2015 European
Private Equity Activity
Statistics on Fundraising,
Investments & Divestments
Disclaimer
The information contained in this report has been produced by Invest Europe, based on
PEREP_Analytics data and third party information. While Invest Europe has made every effort
to ensure the reliability of the data included in this report, Invest Europe cannot guarantee
the accuracy of the information collected and presented. Therefore, Invest Europe cannot
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2015 European Private Equity Activity
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© Copyright Invest Europe May 2016
Version
Presentation as of 05/05/2016
Introduction
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in privately-held
companies in Europe.
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their investors.
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2015 European Private Equity Activity
1
Overview - All Private Equity - Fundraising, Investments & Divestments
2000–2015 - Industry statistics - Amount
€ billion
With data on more than 1,200 European private equity firms, the 2015 statistics
cover 91% of the €564bn in capital under management in Europe.
120
112
100
80
80
60
40
72
48
37
9
27 29
28 28
24
20
80
73
55
47
40
35
71
13
11
33
30
27
14
43
20
27
14
19
42
54
47
31
25
22
20
38 35
38
25
48
42 40
48 47
41
22
12
0
2000
2001
2002
2003
2004
2005
2006
Funds raised
2007
2008
Investments
2009
2010
2011
2012
2013
2014
2015
Divestments
Invest Europe statistics explained: This graph shows ‘industry statistics’ capturing activity by private equity firms’ European offices. In the following
presentation most statistics on investments and divestments are reported as ‘market statistics’. These capture activity based on the location of portfolio
companies in Europe. This data is available from 2007.
Source: Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
2015 European Private Equity Activity
2
What’s inside?
Executive Summary
4
1. FUNDRAISING
2. INVESTMENTS
3. DIVESTMENTS
Fundraising statistics explained
5
Investments statistics explained
24
Divestments statistics explained
58
Glossary
6
Glossary
26
Glossary
60
At a glance
7
At a glance
27
At a glance
61
By investment stage
28
By initial investment stage
62
Annual trends
29
By exit route
63
Quarterly trends
32
By sector
67
36
By region
70
Incremental fundraising
By fund stage focus
8
Concentration of capital
10
By region of management
11
By geography
Investors by type
12
Investments as % of GDP
Investors by geography
18
Location of the PE firm
41
Location of the portfolio company
46
Final closing
By sector
50
Acknowledgements
71
About_PEREP Analytics &
Invest Europe Research
73
By fund stage focus
21
Initial / follow-on
53
Concentration of capital
23
By portfolio company size
54
2015 European Private Equity Activity
3
Executive summary
1FUNDRAISING
In 2015 total fundraising reached €47.6bn
nearly matching the level of 2014. The
number of funds raised (274) decreased by
15% compared to 2014, but is still above the
levels of 2012 and 2013.
2 INVESTMENTS
The total amount of equity investment
in European companies increased by 14%
to €47.4bn. The number of companies
decreased by 11% to nearly 5,000.
86% of them are SMEs.
European private equity and venture capital
raised in the past three years was 70% more
than between the years 2010 and 2012.
Over a third of the total amount invested
in European companies was attributed to
cross-border investments.
In 2015, 40% of institutional investors came
from outside Europe. Pension funds provided
nearly a quarter of the capital raised. Funds
of funds contributed 18%, followed by
government agencies (14%), sovereign wealth
funds (13%), Family offices and private
individuals (12%).
Venture capital investment increased by 5% to
€3.8bn. The amount invested was greater
across all stages, led by seed investments
with an increase of 18%. Close to 2,800
companies received investments, a reduction
of 12%, which indicates a trend towards larger
financing rounds.
Venture capital fundraising increased by
8% to €5.3bn - the highest level since 2008.
Early and later stage focused funds
particularly increased.
Buyout investment increased by 16% to
€36.3bn into a stable number of companies at
over 900. In terms of amount, large and mega
buyout activity picked up while
mid-market investments remained stable.
Buyout fundraising reduced by 7% to €33.6bn.
The total amount raised by funds above €1bn
grew by 13%. Funds that raised €500m to €1bn
reduced by 44%.
With €2.9bn raised, growth fundraising
exceeded the 2014 level, which was already
the highest reported since 2011.
2015 European Private Equity Activity
Growth investment increased 11% to €6.5bn,
reaching their highest level since 2008.
The number of companies with growth
investments reduced by 13% to just over
1,100.
3 DIVESTMENTS
Almost 2,500 European companies were
exited in 2015, representing former equity
investments (divestments at cost) of
€40.5bn. This amount matches the level
of 2014, which was until then the highest
reported exit volume to date for European
private equity.
The most prominent exit routes by amount
were trade sale (29%), sale to another private
equity firm (27%) and sale of quoted equity
(17%). Four out of ten companies followed
these exit routes.
As in 2014, public markets supported the sale
of quoted equity on flotation (IPO) for 50
companies. Exits from already listed
companies in the form of sale of quoted
equity increased by almost 80% to €6.7bn,
by amount divested at cost.
Exits from venture capital investments by
equity amount at cost increased by 10%
to €2.1bn. Buyout related exits at cost
remained stable at €34bn. For former growth
investments the total amount divested at cost
increased by 40% to €3.2bn.
4
1. FUNDRAISING
Fundraising statistics explained
Direct private equity investment funds that primarily focus on
investments in Europe are monitored.
Funds raised are recorded in the country of the advisory team
that is raising/managing the fund (‘industry statistics’).
The funds included in the statistics are: private equity funds
making direct private equity investments, mezzanine private
equity funds, co-investment funds and rescue/turnaround funds.
The following funds are excluded from the statistics:
infrastructure funds, real estate funds, distressed debt funds,
primary funds of funds, secondary funds of funds.
Glossary
Fund stage focus
Types of investors
Balanced fund: A venture capital fund focused on
both early-stage and development, with no particular
concentration on either.
Corporate investor: Corporations that deliver nonfinancial products and services.
Pension funds: A pension fund that is regulated under
private or public sector law.
Buyout fund: A fund whose strategy is predominantly
to acquire controlling stakes in established
companies.
Endowment: An institution that is bestowed money
(and possibly other assets) via a donation with the
stipulation to invest it and use the gains for specific
objectives so that the principal remains intact.
Sovereign wealth funds: State-owned investment fund
managing a pool of money derived from a country’s
reserves.
Early-stage fund: A venture capital fund focused
on investing in companies in their primary
development stage.
Family office: An office that provides investment
management and other financial services to one or
several families.
Generalist fund: A fund with either a stated focus of
investing in all stages of venture capital and private
equity investment, or with a broad area of investment
activity.
Foundations: A non-profit organisation through which
private wealth is contributed and distributed for
public or charitable purposes.
Note: Fundraising amounts include capital gains
except when reporting fundraising by type of
investors. In the following presentation, unclassified
figures concerning the type of investors have been
extrapolated. More comprehensive data is available
here: www.investeurope.eu/research/
Fund of funds: A private equity fund that primarily
takes equity positions in other funds.
Independent and captive funds
Growth fund: Funds whose strategy is to invest in
relatively mature companies that are looking for
capital to expand or restructure operations.
Later-stage fund: A venture capital fund focused on
investing in later-stage companies in need of
expansion capital.
