Partners
Final Size
(mn)
Primary Fund
Focus
5,000 USD
North America
4,000 EUR
3,300 EUR
Europe
Europe
3,250 USD
North America
2,875 USD
North America
Source: Preqin Funds in Market
13
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
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in Europe, to get insight into the key trends shaping the European M&A market over the next 12 months.
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Investor Fund Searches and Mandates
The Facts
Download Data
Investor Fund Searches and Mandates
We take a look at the most sought-after fund types and regions according to the fund searches and mandates
of private equity investors on Preqin’s Investor Intelligence.
Fig. 1: Breakdown of Private Equity Fund Searches Issued
over the Past 12 Months by Investor Type
Fig. 2: Breakdown of Private Equity Fund Searches Issued
over the Past 12 Months by Investor Location
Fund of Funds Manager
10%
Public Pension Fund
15%
26%
Insurance Company
4%
11%
North America
Private Sector Pension
Fund
Family Offices
5%
Europe
45%
Asia
Asset Manager
6%
Rest of World
Endowment Plan
6%
15%
Foundation
6%
34%
8%
Government Agency
9%
Other
Source: Preqin Investor Intelligence
Source: Preqin Investor Intelligence
Fig. 3: Fund Types Sought by Private Equity Investors in the
Next 12 Months
70%
73%
70%
60%
60%
60%
47%
50%
37%
40%
28%
30%
20%
16%
12%
11%
10%
4%
1%
Timber
Natural
Resources
Secondaries
Fund of Funds
Mezzanine
Distressed
Private Equity
Growth
Venture
Capital
Buyout
0%
Proportion of Fund Searches
Proportion of Fund Searches
80%
Fig. 4: Regional Preferences of Investors Seeking New Private
Equity Fund Investments in the Next 12 Months
54%
50%
40%
33%
30%
25%
20%
13%
10%
0%
North
America
Source: Preqin Investor Intelligence
Europe
Asia Pacific
Emerging
Markets
Rest of World
Source: Preqin Investor Intelligence
Fig. 5: Examples of Fund Searches Issued by Private Equity Investors in 2015
Investor
UJA Federation of New
York
New China Life
Insurance
Lancashire County
Council Pension Fund
Investor
Type
Location Fund Search Details
Foundation
North
America
Insurance
Company
China
Public
Pension
Fund
UK
The $1.4bn foundation plans to invest $70mn in three to four new private equity funds in the next
12 months. It will predominantly target small cap and mid cap buyout vehicles, but will also consider
venture capital funds. The foundation seeks only US-based opportunities and will look at both new
and existing managers.
The ¥610bn insurance company will invest approximately ¥1bn in two to three private equity funds in
the next 12 months. It has a preference for buyout, growth and mezzanine vehicles with a focus on
China. The insurance firm is looking at new technology and high-tech sectors.
The UK-based pension fund will look to make new private equity fund commitments in the next 12
months. It will commit €120mn across six to eight new vehicles, investing €15mn and €20mn in each
fund. It holds a preference for investing in buyout and venture capital funds, and will target investment
opportunities in Europe and North America.
Source: Preqin Investor Intelligence
15
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
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Latin American Venture Capital Deals
The Facts
Download Data
Latin American Venture Capital Deals
Aggregate deal value for venture capital deals in Latin America has seen year-on-year increases since 2011 and
reached a record high in 2014, despite a drop in the number of financings. Emily Forbes takes a closer look at
the statistics.
Fig. 1: Number and Aggregate Value of Venture Capital
Deals* in Latin America, 2007 - 2015 YTD (As at 30 April 2015)
120
900
111
No. of Deals
600
75
66
500
60
400
40
35
21
20
39
300
24
17
200
2%
Aggregate Deal Value ($mn)
700
80
Angel/Seed
800
98
100
Fig. 2: Proportion of Number of Venture Capital Deals in Latin
America by Stage, 2007 - 2015 YTD (As at 30 April 2015)
Series A/Round 1
Series C/Round 3
37%
Add-on & Other
Grant
1%
4%
1% 5%
3%
0
2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
No. of Deals
Aggregate Deal Value ($mn)
6%
Venture Debt
Source: Preqin Venture Deals Analyst
Source: Preqin Venture Deals Analyst
Fig. 4: Proportion of Number of Venture Capital Deals* in
Latin America by Country, 2007 - 2015 YTD (As at 30 April
2015)
100%
100%
90%
Other
90%
18%
80%
Energy and Utilities
80%
5%
5%
5%
5%
Business Services
Healthcare
60%
Other IT
Consumer Disc.
