2014 European
Private Equity Activity
Statistics on Fundraising,
Investments & Divestments
Disclaimer
The information contained in this report has been produced by the
EVCA, based on PEREP_Analytics data and third party information.
While the EVCA has made every effort to ensure the reliability of
the data included in this report, EVCA cannot guarantee the
accuracy of the information collected and presented. Therefore,
the EVCA cannot accept responsibility for any decision made or
action taken based upon this report or the information provided
herein.
Unless otherwise specified, this presentation is confidential and
may not be distributed, published, reproduced or disclosed to any
other person or used for any other purpose, without the written
permission of the EVCA.
This presentation is for the exclusive use of the persons to whom it
is addressed and is intended for general information purposes only.
It is not intended to constitute legal or other professional advice
and should not be treated as such. Appropriate legal advice must be
sought before making any decision, taking any action or refraining
from taking any action in reliance on the information contained in
this presentation. The EVCA does not assume any responsibility for
any person’s reliance upon the information contained herein.
No part of this publication may be reproduced by any process
except in accordance with the provisions of the Copyright Act 1968.
Copyright enquiries should be directed to the EVCA.
Tel: + 32 2 715 00 20.
In furnishing this presentation, the EVCA undertakes no obligation
to provide any additional information or to update this presentation
or any additional information or to correct any inaccuracies which
may become apparent.
2014 European Private Equity Activity
Copyright information
© Copyright EVCA May 2015
Version
Presentation as of 05/05/2015
2
The EVCA is the voice of European private equity.
Our membership covers all private equity activity, from early-stage venture capital through to large
private equity firms and funds investing in infrastructure. Our members also include institutional
investors, such as pension funds and insurance companies, who are a key source of long-term financing
in Europe and who invest in private equity, venture capital and infrastructure funds. We represent 650
member firms and 500 affiliate members.
The EVCA shapes the future direction of the industry, while promoting it to stakeholders such as
entrepreneurs, business owners and employee representatives.
We explain private equity to the public and help shape public policy, so that our members can conduct
their business effectively.
The EVCA is the guardian of the industry’s professional standards, demanding accountability, good
governance and transparency from our members and spreading best practice through our training
courses.
We have the facts when it comes to European private equity, thanks to our trusted and authoritative
research and analysis.
The EVCA has 25 dedicated staff working in Brussels to make sure that our industry is understood and
heard.
2014 European Private Equity Activity
3
Overview - All Private Equity - Fundraising, Investments & Divestments
With data on more
than 1,200 European
private equity firms,
the 2014 statistics
cover 91% of the
€548bn in capital
under management in
Europe.
€ billion
2000–2014 - Industry statistics - Amount
120
112
100
80
72
80
73
71
60
55
48
40
80
54
47
40
35
24
20
9
13
28
28
37
29
27
30
27
43
33
27
14
14
38
31
20
11
47
42
25
19
22 20
25
38
35
45
42
39
22
12
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Funds raised
Investments
Divestments
EVCA 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 since 2007.
Source: EVCA / Thomson Reuters (2000-2006) & EVCA / PEREP_Analytics (2007-2014)
2014 European Private Equity Activity
4
What’s inside?
Executive Summary
1
6
Fundraising
2
Investments
Investments statistics explained
26
8
Glossary
9
Fundraising statistics explained
7
Glossary
At a glance
Incremental fundraising
3
Divestments
Divestments statistics explained
60
28
Glossary
62
At a glance
29
At a glance
63
By investment stage
30
By initial investment stage
64
By fund stage focus
10
Annual trends
31
By exit route
65
Concentration of capital
12
Quarterly trends
34
By sector
69
By region of management
13
By geography
38
By region
72
Investors by type
14
Investments as % of GDP
Investors by geography
20
Final closing
Industry statistics
43
Market statistics
48
By fund stage focus
23
By sector
52
Concentration of capital
25
Initial / follow-on
55
Acknowledgements
73
By portfolio company size
56
About PEREP_Analytics and EVCA Research
75
2014 European Private Equity Activity
5
Executive Summary
1
Fundraising
In 2014 total fundraising reached €44.6bn
– the second highest level for Europe in
the past five years.
The number of funds (298) reached the
highest level since 2011 and increased in all
market segments compared to 2013. The
total amount decreased by 18%.
40% of institutional investors came from
outside Europe. Pension funds provided
more than one third of the capital raised.
Funds of funds contributed 12%, followed by
government agencies (11%) and insurance
companies (10%).
Venture capital fundraising decreased by
12% to €4.1bn. Fundraising for early-stage
focused funds increased by 32% reaching its
highest level in the past six years.
Buyout fundraising volume reduced by 23%
to €35.1bn due to a lower share coming
from funds that raised more than €1bn.
With €1.8bn Growth fundraising reached its
highest level in three years, an increase of
nearly 70% compared to 2013.
2014 European Private Equity Activity
2
Investments
The total amount of equity investments in
European companies increased by 14% to
€41.5bn. The number of companies
increased by 8% to over 5,500 to a fiveyear high. More than 80% of them are
SMEs.
Venture capital investments increased by 6%
to €3.6bn. More than 3,200 companies were
venture-backed. Start-up stage investments
made up the majority of venture capital
activity both by amount and number of
companies.
More than 900 companies received buyout
investments with an equity amount of
€31.3bn. The amount and number of
companies
increased
12%
and
13%
respectively. The majority of equity was
invested in small and mid market
transactions.
Growth investments grew 56% by amount to
€5.6bn. The related number of 1,270
companies
receiving
this
investment
increased by 13% and is the highest to date.
6
3
Divestments
More than 2,400 European companies
were exited, representing former equity
investments (divestments at cost) of
€37.8bn. This amount is the highest to
date for European private equity.
The most prominent exit routes by amount
were trade sale (26%), sale to another
private equity firm (24%) and sale of quoted
equity (10%). Almost 40% of all the divested
companies followed these exit routes.
The strength of public markets continued in
2014 and was reflected by another increase
in the sale of quoted equity on flotation
(IPO). Exits at the event of an IPO increased
from 23 to 51 companies. The related
amount divested at cost increased by over
50% to €3.3bn.
Divestments
from
venture
capital
investments by equity amount at cost
decreased by 16% to €1.9bn. Buyout related
exits at cost increased by 12% to €32.8bn.
For growth investments the total amount
divested at cost increased by 16% to €2.2bn.
Fundraising
1
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.
For more data visit www.evca.eu/research
2014 European Private Equity Activity
7
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 non-financial 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.
Family office
An office that provides investment management and other
financial services to one or several families.
Note:
Foundations
A non-profit organisation through which private wealth is
contributed and distributed for public or charitable
purposes.
In the following presentation, unclassified figures
concerning the type of investors have been extrapolated.
Early-stage fund
A venture capital fund focused on investing in companies in
their primary development stage.
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.
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.
2014 European Private Equity Activity
Fund of funds
A private equity fund that primarily takes equity positions in
other funds.