Mezzanine fund: A fund that provides (generally
subordinated) debt to facilitate the financing of
buyouts, frequently alongside a right to some of the
equity upside.
2015 European Private Equity Activity
Government agencies: Country, regional,
governmental and European agencies or institutions
for innovation and development (including structures
such as the EBRD or EIF).
Other asset manager: Financial institutions (other
than bank, endowment, family office, foundation,
insurance company or pension fund) managing a pool
of capital by investing it across asset classes to
generate financial returns.
Captive funds: Funds that are 100% owned by the
parent organisation.
Independent funds: Semi-captive funds (those in
which the parent owns less than 100%) as well as
wholly independent funds.
6
2015 Fundraising at a glance
•
In 2015 total fundraising reached €47.6bn, nearly matching the level of 2014. The number of
funds raised (274) reduced by 15% compared to 2014, but is still above the level of 2012 and
2013. European private equity and venture capital raised in the past three years (2013-2015)
was 70% more than in the years 2010-2012.
•
Pension funds provided nearly a quarter of funds raised from institutional investors. Funds of
funds contributed 18%, followed by government agencies (14%), sovereign wealth funds (13%),
Family offices and private individuals (12%) and insurance companies (9%). Institutional
investors outside Europe contributed 40% to the annual fundraising for Europe, matching 2014.
•
•
•
Venture capital reached with €5.3bn its highest level since 2008, following an 8% increase over
the previous year. Fundraising for early-stage focused funds increased by 13% to €2.7bn, while
later stage fundraising nearly tripled to €870m. Government agencies contributed 31% of the
funds raised, below the levels of 2010 to 2012, in which regularly more than one third was
attributed to this source. Other major sources were fund of funds (23%), corporate investors
(14%) and family offices and private individuals (12%). North American institutional investors
contributed 11%.
Incremental amounts raised during the year (€ billion)
54.4
3.3
1.1
All Private
Equity
Venture
Capital(1)
Buyout(1)
Growth(1)
€47.6bn
€5.3bn
€33.6bn
€2.9bn
Incremental – No. of funds
274
98
90
38
Final closings - Cumulative
amount since inception
€50.4bn
€4.3bn
€40.5bn
€1.0bn
Final closings - No. of funds
129
40
50
13
2015
Incremental - Amounts raised
Source: Invest Europe / PEREP_Analytics
Note: (1) relates to fund focus
2015 European Private Equity Activity
47.6
4.0
41.6
5.8
2.8
2.9
5.1
4.4
Buyout fundraising decreased by 7% to €33.6bn representing more than 70% of all fundraising.
Pension funds remained the largest institutional investor (25%) in European buyout funds,
followed by funds of funds & other asset managers (18%) and sovereign wealth funds (15%).
North American institutional investors contributed more than a quarter. While the amount
raised by funds above €1bn increased by 13%, the total amount raised by funds between
€500m to €1bn reduced by 44%.
Growth funds with €2.9bn raised exceeded the 2014 level, which was previously the highest
reported since 2011. The 38 growth funds raised capital mostly from government agencies
and family offices & private individuals.
48.0
45.4
24.6
36.3
3.4
0.5
33.6
26.9
16.7
5.2
3.9
2011
2012
Venture Capital
4.6
2013
Buyout
Growth
5.3
4.9
2014
Other (2)
2015
Total
Source: Invest Europe / PEREP_Analytics
Note: (2) Other includes Mezzanine and Generalist funds
FUNDRAISING
INVESTMENTS
DIVESTMENTS
7
Funds raised by fund stage focus
2011–2015 - Incremental amount raised during the year
€ billion
Balanced
Later-stage
Early-stage
6
35
4.6
1.8
2.2
30
3.7
2.3
1.5
3
1.0
2
1
4.4
3.9
2.6
0.9
2.8
2.9
0.3
2.0
2.2
20
2.3
2.1
2.2
2.7
1.7
2.1
1.8
1.5
2.4
34
27
25
2.8
0.3
0.2
45
45
36
4.9
5
50
40
5.3
5.2
4
€ billion
Legend
1.7
1.3
1.1
17
15
10
5
0.5
0
0
Venture Capital
Growth
Mezzanine
2011
2012
2013
Buyout
Generalist
2014
2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
8
Funds raised by fund stage focus
2011–2015 - Number of funds that reached first, intermediate or final closing during the year
Legend
160
Balanced
Later-stage
Early-stage
152
140
120
58
117
120
113
39
46
20
11
60
40
140
129
100
80
160
46
10
98
6
80
60
80
35
60
9
74
100
58
57
57
20
40
38
38
31
18
19
12
9
10
14
84
81
90
73
60
49
32
93
40
20
10
0
0
Venture Capital
Growth
Mezzanine
2011
2012
2013
Generalist
2014
Buyout
2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
9
All Private Equity - Concentration of capital
2011–2015 – Incremental fundraising by amount bracket per fund during the year
% total amount of annual fundraising
70%
Number
of
12
funds
60%
11
8
50%
11
4
40%
30%
37
20%
216
42
10%
269 14
4
4
5
2011
2012
203
8
12
25
12
20 44
31
35
237
6
197
2014
2015
0%
< €100m
€100m - €250m
2013
€250m - €500m
€500m - €1bn
> €1bn
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
10
All Private Equity – Funds raised by region of management
€ billion
2011-2015 - Incremental amount raised during the year
60
0.9
50
0.4
9.4
2.3
0.4
0.4
2.1
0.8
40
1.8
7.0
8.6
1.9
10.5
6.2
30
8.5
20
10
11.9
0.5
0.6
5.1
1.8
2.5
4.3
17.7
7.8
5.9
2.8
34.8
22.7
22.5
2014
2015
14.0
0
2011
2012
UK & Ireland
DACH
2013
Nordics
France & Benelux
Southern Europe
CEE
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
11
All Private Equity - Funds raised by region of management and investor type
2015 - Incremental amount raised during the year
100%
90%
3%
0%
1%
15%
4%
10%
21%
80%
70%
30%
20%
10%
0%
0%
0%
Sovereign wealth funds
Pension funds
17%
Insurance companies
29%
21%
Government agencies
48%
68%
27%
11%
Fund of funds & Other asset managers
28%
3%
40%
10%
3%
12%
60%
50%
0%
10%
Family offices & Private individuals
13%
3%
Corporate investors
18%
9%
15%
20%
Capital markets
1%
14%
8%
4%
8%
2%
2%
5%
UK & Ireland
2%
1%
0%
11%
0%
DACH
10%
0%
39%
18%
6%
7%
2%
Nordics
France &
Benelux
3%
1%
0%
0%
0%
4%
Southern
Europe
16%
Banks
8%
Academic inst. / Endowments /
Foundations
4%
6%
0%
CEE
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
12
Funds raised by type of investor
2015 - Incremental amount raised during the year - % of amount
All Private Equity funds
Venture Capital funds
0%
2%
5% 2%
4%
13%
5%
8%
7%
7%
274 funds
22%
207 firms
12%
11%
3%
0%
1%
0%
14%
9%
98 funds
Banks
4%
82 firms
12%
14%
5%
31%
9%
Academic institutions
Capital markets
Corporate investors
Endowments and foundations
Family offices
Fund of funds
Buyout funds
Growth funds*
15%
7%
2%
1%
4%
7%
4%
Insurance companies
Other asset managers
11%
Pension funds
3%
38 funds
Endowments
and
Banks
90 funds
77 firms
14%
25%
8%
3%
Government agencies
1%
1% 0%
0%2%
10%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
Capital markets
Corporate
investors
foundations
2.7%
Private
individuals
Family
offices