50%
Clean Tech.
40%
Industrials
30%
Telecoms
20%
Software & Related
Proportion of No. of Deals
Proportion of No. of Deals
Fig. 3: Proportion of Number of Venture Capital Deals* in
Latin America by Industry, 2007 - 2015 YTD (As at 30 April
2015)
70%
Internet
10%
Growth
Capital/Expansion
Series D/Round 4 and
Later
Unspecified Round
13%
100
0
Series B/Round 2
28%
70%
60%
13%
4%
8%
25%
50%
17%
40%
30%
17%
13%
11%
3%
13%
20%
15%
11%
3%
8%
5%
14%
3%
4%
3%
7%
7%
14%
10%
12%
11%
6%
6%
6%
8%
12%
12%
28%
8%
8%
6%
62%
43%
20%
5%
2%
5%
56%
51%
65%
63%
48%
53%
33%
10%
0%
2007
0%
2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
Source: Preqin Venture Deals Analyst
Brazil
2008
2009
Mexico
2010
2011
2012
2013
2014
2015
YTD
Argentina
Chile
Colombia
Other
Source: Preqin Venture Deals Analyst
Fig. 5: Five Largest Venture Capital Deals* in Latin America in 2014-2015 YTD (As at 30 April 2015)
Portfolio
Company Name
Stage
Deal Date
Deal Size
($mn)
Investor(s)
Location
Primary
Industry
NetShoes
Unspecified Round
May-14
170
GIC Private Limited, Iconiq Capital, Kaszek Ventures,
Temasek Holdings, Tiger Global Management
Brazil
Internet
Virgin Mobile
Latin America
Series D/Round 4
May-14
86
Temasek Holdings
Chile
Telecoms
Linio
Hotel Urbano
Movile
Unspecified Round
Series D/Round 4
Unspecified Round
Jul-14
Mar-14
Apr-15
79
50
40
Access Industries, Northgate Capital
Insight Venture Partners, Tiger Global Management
Naspers
Mexico
Brazil
Brazil
Internet
Internet
Telecoms
Source: Preqin Venture Deals Analyst
*Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt.
17
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
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Mariott Champs Elysees, Paris
The Largest Gathering of
Private Debt & Mezzanine Professionals
in Europe
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Michael Crosby
ORRICK
Fabrice Damien
HAYFIN
Tristan Parisot
EUROPEAN
CAPITAL
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WHENREGISTERING
Howard Sharp
GE CAPITAL
Andrew Honan
MACQUARIE
Mike Ramsay
GENERATION IM
Martin Schnaier
SANNE
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Opening
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Keynote
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Prof.
Prof
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Chan,
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GBS,
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Ericc Ma
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Joe Lee,
Lee,
Closing Keynote
Shuang Chen,
Secretary for Financial
Services
Servic
SSer
vices
i es and
d th
the
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Treasury,
Trea
reasur
sury,
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Hong Kong SAR
Managing Director,
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Chief Strategy O
Officer,
KuaiDi
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Technology
h
Co. Ltd.
Executive Director & Chief
Executive Officer,
China Everbright Limited
Andrew Teoh
Eric Xin
Brooke Zhou
Jie Gong
Jerry Chiang
Ameba Capital
LGT Capital Partners
Pantheon Ventures (HK)
SNSI Capital Management Inc.
