evca quarterly activity indicator: q1 2007-q2 2011 29 august, 2011 produced for evca by...

EVCA Quarterly Activity Indicator: Q1 2007-Q2 2011

29 August, 2011

Produced for EVCA by PEREP_AnalyticsTM

| Creating lasting valueEVCA Quarterly Activity Indicator: Q1 2007-Q2 20112 |

Methodology

• Data collected via questionnaires and reliable public sources

• Definition of Europe:

• for deals, it is defined by the location of the target;• for fundraising it covers funds primarily focused on Europe

• Fundraising: only formal closings are included with committed amount

• Investments: amounts are measured by equity value; debt is included only IF provided by PE funds (bank leverage excluded)

• Divestments: measured at amount at cost divested (not proceeds)


0

20

40

60

80

100

120

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Funds raised

Investments

Divestments at cost

Trends in European private equity activity flows

Source: EVCA/PEREP_Analytics

Index Q1 2007=100

2007 2008 2009 2010 2011


25.5

23.7

14.815.9

17.2

23.4

20.5

18.8

5.4

3.84.7

3.9

8.1

4.2 4.6

3.1

6.9

10.5

16.717.8

19.7

16.7

13.6

14.9

16.4

8.2

5.14.4

5.1

8.6 8.2

9.810.7

12.6

8.4

9.9

0

5

10

15

20

25

30


€ billion

Funds raised

Investments

Evolution of activity flowsIncremental amounts raised during quarter


2007 2008 2009 2010 2011


0

20

40

60

80

100

120


Funds raised

Funds raised – Quarterly evolutionIndex Q1 2007=100


2007 2008 2009 2010 2011


Funds raised by fund stage focus


0%

20%

40%

60%

80%

100%


Early-stage

Later stage venture

Balanced

Growth capital

Buyout

Mezzanine

Generalist

2007 2008 2009 2010 2011


Funds raised by fund stage focus in Q2 2011


Early-stage

3.4%Later stage

venture 0.8%

Balanced

5.3%

Growth capital

33.7%

Buyout

53.8%

Generalist

2.4%


Fundraising profiles for final fund closings in 2007

Q1 2007 Q2 2007 Q3 2007 Q4 2007

Fund stage Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Early-Stage 1,188 7 170 238 5 48 679 13 52 268 4 67

Later Stage Venture

192 2 96 164 2 82 88 1 88 162 3 54

Balanced 493 5 99 271 4 68 124 2 62 984 9 109

All Venture 1,873 14 134 673 11 61 891 16 56 1,415 16 88

Growth 51 2 25 631 3 210 260 2 130 424 3 141

Buyout 3,789 13 291 16,261 23 707 6,420 22 292 26,899 23 1,170

Mezzanine 2,507 2 1,254 1,673 7 239 196 2 98 325 1 325

Generalist 660 3 220 788 9 88 600 1 600 492 6 82

Independent Funds Raised

8,880 34 261 20,025 53 378 8,367 43 195 29,554 49 603




Q1 2008 Q2 2008 Q3 2008 Q4 2008

Fund stage Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Early-Stage 208 4 52 509 9 57 546 6 91 206 3 69

Later Stage Venture

754 5 151 6 1 6 58 1 58 100 1 100

Balanced 448 4 112 241 4 60 96 3 32 537 9 60

All Venture 1,410

13 108 755 14 54 701 10 70 843 13 65

Growth 50 1 50 1,181 4 295 1,150 4 288 111 2 55

Buyout 10,435 22 474 19,228 13 1,479 16,021 15 1,068 13,542 18 752

Mezzanine 508 3 169 - 0 - - 0 - - 0 -

Generalist 173 4 43 1,174 9 130 102 2 51 737 5 147


12,577

43 292 22,339 40 558 17,973 31 580 15,233 38 401




Q1 2009 Q2 2009 Q3 2009 Q4 2009

Fund stage Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Early-Stage 41 2 21 227 6 38 1 1 1 844 8 105

Later Stage Venture

- 0 - 54 2 27 12 1 12 361 3 120

Balanced 235 5 47 289 8 36 186 5 37 16 1 16

All Venture

276 7 39 569 16 36 199 7 28 1,221 12 102

Growth 15 1 15 85 2 43 100 1 100 351 2 176

Buyout 5,235 4 1,309 825 2 413 2,330 6 388 966 5 193

Mezzanine 640 1 640 210 2 105 320 1 320 - 0 -

Generalist 627 2 314 40 2 20 97 3 32 340 8 43


6,793 15 453 1,729 24 72 3,046 18 169 2,879 27 107




Q1 2010 Q2 2010 Q3 2010 Q4 2010

Fund stage Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Early-Stage 93 6 16 255 5 51 50 3 17 156 6 26