1.2%
26 firms
2.0%
3.7%
Fund
of funds
5.1% 3.6%
11.5%
Government agencies
Pension funds 5.9%
Insurance
companies
Other
asset managers
82% 37.4%
10.8%
4.7%
Private individuals
Sovereign wealth funds
* Due to the comparatively small number of funds raised and extrapolation
of missing data it is recommended to take a longer term perspective to
identify the investor structure in this market segment
FUNDRAISING
INVESTMENTS
DIVESTMENTS
13
All Private Equity - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount
40%
Academic inst. / Endowments / Foundations
35%
Banks
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
30%
25%
20%
15%
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
10%
Pension funds
5%
Sovereign wealth funds
0%
€ billion
2011
2012
60
40
2013
54.2
41.1
2014
2015
48.0
47.5
24.5
New funds raised
(excluding capital gains)
20
0
2011
2012
2013
2014
2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
14
Venture Capital - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount
40%
Academic inst. / Endowments / Foundations
35%
Banks
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
30%
25%
20%
15%
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
10%
Pension funds
5%
Sovereign wealth funds
0%
€ billion
2011
2012
2013
2014
2015
4.6
4.9
5.3
2013
2014
2015
10
5
5.2
3.9
New funds raised
(excluding capital gains)
0
2011
2012
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
15
Buyout - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount
45%
Academic inst. / Endowments / Foundations
40%
Banks
35%
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
30%
25%
20%
15%
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
10%
Pension funds
5%
Sovereign wealth funds
0%
€ billion
2011
50
40
30
20
10
0
2012
2013
2014
2015
36.3
33.5
45.3
26.9
New funds raised
(excluding capital gains)
16.7
2011
2012
2013
2014
2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
16
Growth - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount*
70%
Academic inst. / Endowments / Foundations
Banks
60%
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
50%
40%
30%
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
20%
Insurance companies
Pension funds
10%
Sovereign wealth funds
0%
€ billion
2011
2012
2013
2014
2015
2.8
2.9
6
4.4
4
2
0.5
1.1
0
2011
2012
2013
2014
2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
New funds raised
(excluding capital gains)
* Due to the comparatively small number of funds raised
and extrapolation of missing data it is recommended to
take a longer term perspective to identify the investor
structure in this market segment
INVESTMENTS
DIVESTMENTS
17
All Private Equity - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount
8.8%
North America
20.9%
(7.8%)
(27.7%)
12.4%
(9.3%)
9.4%
22.4%
(10.7%)
0.4%
(0.8%)
(23.5%)
Rest of world
3.0%
(2.4%)
Australia
Asia
15.5%
1.5%
(2.2%)
(10.5%)
Unclassified Europe
5.8%
(5.1%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
18
Venture Capital - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount
3.3%
North America
11.0%
(5.8%)
(10.5%)
20.1%
(7.8%)
10.5%
32.7%
(20.2%)
2.2%
(2.9%)
(41.6%)
Rest of world
0.3%
(0.2%)
Australia
Asia
0.2%
1.1%
(5.7%)
(0.2%)
Unclassified Europe
18.6%
(5.1%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
19
Buyout - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount
11.4%
North America
25.5%
(8.7%)
(33.5%)
11.8%
(9.5%)
8.0%
14.6%
(9.4%)
0.0%
(0.0%)
(15.6%)
Rest of world
4.3%
(2.9%)
Australia
Asia
17.9%
1.4%
(1.6%)
(13.0%)
Unclassified Europe
5.1%
(5.9%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
20
Final closing - Funds raised by fund stage focus
5
€ billion
€ billion
2011–2015 - Final closing during the year - Amount(1)
Legend
Balanced
Later-stage
Early-stage
4.3
3.8
1.3
2
30
1.2
1.4
2.1
0.2
1.7
1.0
0.3
0.1
1.1
2.0
1.4
1.7
15
1.4
1.0
1.0
0.9
2.1
20
1.6
1.4
0.3
28
25
0.9
1.5
1
35
2.8
1.1
40
3.3
3.2
2.9
45
40
4
3
49
50
0.7
0.8
0.5
0.8
18
15
10
5
0.5
0
0
Venture Capital
Growth
2011
Mezzanine
2012
2013
Buyout
Generalist
2014
2015
Source: Invest Europe / PEREP_Analytics
Note: (1) The total amount raised by funds that reached a final closing in the year. Amounts from previous incremental fundraising rounds and years are aggregated to the final amount.
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
21
Final closing - Funds raised by fund stage focus
2011–2015 - Final closing during the year - Number of funds(1)
Legend
Balanced
Later-stage
Early-stage
60
50
60
50
43
13
40
41
40
40
18
4
13
27
30
26
24
14
9
21
16
14
33
30
30
20
5
4
6
10
46
43
25
32
20
50
50
50
11
22
13
14
13
7
4
12
5
3
5
10
6
0
Venture Capital
20
0
Growth
2011
Mezzanine
2012
2013
Generalist
2014
Buyout
2015
Source: Invest Europe / PEREP_Analytics
Note: (1) The number of funds that reached a final closing in the year. Each fund is captured only once, when the full amount has been raised.
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
22
Final closing - All Private Equity - Concentration of capital
2011–2015 - Final closing during the year - Amount(1) & Number of funds(2)
% total amount of annual fundraising
90%
Number
of
80%
funds
12
70%
13
60%
50%
40%
3
7
5
30%
20%
10%
37
7
10
18
10
4
7
77
66
2011
2012
2013
2014
< €100m
€100m - €250m
€250m - €500m
0%
62
13
4 23
31
17
27
79
65
7
13
2015
€500m - €1bn
> €1bn
Source: Invest Europe / PEREP_Analytics
Note: (1) The total amount raised by funds that reached a final closing in the year. Amounts from previous incremental fundraising rounds and years are aggregated to the final amount.
(2) The number of funds that reached a final closing in the year. Each fund is captured only once, when the full amount has been raised.
2015 European Private Equity Activity
23
2. INVESTMENTS
Investments statistics explained
Industry statistics are an aggregation of figures according to
the country of the private equity firm’s office in charge of the
investment. At European level, this relates to investments made
by European private equity firms regardless of the location of
the portfolio company.
Market statistics are an aggregation of figures according to the
location of the portfolio company. At European level, this
relates to investments in European companies regardless of the
location of the private equity firm.
Equity value: The amount of capital invested to acquire shares
in an enterprise. The equity value includes equity, quasi-equity,
mezzanine, unsecured debt and secured debt provided by the
private equity firm.
The funds included in the statistics are: private equity funds
making direct private equity investments, mezzanine private
equity funds, co-investment funds and rescue/turnaround funds.
The following funds are excluded from the statistics:
infrastructure funds, real estate funds, distressed debt funds,
primary funds of funds, secondary funds of funds.