Rebecca Xu
CITIC Capital Partners
Management Limited
Herry Han
Qiwei Chen
Vincent Chan
Asia Alternatives Management
Leenong Li
Lightspeed Venture Partners
PE Association of Shanghai
Spring Capital Asia
Jacob Chiu
Commonfund Capital
YR Cheng
Steve Wang
Weichou Su
Auda
Conrad Tsang
Lunar Capital
Pine Field Capital Partners
StepStone Group
Jonathan Zhu
Pamela Fung
Velisarios Kattoulas
Kenneth Lin
Bain Capital Asia
Hong Kong Venture Capital and
Private Equity Association
The Poseidon Group
Taiwan Private Equity Association
William Hay
SC Mak
Morgan Stanley Alternative
Investment Partners
Danny Yeung
Tsui-Hui Huang
Baring Private Equity Asia
Ryan Law
Prenetics
Taiwan Venture Capital Association
Yan Yang
Hong Kong Venture Capital and
Private Equity Association
Morgan Stanley Private Equity Asia
Jie Lian
Suzie Wu
BlackRock Private Equity Partners
Richard Hsu
Thomas Chou
Primavera Capital Group
Tianxing Capital
Danny Lee
Intel Capital
Morrison & Foerster
Lorna Chen
Ricky Lau
Blue Pool Capital
Rupert Chamberlain
Richard Barton
Shearman & Sterling
TPG Asia
Alvin Li
KPMG in China
Newgate Communications (HK)
Chris Burch
Daniel Shih
CCB International Asset
Management
Darren Bowdern
Bonnie Lo
Shenzhen Capital Group
KPMG China
NewQuest Capital Partners
Yong Kai Wong
Rico Kang
Gabriel Li
CITIC Capital
Legend Capital
Orchid Asia Group Management
Offf icii al w e bsitt e: cpes.. hkv
vca
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*OGPSNBUJPOJOUIJTMFBnFUJTDPSSFDUBUUIFUJNFPGQSJOUJOH),7$"SFQSFTFOUTUIFSJHIUTUPBNFOEBOZEFUBJMTEVFUPVOGPSFTFFODJSDVNTUBODFT
Organiser:
Walmart China
Co-organiser:
Media Partner:
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5PSFHJTUFS'SFF-11BTTQMFBTFTFOEFNBJMUPDQFT!ILWDBDPNIL
To register, please visit cpes.hkvca.com.hk Tel: +852 2167 7518 Email: [email protected]
The Facts
Secondaries Investing in Venture Capital
Download Data
Secondaries Investing in Venture
Capital
Raisah Yusuf explores the appetite of buyers on the secondary market for venture capital vehicles, finding that
private equity fund of funds managers and North America-based firms are the most active in this sector.
Fig. 1: Secondary Market Buyers Interested in Acquiring
Stakes in Venture Capital Funds by Type
Private Equity Fund of
Funds Manager
Public Pension Fund
2%4%
2%
2%
4%
7%
6%
5%
5%
Fig. 2: Secondary Market Buyers Interested in Acquiring
Stakes in Venture Capital Funds by Location
45%
Secondary Fund of Funds
Manager
Private Sector Pension
Fund
Asset Manager
North America
Europe
28%
Endowment Plan
Asia
59%
Private Equity Firm
15%
Rest of World
Family Office - Single
16%
Insurance Company
Other
Source: Preqin Secondary Market Monitor
Source: Preqin Secondary Market Monitor
Fig. 3: 10 Largest Secondary Market Buyers with an Interest in Acquiring Stakes in Venture Capital Funds by Assets under
Management
Firm
Meiji Yasuda Life Insurance Company
PGGM
State of Wisconsin Investment Board
AXA Winterthur
New Jersey State Investment Council
Virginia Retirement System
Massachusetts Pension Reserves Investment
Management Board
Teachers’ Retirement System of the City of New York
New York City Employees' Retirement System
Pennsylvania Public School Employees' Retirement
System
Likelihood of Buying
AUM (mn)
Location
Type
Possible
Possible
Opportunistically
Opportunistically
Possible
Opportunistically
JPY 33,000,742
EUR 180,000
USD 103,500
CHF 89,603
USD 78,600
USD 68,500
Japan
Netherlands
US
Switzerland
US
US
Insurance Company
Asset Manager
Public Pension Fund
Insurance Company
Public Pension Fund
Public Pension Fund
Opportunistically
USD 61,900
US
Public Pension Fund
Possible
Opportunistically
USD 59,542
USD 54,080
US
US
Public Pension Fund
Public Pension Fund
Opportunistically
USD 51,700
US
Public Pension Fund
Source: Preqin Secondary Market Monitor
Fig. 4: Five Largest Secondaries Funds Closed with an Interest in Acquiring Stakes in Venture Capital Funds
Fund
Lexington Capital Partners VII
AXA Secondary Fund V
Strategic Partners Fund VI
Dover Street VIII
Dover Street VII
Firm
Final Close Date
Final Close
Amount ($mn)
Lexington Partners
Ardian
Strategic Partners Fund Solutions
HarbourVest Partners
HarbourVest Partners
Jun-11
Jun-12
Oct-14
Jun-13
Apr-09
7,000
5,085
4,400
3,600
2,900
Source: Preqin Secondary Market Monitor
Preqin’s Secondary Market Monitor contains essential information on all aspects of the private equity secondary market, including
information on over 700 potential buyers and 430 sellers, 255 secondaries funds and much more.