Later Stage Venture

8 1 8 2 1 2 167 1 167 144 3 48

Balanced 471 7 67 287 5 57 418 4 104 189 6 32

All Venture 573 14 41 543 11 49 634 8 79 489 15 33

Growth 1,268 3 423 20 1 20 162 1 162 - 0 -

Buyout 5,060 10 506 4,415 7 631 1,766 7 252 1,675 10 168

Mezzanine 23 1 23 681 2 340 - 0 - - 0 -

Generalist 312 3 104 366 5 73 138 6 23 60 2 30


7,236 31 233 6,025 26 232 2,700 22 123 2,225 27 82





Q1 2011 Q2 2011

Fund stage Amount

(€ million)

Number of funds

Average fund size

Amount

(€ million)

Number of funds

Average fund size

Early-Stage 312 3 104 13 1 13 Later Stage Venture - 0 - 262 1 262 Balanced 6 1 6 552 3 184 All Venture 318 4 80 827 5 165 Growth - 0 - 872 4 218 Buyout 1,520 5 304 5,917 9 657 Mezzanine 850 1 850 - - - Generalist 463 3 154 360 2 180 Independent Funds Raised

3,151 13 242 7,976 20 399


100.0

106.4

118.3

100.1

81.3

89.0

98.6

48.9

30.626.5

30.9

51.3 49.2

58.564.0

75.4

50.2

59.0

0

20

40

60

80

100

120


Investments

Investments by amount – Quarterly evolutionIndex Q1 2007=100


2007 2008 2009 2010 2011


16.8

13.5

10.4 10.5

8.0

1.1

1.1

1.4

1.4

1.62.5

1.8

1.4

1.30.8

1.1

1.4 1.5

1.8

1.9

1.2

1.2

1.2

1.3

1.3

1.6

1.7

1.6

1.8

1.6

1.5

0.90.9

0.9

1.1 0.7

1.0

0.8

1.0

0.8

0.7

14.315.3

13.0

5.22.9 2.6 3.2

6.1 6.07.0

8.0

10.4

6.4

0

2

4

6

8

10

12

14

16

18

20


€ billion

Total venture

Growth

Buyout

European investments at €9.9bn in Q2 2011


2007 2008 2009 2010 2011


0%

20%

40%

60%

80%

100%


Seed

Start-up

Later Stage Venture

Growth

Rescue/ Turnaround

Replacement Capital

Buyout

Investments by stage distribution(equity amount invested)


2007 2008 2009 2010 2011


Investments by stage distribution(number of companies invested)


0%

20%

40%

60%

80%

100%


Seed

Start-up

Later Stage Venture

Growth

Rescue/ Turnaround

Replacement Capital

Buyout

2007 2008 2009 2010 2011


Buyouts split by size(equity value, bank leverage excluded)


1.3 1.1 1.6 1.6 1.1 1.3 1.2 0.8 0.5 0.7 0.6 0.6 0.7 0.7 0.8 0.9 0.6 0.8

6.85.7 5.1

6.2

4.35.3 5.2

2.8

0.8 1.0 1.52.5

1.72.5

3.4 3.63.1

3.8

2.64.0

2.8

3.3

2.1

2.21.8

0.6

0.4 0.20.3

1.61.7

1.4

1.62.6

1.2

1.9

3.13.8 6.5

2.0

2.41.3

4.3

0.6

0.6 0.40.0

0.4 1.31.7

1.5

3.1

1.2

1.4

0

2

4

6

8

10

12

14

16

18


€ billion

Mega

Large

Mid-market

Small

2007 2008 2009 2010 2011


Buyouts split by size(number of companies)


