private equity funds in norway activity report h1 2013[1]

PEREP_ Analytics TM

NORWEGIAN VENTURE CAPITAL & PRIVATE EQUITY ASSOCIATION (NVCA)

PRIVATE EQUITY FUNDS IN NORWAY

ACTIVITY REPORT H1 2013

(SEED – VENTURE – BUY OUT)

PEREP_ Analytics TM

ABOUT THE ACTIVITY REPORT H1 2013

§  The Activity Report H1 2013 is developed for the Norwegian Venture Capital & Private Equity Association (NVCA) by Menon Business Economics and PEREP_Analytics during July and August 2013

§  The survey covers activities in:

–  Norwegian private equity funds:

–  Foreign private equity funds with advisory teams located in Norway

–  Foreign private equity funds with investments in Norway:

§  The report contains information on:

–  Investments and divestments at cost in portfolio companies located in Norway and abroad

–  Fundraising activity in Norwegian private equity firms

§  Figures are collected quarterly

§  Figures are reported directly from the private equity firms

§  88 % repons rate in H1 2013.

2

PEREP_ Analytics TM

ON THE COMPATABILITY WITH EUROPEAN STATISTICS

NVCA defines a «Norwegian private equity firm» as a firm with headquarters located in Norway.

This definition differs from the EVCA definition, which defines a private equity firm on the basis of where the advisory team responsible for the investment and divestment is located.

Due to the discrepancy in definition the EVCA and the NVCA statistics are not completely compatible.

The advantage of the NVCA definition is that the investment and divestment activity is compatible with the fundraising statistics. In addition, the NVCA definition is in line with what is commonly perceived as the Norwegian private equity industry.

Two examples of how the NVCAs definition applies on the statistic:

1.  Investments made from the Swedish office of a Norwegian headquartered PE firm would be defined as Norwegian

2.  Investments made from the Norwegian office of a Swedish headquartered PE firm regards as an investment made by a foreign located private equity fund.

3

PEREP_ Analytics TM

MAIN OBSERVATIONS H1 2013

§  Limited fundraising activity in the first half of 2013

§  High level of buyout investments –  About 2850 mill NOK invested by Norwegian PE firms in Norwegian and foreign enterprises

within buyout.

–  About 6150 mill NOK invested in Norwegian enterprises within the buyout segment from Norwegian and foreign PE firms.

§  High number of divestments

–  A large share of the divestments were sale to trade buyer

4

PEREP_ Analytics TM

FUNDRAISING IN H1 2013 – NORWEGIAN PRIVATE EQUITY FUNDS

Total fundraising H1 2013 - NOK 8,3 bn (EUR 1,04 mill)

Start-up:

Teknoinvest raised 8,3 million NOK (EUR 1,04 mill)

5

PEREP_ Analytics TM

INVESTMENTS BY NORWEGIAN PE FIRMS H1 2013 6

Overall:

§  Norwegian PE firms invested 3169 mill. NOK (EUR 305 mill.) in Norwegian and foreign portfolio companies –  2438 mill. NOK (EUR 305 mill) in Norwegian enterprises

–  731 mill. NOK (EUR 91 mill.) in foreign enterprises.

Seed:

–  2 mill. NOK (EUR 0,3 mill.) invested. Down from 6 mill. NOK (EUR 0,8 mill.) in H2 2012.

Venture

–  327 mill. NOK (EUR 41 mill.) invested. Down from 539 mill. NOK (EUR 67 mill.) in H2 2012.

Buyout:

–  2840 mill. NOK (EUR 225 mill.) invested. Up 1042 mill. NOK (EUR 130 mill.) from H2 2012.

PEREP_ Analytics TM

INVESTMENTS IN NORWEGIAN PORTFOLIO COMPANIES BY NORWEGIAN AND FOREIGN PE FIRMS H1 2013

Overall:

§  6441 mill. NOK (EUR 805 mill.) invested in Norwegian entreprises by both Norwegian and foreign PE firms –  Norwegian PE firms invested 2438 mill. NOK (EUR 305 mill.)

–  Foreign PE firms invested 4003 mill. NOK (EUR 500 mill.)