Market versus industry statistics
CC
Market statistics
A+B+C
B
DD
A
Domestic investments in European countries
B
Cross-border investments within Europe
C
Non-European private equity firms investing in
portfolio companies in Europe
D
European private equity firms investing in
portfolio companies outside Europe
Industry statistics
A+B+D
A
Glossary
Venture capital
Growth
Rescue / Turnaround
Seed: Financing provided to research, assess and
develop an initial concept before a business has
reached the start-up phase.
A type of private equity investment – most often a
minority investment but not necessarily – in relatively
mature companies that are looking for capital to
expand operations, restructure operations or enter
new markets.
Financing made available to an existing business,
which has experienced trading difficulties, with a
view to re-establishing prosperity.
Buyout
Replacement capital
Financing provided to acquire a company. It may use
a significant amount of borrowed money to meet the
cost of acquisition.
The purchase of a minority stake of existing shares in
a company from another private equity firm or from
another shareholder or shareholders.
Start-up: Financing provided to companies for product
development and initial marketing. Companies may
be in the process of being set up or may have been in
business for a short time, but have not sold their
product commercially.
Later-stage financing: Financing provided for the
expansion of an operating company, which may or
may not be breaking even or trading profitably. Laterstage venture tends to finance companies already
backed by venture capital firms.
2015 European Private Equity Activity
26
2015 Investments at a glance
Investments – Market statistics – Amount & No. of companies
•
The total amount of equity investments in European companies increased by 14% to €47.4bn.
The related number of companies reduced by 11% to almost 5,000. 86% of them are SMEs.
•
Over a third of the total amount invested in European companies was attributed to cross-border
investments. This was the case for all private equity as well as venture capital investments.
2,965
•
Venture capital investments increased by 5% to €3.8bn. The amount invested increased across
all stages led by seed investments with an increase of 18%. Later-stage venture increased by
5% and start-up investments by 4%. The reduction in number of companies by 12% to 2,836
indicates a trend towards larger financing rounds across all stages. Most capital was
concentrated in life sciences (34%), computer & consumer electronics (20%) and
communications (19%) sectors.
44.9
•
•
Buyout investments increased by 16% to €36.3bn into a stable number of companies at 944.
In terms of amount, large and mega buyouts increased, while mid-market investments remained
stable. More than 60% of buyout investments concentrated in companies active in business
& industrial products (18%), consumer goods & retail (15%), financial services (12%) and life
sciences (11%).
Growth investments increased 11% to €6.5bn, reaching their highest level since 2008.
The number of companies receiving growth investments reduced by 13% to 1,108. Investments
concentrated in the sectors of communication(17%), energy & environment (14%), consumer
goods & retail (13%) and computer & consumer electronics (12%).
All Private
Equity
Venture
Capital(1)
Buyout(1)
Growth(1)
€47.4bn
€3.8bn
€36.3bn
€6.5bn
No. of companies
4,971
2,836
944
1,108
No. of firms
1,028
589
427
400
No. of funds
1,656
930
572
582
2015 - Market statistics
Amount
Source: Invest Europe / PEREP_Analytics
Note: (1) relates to the investment stage of the portfolio company
2015 European Private Equity Activity
3,237
5.2
2,981
3,055
2,836
47.4
41.8
36.8
36.3
4.0
3.6
28.1
1,066
28.0
1,122
881
896
839
3.7
3.2
2011
2012
34.5
932
5.8
31.3
1,272
6.5
36.3
1,108
951
944
3.4
3.6
3.8
2013
2014
2015
Amount (€bn):
No. of companies:
Venture Capital
Buyout
Growth
Venture Capital
Buyout
Growth
Other(2)
Total
Source: Invest Europe / PEREP_Analytics
Note: (2) Other includes Rescue/Turnaround and Replacement capital
FUNDRAISING
INVESTMENTS
DIVESTMENTS
27
Investments by stage
2015 - Market statistics - % of Amount & Number of companies
% of Amount
Seed
0.2%
Start-up
Later-stage
4.2%
venture
3.5%
Growth
capital
13.6%
Rescue/
Turnaround
0.5%
Replacement
capital
1.2%
% of Number of companies
Seed
8.5%
Buyout
18.6%
Replacement
capital
1.6%
Rescue/
Turnaround
0.9%
Start-up
35.8%
Growth
capital
21.9%
Buyout
76.6%
Later-stage
venture
12.7%
Venture Capital
Buyout
Growth
€3.8bn
€36.3bn
€6.5bn
Venture Capital
Buyout
Growth
2,836 Companies
944 Companies
1,108 Companies
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
28
Investments by stage
€ billion
€ billion
2011–2015 - Market statistics - Amount
7
40
35
6
30
5
25
4
3.7
0.2
3.2
3
1.8
2
1
1.7
1.0
2011
1.1
Start-up
28.0
1.0
2013
Growth
5
1.7
1.6
0.8
0.3
Seed
31.3
28.1
10
1.5
0.3
2012
Later-stage venture
15
3.6
1.3
36.3
34.5
2.0
1.9
1.8
4.0
0.5
0
6.5
5.8
1.8 5.2
20
0.1
0.1
0.1
0.1
3.8
3.6
3.4
0.3
0.2
2014
0.6
0
2011 2012 2013 2014 2015
2015
Rescue/Turnaround
Replacement capital
Buyout
Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
29
Investments by stage
2011–2015 - Market statistics - Number of companies
4,000
3,237
3,500
3,055
2,981
2,965
2,836
470
3,000
413
359
392
431
2,500
1,000
2,000
1,679
1,948
1,796
1,833
1,812
1,500
500
1,000
500
939 932
843
103
1,066
76
65
0
2011
Later-stage venture
885
2012
Start-up
117
Seed
1,272
1,122
853
62
2013
Growth
104
644
58
2014
Rescue/Turnaround
89
881
896
839
951
944
1,108
48
80
2015
Replacement capital
0
2011 2012 2013 2014 2015
Buyout
Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
30
Buyout – Investments by equity bracket
2011–2015 - Market statistics - Amount & Number of companies
9
38
0
0
7 378
18
6
29
18
2008
€ billion
€ billion
816
15
50
40
30 574
35
20
30
10
0
24
438
8
25 493
15
128
2
5
2
6 8 2
10 4
2009
5
621
12
40
20
673
8
6
50574
0550
30
8 327
20078
8 327
8 16
238
16
11
3
33
16
2010
33
4 18
33
18
2011
9
574
550
493
621
570
900
800
700
600 622
547
500
400
5
7 263 300 8
200
13
100
32 3
10
0 10
2013
8
8
900
5
8 327
7 268
800
8 238
16
13
700
11
128
2
6
2
296215
33 4
27 4
6 8 2 600 33 3
4 547
16
11
18
18
5
5
500
7
2008
2009
2010
2011
2012
400 7
57 268
5
277
269
7 268
7 263 300
15
200
13
13
13
13
100
4
27 4
32 3
11
10
0
Small (<€15m) - Amount
2012
2013
Mid-market (€15m - €150m) - Amount
31
2011
7 378
18
Number of companies
86
45
816
27
4 11
2012
3
33
4 12
10
Large (€150m - €300m)
- Amount
2013 Mega (> €300m) - Amount
2014
298
15
600
500
400
300
200
100
43
4 18
0
2015
Small (<€15m) - Amount
Small (<€15m) - No. of companies
Mid-market (€15m - €150m) - Amount
Mid-market (€15m - €150m) - No. of companies
Large (€150m - €300m) - Amount
Large (€150m - €300m) - No. of companies
Mega (> €300m) - Amount
Mega (> €300m) - No. of companies
Source: Invest Europe / PEREP_Analytics
Small (<€15m)
700
Number of companies
50
886
Number of companies
60
- No. of companies
2015 European Private Equity
Activity (€15m - €150m) - No. of companies
Mid-market
Large (€150m - €300m) - No. of companies
Mega (> €300m) - No. of companies
FUNDRAISING
INVESTMENTS
DIVESTMENTS
31
Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Amount
€ billion
12
10
8
6
4
2
0
Q1
Q2
Q3
Q4
Q1
2011
Q2
Q3
2012
Q4
Q1
Q2
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
Q2
2014
Venture Capital
Q3
Q4
2015
Buyout
Growth
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
32
Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Number of companies
1,200
1,000
800
600
400
200
0
Q1
Q2
Q3
Q4
Q1
2011
Q2
Q3
2012
Q4
Q1
Q2
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
Q2
2014
Venture Capital
Q3
Q4
2015
Buyout
Growth
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
33
Venture Capital - Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Amount
€ billion
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Q1
Q2
Q3
Q4
Q1
2011
Q2
Q3
2012
Q4
Q1
Q2
Q3
Q4
Q1
2013
Q2
Q3
Q4
2014
Seed
Start-up
Q1
Q2
Q3
Q4
2015
Later-stage venture
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
34
Venture Capital - Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Number of companies
800
700
600
500
400
300
200
100
0
Q1
Q2
Q3
Q4
Q1
2011
Q2
Q3
2012
Q4
Q1
Q2
Q3
Q4
Q1
2013
Q2
Q3
Q4
2014
Seed
Start-up
Q1
Q2
Q3
Q4
2015
Later-stage venture
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
35
All Private Equity - Geographical investment flows
2015 - Industry vs. Market statistics - Amount
Market statistics
are an aggregation of figures according to
the location of the portfolio company.