217 204

244 250

213 224 216180

137 148128 118 113

139 143 152

104 117

106115

100118

101113

113

51

1522

40 4837

62 6974

6265

11 17

11

12

9

9

8

9

3

21 1 7

7

78

11

53

6 1011

5

5

3 7

2

11 1

3

43

6

3

0

50

100

150

200

250

300

350

400


Mega

Large

Mid-market

Small

2007 2008 2009 2010 2011


Amount invested by sector in 2007All private equity

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

Unknown

Transportation

Real estate

Life sciences

Financial services

Energy and environment

Consumer services: Other

Consumer goods and retail

Construction

Computer and consumer electronics

Communications

Chemicals and materials

Business and industrial services

Business and industrial products

Agriculture

€ billion

Q4 2007

Q3 2007

Q2 2007

Q1 2007




0.0 0.5 1.0 1.5 2.0 2.5 3.0

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ billion

Q4 2008

Q3 2008

Q2 2008

Q1 2008




0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ billion

Q4 2009

Q3 2009

Q2 2009

Q1 2009




0.0 0.5 1.0 1.5 2.0 2.5 3.0

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ billion

Q4 2010

Q3 2010

Q2 2010

Q1 2010





0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ billion

Q2 2011

Q1 2011


Amount invested by sector in 2007Venture capital

0 100 200 300 400 500 600

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2007

Q3 2007

Q2 2007

Q1 2007




0 50 100 150 200 250 300 350 400

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2008

Q3 2008

Q2 2008

Q1 2008




0 50 100 150 200 250 300 350 400

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2009

Q3 2009

Q2 2009

Q1 2009




0 50 100 150 200 250 300 350

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2010

Q3 2010

Q2 2010

Q1 2010





0 50 100 150 200 250 300

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q2 2011

Q1 2011


Amount invested by sector in 2007Buyout & growth

0 500 1,000 1,500 2,000 2,500 3,000

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2007

Q3 2007

Q2 2007

Q1 2007




0 500 1,000 1,500 2,000 2,500

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2008

Q3 2008

Q2 2008

Q1 2008




0 250 500 750 1,000 1,250 1,500

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2009

Q3 2009

Q2 2009

Q1 2009




0 500 1,000 1,500 2,000 2,500 3,000

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q4 2010

Q3 2010

Q2 2010

Q1 2010





0 400 800 1,200 1,600 2,000

Unknown

Transportation

Real estate

Life sciences

Financial services




Construction


Communications




Agriculture

€ million

Q2 2011

Q1 2011


Divestment at cost - Evolution


8.3

6.0

6.8

5.8

3.5

4.4

3.6

2.52.2

1.8

3.1

4.44.7

5.0

4.1

5.2

6.8

4.1

0

1

2

3

4

5

6

7

8

9


€ billion

2007 2008 2009 2010 2011


Divestment at cost – Quarterly evolution

Index Q1 2007 = 100


0

20

40

60

80

100

120


2007 2008 2009 2010 2011


European private equity divestments – exit route trends(amount at cost divested)

Index Q1 2007 = 100


0

20

40

60

80

100

120

140

160

180


Trade sale

Sale to PE firms

Write-offs

Other

Total divestment

2007 2008 2009 2010 2011


Venture divestment at cost in 2007% of amount

28.2

38.5 37.9

21.1

1.8

17.7

9.9

13.8

17.0

18.3

7.8

4.1

6.5

11.9

9.6

19.8

1.4

1.6

2.0

2.517.7

1.3

10.0

1.8

9.0

3.2

3.7

21.7

1.3 5.32.45.7

4.2 2.3

11.44.8

9.8 10.50.22.5

0%

20%

40%

60%

80%

100%

Q1 2007 Q2 2007 Q3 2007 Q4 2007

Other means

Sale to Management (MBO)