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.
8
Fundraising amounts include capital gains except when
reporting fundraising by type of investors.
Independent and captive funds
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.
2014 Fundraising at a glance
• In 2014 total fundraising reached €44.6bn – the second highest level for Europe
in the past five years. The total amount decreased by 18% compared to
previous year, but the number of funds taking up new capital increased by 12%
to 298 reaching the highest level since 2011.
• Pension funds provided more than one third of funds raised from institutional
investors. Funds of funds contributed 12%, followed by government agencies
(11%) and insurance companies (10%).
• Institutional investors outside Europe contributed 40% to the annual
fundraising for Europe in 2014.
• Venture capital was 9% of the total annual fundraising. The €4.1bn raised
presented an overall decrease of 12% compared to 2013. Fundraising for earlystage focused funds increased by 32% to €2.3bn, reaching its highest level in
the past six years. Conversely, fundraising for balanced venture funds that
invest across all venture stages decreased by 42%. Government agencies
contributed 35% of the funds raised followed by pension funds 14%, family
offices and private individuals (13%), and corporate investors (13%). North
American institutional investors had a share of nearly 13%.
• Buyout fundraising decreased from €45.4bn in 2013 to €35.1bn representing
nearly 80% of all fundraising. Pension funds remained the largest institutional
investor (36%) in European buyout funds followed by 18% from funds of funds &
other asset managers. North American institutional investors contributed 33%.
• Growth fundraising increased by nearly 70% to €1.8bn, the highest level since
2011. The 25 funds raised capital mostly from government agencies, insurance
companies and pension funds.
Incremental amounts raised during the year (€ billion)
54.4
3.3
1.1
44.6
41.6
5.1
4.4
21.8
35.1
0.5
26.9
16.7
Buyout(1)
Growth(1)
€44.6bn
€4.1bn
€35.1bn
€1.8bn
Incremental – No. of funds
298
120
89
25
3.2
Final closings - Cumulative
amount since inception
€35.6bn
€3.3bn
€28.8bn
€0.8bn
2010
Final closings - No. of funds
139
53
50
10
13.4
Venture Capital
Source: EVCA / PEREP_Analytics
Note: (1) relates to fund focus
2014 European Private Equity Activity
3.4
2.6
2.6
Venture
Capital(1)
Incremental - Amounts raised
45.4
24.6
All Private
Equity
2014
3.6
1.8
5.2
3.9
4.6
4.1
2011
2012
2013
2014
Buyout
Growth
Other (2)
Total
Source: EVCA / PEREP_Analytics
Note: (2) Other includes Mezzanine and Generalist funds
9
FUNDRAISING
Investments
Divestments
Funds raised by fund stage focus
€ billion
€ billion
2010–2014 - Incremental amount raised during the year
Legend
6
Balanced
Later-stage
Early-stage
5.2
5
1.5
3
4.1
3.9
3.2
30
2.6
1.6
2.8
20
0.3
0.2
2
0.6
1.8
2.0
1.1
1.7
16.7
2.2
15
1.8
1.7
1.5
2.3
2.2
2.3
2.1
0.3
1
26.9
25
1.5
2.6
1.0
35.1
35
4.4
2.2
45.4
45
40
4.6
4
50
1.3
1.4
13.4
10
0.9
0.5
5
1.0
0
0
Venture Capital
Growth
Mezzanine
2010
2011
2012
Buyout
Generalist
2013
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
10
FUNDRAISING
Investments
Divestments
Funds raised by fund stage focus
2010–2014 - Number of funds that reached first, intermediate or final closing during the year
Legend
Balanced
Later-stage
Early-stage
160
140
134
140
58
120
100
160
152
117
120
57
35
46
20
80
17
100
46
80
10
11
60
57
9
60
50
49
40
40
75
74
60
60
58
20
0
120
113
Venture Capital
28
32
18
19
77
84
81
89
73
60
40
25
12
12
10
9
20
14
0
Growth
2010
Mezzanine
2011
2012
2013
Generalist
Buyout
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
11
FUNDRAISING
Investments
Divestments
All Private Equity - Concentration of capital
% total amount of annual fundraising
2010–2014 – Incremental fundraising by amount bracket per fund during the year
70%
Number
12
of
funds
60%
8
50%
11
40%
30%
20%
4
40
4
252
216
42
14
9
10%
37
269
4
3
4
2010
2011
5
203
8 31
12
223
10
18
36
0%
< €100m
€100m - €250m
2012
2013
€250m - €500m
€500m - €1bn
2014
> €1bn
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
12
FUNDRAISING
Investments
Divestments
All Private Equity – Funds raised by region of management
€ billion
2010-2014 - Incremental amount raised during the year
60
0.4
0.9
50
9.4
40
1.8
2.2
0.8
7.0
9.3
1.9
8.6
30
5.9
8.5
20
1.5
0.5
0.6
5.1
4.3
1.9
2.1
0.5
4.9
1.8
2.5
6.9
10
0.1
34.8
22.2
17.7
14.0
8.9
0
2010
2011
UK & Ireland
DACH
2012
Nordics
France & Benelux
2013
Southern Europe
2014
CEE
Source: EVCA / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2014 European Private Equity Activity
13
FUNDRAISING
Investments
Divestments
All Private Equity - Funds raised by region of management and investor type
2014 - Incremental amount raised during the year
100%
2.8%
11.3%
3.1%
7.1%
11.3%
90%
Sovereign wealth funds
24.1%
80%
70%
0.0%
0.0%
27.4%
28.3%
Pension funds
13.9%
2.0%
49.5%
Insurance companies
0.0%
40.3%
Government agencies
4.8%
60%
24.1%
6.4%
Fund of funds & Other asset managers
30.3%
50%
40%
Family offices & Private individuals
10.3%
12.6%
5.5%
30%
12.8%
28.4%
19.4%
4.1%
12.2%
20%
10%
0%
6.4%
3.1%
10.0%
0.7%
1.9%
3.3%
UK & Ireland
3.7%
DACH
0.5%
1.3%
0.7%
0.8%
1.0%
14.4%
Banks
12.1%
2.6%
1.3%
0.0%
9.0%
0.0%
9.5%
1.6%
Nordics
Capital markets
18.4%
9.0%
7.7%
Corporate investors
60.2%
16.0%
1.2%
France &
Benelux
Southern
Europe
4.3%
7.1%
0.0%
0.0%
0.0%
0.0%
Academic inst. / Endowments /
Foundations
CEE
Source: EVCA / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2014 European Private Equity Activity
14
FUNDRAISING
Investments
Divestments
Funds raised by type of investor
2014 - Incremental amount raised during the year - % of amount
All Private Equity funds
Venture Capital funds
2.9%
7.2%
3.0%
0.4%
1.0% 12.5%
0.4% 0.6%
4.8%
2.6%
7.6%
3.6%
5.5%
14.4%
5.9%
298 funds
32.2%
11.6%
235 firms
4.2%
120 funds
1.7%
2.6%
103 firms
5.9%