Seed:

–  A total of 2 mill. NOK (0,3 mill. EUR) invested, up from no investment in the seed segment in H2 2012.

Venture:

–  A total of 288 mill NOK (EUR 36 mill) invested, down from 460 mill. NOK (EUR 57,5 mill) in H2 2012.

Buyout:

–  A total of 6152 mill. NOK (EUR 769 mill.) invested, up from 2072 mill. NOK (EUR 259 mill ) in H2 2012.

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PEREP_ Analytics TM

DIVESTMENTS (EXITS) H1 2013

§  Divestments in Norwegian and foreign enterprises by Norwegian PE firms –  25 divestments by Norwegian PE firms. Down by 2 from H2 2012.

–  9 divestments within venture stage. Down from 14 in H2 2012.

–  19 out of 25 divestments were sales to trade buyers

§  Divestments in Norwegian enterprises by Norwegian and foreign PE firms –  35 divestments in Norwegian enterprises. Up from 16 in H2 2012

–  9 divestments within venture stage. An increase by one from H2 2012

–  22 divestments within buyout. An increase from 7 in H2 2012

–  4 divestments within seed. Up from 1 in H2 2012

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PEREP_ Analytics TM

APPENDIX Graphs and charts:

Fundraising

Investments

Divestments

PEREP_ Analytics TM

FUNDRAISING

PEREP_ Analytics TM

NUMBER OF NEW FUNDS AND NEW COMMITTED CAPITAL 2001- H1 2013* 11

* Norwegian public sector raised funds in Inves?nor not included

1481

5273

1465

5242 3984

14002

4831

15257

924

4017

11344

2005 8

6 7 7

9

6

27

9 9

7

2 3

3

0 0

5

10

15

20

25

30

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 H1 2013

Num

ber o

f new

fund

s

New

com

mi0ed

cap

ital

New capital, mill. NOK (leI axis) Number of new fund (right axis)

PEREP_ Analytics TM

INVESTMENTS

PEREP_ Analytics TM

Norwegian PE firms’ investments in Norwegian and foreign enterprises

(Industry statistics)

PEREP_ Analytics TM

INDUSTRY STATISTICS: TOTAL AMOUNT OF INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

14

783

2 035

1 394

2 284

1 379 1 276

1 920 1 467

2 438

397

715

1 415

688

664

386

689

877

731

0

500

1000

1500

2000

2500

3000

3500

H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013

Mill. N

OK

Norwegian PE firm -‐ Norwegian company Norwegian PE firm -‐ Foreign company

PEREP_ Analytics TM

INDUSTRY STATISTICS: NUMBER OF INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

15

119 142 141 133

147 139 140 118

103

38

51 45 41

61 60

25

21

17

0

50

100

150

200

250

H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013

Num

ber o

f investm

ents

Norwegian PE firm -‐ Norwegian company Norwegian PE firm -‐ Foreign company

PEREP_ Analytics TM

NORWEGIAN PE FIRMS' TOTAL INVESTMENTS BY PHASE (MILL. NOK) 16

512

1930 1844 2144

1459 970

2004 1798

2840

648

806 912 792

575

661

597 539

327

19

14 52 37

9

30

8

6

2

0

500

1000

1500

2000

2500

3000

3500

H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013

Mill. N

OK

Buyout Venture Seed

PEREP_ Analytics TM

INITIAL AND FOLLOW UP INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS (MILL. NOK)

17

344

1 137 1 468 1 335 1 205

548

1 347 1 511

918

168

794

376

809

254 422

658 287

1 922

309

291

517

271 163

184

266 81

66

339

514

395

521

411

478 331

458

261

12

8

16

15

4

5 6

2

7

6

36

22

5

30 3

0

0

500

1000

1500

2000

2500

H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Ini?al Follow up

Mill. N

OK

Buyout Venture Seed

PEREP_ Analytics TM

NUMBER OF INITIAL AND FOLLOW UP INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