Sale to Financial Institution

Sale to Another PE Player

Repayment of Principal Loans

Repayment of Silent Partnership

Write-Off

Sale of Quoted Equity

IPO

Trade Sale



Buyout & growth divestment at cost in 2007% of amount

23.1 23.9

33.9

19.5

3.610.9

2.0

1.1

2.0

2.47.2

4.8

3.9

1.1

26.7

19.2

7.9

31.429.2

40.7

50.3

5.7 3.8 7.9

3.52.4 1.5

2.2 4.9 5.6 5.8

0.9

0.2

0.10.8

0.53.9

3.32.2

0%

20%

40%

60%

80%

100%

Q1 2007 Q2 2007 Q3 2007 Q4 2007

Other means






Write-Off


IPO

Trade Sale




32.640.4 42.1

35.3

1.1

1.48.0

4.8 7.86.8

9.4

12.6

18.21.6

4.9

5.6

5.021.16.5

1.16.6

6.69.0

11.85.0

2.42.0

4.6

7.69.8 15.5

12.2 11.77.3 5.1

4.6

6.1

5.9

0%

20%

40%

60%

80%

100%

Q1 2008 Q2 2008 Q3 2008 Q4 2008

Other means






Write-Off


IPO

Trade Sale




35.841.7

29.1

47.7

6.36.0

3.0

4.6

7.813.4

34.0

32.2

47.612.8

1.85.5

14.4

2.43.1

8.2

4.8 3.3 4.7

0.5

0.7

0.8

4.3

4.5

0.8

0.6

0.20.3

2.8

1.9

4.1

3.63.5

1.4

0%

20%

40%

60%

80%

100%

Q1 2008 Q2 2008 Q3 2008 Q4 2008

Other means






Write-Off


IPO

Trade Sale




42.7

24.2 22.7

38.9

1.0

0.6

9.9

15.6 20.0

8.4

20.2

23.9 20.5

22.6

3.22.5

3.49.5

20.4

15.711.6

4.71.74.67.1

12.28.5

0.04

1.7 1.72.3 1.8

0.8

0.2

0.8

1.3

3.6

8.3

1.2

0%

20%

40%

60%

80%

100%

Q1 2009 Q2 2009 Q3 2009 Q4 2009

Other means






Write-Off


IPO

Trade Sale




25.3

15.924.9

38.5

22.7

12.5

53.434.2

40.2

30.81.0

8.2

7.0

7.9

8.6

7.62.2 7.3

3.07.9 3.5 3.4

0.03

0.1

4.70.7

0.2

0.3

0.22.3

1.5

2.45.1

11.2

1.6 1.61.20.9

0%

20%

40%

60%

80%

100%

Q1 2009 Q2 2009 Q3 2009 Q4 2009

Other means






Write-Off


IPO

Trade Sale




40.6 40.344.6

39.5

12.8 12.3

11.9

15.2

15.2 16.6 10.3 15.5

2.1 3.02.8

2.71.6

12.3 8.0

20.8 20.2

1.2 1.3

14.1

3.9 3.02.6 4.4

0.1

1.3

0.7

1.30.80.4

7.8

6.1

1.6 1.2

0%

20%

40%

60%

80%

100%

Q1 2010 Q2 2010 Q3 2010 Q4 2010

Other means






Write-Off


IPO

Trade Sale




29.8

16.924.4

11.1

13.3

4.9

4.11.7

3.9

10.2

20.2

46.8

10.8

8.8

23.8

19.5

40.7

56.1

3.5 3.5 3.02.2 5.3 5.24.2 2.7

1.2

0.8

0.8

0.1

0.4

0.1

3.0

3.6

5.0

2.2

3.9

0.61.8

0%

20%

40%

60%

80%

100%

Q1 2010 Q2 2010 Q3 2010 Q4 2010

Other means






Write-Off


IPO

Trade Sale





58.8

46.3

4.5

8.2

6.8

12.9

18.0

3.1

2.22.8

7.710.60.9

3.07.9 4.2

1.80.5

0%

20%

40%

60%

80%

100%

Q1 2011 Q2 2011 Q3 2011 Q4 2011

Other means






Write-Off


IPO

Trade Sale




29.233.8

5.2

7.0

34.7

6.4

6.7

15.7

39.1

6.2 2.1

5.3

0.2

1.50.4

0.8

1.2 3.6 0.50.4

0%

20%

40%

60%

80%

100%

Q1 2011 Q2 2011 Q3 2011 Q4 2011

Other means






Write-Off


IPO

Trade Sale


European divestments by segment in Q2 2011

Venture

€ 186 m

# companies divested

55

€ 72 m 27

€ 42 m 7

Buyout & growth

# companies divested

€ 1.3 bn

€ 1.5 bn

€ 0.3 bn

62

50

7

Q2 2011 Top Exit routes

Secondary

Trade Sale

Write-Off





Conclusions

Fundraising picked-up again in the second quarter of 2011, to €10.5bn, compared with €6.9bn raised in the first quarter of the year. The increase was primarily driven by an increase in growth capital fundraising from €0.3bn in Q1 to €3.6bn in Q2.

Investment value rose, from €8.4bn in Q1 2011 to €9.9bn in Q2 2011. Like in Q1 more than 1000 companies received investments in the second quarter.

Buyout investment (including replacement capital and rescue/turnaround) increased by 25% from Q1 2011, to €8bn. Growth capital investment again remained stable at €1.2bn. Venture capital investment decreased by 11% to €0.7bn.

Divestment at cost (excluding write-offs) fell in Q2 2011 to €4bn (€4.5bn in Q1 2011). More than 400 companies were exited. The amount written-off in Q2 2011 fell to €0.1bn (€2.3bn Q1 2011).

A total of 104 companies were exited via trade sale, for a total amount at cost of €1.4bn. Sales to another private equity firm came next with €1.5bn divested at cost from 67 companies.


EVCA European Private Equity and Venture Capital AssociationBastion Tower Place du Champs de Mars 5B – 1050 Brussels – Belgium

www.evca.euTel: +32 2 715 00 20

evca quarterly activity indicator: q1 2007-q2 2011 29 august, 2011 produced for evca by...

Documents

fund stage

independent funds

analytics slide

analytics index q1

quarterly evolution

evolution of activity

final fund closings

analytics tm slide