For more information, or to arrange a demonstration, please visit: www.preqin.com/smm
19
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
Early Stage Venture Capital Performance
The Facts
Download Data
Early Stage Venture Capital
Performance
Emma Underwood investigates the difference in performance between early stage funds and venture capital
vehicles investing across all stages.
Fig. 2: PrEQIn Early Stage vs. Venture Capital and All Private
Equity (Rebased to 100 as of 31 December 2005)
PrEQIn Early Stage
PrEQIn Venture All Stages
PrEQIn Early Stage
31-Dec-13
31-Dec-12
0.0
31-Dec-05
31-Dec-13
31-Dec-12
31-Dec-11
31-Dec-10
31-Dec-09
31-Dec-08
31-Dec-07
31-Dec-06
31-Dec-05
31-Dec-04
31-Dec-03
31-Dec-02
31-Dec-01
0.0
50.0
31-Dec-11
20.0
100.0
31-Dec-10
40.0
150.0
31-Dec-09
60.0
31-Dec-08
80.0
200.0
31-Dec-07
100.0
250.0
31-Dec-06
Index Returns (Rebased to 100 as
of 31-Dec-2005)
120.0
31-Dec-00
Index Returns (Rebased to 100 as
of 31-Dec-2000)
Fig. 1: PrEQIn Early Stage vs. Venture Capital (Rebased to
100 as of 31 December 2000)
PrEQIn Venture All Stages
Source: Preqin Performance Analyst
Source: Preqin Performance Analyst
Fig. 3: Early Stage All Regions Median Net IRR and Quartile
Boundaries by Vintage Year (Most up-to-date)
Net IRR (%) since Inception
100.0
Data Source
80.0
Preqin’s Performance Analyst is the industry’s most extensive
source of net-to-LP private equity fund performance, with full
metrics for over 7,400 named vehicles.
Top Quartile
Boundary Net IRR
60.0
Median Net IRR
40.0
Access comprehensive performance data and fund details,
including historical data and information on portfolio
companies, and create customized peer groups to compare
funds’ performance data against custom benchmarks.
Bottom Quartile
Boundary Net IRR
20.0
0.0
For more information, please visit:
www.preqin.com/pa
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
-20.0
Vintage Year
Source: Preqin Performance Analyst
Fig. 4: Top 10 Consistent Performing GPs* (Early Stage, Early Stage: Seed and Early Stage: Start-up)
Firm
ff Venture Capital
Sequoia Capital
Spark Capital
Union Square
Ventures
Charles River
Ventures
Bay Partners
BlueRun Ventures
Canaan Partners
Divergent Ventures
Avalon Ventures
Location
Fund Type
Overall No. of Funds with
Quartile Ranking
No. of Funds in
Top Quartile
No. of Funds in
Second Quartile
Average
Quartile Rank
US
US
US
Early Stage
Early Stage
Early Stage: Start-up
3
3
3
3
3
3
0
0
0
1.00
1.00
1.00
US
Early Stage
3
3
0
1.00
US
Early Stage
4
3
1
1.25
US
US
US
US
US
Early Stage
Early Stage
Early Stage
Early Stage
Early Stage: Seed
3
3
3
3
8
2
2
2
2
5
1
1
1
1
2
1.33
1.33
1.33
1.33
1.50
*Produced 30 April 2015 and based on a universe of 17 firms and 63 funds meeting the selection criteria.