9.0%
10.9%
Banks
Capital markets
Corporate investors
Endowments and foundations
35.0%
4.1% 10.3%
Academic institutions
Family offices
Fund of funds
Buyout funds
Government agencies
Growth funds
9.4%
3.2%
0.3%
1.7%
3.4% 6.3%
6.0%
89 funds
13.4%
78 firms
36.0%
5.0%
10.8%
4.4%
Insurance companies
6.2% 9.4%
13.2%
Other asset managers
0.4%
Pension funds
Private individuals
Endowments
and
25 funds
Banksmarkets
Capital
7.5%
Corporate
investors
foundations
2.7%
Private
individuals
Family
offices
1.2%
2.0%
17 firms
3.7%
Fund
of funds
5.1% 3.6%
40.7%
11.5%
Government agencies
Pension funds 5.9%
22.5%
Insurance
companies
Other
asset managers
37.4%
10.8%
4.7%
Sovereign wealth funds
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
15
FUNDRAISING
Investments
Divestments
All Private Equity - Funds raised by type of investor
2010–2014 - Incremental amount raised during the year - % of total amount
40%
Academic inst. / Endowments / Foundations
35%
Banks
30%
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
25%
20%
15%
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
10%
Insurance companies
Pension funds
5%
Sovereign wealth funds
0%
€ billion
2010
2011
2012
60
2013
2014
54.2
44.6
41.1
40
New funds raised
(excluding capital gains)
24.5
21.8
20
0
2010
2011
2012
2013
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
16
FUNDRAISING
Investments
Divestments
Venture Capital - Funds raised by type of investor
2010–2014 - Incremental amount raised during the year - % of total amount
40%
Academic inst. / Endowments / Foundations
Banks
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
30%
20%
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
10%
Insurance companies
Pension funds
Sovereign wealth funds
0%
2010
2011
2012
2013
2014
4.6
4.1
2013
2014
€ billion
10
5
5.2
3.9
3.2
New funds raised
(excluding capital gains)
0
2010
2011
2012
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
17
FUNDRAISING
Investments
Divestments
Buyout - Funds raised by type of investor
2010–2014 - Incremental amount raised during the year - % of total amount
45%
Academic inst. / Endowments / Foundations
40%
Banks
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
35%
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
2010
2011
2012
50
2013
2014
45.3
35.1
26.9
25
New funds raised
(excluding capital gains)
16.7
13.4
0
2010
2011
2012
2013
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
18
FUNDRAISING
Investments
Divestments
Growth - Funds raised by type of investor
2010–2014 - Incremental amount raised during the year - % of total amount
Academic inst. / Endowments / Foundations
70%
Banks
60%
Capital markets
40%
35%
30%
25%
20%
15%
10%
5%
0%
50%
40%
30%
20%
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
10%
Pension funds
Sovereign wealth funds
0%
€ billion
2010
2011
2012
2013
2014
6
4.4
4
2.6
2
0.5
1.8
1.1
New funds raised
(excluding capital gains)
0
2010
2011
2012
2013
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
19
FUNDRAISING
Investments
Divestments
All Private Equity - Fundraising geographic breakdown
2014 (2013) - Source of funds - % of total amount
8.6%
North America
27.7%
(5.2%)
(35.7%)
10.4%
(11.1%)
9.2%
(5.8%)
24.3%
0.2%
(0.2%)
(14.2%)
Rest of world
2.0%
(3.8%)
Australia
Asia
10.6%
2.3%
(1.5%)
(15.5%)
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
Unclassified Europe
4.8%
(7.2%)
20
FUNDRAISING
Investments
Divestments
Venture Capital - Fundraising geographic breakdown
2014 (2013) - Source of funds - % of total amount
8.4%
North America
12.6%
(7.9%)
(11.8%)
10.2%
(19.5%)
8.4%
(9.6%)
46.1%
0.9%
(1.0%)
(43.6%)
Rest of world
0.3%
(0.1%)
Australia
Asia
0.2%
6.8%
(3.5%)
(2.4%)
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
Unclassified Europe
6.1%
(0.6%)
21
FUNDRAISING
Investments
Divestments
Buyout - Fundraising geographic breakdown
2014 (2013) - Source of funds - % of total amount
9.0%
North America
32.8%
(5.1%)
(39.7%)
10.7%
(10.0%)
9.3%
(5.9%)
16.3%
0.0%
(0.1%)
(8.6%)
Rest of world
2.4%
(4.3%)
Australia
Asia
12.8%
1.5%
(0.5%)
(17.8%)
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
Unclassified Europe
5.1%
(8.0%)
22
FUNDRAISING
Investments
Divestments
Final closing - Funds raised by fund stage focus
€ billion
€ billion
2010–2014 - Final closing during the year - Amount(1)
Legend
4
Balanced
Later-stage
Early-stage
2.9
3
60
48.8
50
3.3
3.3
40
2.8
1.2
2.1
1.2
1.4
2
0.3
1.5
1
1.7
1.6
1.4
20
1.4
17.7
0.3
1.0
0.1
1.1
13.3
1.0
0.9
1.8
1.4
0.2
0.5
1.5
0.3
1.4
28.8
30
2.1
0.8
0.8
0.7
14.8
0.8
0.6
0.5
10
0.5
0
0
Venture Capital
Growth
Mezzanine
2010
2011
2012
Buyout
Generalist
2013
2014
Source: EVCA / 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.
2014 European Private Equity Activity
23
FUNDRAISING
Investments
Divestments
Final closing - Funds raised by fund stage focus
2010–2014 - Final closing during the year - Number of funds(1)
Legend
Balanced
Later-stage
Early-stage
60
50
49
60
53
50
43
16
40
40
24
18
5
30
14
20
21
4
20
9
16
14
32
11
21
16
30
24
6
10
30
27
20
39
43
41
25
32
5
50
50
6
10
10
7
4
12
14
4
5
3
5
0
0
Venture Capital
Growth
2010
Mezzanine
2011
2012
Buyout
Generalist
2013
2014
Source: EVCA / 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.
2014 European Private Equity Activity
24
FUNDRAISING
Investments
Divestments
Final closing - All Private Equity - Concentration of capital
% total amount of cumulative
fundraising until final closing
2010–2014 - Final closing during the year - Amount(1) & Number of funds(2)
90%
Number
of
80%
funds
12
70%
60%
50%
3
7
5
40%
3
30%
10
20%
37
21
10%
74
18
7
18
6
10
4
7
77
66
9
23 4
0%
2010
< €100m
Source: EVCA / PEREP_Analytics
2011
€100m - €250m
2012
€250m - €500m
25
13
62
2013
€500m - €1bn
80
2014
> €1bn
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.
2014 European Private Equity Activity
25
FUNDRAISING
Investments
Divestments
Investments
2
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.