At European level, this relates to
investments in European companies
regardless of the location of the private
equity firm.
€3.3bn
Non-European private
equity firms investing
in portfolio companies
in Europe
€13.1bn
€3.2bn
European private
equity firms investing
in portfolio companies
outside Europe
Industry statistics
are an aggregation of figures according
to the country of the private equity
firm’s office in charge of the
investment.
At European level, this relates to
investments made by European private
equity firms regardless of the location
of the portfolio company.
Cross-border
investments
within Europe
€31.0bn
Domestic investments
in European countries
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
Europe includes:
Austria, Baltic countries (Estonia, Latvia,
Lithuania), Belgium, Bulgaria, Czech Republic,
Denmark, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Luxembourg,
Netherlands, Norway, Other CEE (BosniaHerzegovina, Croatia, Macedonia, Montenegro,
Serbia, Slovenia, Slovakia), Poland, Portugal,
Romania, Spain, Sweden, Switzerland, Ukraine,
United Kingdom
INVESTMENTS
DIVESTMENTS
36
Venture Capital - Geographical investment flows
2015 - Industry vs. Market statistics - Amount
Market statistics
are an aggregation of figures according to
the location of the portfolio company.
At European level, this relates to
investments in European companies
regardless of the location of the private
equity firm.
€313m
Non-European private
equity firms investing
in portfolio companies
in Europe
€994m
€495m
European private
equity firms investing
in portfolio companies
outside Europe
Industry statistics
are an aggregation of figures according
to the country of the private equity
firm’s office in charge of the
investment.
At European level, this relates to
investments made by European private
equity firms regardless of the location
of the portfolio company.
Cross-border
investments
within Europe
€2,499m
Domestic investments
in European countries
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
Europe includes:
Austria, Baltic countries (Estonia, Latvia,
Lithuania), Belgium, Bulgaria, Czech Republic,
Denmark, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Luxembourg,
Netherlands, Norway, Other CEE (BosniaHerzegovina, Croatia, Macedonia, Montenegro,
Serbia, Slovenia, Slovakia), Poland, Portugal,
Romania, Spain, Sweden, Switzerland, Ukraine,
United Kingdom
INVESTMENTS
DIVESTMENTS
37
All Private Equity - Investments by region
2015 - Industry vs. Market statistics - Amount
Industry statistics
Nordics
14%
Market statistics
CEE
3%
Nordics
13%
UK & Ireland
25%
CEE
3%
UK & Ireland
27%
Southern
Europe
9%
Southern Europe
10%
DACH
19%
DACH
19%
France & Benelux
28%
France &
Benelux
29%
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
38
Investments by stage and regions
2015 - Market statistics - Amount
12
€ billion
€ billion
2.5
10.2
10
9.9
2.0
8
1.5
6.5
1.2
2.4
1.0
0.9
6
0.1
0.9
0.0
4.7
0.0
0.4
0.7
1.6
4
0.5
0.5
0.4
1.0
0.3
0.5
0.0
3.7
0.0 0.2
0.1 0.2
0.1 0.1
UK & Ireland
0.0
0.5
0.4
France & Benelux
Later-stage venture
Start-up
DACH
Seed
0.2
0.2 0.4
0.0 0.1
0.1
Southern Europe
Growth
0.8
0.0
0.0 0.1
0.1
0.2
0.0
0.0 0.0
0.1 0.0
0.2
Nordics
Rescue/Turnaround
CEE
2
1.2
0
Replacement capital
Venture Capital
Buyout
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
39
Investments by stage and regions
2015 - Market statistics - Number of companies
1,000
936
900
244
800
700
600
578
598
33
45
500
545
400
300
200
455
278
14
455
175
362
100
343
6
14
8
UK & Ireland
35
France & Benelux
Later-stage venture
300
224
222
36
59
142
187
97 105
0
400
368
Start-up
DACH
Seed
48 65
5
11
Southern Europe
Growth
100
127
165
18 18
200
107
74
5
7
40 47
Nordics
Rescue/Turnaround
0
1
190
144
100
129
38
0
CEE
Replacement capital
Buyout
Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
40
All Private Equity - Investments as % of European GDP
2000–2015 - Industry statistics: Location of the PE firm
%of GDP
0.60%
0.55%
0.53%
0.50%
0.40%
0.39%
0.40%
0.35%
0.32%
0.30%
0.25%
0.32%
0.33%
0.30%
0.26%
0.26%
0.26%
2012
2013
0.28%
0.23%
0.19%
0.20%
0.10%
0.00%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2014
2015
Source: : IMF, World Economic Outlook Database (GDP) / Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
41
All Private Equity - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
0.900%
0.799%
0.800%
0.700%
0.000%
0.008%
0.015%
0.026%
0.031%
0.032%
0.036%
0.050%
0.071%
0.075%
0.097%
0.107%
0.084%
0.100%
0.108%
0.142%
0.176%
0.198%
0.187%
0.200%
0.247%
0.300%
0.257%
0.302%
0.332%
0.400%
0.388%
0.500%
0.433%
0.600%
0.437%
% of GDP
1.000%
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
42
Venture Capital - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
0.000%
0.001%
0.002%
0.002%
0.002%
0.005%
0.005%
0.007%
0.008%
0.010%
0.022%
0.023%
0.015%
0.020%
0.025%
0.025%
0.026%
0.032%
0.033%
0.034%
0.034%
0.039%
0.040%
0.041%
0.060%
0.047%
0.080%
0.047%
0.100%
0.079%
0.120%
0.109%
% of GDP
0.140%
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
43
Buyout - Investments as % of GDP
0.800%
0.700%
0.677%
0.600%
0.000%
0.000%
0.001%
0.005%
0.008%
0.013%
0.023%
0.024%
0.029%
0.030%
0.033%
0.060%
0.062%
0.062%
0.087%
0.100%
0.137%
0.149%
0.153%
0.155%
0.200%
0.179%
0.208%
0.233%
0.300%
0.313%
0.400%
0.314%
0.500%
0.322%
% of GDP
2015 - Industry statistics: Location of the PE firm
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
44
Growth - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
0.080%
0.084%
0.100%
0.098%
0.080%
0.000%
0.000%
0.000%
0.001%
0.004%
0.005%
0.005%
0.008%
0.011%
0.013%
0.014%
0.014%
0.015%
0.016%
0.017%
0.018%
0.018%
0.020%
0.019%
0.020%
0.024%
0.027%
0.040%
0.039%
0.060%
0.058%
% of GDP
0.120%
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
45
All Private Equity - Investments as % of GDP
1.200%
0.008%
0.021%
0.064%
0.085%
0.090%
0.119%
0.125%
0.141%
0.142%
0.146%
0.155%
0.215%
0.188%
0.200%
0.218%
0.302%
0.305%
0.322%
0.337%
0.376%
0.400%
0.381%
0.453%
0.478%
0.600%
0.496%
0.800%
0.497%
1.000%
0.633%
% of GDP
1.400%
1.254%
2015 - Market statistics: Location of the portfolio company