20
Private Equity Spotlight / May 2015
Source: Preqin Performance Analyst
© 2015 Preqin Ltd. / www.preqin.com
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and industry-leading
alternative assets data.
For free.
• Conduct market research
and track industry trends
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please visit:
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alternative assets. intelligent data.
Conferences
Conferences
Download Data
Conferences Spotlight
Conference
Dates
Location
Organizer
Preqin Speaker
Discount Code
19 - 21 May 2015
Canada
CVCA
-
-
Private Equity World Latin
America
26 May 2015
Miami, FL
Terrapinn
-
-
HKVCA 14th China Private
Equity Summit
1 June 2015
Hong Kong
HKVCA
-
-
8th Private Equity Findings
Symposium
1 - 2 June 2015
London
Coller Institute of
Private Equity
-
-
Private Debt & Mezzanine
Finance
2 - 4 June 2015
Paris
IIR
-
15% Discount FKW52932PQNL
European Family Office &
Institutional Investment Forum
3 - 4 June 2015
Amsterdam
Opal Finance Group
-
-
Emerging Managers Summit
8 - 9 June 2015
Chicago
Opal Finance Group
-
-
4th Private Equity Secondaries
and Co-investments Conference
10 - 11 June 2015
London
C5 Communications
Patrick Adefuye
-
SuperReturn U.S. 2015
16 - 18 June 2015
Boston
ICBI
Mark O'Hare
15% Discount FKR2374PRQS
European Corporate M&A Forum
2015
17 June 2015
London
Merger Market
Group
-
-
The Private Debt Investment
Summit
25 June 2015
New York
Financial Research
Associates, LLC
Ryan Flanders
15% Discount FMP187
SuperReturn Emerging Markets
2015
29 June - 2 July 2015
Amsterdam
ICBI
Mark O'Hare
15% Discount FKR2379PRQSP
FundForum International 2015
29 June - 2 July 2015
Monaco
ICBI
-
£100 reader offer for
Preqin
1 July 2015
London
IIR
-
10% Discount FKW52959PQL
Family Office & Private Wealth
Management Forum
20 - 22 July 2015
Newport, RI
Opal Finance Group
-
-
SuperReturn CFO/COO Forum
2015
7 - 9 September 2015
Amsterdam
ICBI
Mark O'Hare
15% Discount FKR2377PRQS
14 - 16 September
2015
South Africa
ICBI
Mark O'Hare
15% Discount FKR2383PNSL
SuperReturn Asia 2015
21 - 24 Sep 2015
Hong Kong
ICBI
Mark O'Hare
-
European CLO Summit
14 - 16 October 2015
Monte Carlo
Opal Finance Group
-
-
Family Office & Private Wealth
Management Forum – West
28 - 30 October 2015
Napa, CA
Opal Finance Group
-
-
SuperReturn Middle East 2015
8 - 11 November 2015
Dubai
ICBI
Mark O'Hare
15% Discount FKR2378PRQS
SuperInvestor 2015
17 - 20 November
2015
Amsterdam
ICBI
Mark O'Hare
15% Discount FKR2373PNSL
Wealth Management Americas
18 - 19 November
2015
Miami, FL
Terrapinn
-
-
America’s Family Office Forum
18 - 19 November
2015
Miami, FL
Terrapinn
-
-
SuperReturn Africa 2015
1 December 2015
TBC
ICBI
Mark O'Hare
-
CLO Summit
2 - 4 December 2015
Dana Point, CA
Opal Finance Group
-
-
Alternative Investing Summit
9 - 11 December 2015
Dana Point, CA
Opal Finance Group
-
-
CVCA 2015 Annual Conference
Secondaries Investor Forum
SuperInvestor Africa 2015
22
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
Conferences
Conferences
Download Data
HKVCA 14th China Private Equity Summit
Date:
1 June 2015
Location:
N201, Hong Kong Convention and Exhibition Centre (New
Wing)
Organizer:
Hong Kong Venture Capital and Private Equity Association
(HKVCA)
Information: http://cpes.hkvca.com.hk
The 14th China Private Equity Summit is the HKVCA’s flagship event. It is generally recognized as the preeminent, “must-attend” practitioners’
conference. The theme this year is on the growing global competitiveness of Chinese PE firms and their increasingly international outlook.