For more data visit www.evca.eu/research
2014 European Private Equity Activity
26
Market versus industry
statistics
C
Market statistics
A+B+C
B
D
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
For more data visit www.evca.eu/research
2014 European Private Equity Activity
27
A
Glossary
Venture Capital
Growth
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.
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.
Buyout
Financing provided to acquire a company. It may use a significant amount of
borrowed money to meet the cost of acquisition.
Later-stage venture
Financing provided for the expansion of an operating company, which may or
may not be breaking even or trading profitably. Later-stage venture tends to
finance companies already backed by venture capital firms.
Rescue/Turnaround
Financing made available to an existing business, which has experienced
trading difficulties, with a view to re-establishing prosperity.
Replacement capital
The purchase of a minority stake of existing shares in a company from
another private equity firm or from another shareholder or shareholders.
2014 European Private Equity Activity
28
2014 Investments at a glance
Investments – Market statistics – Amount & No. of companies
• The total amount of equity investments in European companies increased by
14% to €41.5bn. The related number of companies increased by 8% to over
5,500 to a five-year high. More than 80% of them are SMEs.
3,209
• Venture capital investments increased by 6% to €3.6bn. More than 3,200
companies were venture-backed. Start-up stage investments represented the
majority of venture capital activity by amount (52%) and number of companies
(60%). The amount of seed investments reduced by 16% despite the number of
companies increasing by 13%. Later-stage investments increased in amount by
10% despite a 4% reduction in the number of companies. Venture-backed
companies in life sciences (31%), communications (21%) and computer &
consumer electronics (20%) attracted over 70% of the capital.
3,039
44.9
No. of companies
6.3
36.8
36.3
4.0
3.6
28.1
28.0
1,066
1,122
881
896
839
34.5
29.7
994
932
783
5.6
31.3
1,270
945
All Private
Equity
Venture
Capital(1)
Buyout(1)
Growth(1)
3.7
3.7
3.2
3.4
3.6
€41.5bn
€3.6bn
€31.3bn
€5.6bn
2010
2011
2012
2013
2014
5,519
3,209
945
1,270
No. of firms
1,120
656
467
402
No. of funds
1,740
1,010
631
584
Amount (€bn):
No. of companies:
Venture Capital
Buyout
Growth
Other(2)
Total
Venture Capital
Buyout
Growth
Source: EVCA / PEREP_Analytics
Note: (1) relates to the investment stage of the portfolio company
2014 European Private Equity Activity
41.5
5.2
• Growth investments grew 56% to €5.6bn. The number of companies receiving
investment increased by 13% to 1,270 – the highest level to date. About 50% of
the investments went to companies active in consumer goods & retail (26%),
consumer services (13%), and communications (12%).
Amount
2,981
41.9
• More than 900 companies received buyout investments with an equity amount
of €31.3bn. The related equity amount invested increased by 12 % and the
number of companies increased by 13% compared to 2013. The majority of
equity was invested in small and mid market transactions. More than 60% of
buyout investments concentrated in companies active in business & industrial
products (15%), computer & consumer electronics (14%), communications (12%),
consumer goods & retail (12%), and life sciences (12%).
2014 - Market statistics
2,965
3,055
Source: EVCA / PEREP_Analytics
Note: (2) Other includes Rescue/Turnaround and Replacement capital
29
Fundraising
INVESTMENTS
Divestments
Investments by stage focus
2014 - Market statistics - % of Amount & Number of companies
% of Amount
% of Number of companies
Start-up
Seed
4.6% Later-stage
0.2%
venture
3.9%
Seed
8.4%
Buyout
16.9%
Growth
capital
13.4%
Replacement
capital
1.5%
Rescue/
Turnaround
1.0%
Rescue/
Turnaround
0.5%
Start-up
34.5%
Replacement
capital
2.0%
Growth
capital
22.7%
Buyout
75.3%
Later-stage
venture
15.1%
Venture Capital
Buyout
Growth
€3.6bn
€31.3bn
€5.6bn
Venture Capital
Buyout
Growth
3,209 Companies
945 Companies
1,270 Companies
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
30
Fundraising
INVESTMENTS
Divestments
Investments by stage focus
€ billion
€ billion
2010–2014 - Market statistics - Amount
7
40
35
6
30
5
25
4
3.7
3.7
0.2
0.1
3.2
1.8 5.2
1.8
1.8
2
1
1.8
1.7
1.7
1.0
0.5
0
2010
Start-up
1.9
4.0
1.3
1.1
2012
Seed
Growth
5.6
15
29.7
31.3
28.1
28.0
10
3.6
5
1.6
1.5
1.0
0.3
2011
Later-stage venture
34.5
1.8
0.5
20
0.1
0.1
0.1
6.3
3
3.6
3.4
0.8
0.3
2013
Rescue/Turnaround
0.2
2014
0
2010 2011 2012 2013 2014
Replacement capital
Buyout
Venture Capital
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
31
Fundraising
INVESTMENTS
Divestments
Investments by stage focus
2010–2014 - Market statistics - Number of companies
4,000
3,500
3,000
3,209
3,039
393
2,965
2,981
392
359
3,055
468
413
2,500
1,000
2,000
1,711
1,679
1,833
896
945
839
783
1,500
500
1,000
500
881
1,930
1,796
990 994
939 932
132
135
103
0
2010
Later-stage venture
843
76
885
65
1,122
117
848
62
1,270
104
57
84
0
2011
Start-up
1,066
2012
Seed
Growth
2013
Rescue/Turnaround
2014
2010 2011 2012 2013 2014
Replacement capital
Buyout
Venture Capital
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
32
Fundraising
INVESTMENTS
Divestments
Buyout – Investments by equity bracket
2010–2014 - Market statistics - Amount & Number of companies
€ billion
€ billion
30
81630
20
20
7 378
18
15
6
29 105
18
2008
5
12
24
10
25
8
8
238
8 238
11 11
128
2
2
33 3
6 8 2
4
16
2009
2010
33
3 16
0
2010
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
438
6
50574
30
20078
0550
493
621
574
550
40
35
816
8 327
16
33
18
2011
9
570
550
493
574
621
8
8
900
5
8 327
7 268
800
8 238
16
13
700
11
5
5
128
2
8 296215
2
8 2 600 33 3
33 4
27 4
6
327
4 547
16
11
18
18
500
7
7
2008
2009
2010
2011
2012
269
400 268
16 5
5
300
7 268
7 263
13
13
200
13
13
100
4
27 4
32 3
11
10
0
Small (<€15m) - Amount
2012
2013
- Amount
27 Mid-market (€15m - €150m)
33
31
8
7 378
18
4 18
2011
4
11
2012
15
500
400
300
200
100
4
3 10
Large (€150m - €300m)
- Amount
2013
Mega (> €300m) - Amount
600
33
12
0
2014
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
Small (<€15m) - No. of companies
Mid-market (€15m - €150m) - No. of companies
33
Large (€150m - €300m) - No. of companies
Mega (> €300m) - No. of companies
Fundraising
INVESTMENTS
Divestments
Number of companies
40
9
886
15
50
8
38
0
0
45
669
900
800
700
600
547
500
400
5
7 263 300 6
200
13
100
32 3
7
10
0
2013
276
Number of companies
86
700
60
Number of companies
50
Investments by stage focus
Quarterly trend Q1 2010 – Q4 2014 - Market statistics - Amount
€ billion
12
10
8
6
4
2
0
Q1
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
Q3
Q4
Q1
Q2
2013
Q3
Q4
2014
Venture Capital
Buyout
Growth
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
34
Fundraising
INVESTMENTS
Divestments
Investments by stage focus
Quarterly trend Q1 2010 – Q4 2014 - Market statistics - Number of companies
1,200
1,000
800
600
400
200
0
Q1
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
Q3
Q4
Q1
2013
Venture Capital
Q2
Q3
Q4
2014
Buyout
Growth
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
35
Fundraising
INVESTMENTS
Divestments
Venture Capital - Investments by stage focus
€ billion
Quarterly trend Q1 2010 – Q4 2014 - Market statistics - Amount
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Q1
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
Q3
Q4
Q1
2013
Seed
Q2
Q3
Q4
2014
Start-up
Later-stage venture
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
36
Fundraising
INVESTMENTS
Divestments
Venture Capital - Investments by stage focus
Quarterly trend Q1 2010 – Q4 2014 - Market statistics - Number of companies
700
600
500
400
300
200
100
0
Q1
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
Q3
Q4
Q1
2013
Seed
Q2
Q3
Q4
2014
Start-up
Later-stage venture
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
37
Fundraising
INVESTMENTS
Divestments
All Private Equity - Geographical investment flows
2014 - Industry vs. Market statistics - Amount
Market statistics
€2.1bn
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.
