2. hvca statistical survey 2007-preliminary data

8/6/2019 2. HVCA Statistical Survey 2007-Preliminary Data

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Hungarian Venture Capital and

Private Equity Association

Developmentof the Hungarian

Venture Capital and Private Equity Market

January-October 2007Preliminary data

November, 2007


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Hungarian Venture Capital and Private Equity Association 2

Overview

Methodology electronic data gathering and archiving

Analysis structure

Raised capital

VC/PE investment activity

Exit

Market approach

24 active funds surveyed, 15 responded

63% coverage

HVCA plans to participate in the new data collection and data processing of

EVCA


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Fundraising2007

Amount of raised funds doubled

Size of new funds increased

Fund managers with CEE regional experience raised new funds

Funds with regional focus dominate

Main investment strategy: large buy-outs

Capital increase for SMEs forecasted due to the JEREMIE program

The surveyed funds reported EUR 2.8 billion raised fundsregionally in 2007


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VC/PE Investment Activity2007

Number of smaller transactions below previous years

Relative gap in the deals between EUR 1.0 5.0 million

25% of transactions occurred in the EUR 5.0 15.0 million segment

One transaction represents 90% of investment value

100%365.7100%12Total

89%327,08.5%1EUR 15.0 + m

9%31.525%3EUR 5.0 m - EUR 15.0 m

1%4.28.5%1EUR 2.5 m - EUR 5.0 m0%0.00%0EUR 1.0 m - EUR 2.5 m

1%3.058%7Less than EUR 1.0 m

% of total

Approx. Value (EUR million) % of total

No. of Transactions Transaction Size


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Number of transactions

3 4 3

12

19 2719

20

7

14

9

13

6

16

21 1

3

0

5

10

15

20

25

30

35

40

45

2002 2003 2004 2005 2006 2007

Buyout Expansion Early stage

VC/PE Investment ActivityInvestment Stages, 2002 2007

Expansion capital is dominant in terms of number of transactionsState-owned investors financed mainly companies in expansive phaseRatio of structured transactions remained stable: two buy-out represented90% of the volumeNumber of early stage transactions is expected to increase based onJEREMIE program

Volume of transactions

84 82

506

39 3278

30100

23

338

23

27

4

1744

1

0

100

200

300

400

500

600

2002 2003 2004 2005 2006 2007

Buyout Expansion Early stage


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25%

8%

8%

17%

17%

8%

17%

Industrial products & services Manufacturing

Medical & Healthcare Computer: Software

Services (other) Communications

Other

VC/PE Investment ActivitySector Distribution, 2007 (%)

Sector distribution of transactions: multi-coloured

Number of Transactions


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Sector Distributionby Number of Transactions, 2002-2007 (%)

0%

20%

40%

60%

80%

100%

2002 2003 2004 2005 2006 2007

Agriculture

Chemicals and materials

OthersTransportation

Consumer related

Computer related

ServicesIndustry & Manufacturing

Medical / Health related

Communications


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Number of Exits2007

There was no relevant change in exit activity, while the volume ofexits increased significantlyBuy-back from state-owned investors was dominant in number

Trade sale dominated large exitsPublic markets provided exit opportunities only in case of alreadylisted companies

2PO

16Total0Write-off

9Sale to management / buy back

1Sale to another PE firm

4Trade Sale

NumberExit Type


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Conclusions

Volume of regional (CEE) fundraising increased significantly

Fundraising was led by regional players

Trend of large, structured investments continuedBuy-outs remained the dominant investment method

Decreasing activity of state-owned investors effected a fall in

number of early stage investments

JEREMIE program for early stage investments is in preparation

Due to trade sales the volume of exits increased significantly


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Hungarian Venture Capital and Private Equity Association

Dr. Judit KarsaiChairperson

Statistical Committee

Phone: +(36) 30 9333-331

E-mail: [email protected]

Natlia Gmbs

Executive SecretaryPhone: +(36) 1 475-0924

E-mail: [email protected]

Further information

2. hvca statistical survey 2007-preliminary data

Documents