Private Debt & Mezzanine Finance
Date:
2 - 4 June 2015
Location:
Mariott Champs Elysees, Paris
Organizer:
IIR
Information: http://www.iiribcfinance.com/FKW52932PQNL
Discount Code: FKW52932PQNL
There is no better time to attend the European Mezzanine industry’s annual forum.
Now in its 13th year, this event is the market leader and attracts over 200 senior mezzanine/private debt professionals & investors from all
over Europe.
Exclusive 15% discount available, quote VIP Code FKW52932PQNL when registering.
European Family Office & Institutional Investment Forum
Date:
3 - 4 June 2015
Location:
Amsterdam, Netherlands
Organizer:
Opal Finance Group
Information: www.opalgroup.net/trk/efopwc1510.html
Opal Financial Group’s International Team is excited to bring you the European Family Office & Institutional Investment Forum. This two day
event will bring together family offices, corporate pensions, public funds, and investment managers from all over the world. The Netherlands
is an exciting location with endless financial opportunities and investment philosophies. By providing incentives to the world’s wealthiest
families and institutions, the Netherlands has stimulated exceptional financial growth and advancement. As a source of development
and innovation in globalization, solar energy, and fixed income, the Netherlands has become a promising financial hub. This conference
will generate engaging discussions on the latest investment trends and be the foundation for stimulating conversations and networking
opportunities.
4th Annual Private Equity Secondaries and Co-investments
Date:
10 - 11 June 2015
Location:
Millenium Hotel London Knightsbridge
Organizer:
C5 Communications
Information: http://c5-online.com/sec
Join us today for your critical role in matching LPs in need of portfolio restructuring with opportunistic investors looking for a quick win,
dedicated secondary funds and industry partners looking to convey their companies’ message to the most influential private equity
audience.
23
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com
Conferences
Conferences
Download Data
European Corporate M&A Forum 2015
Date:
17 June 2015
Location:
Jumeirah Carlton Tower, London
Organizer:
Mergermarket
Information: http://mergermarketgroup.com/
event/europe2015?utm_source=Preqin&utm_
medium=website&utm_campaign=europe2015
Mergermarket is pleased to be returning to London for its fifth annual European Corporate M&A Forum.
Network with more than 200 senior corporate M&A and private equity professionals, investment banks and financial and legal advisers,
and get insight from over 30 expert speakers as they explore the future investment opportunities likely to be seen in Europe over the next
12 months.
The Private Debt Investment Summit
Date:
25 June 2015
Location:
The Princeton Club - New York, NY
Organizer:
Financial Research Associates
Information: https://www.frallc.com/conference.
aspx?ccode=B970
Discount Code: FMP187
Whether you’re an investor that’s looking into allocating funds into this space or already have a few deals under your belt, this one-day
event is jam-packed with practical examples, real-world stories and up-to-the-minute research and data on the industry’s new and
lucrative alternative to fixed income.
Secondaries Investor Forum
Date:
1 July 2015
Location:
London, tbc
Organizer:
IIR Events
Information: http://www.iiribcfinance.com/FKW52959PQL
Discount Code: FKW52959PQL
IIR’s Secondaries Investor Forum will provide the perfect opportunity for secondary fund managers and limited partner investors to explore
innovations in the secondaries market and gain insight into portfolio management techniques of Europe’s leading secondaries experts.
24
Private Equity Spotlight / May 2015
© 2015 Preqin Ltd. / www.preqin.com