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
46
Venture Capital - Investments as % of GDP
0.000%
0.001%
0.001%
0.002%
0.003%
0.004%
0.005%
0.005%
0.010%
0.010%
0.014%
0.020%
0.015%
0.016%
0.023%
0.024%
0.024%
0.025%
0.028%
0.031%
0.029%
0.030%
0.033%
0.033%
0.033%
0.035%
0.040%
0.037%
0.050%
0.044%
0.060%
0.051%
% of GDP
2015 - Market statistics: Location of the portfolio company
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
47
Buyout - Investments as % of GDP
1.400%
1.198%
1.200%
1.000%
0.001%
0.002%
0.013%
0.028%
0.050%
0.087%
0.088%
0.103%
0.108%
0.139%
0.142%
0.151%
0.160%
0.200%
0.164%
0.219%
0.232%
0.236%
0.251%
0.300%
0.300%
0.310%
0.380%
0.400%
0.389%
0.600%
0.407%
0.800%
0.542%
% of GDP
2015 - Market statistics: Location of the portfolio company
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
48
Growth - Investments as % of GDP
0.160%
0.140%
0.137%
0.000%
0.001%
0.005%
0.005%
0.011%
0.011%
0.014%
0.014%
0.015%
0.016%
0.017%
0.023%
0.019%
0.020%
0.025%
0.028%
0.035%
0.041%
0.046%
0.038%
0.040%
0.051%
0.056%
0.060%
0.059%
0.080%
0.072%
0.100%
0.086%
0.120%
0.087%
% of GDP
2015 - Market statistics: Location of the portfolio company
0.000%
2015
2011-2015 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
49
All Private Equity - Investments by sector
2015 - Market statistics - % of Amount & Number of companies
0%
2%
4%
6%
8%
10%
12%
Business & industrial products
12.2%
Financial services
19.1%
10.0%
2.2%
Consumer services
20%
16.2%
11.2%
Computer & consumer electronics
9.0%
5.5%
7.3%
Business & industrial services
10.0%
7.2%
Communications
12.2%
5.4%
5.5%
Energy and environment
Transportation
Agriculture
0.7%
2.4%
1.7%
1.9%
Amount
1.8%
1.8%
Chemicals and materials
Unclassified
18%
14.0%
10.2%
Life sciences
Real estate
16%
15.8%
12.4%
Consumer goods & retail
Construction
14%
Number of companies
1.1%
1.3%
0.6%
0.4%
0.1%
0.9%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
50
Investments by sector
2011-2015 - Market statistics - Amount
50
45
40
35
30
25
20
15
10
5
0
Transportation
3.5
3
2
Life sciences
1.5
Financial services
1
Energy and environment
0.5
Consumer services
2012
2013
2014
2015
0
2011
Consumer goods & retail
Construction
Growth
40
Computer & consumer electronics
7
35
Communications
30
Chemicals and materials
25
Business & industrial services
20
Business & industrial products
Buyout
€ billion
4
2.5
Real estate
2011
15
Agriculture
10
2008
€ billion
Venture Capital
5
2009
2010
2011
2012
2013
0
€ billion
€ billion
All Private Equity
2012
2013
2014
2015
2012
2013
2014
2015
6
5
4
3
2
1
0
2011
2012
2013
2014
2015
2011
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
51
Investments by sector
2011-2015 - Market statistics - Number of companies
All Private Equity
Venture Capital
6,000
3,500
5,000
4,000
2,000
Life sciences
2,000
Financial services
1,000
Energy and environment
1,500
1,000
500
Consumer services
0
2011
2012
2013
2014
2015
0
2011
Consumer goods & retail
Construction
Buyout
1,000
800
1,400
Communications
1,200
Chemicals and materials
1,000
Business & industrial products
400
Agriculture
200
2010
2011
2012
2013
2012
2013
2014
2015
2012
2013
2014
2015
Growth
Computer & consumer electronics
Business & industrial services
600
2009
2,500
Real estate
3,000
2008
3,000
Transportation
800
600
400
200
0
0
2011
2012
2013
2014
2015
2011
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
52
All Private Equity - Initial / Follow-on investments
2015 - Market statistics - % of Number of companies
54%
56%
54%
58%
55%
Follow-on investment
for the company
Initial investment for
the company
60%
46%
57%
44%
2011
46%
42%
2012
2013
61%
59%
56%
45%
2014
Initial investment for
the private equity firm
2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
53
Investments by portfolio company size
2015 - Market statistics - % of Number of companies
All Private Equity
3.6%
3.5% 1.1%
Venture Capital
SME: 85.9%
5.8%
0.9%
0.4%
3.1%
0.1% 0.1%
0.2%
SME: 98.7%
1.8%
9.8% 3.6%
4.5%
staff by interval
48.5%
2.5%
0 - 19
SME
9.1%
44.1%
20 - 99
100 - 199
68.8%
200 - 249
25.9%
250 - 499
3.5%
Buyout
26.4%
Full-time equivalent
3.7% 0.9%
6.2%
14.1%
500 - 999
SME: 54.7%
1000 - 4999
Growth
5.7%
5000 +
31.6%
3.0% 1.4%
SME: 81.9%
7.9%
22.2%
35.0%
2.8%
11.1%
15.8%
16.6%
21.1%
5.1%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
28.3%
FUNDRAISING
INVESTMENTS
DIVESTMENTS
54
Venture Capital - Investments by portfolio company size
2,000
1,843
Amount invested
1,800
2,500
Number of companies
1,600
1,400
2,000
Number of
companies
€ million
2015 - Market statistics - Amount & Number of companies
1,318
1,200
1,500
1,000
800
1,000
600
342
400
500
200
54
133
94
0
0 - 19
20 - 99
100 - 199
200 - 249
250 - 499
500 - 999
19
1000 - 4999
5000 +
0
Full-time equivalent staff by interval
SMEs
SME %
1
Amount invested
Number of companies
93%
99%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
55
Buyout - Investments by portfolio company size
14
250
12.9
Amount invested
12
200
Number of
companies
€ billion
2015 - Market statistics - Amount & Number of companies
10
150
8
6.6
5.3
6
3.8
4
100
4.2
2.5
50
2
0.7
0.4
0
0
0 - 19
20 - 99
100 - 199
200 - 249
250 - 499
500 - 999
5000 +
Full-time equivalent staff by interval
SMEs
SME %
1000 - 4999
Amount invested
Number of companies
20%
55%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
56
Growth - Investments by portfolio company size
1.8
450
Amount invested
1.5
1.6
400
1.4
350
1.2
1.0
0.8
300
1.0
0.9
250
0.9
0.6
0.6
0.6
200
0.5
0.3
0.4
Number of
companies
€ billion
2015 - Market statistics - Amount & Number of companies
150
100
0.2
50
0.0
0
0 - 19
20 - 99
100 - 199
200 - 249
250 - 499
500 - 999
5000 +
Full-time equivalent staff by interval
SMEs
SME %
1000 - 4999
Amount invested
Number of companies
52%
82%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
57
3. DIVESTMENTS
Divestments statistics explained
Industry statistics are an aggregation of figures according to
the country of the private equity firm’s office in charge of the
divestment. At European level, this relates to divestments
made by European private equity firms regardless of the
location of the portfolio company.