Non-European private
equity firms investing in
portfolio companies in
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.
€2.1bn
€10.6bn
European private
equity firms investing
in portfolio companies
outside Europe
Cross-border investments
within Europe
€28.9bn
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 (Bosnia-Herzegovina, Croatia, Macedonia,
Montenegro, Serbia, Slovenia, Slovakia),
Poland, Portugal, Romania, Spain, Sweden,
Switzerland, Ukraine, United Kingdom
Domestic investments
in European countries
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
38
Fundraising
INVESTMENTS
Divestments
Venture Capital - Geographical investment flows
2014 - Industry vs. Market statistics - Amount
Market statistics
€391m
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.
Non-European private
equity firms investing in
portfolio companies in
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.
€352m
€750m
European private
equity firms investing
in portfolio companies
outside Europe
Cross-border investments
within Europe
€2,473m
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 (Bosnia-Herzegovina, Croatia, Macedonia,
Montenegro, Serbia, Slovenia, Slovakia),
Poland, Portugal, Romania, Spain, Sweden,
Switzerland, Ukraine, United Kingdom
Domestic investments
in European countries
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
39
Fundraising
INVESTMENTS
Divestments
All Private Equity - Investments by region
2014 - Industry vs. Market statistics - Amount
Industry statistics
Southern
Europe
5%
Market statistics
Nordics
10%
CEE
1%
Nordics
14%
UK & Ireland
39%
CEE
3%
UK & Ireland
24%
Southern
Europe
9%
DACH
17%
DACH
20%
France &
Benelux
30%
France &
Benelux
28%
Source: EVCA / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2014 European Private Equity Activity
40
Fundraising
INVESTMENTS
Divestments
Investments by stage focus and regions
2014 - Market statistics - Amount
€ billion
1.8
€ billion
10
1.6
1.4
1.2
0.9
0.9
0.0
8
7.3
0.0
1.7
0.4
6.3
6
0.9
0.0
0.8
5
4.5
1.5
4
0.6
0.5
0.6
0.5
0.0
3
1.0
0.4
0.0
9
7
1.0
0.2
9.7
0.3
0.8
0.5
0.4
0.1
0.1
UK & Ireland
France & Benelux
Start-up
0.0
DACH
Seed
2
0.2
0.0
0.0
Later-stage venture
0.4
0.3
0.2
0.1
0.1
0.3
0.4
0.0 0.1
Southern Europe
Growth
2.4
0.0
0.0
0.1 0.0
0.0
Nordics
Rescue/Turnaround
0.1
0.2
1
0.0 0.0
CEE
0.9
0
Replacement capital
Buyout
Venture Capital
Source: EVCA / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2014 European Private Equity Activity
41
Fundraising
INVESTMENTS
Divestments
Investments by stage focus and regions
2014 - Market statistics - Number of companies
1,000
911
900
217
800
729
702
700
59
90
600
500
427
400
300
433
0
400
437
350
300
268
230
516
200
100
537
17
241
148 141
8
14
7
UK & Ireland
39
France & Benelux
Later-stage venture
210
40
401
Start-up
149
171
13 15
DACH
Seed
42
106
184
91
2
76 16 11
10
Southern
Europe
Growth
200
45
Nordics
Rescue/Turnaround
186
100
62 45
4
152
133
94
30
2
0
CEE
Replacement capital
Buyout
Venture Capital
Source: EVCA / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2014 European Private Equity Activity
42
Fundraising
INVESTMENTS
Divestments
All Private Equity - Investments as % of European GDP - Industry statistics
2000–2014 - Industry statistics - % of GDP
0.60%
%of GDP
0.60%
0.53%
0.50%
0.42%
0.40%
0.39%
0.38%
0.35%
0.32%
0.30%
0.28%
0.33%
0.29%
0.25%
0.26%
0.26%
2012
2013
0.28%
0.19%
0.20%
0.10%
0.00%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2014
Source: IMF, World Economic Outlook Database (GDP) / EVCA / Thomson Reuters (2000-2006) & EVCA / PEREP_Analytics (2007-2014)
2014 European Private Equity Activity
43
Fundraising
INVESTMENTS
Divestments
All Private Equity - Investments as % of GDP - Industry statistics
2014 - Industry statistics
0.800%
0.720%
% of GDP
1.000%
0.000%
0.003%
0.004%
0.009%
0.026%
0.029%
0.030%
0.032%
0.045%
0.074%
0.082%
0.090%
0.097%
0.140%
0.142%
0.200%
0.164%
0.201%
0.231%
0.258%
0.278%
0.278%
0.288%
0.341%
0.400%
0.372%
0.423%
0.600%
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
44
Fundraising
INVESTMENTS
Divestments
Venture Capital - Investments as % of GDP - Industry statistics
2014 - Industry statistics
% of GDP
0.140%
0.120%
0.000%
0.002%
0.002%
0.002%
0.003%
0.004%
0.005%
0.006%
0.007%
0.008%
0.021%
0.017%
0.020%
0.024%
0.026%
0.026%
0.027%
0.029%
0.032%
0.035%
0.035%
0.035%
0.035%
0.040%
0.047%
0.049%
0.060%
0.076%
0.080%
0.076%
0.100%
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
45
Fundraising
INVESTMENTS
Divestments
Buyout - Investments as % of GDP - Industry statistics
0.800%
0.700%
0.600%
0.586%
% of GDP
2014 - Industry statistics
0.000%
0.000%
0.000%
0.002%
0.002%
0.004%
0.006%
0.009%
0.015%
0.016%
0.026%
0.058%
0.064%
0.069%
0.071%
0.100%
0.072%
0.142%
0.165%
0.166%
0.211%
0.212%
0.184%
0.200%
0.249%
0.300%
0.289%
0.400%
0.319%
0.500%
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
46
Fundraising
INVESTMENTS
Divestments
Growth - Investments as % of GDP - Industry statistics
% of GDP
0.100%
0.090%
0.087%
2014 - Industry statistics
0.000%
0.000%
0.002%
0.003%
0.005%
0.007%