18

9 13 13 12 21 9 16 9 7

21 20 17 20 15 34

22 12 11 19 22 32 24

24

14 12

6 7

98

132

108 106

144

138

112 109

94

4 3

7 7

1

2 1 1

6

3

9 5

3 4

1 2

0

20

40

60

80

100

120

140

160

180

200


2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Ini?al Follow up

Num

ber o

f investm

ents

Buyout Venture Seed

PEREP_ Analytics TM

TOTAL AMOUNT INVESTED BY SECTOR AND PHASE BY NORWEGIAN PE FIRMS IN H1 2013 (MILL. NOK)

19

79 70 242 345 680

1423

1 1 13 42 49 71 78 3

1

38

30

2

0

200

400

600

800

1000

1200

1400

1600

Mill. N

OK

Buyout Venture Seed

PEREP_ Analytics TM

INITIAL INVESTMENTS BY SECTOR AND PHASE BY NORWEGIAN PE FIRMS IN H1 2013 (MILL. NOK)

20

70

174

345 329

7 10 15

2

3

30 2

0

50

100

150

200

250

300

350

400

Life Science Petroleum Communica?on IT Business related and industry services

Business related and industry products

Other energy sources

Mill. N

OK

Buyout Venture Seed

PEREP_ Analytics TM

FOLLOW UP INVESTMENT BY SECTOR AND PHASE BY NORWEGIAN PE FIRMS IN H1 2013 (MILL. NOK)

21

69 79

680

1094

1 1 1 13 27 42 71 77

28

0

200

400

600

800

1000

1200

Mill. N

OK

Buyout Venture Seed

PEREP_ Analytics TM

NUMBER OF INVESTMENTS MADE BY NORWEGIAN PE FIRMS BY SECTOR AND PHASE IN H1 2013

22

TotalSector Initial Follow up Total Initial Follow up Total Initial Follow up TotalOther energy sources 2 2 2 1 3 5Construction 4 4 4IT 1 27 28 1 1 29Retail / consumer services and products 2 2 2Fisheries and Aquaculture 1 1 1Cleantech 27 27 27Business related and ind. Products 1 1 4 4 3 3 8Business related and ind. Services 1 1 1 2 3 4Chemicals og materials 1 1 1Communication 1 11 12 12Life Science 1 15 16 16Petroleum 1 6 7 4 4 11Totalsum 1 0 1 7 94 101 7 11 18 120

Seed Venture Buyout

PEREP_ Analytics TM

Investments in Norwegian enterprises by Norwegian and foreign PE firms

(Market statistics)

PEREP_ Analytics TM

MARKET STATISTICS: TOTAL AMOUNT OF INVESTMENTS IN NORWEGIAN ENTERPRISES BY LOCATION OF ADVISORY TEAM AND NATIONALITY OF PE FIRM

24

783 2 035 1 394

2 284 1 379 1 276 1 920 1 467

2 438 76

2 359

232

2 599

2 265

362

1 981

103

532

656

326

2 216

6 358

1 404

680

779

963

3 471

0

2000

4000

6000

8000

10000

12000

H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013

Mill. N

OK

Norwegian company -‐ Foreign PE firm -‐ Foreign management team

Norwegian company -‐ Foreign PE firm -‐ Norwegian management team

Norwegian company -‐ Norwegian PE firm -‐ Norwegian management team

PEREP_ Analytics TM

MARKET STATISTICS: NUMBER OF INVESTMENTS IN NORWEGIAN PORTFOLIO COMPANIES BY LOCATION OF ADVISORY TEAM AND NATIONALITY OF PE FIRM

25

2 12 7 4 5 3 8 5 2

22 11 15 17 12 15 15 16 16

119 142 141

133 147 139 140

118 103

0

20

40

60

80

100

120

140

160

180

H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013

Num

ber o

f investm

ents

Norwegian company -‐ Norwegian PE firm -‐ Norwegian management team

Norwegian company -‐ Foreign PE firm -‐ Foreign management team

Norwegian company -‐ Foreign PE firm -‐ Norwegian management team

PEREP_ Analytics TM

TOTAL AMOUNT OF INVESTMENTS IN NORWEGIAN ENTERPRISES BY PHASE (MILL. NOK)

26

1006

4061 2963

10742

4599

1734

4285

2072

6152

490

641

848

483

448

583

387

460

288

19

19

31

16

1

1

8

0

2

0

2000

4000

6000

8000

10000

12000

H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013

Mill. N

OK

Buyout Venture Seed

PEREP_ Analytics TM

INITIAL AND FOLLOW UP INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS (MILL. NOK)