Market statistics are an aggregation of figures according to
the location of the portfolio company. At European level, this
relates to divestments of European companies regardless of
the location of the private equity firm.
Divestment amounts (including write-offs) are recorded at cost
(i.e. the total amount divested is equal to the total amount
invested before).
The funds included in the statistics are: private equity funds
making direct private equity investments, mezzanine private
equity funds, co-investment funds and rescue/turnaround
funds.
The following funds are excluded from the statistics:
infrastructure funds, real estate funds, distressed debt funds,
primary funds of funds, secondary funds of funds.
Market versus industry statistics
CC
Market statistics
A+B+C
B
DD
A
Domestic divestments in European countries
B
Cross-border divestments within Europe
C
Non-European private equity firms divesting
portfolio companies in Europe
D
European private equity firms divesting
portfolio companies outside Europe
Industry statistics
A+B+D
A
Glossary
Initial public offering (IPO): The sale or distribution of
a company’s shares to the public for the first time by
listing the company on the stock exchange.
Repayment of principal loans: If a private equity firm
provided loans or purchased preference shares in the
company at the time of the investment, then their
repayment according to the amortisation schedule
represents a decrease of the financial claim of the
firm into the company, and hence a divestment.
Repayment of silent partnership: A silent partnership
is a type of mezzanine financing instrument. It is
similar to a long-term bank loan but, in contrast to a
loan, a silent partnership is subject to a subordination
clause, so that in the event of insolvency all other
creditors are paid before the silent partner. The
company has to repay the partnership and has to pay
interest and possibly a profit-related compensation.
The subordination clause gives the capital the status
of equity despite its loan character. This financing
instrument is frequently used in Germany.
Sale to another private equity firm: The sale of
company shares to another direct private equity firm.
Sale to financial institution: The sale of company
shares to banks, insurance companies, pension funds,
endowments, foundations and other asset managers
other than private equity firms.
Trade sale: The sale of company shares to industrial
investors.
Write-off: The total or partial write-down of a
portfolio company’s value to zero or a symbolic
amount (sale for a nominal amount) with the
consequent exit from the company or reduction of
the shares owned. The value of the investment is
eliminated and the return to investors is a full or
partial loss.
Sale of quoted equity: The sale of quoted shares only
if connected to a former private equity investment,
e.g. sale of quoted shares after a lock-up period.
2015 European Private Equity Activity
60
2015 Divestments at a glance
•
Almost 2,500 European companies were exited in 2015, representing former equity investments
(divestments at cost) of €40.5bn. This amount matches the level of 2014, which was until then
the highest reported exit volume to date for European private equity.
•
The most prominent exit routes by amount were trade sale (29%), sale to another private
equity firm (27%) and public offering (23%). Over 40% of all the divested companies followed
these exit routes.
•
Public markets supported again sale of quoted equity on flotation (IPO) for 50 companies.
Exits from already listed companies in the form of sale of quoted equity increased by almost
80% to €6.7bn, by amount divested at cost.
•
Exits from venture capital investments represented 40% of all divested companies, remaining
at over 1,000 companies and accounting for 5% of the amount divested at cost. The equity
amount divested increased by 10% to €2.1bn. Trade sale, write-off, sale of quoted equity or on
flotation (IPO), and sale to another private equity firm were the most prominent exit routes.
•
Buyout divestments’ share was 84% of the equity amount at cost and 32% by number of
companies. The amount divested remained stable at €34bn and number of companies almost
800. Sale to another private equity firm, trade sale, and sale of quoted equity or on flotation
(IPO) were the most prominent exit routes.
•
Growth divestments represented 8% of equity amount at cost and 27% by number of companies.
The amount divested increased by 40% to €3.2bn and the number of companies increased by
9% to 660. Trade sale, sale to another private equity firm and write-off were the most
prominent exit routes.