0.008%
0.008%
0.009%
0.010%
0.010%
0.011%
0.011%
0.015%
0.021%
0.017%
0.020%
0.027%
0.027%
0.030%
0.028%
0.035%
0.037%
0.040%
0.041%
0.050%
0.056%
0.060%
0.061%
0.063%
0.070%
0.064%
0.080%
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
47
Fundraising
INVESTMENTS
Divestments
All Private Equity - Investments as % of GDP - Market statistics
2014 - Market statistics
0.000%
0.004%
0.006%
0.052%
0.060%
0.061%
0.088%
0.100%
0.113%
0.141%
0.151%
0.153%
0.164%
0.184%
0.184%
0.193%
0.200%
0.239%
0.247%
0.274%
0.350%
0.331%
0.277%
0.300%
0.393%
0.400%
0.425%
0.480%
0.500%
0.487%
0.600%
0.586%
% of GDP
0.700%
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
48
Fundraising
INVESTMENTS
Divestments
Venture Capital - Investments as % of GDP - Market statistics
0.060%
0.060%
0.000%
0.002%
0.002%
0.004%
0.004%
0.005%
0.006%
0.006%
0.010%
0.009%
0.009%
0.022%
0.019%
0.020%
0.023%
0.024%
0.026%
0.026%
0.028%
0.029%
0.031%
0.031%
0.029%
0.030%
0.031%
0.040%
0.038%
0.050%
0.049%
% of GDP
0.070%
0.066%
2014 - Market statistics
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
49
Fundraising
INVESTMENTS
Divestments
Buyout - Investments as % of GDP - Market statistics
0.600%
0.000%
0.000%
0.000%
0.010%
0.012%
0.033%
0.039%
0.054%
0.078%
0.080%
0.088%
0.096%
0.100%
0.107%
0.152%
0.160%
0.165%
0.168%
0.200%
0.195%
0.209%
0.240%
0.254%
0.300%
0.306%
0.316%
0.389%
0.400%
0.436%
0.500%
0.497%
% of GDP
2014 - Market statistics
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
50
Fundraising
INVESTMENTS
Divestments
Growth - Investments as % of GDP - Market statistics
% of GDP
2014 - Market statistics
0.120%
0.082%
0.100%
0.000%
0.000%
0.002%
0.009%
0.011%
0.014%
0.015%
0.016%
0.019%
0.020%
0.020%
0.020%
0.021%
0.024%
0.027%
0.030%
0.040%
0.037%
0.040%
0.041%
0.044%
0.047%
0.050%
0.052%
0.060%
0.054%
0.060%
0.064%
0.080%
0.000%
2014
2010-2014 Annual Average
Source: IMF, World Economic Outlook Database (GDP) / EVCA / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2014 European Private Equity Activity
51
Fundraising
INVESTMENTS
Divestments
All Private Equity - Investments by sector
2014 - Market statistics - % of Amount & Number of companies
0%
2%
4%
6%
8%
10%
12%
14%
14.0%
Computer & consumer electronics
Consumer goods & retail
10.2%
13.1%
Business & industrial products
11.8%
Consumer services
6.6%
Financial services
4.1%
Real estate
Unclassified
1.6%
10.5%
5.3%
2.1%
Energy and environment
Agriculture
15.8%
13.0%
9.4%
5.9%
Business & industrial services
Transportation
17.6%
12.7%
12.6%
Communications
Chemicals and materials
18%
13.8%
Life sciences
Construction
16%
6.0%
2.3%
2.3%
1.9%
2.0%
1.4%
Amount
Number of companies
0.8%
0.9%
0.5%
0.5%
0.2%
1.3%
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
52
Fundraising
INVESTMENTS
Divestments
20%
Investments by sector
2010-2014 - Market statistics - Amount
Venture Capital
Transportation
3
2
Life sciences
1.5
Financial services
Energy and environment
1
0.5
Consumer services
2011
2012
2013
2014
0
Consumer goods & retail
Construction
Buyout
Computer & consumer electronics
40
€ billion
3.5
2.5
Real estate
2010
Chemicals and materials
30
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
Growth
7
Communications
35
Business & industrial services
25
2008
€ billion
4
50
45
40
35
30
25
20
15
10
5
0
€ billion
€ billion
All Private Equity
6
5
20
Business & industrial products
4
15
Agriculture
3
2
10
2009
2010
5
2011
2012
2013
1
0
0
2010
2011
2012
2013
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
53
Fundraising
INVESTMENTS
Divestments
Investments by sector
2010-2014 - Market statistics - Number of companies
All Private Equity
Venture Capital
6,000
3,500
5,000
3,000
4,000
3,000
2,500
Real estate
2,000
Life sciences
1,500
2,000
Financial services
1,000
1,000
Energy and environment
2010
2011
2012
2013
2014
Consumer goods & retail
Computer & consumer electronics
1,000
Chemicals and materials
Business & industrial services
600
Business & industrial products
400
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
Growth
1,400
Communications
800
2009
0
Construction
Buyout
200
500
Consumer services
0
2008
Transportation
1,200
1,000
800
600
Agriculture
400
2010
2011
2012
200
2013
0
0
2010
2011
2012
2013
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
54
Fundraising
INVESTMENTS
Divestments
All Private Equity - Initial / Follow-on investments
2014 - Market statistics - % of Number of companies
54%
55%
56%
54%
58%
Follow-on investment
for the company
Initial investment for
the company
Initial investment for
the private equity firm
60%
58%
46%
45%
2010
57%
44%
2011
59%
56%
46%
42%
2012
2013
2014
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
55
Fundraising
INVESTMENTS
Divestments
Investments by portfolio company size
2014 - Market statistics - % of Number of companies
All Private Equity
Venture Capital
4.0%
3.8% 0.8%
SME: 86.3%
0.8% 0.2% 0.0%
0.9%
0.1%
2.3%
SME: 98.9%
5.1%
2.8%
27.4%
9.4%
3.6%
3.7% 0.9%
45.1%
Full-time equivalent
staff by interval
4.5%
2.5%
0 - 19
SME
9.1%
44.1%
20 - 99
68.2%
100 - 199
200 - 249
29.0%
250 - 499