27

283

3184 2579

6522

4303

1268

3538

1875

4302

723 876 385

4220

295 467 747 197

1849 226

381 596

158

121

191

133

62

33

264 260 252

326

327 391 254

398

255

12

12 16

15

5

2

6 6 14

1

1 1 3 0

0

1000

2000

3000

4000

5000

6000

7000

8000


2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Ini?al Follow up

Mill. N

OK

Buyout Venture Seed

PEREP_ Analytics TM

NUMBER OF INITIAL AND FOLLOW UP INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

28

7 12 10 13 16 9 17 12 12 32 25

14 25 16 22 26 16 17 13

19 33 22 13 16

12 7 7

82 102

93 86

118 108 105 102

84

4 4

7 7

2 1

5 3

6 1

1 2 1 2

0

20

40

60

80

100

120

140

160


2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Ini?al Follow up

Num

ber o

f investm

ents

Buyout Venture Seed

PEREP_ Analytics TM

NUMBER OF INVESTMENTS IN NORWEGIAN ENTERPRISES MADE BY NORWEGIAN AND FOREIGN PE FIRMS BY SECTOR AND PHASE IN H1 2013

29

TotalInitial Total Initial Follow up Total Initial Follow up Total

Other energy sources 1 1 4 2 6 7Construction 5 5 5IT 1 23 24 2 2 26Retail /consumer services and products 3 1 4 4Fisheries and Aquaculture 1 1 1Cleantech 26 26 26Business related and industry products 1 1 4 4 1 1 6Business related and industry services 1 1 1 2 3 4Chemicals og materials 1 1 1Communication 1 10 11 11Life Science 1 13 14 1 4 5 19Petroleum 2 6 8 3 3 11Total 1 1 7 84 91 12 17 29 121

Seed Venture Buyout

PEREP_ Analytics TM

DIVESTMENTS

PEREP_ Analytics TM

Norwegian PE firms’ Divestments in Norwegian and foreign enterprises

(Industry statistics)

PEREP_ Analytics TM

NUMBER OF DIVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES (EXCL. WRITE OFFS) BY NORWEGIAN PE FIRMS

32

4 9

1 3 3 6

9 7 12

20 10

17 13 14 10

20

14 9

1

1 1 2 2 6

3

6 4

0

5

10

15

20

25

30

35

H1 H2 H1 H2 H1 H2 H1 H2 H1

2012 2009 2010 2011 2013

Num

ber o

f divestm

ents

Buyout Venture Seed

PEREP_ Analytics TM

NUMBER OF DIVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS IN H1 2013 BY PHASE

33

3 1

9

1

1

1

7

1

2

3

0

2

4

6

8

10

12

14

16

18

20

Flota?on (IPO) Sale to management (buy-‐back)

Sale to another private equity firm

Write offs, including sales for a nominal

amount

Sale to trade buyers

Num

ber o

f divestm

ents

Buyout Venture Seed

PEREP_ Analytics TM

Divestments in Norwegian enterprises by Norwegian and foreign PE firms

(Market statistics)

PEREP_ Analytics TM

NUMBER OF DIVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS (EXCL. WRITE OFFS)

35

4 4 7

13

3

10 7

22

9

11 11 9

12

14

18

8

9

1

2 2

6

3

6

1

1

4

0

5

10

15

20

25

30

35

40

H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013

Num

ber o

f divestm

ents

Buyout Venture Seed

PEREP_ Analytics TM

TYPE OF DIVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS IN H1 2013

36

1 2 1

7

12

1

1

8

1 2

3

0

5

10

15

20

25

Repayment of preference shares/

loans

Sale to management (buy-‐back)

Write offs, including sales for a nominal

amount

Sale to another private equity firm

Sale to trade buyers

Num

ber o

f divestm

ents

Buyout Venture Seed

private equity funds in norway activity report h1 2013[1]

Documents

norwegian enterprises

nok eur

norwegian office

norwegian pe firms h1

norwegian portfolio

foreign pe firms h1

analytics tm investments

analytics tm fundraising