All Private
Equity
Venture
Capital(1)
Buyout(1)
Growth(1)
€40.5bn
€2.1bn
€34.3bn
€3.2bn
2,487
1,005
797
660
Number of Firms
640
297
321
162
Number of Funds
1,123
531
531
230
2015 - Market statistics
Divestments – Amount
Divestments – No. Companies
Source: Invest Europe / PEREP_Analytics
Note: (1) relates to the investment stage of the portfolio company
2015 European Private Equity Activity
Divestments – Market statistics – % total amount divested at cost
Sale to
management
2%
Repayment of
principal loans
Other means
4%
1%
Write-off
4%
Sale to financial
institution
10%
Trade sale
29%
Public offering
23%
Sale to another
private equity
firm
27%
Source: Invest Europe / PEREP_Analytics
FUNDRAISING
INVESTMENTS
DIVESTMENTS
61
Divestments at cost – Venture Capital / Buyout / Growth
45
1,200
40
35
30
25
2.1
1.9
2.3
3.2
2.2
1.9
2.4
2.3
1,000
800
Number of companies
€ billion
2011–2015 - Market statistics - Amount & Number of companies
600
1.9
1.1
20
34.3
33.4
15
29.1
400
24.8
10
18.3
200
5
0
0
2011
2012
2013
2014
2015
Buyout - Amount divested
Growth - Amount divested
Venture Capital - Amount divested
Buyout - Number of companies
Growth - Number of companies
Venture Capital - Number of companies
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
62
Divestments at cost by exit route – Venture Capital / Buyout / Growth
2015 - Market Statistics - % of Amount
11%
0%
1%
27%
Buyout
1%
5%
1%
€34.3bn
28%
4%
7%
8%
5%
10%
3%
2%
33%
4%
3%
Venture Capital
50%
€2.1bn
18%
Growth
0%
31%
Trade sale
14%
€3.2bn
1%
2%
Initial public offering
4.1%
4.4%
4.7%
Sale of quoted equity
16.8%
1.6%
5%
Write-off
9%
36.7%
2%
Repayment of silent partnerships
10%
5%
Repayment of principal loans
Sale to another private equity firm
2.1%
0.3%
4.7%
24.4%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
Sale to financial institution
Sale to management
Other means
FUNDRAISING
INVESTMENTS
DIVESTMENTS
63
Divestments at cost by exit route – Venture Capital / Buyout / Growth
2015 - Market Statistics - % of Number of companies
3%
10%
29%
6%
Buyout
1%
1%
3%
797 Companies
7%
8%
24%
24%
6%
3%
4%
11%
7%
8%
3%
6%
Venture Capital
11%
1%
1,005 Companies
4%
3%
1%
Growth
8%
12%
660 Companies
7%
Trade sale
20%
Initial public offering
4.7%
4.1%
4.4%
Sale of quoted equity
23%
Write-off
36.7%
16.8%
1.6%
46%
Repayment of silent partnerships
Repayment of principal loans
Sale to another private equity firm
2.1%
0.3%
4.7%
24.4%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
Sale to financial institution
Sale to management
Other means
FUNDRAISING
INVESTMENTS
DIVESTMENTS
64
All Private Equity - Divestments at cost by exit route
€ billion
2011–2015 – Market statistics - Amount at cost
12
10
8
6
4
2
0
2011
2012
Trade sale
Write-off
Sale to another private equity firm
Other means
2013
2014
Initial public offering
Repayment of silent partnerships
Sale to financial institution
2015
Sale of quoted equity
Repayment of principal loans
Sale to management
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
65
All Private Equity - Divestments at cost by exit route
2011–2015 - Market statistics - Number of companies
600
500
400
300
200
100
0
2011
2012
Trade sale
Write-off
Sale to another private equity firm
Other means
2013
2014
Initial public offering
Repayment of silent partnerships
Sale to financial institution
2015
Sale of quoted equity
Repayment of principal loans
Sale to management
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
66
All Private Equity - Divestments at cost by sector
8
450
7.1
400
7
Amount at cost
350
6
Number of companies exited
5.0
5
4.5
4.3
250
4
3
3.5
1
3.4
383
200
3.1
295
237
2
186
81
0
300
2.0
252
150
2.0 257
1.6
175
100
1.1
52
40
Number of companies exited
€ billion
2015 - Market statistics - Amount & Number of companies (excluding write-offs)
76
0.6
67
0.3
13
0.0
16
50
0.0 5
0
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
67
Divestments at cost by sector – Venture Capital / Buyout / Growth
2015 - Market statistics - Amount (excluding write-offs)
Life sciences
16%
Communications
4%
10%
1%
Computer & consumer electronics
5%
6%
7%
8%
6%
Consumer services
3%
Business & industrial services
Chemicals & materials
Transportation
Construction
Agriculture
Real estate
Unclassified
14%
12%
12%
14%
9%
9%
7%
2%
1%
1%
0%
19%
21%
11%
9%
Business & industrial products
Energy & environment
19%
5%
Consumer goods & retail
Financial services
36%
7%
8%
6%
2%
Venture Capital
Buyout
4%
0%
2%
1%
0%
1%
0%
1%
0%
0%
0%
0%
1%
Growth
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
68
Divestments at cost by sector – Venture Capital / Buyout / Growth
2015 - Market statistics - Number of companies (excluding write-offs)
11%
Business & industrial products
Consumer goods & retail
8%
Business & industrial services
8%
16%
Computer & consumer electronics
Life sciences
Consumer services
Communications
Financial services
Energy & environment
Construction
Chemicals & materials
Transportation
Agriculture
Real estate
Unclassified
18%
7%
5%
5%
4%
3%
6%
2%
5%
3%
2%
2%
3%
5%
3%
3%
2%
1%
2%
3%
0%
1%
1%
0%
0%
0%
1%
1%
0%
18%
13%
14%
20%
8%
19%
8%
9%
7%
27%
11%
14%
Venture Capital
Buyout
Growth
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
69
All Private Equity - Divestments at cost by region
€ billion
2015 - Industry vs. Market statistics - % of Amount
20
18
17.7
16
14
12.6
12
10.8
9.7
10
7.5
8
6.5
6
4.4
4
4.0
3.2
3.0
2
1.2
0.9
UK & Ireland
DACH
Nordics
Industry statistics - Country of the private equity firm
France & Benelux
Southern Europe
CEE
Market statistics - Country of portfolio company
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity
FUNDRAISING
INVESTMENTS
DIVESTMENTS
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ACKNOWLEDGEMENTS
Acknowledgements
We are grateful for the generous support of General Partners representing private
equity and venture capital firms across Europe who provided us with their activity
data. The following comprehensive and verified pan-European statistics would not
be possible without their on-going commitment.
We also thank all the regional and national private equity associations that collect
their activity data via PEREP_Analytics, the pan-European statistics platform.
We thank the following associations for their participation to make PEREP_Analytics
the most comprehensive private equity database on private equity in Europe:
APCRI - Portugal
IVCA - Ireland
AVCO - Austria
LTVCA - Lithuania
BVA - Belgium
NVCA - Norway
BVK - Germany
NVP - The Netherlands
CVCA - Croatia
PSIK - Poland
CVCA - The Czech Republic
SECA - Switzerland
DVCA - Denmark
SEEPEA - South Eastern Europe
EstVCA - Estonia
SLOVCA - Slovakia
FVCA – Finland
SVCA - Sweden
HVCA - Hungary
About PEREP_Analytics and Invest Europe Research
63%
PEREP is a joint Pan-European statistics platform of the following private equity associations:
The coverage rate of all
European private equity
firms based on 2,029 eligible
private equity firms
91%
The 2015 annual survey
covered 91% of the European
market in terms of capital
under management
(base €564bn)
Statistics Manager
Iuliana Furica
Knowledge Manager
Monica Biolan
Statistics Team
Adriana Andronic
Ana-Maria Cazacu
Claudiu Costache
Adriana Craciun
Cristina Cristea
Denisa Florea
[email protected]
2015 European Private Equity Activity
APCRI - Portugal
CVCA - The Czech Republic
HVCA - Hungary
PSIK - Poland
AVCO - Austria
DVCA - Denmark
IVCA - Ireland
SECA - Switzerland
BVA - Belgium
EstVCA - Estonia
LTVCA - Lithuania
SEEPEA - South Eastern Europe
BVK - Germany
Invest Europe - Europe
NVCA - Norway
SLOVCA - Slovakia
CVCA - Croatia
FVCA - Finland
NVP - The Netherlands
SVCA - Sweden
Research Director
Dr Cornelius Mueller
Dan Magirescu
Alexandru Mazilu
Ioana Turbatu
Dina Valah
www.perepanalytics.eu
Research Manager
Julien Krantz
[email protected]
www.investeurope.eu
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Invest Europe
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Place du Champ de Mars 5
B-1050 Brussels, Belgium
T +32 2 715 00 20
www.investeurope.eu