Buyout
500 - 999
2.5%
15.2%
5.1%
SME: 54.6%
1000 - 4999
5000 +
31.6%
Growth
24.1%
5.4%
4.3% 0.9%
SME: 80.9%
19.8%
8.5%
4.6%
13.1%
19.5%
14.5%
36.9%
19.4%
6.0%
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
56
Fundraising
INVESTMENTS
Divestments
Venture Capital - Investments by portfolio company size
1,800
1,627
Amount invested
2,500
Number of companies
1,600
1,400
2,000
1,352
Number of
companies
€ million
2014 - Market statistics - Amount & Number of companies
1,200
1,500
1,000
800
1,000
600
400
304
500
135
200
131
46
0
0 - 19
20 - 99
100 - 199
200 - 249
250 - 499
500 - 999
0
18
1000 - 4999
5000 +
0
Full-time equivalent staff by interval
Amount invested
Number of companies
95%
99%
SME %
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
57
Fundraising
INVESTMENTS
Divestments
Buyout - Investments by portfolio company size
14
250
Amount invested
12
Number of companies
11.9
200
Number of
companies
€ billion
2014 - Market statistics - Amount & Number of companies
10
150
8
6
4.9
4
5.5
100
2.9
2.7
50
1.8
2
1.3
0.1
0
0
0 - 19
20 - 99
100 - 199
200 - 249
Amount invested
Number of companies
19%
55%
SME %
250 - 499
500 - 999
1000 - 4999
5000 +
Full-time equivalent staff by interval
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
58
Fundraising
INVESTMENTS
Divestments
Growth - Investments by portfolio company size
1.5
1.6
500
Amount invested
1.4
Number of companies
450
1.2
1.2
400
1.2
350
1.0
300
0.8
250
0.6
0.6
0.6
200
150
0.4
0.2
Number of
companies
€ billion
2014 - Market statistics - Amount & Number of companies
100
0.2
0.1
0.1
50
0.0
0
0 - 19
20 - 99
100 - 199
200 - 249
Amount invested
Number of companies
55%
81%
SME %
250 - 499
500 - 999
1000 - 4999
5000 +
Full-time equivalent staff by interval
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
59
Fundraising
INVESTMENTS
Divestments
Divestments
3
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.
For more data visit www.evca.eu/research
2014 European Private Equity Activity
60
Market versus industry
statistics
C
Market statistics
A+B+C
B
D
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
For more data visit www.evca.eu/research
2014 European Private Equity Activity
61
A
Glossary
Initial public offering (IPO)
Sale to another private equity firm
The sale or distribution of a company’s shares to the public for the first time by listing
the company on the stock exchange.
The sale of company shares to another direct private equity firm.
Sale to financial institution
Repayment of principal loans
The sale of company shares to banks, insurance companies, pension funds,
endowments, foundations and other asset managers other than private equity firms.
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.
Trade sale
The sale of company shares to industrial investors.
Repayment of silent partnership
Write-off
A silent partnership is a type of mezzanine financing instrument. It is similar to a longterm 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.
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.
2014 European Private Equity Activity
62
2014 Divestments at a glance
•
More than 2,400 European companies were exited representing former equity
investments (divestments at cost) of €37.8bn. This amount reached the highest level
to date for European private equity. The number of companies increased by almost
5% while the amount divested at cost increased by 10%.
•
The most prominent exit routes by amount were trade sale (26%), sale to another
private equity firm (24%) and sale of quoted equity (10%). Almost 40% of all the
divested companies followed these exit routes.
•
The strength of public markets continued in 2014, reflected by an increase in the
sale of quoted equity on flotation (IPO). Exits at an IPO increased from 23 to 51
companies. The related amount divested at cost increased by over 50% to €3.3bn.
•
Divestments from venture capital investments represented 42% of all exited
companies and remained constant at over 1,000. They accounted for 5% of the
amount divested at cost. The equity amount divested decreased by 16% to €1.9 bn.
Trade sale, write-off and sale of quoted equity or on flotation (IPO), and sale to
another private equity firm were the most prominent exit routes.
•
•
Divestments – Market statistics – % total amount divested at cost
Sale to
management
Sale to financial
3.3%
institution
5.1%
Other means
6.7%
Write-off
7.2%
Buyout divestments’ share was 87% of the equity amount at cost and 32% by number
of companies. The amount divested increased by 12% to €32.8bn and the number of
companies increased by 10% to 776. Sale to another private equity firm, trade sale
and sale of quoted equity or on flotation (IPO) were the most prominent exit routes.
Repayment of
principal loans
8.0%
Growth divestments represented 6% of equity amount at cost and 25% by number of
companies. The amount divested increased by 16% to €2.2bn and the number of
companies increased by 9% to 611. Trade sale, sale to management and sale of
quoted equity or on flotation (IPO) were the most prominent exit routes.
All Private
Equity
Venture
Capital(1)
Buyout(1)
Growth(1)
€37.8bn
€1.9bn
€32.8bn
€2.2bn
2,416
1,003
776
611
Number of Firms
664
311
338
175
Number of Funds
1,188
555
571
254
2014 - Market statistics
Divestments – Amount
Divestments – No. Companies
€37.8bn
Sale to another
private equity
firm
24.3%
Public offering
18.9%
Source: EVCA/PEREP Analytics
Note: (1) relates to the investment stage
2014 European Private Equity Activity
Trade sale
26.5%
Source: EVCA/PEREP Analytics
63
Fundraising
Investments
DIVESTMENTS
Divestments at cost – Venture Capital / Buyout / Growth
40
1,200
1.9
2.2
35
1,000
2.2
1.9
30
2.4
1.9
1.1
20
2.1
15
800
2.3
25
600
32.8
2.1
29.1
400
24.8
10
18.3
14.5
200
5
0
0
2010
2011
2012
2013
2014
Buyout - Amount divested
Growth - Amount divested
Venture Capital - Amount divested
Buyout - Number of companies
Growth - Number of companies
Venture Capital - Number of companies
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
64
Fundraising
Investments
DIVESTMENTS
Number of companies
€ billion
2010–2014 - Market statistics - Amount & Number of companies
Divestments at cost by exit route – Venture Capital / Buyout / Growth
2014 - Market Statistics - % of Amount
7.2%
5.0%
2.4%
25.0%
Buyout
0.8%
3.5%
26.4%
5.5%
€32.8bn
26.6%
15.7%
11.2%
3.3%
1.7%
5.9%
8.6%
10.2%
Venture Capital
45.3%
€1.9bn
8.3%
6.9%
Growth
0.1%
9.6%
€2.2bn
Trade sale
7.4%
Initial public offering
4.1%
4.4%
4.7%
18.0%
Sale of quoted equity
Write-off
36.7%
16.8%
8.9%
1.6%
1.7%
4.7%
2014 European Private Equity Activity
5.3%
3.4%
Sale to another private equity firm
0.3%
Source: EVCA / PEREP_Analytics
7.6%
5.9%
Repayment of principal loans
2.1%
24.4%
12.6%
Repayment of silent partnerships
Sale to financial institution
Sale to management
Other means
65
Fundraising
Investments
DIVESTMENTS
Divestments at cost by exit route – Venture Capital / Buyout / Growth
2014 - Market Statistics - % of Number of companies
3.8%
8.9%
24.8%
3.8%
Buyout
1.9%
5.1%
21.7%
6.3%
7.8%
1.6%
26.0%
1.1% 8.7%
5.8%
0.8%
Venture Capital
8.0%
1,003 Companies
15.4%
1.9%
4.3%
776 Companies
2.0%
6.6%
11.1%
6.1%
7.7%
1.1%
1.9%
Growth
15.3%
611 Companies
Trade sale
Initial public offering
4.7%
17.5%
4.1%
4.4%
Sale of quoted equity
Write-off
16.8%
1.6%
36.7%
26.3%
Sale to another private equity firm
2.1%
4.7%
2014 European Private Equity Activity
46.5%
Repayment of principal loans
0.3%
Source: EVCA / PEREP_Analytics
Repayment of silent partnerships
24.4%
Sale to financial institution
Sale to management
Other means
66
Fundraising
Investments
DIVESTMENTS
All Private Equity - Divestments at cost by exit route
€ billion
2010–2014 – Market statistics - Amount at cost
12
10
8
6
4
2
0
2010
2011
2012
2013
2014
Trade sale
Initial public offering
Sale of quoted equity
Write-off
Repayment of silent partnerships
Repayment of principal loans
Sale to another private equity firm
Sale to financial institution
Sale to management
Other means
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
67
Fundraising
Investments
DIVESTMENTS
All Private Equity - Divestments at cost by exit route
2010–2014 - Market statistics - Number of companies
500
450
400
350
300
250
200
150
100
50
0
2010
2011
Trade sale
Write-off
Sale to another private equity firm
Other means
2012
2013
Initial public offering
Repayment of silent partnerships
Sale to financial institution
2014
Sale of quoted equity
Repayment of principal loans
Sale to management
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
68
Fundraising
Investments
DIVESTMENTS
All Private Equity - Divestments at cost by sector
6
400
5.6
5.4
350
5
4.4
Amount at cost
4.4
300
Number of companies exited
4
250
3
380
2.6
200
2.5
2.2
2
235
185
2.1
209
1.3
100
1.0
1
0.9
130
50
0
150
1.8
273
268
20
Number of companies exited
€ billion
2014 - Market statistics - Amount & Number of companies (excluding write-offs)
39
56
87
0.6
50
50
0.1
16
0.0
12
0
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
69
Fundraising
Investments
DIVESTMENTS
Divestments at cost by sector – Venture Capital / Buyout / Growth
2014 - Market statistics - Amount (excluding write-offs)
Life sciences
Communications
12.9%
7.2%
1.7%
5.6%
0.4%
Construction
12.2%
7.1%
7.1%
2.1%
Business & industrial services
13.6%
15.9%
7.0%
Energy & environment
7.1%
1.2%
11.4%
2.8%
5.6%
3.5%
Consumer services
Real estate
0.1%
Transportation
0.2%
Unclassified
23.0%
4.4%
1.2%
18.1%
8.9%
7.0%
Consumer goods & retail
Agriculture
17.0%
5.3%
Business & industrial products
Chemicals & materials
15.4%
6.3%
Computer & consumer electronics
Financial services
32.0%
11.9%
3.4%
4.6%
Venture Capital
6.6%
Buyout
3.8%
Growth
0.5%
3.2%
0.9%
0.8%
0.3%
0.2%
0.7%
0.0%
0.1%
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
70
Fundraising
Investments
DIVESTMENTS
Divestments at cost by sector – Venture Capital / Buyout / Growth
2014 - Market statistics - Number of companies (excluding write-offs)
13.7%
Business & industrial products
Computer & consumer electronics
8.5%
7.3%
6.2%
Business & industrial services
Communications
Energy & environment
3.1%
3.9%
1.5%
Real estate
Agriculture
Unclassified
0.9%
2.3%
15.4%
15.7%
8.3%
4.2%
2.4%
2.1%
Chemicals & materials
Transportation
2.0%
6.9%
6.4%
18.6%
17.6%
9.4%
11.1%
7.1%
4.2%
3.9%
Consumer services
Financial services
9.8%
14.7%
Life sciences
25.7%
22.2%
6.5%
Consumer goods & retail
Construction
18.6%
3.1%
Venture Capital
Buyout
4.0%
0.5%
1.7%
Growth
3.3%
0.5%
1.6%
0.8%
0.9%
1.0%
0.4%
0.4% 0.9%
0.4%
Source: EVCA / PEREP_Analytics
2014 European Private Equity Activity
71
Fundraising
Investments
DIVESTMENTS
All Private Equity - Divestments at cost by region
€ billion
2014 - Industry vs. Market statistics - % of Amount
22
20
19.1
18
16
14
12
10
9.3
9.3
9.8
8.2
8
5.4
6
4.1
4
3.2
3.9
2.7
2
1.3
0.7
UK & Ireland
DACH
Nordics
France & Benelux
Industry statistics - Country of the private equity firm
Southern Europe
CEE
Market statistics - Country of portfolio company
Source: EVCA / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2014 European Private Equity Activity
72
Fundraising
Investments
DIVESTMENTS
Acknowledgements
2014 European Private Equity Activity
73
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
2014 European Private Equity Activity
74
About PEREP_Analytics and EVCA Research
63%
The coverage rate of all
European private equity firms
based on 1,963 eligible private
equity firms
91%
The 2014 annual survey
covered 91% of the European
market in terms of capital
under management (base
€548bn)
PEREP is a joint Pan-European statistics platform of the following private equity associations:
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
EVCA - Europe
NVCA - Norway
SLOVCA - Slovakia
CVCA - Croatia
FVCA - Finland
NVP - The Netherlands
SVCA - Sweden
Statistics Manager
Head of Research
Dan Magirescu
Dr Cornelius Mueller
Statistics Team
Research Manager
Adriana Andronic
Cristina Cristea
Andrei Teslici
Andreea Banica
Laura Dumitrascu
Ioana Turbatu
Monica Biolan
Iuliana Furica
Raluca Coroi
Adelina Stefan
[email protected]
www.evca.eu
[email protected]
www.perepanalytics.eu
2014 European Private Equity Activity
Julien Krantz
75
European Private Equity and Venture Capital Association
Bastion Tower
Place du Champ de Mars 5
B – 1050 Brussels – Belgium
www.evca.eu
Tel: +32 2 715 00 20