Equity Funds Portfolio Update Data as of December 2017

Transcription

1 Equity Funds Portfolio Update Data as of December 2017

2 About EBRD Equity Funds Team The Equity Funds Team (EFT) currently manages 2.4bn in assets and maintains relationships with nearly 80 general partners across Central & South Eastern Europe (CSEE), the Commonwealth of Independent States (CIS), Central Asia and the Southern and Eastern Mediterranean (SEMED) in pursuit of investments that will outperform public benchmarks while delivering on the Bank s Transition Impact Objectives. 120 Active Funds 1.5 billion Fair Value of Portfolio Active GP Relationships 0.9 billion Undrawn Commitments ~1, Signings (Commitment): Alpha Associates CEE IV - 25m Accession Mezzanine Capital IV - 40m Horizon Capital Emerging Europe Growth Fund - $30m Polish Enterprise Fund VIII - 25m Mediterrania Capital Fund III - 35m Current Underlying Companies Companies Exited 4.0% 11.5% Net Active IRR Net Realised IRR 21.0 billion Maghreb Private Equity Fund IV - 25m Taxim Capital Partners I (Tranche II) - 10m Syntaxis New Europe Fund III - 30m Zubr Capital I (Tranche II) - $6.5m External Capital Mobilised All figures as of Dec

3 Where we work

4 Market Environment 4

5 Years Months EUR Millions Market Environment Trends Average Fund Size*, EBRD Transactions, Private Equity Penetration 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Average Median Source: EBRD, EMPEA; Calculated as private capital investment divided by annual GDP Average Investee Holding Period, Exit Year (incl. Write-Offs) Average Fundraising time by Year, ** Average Median *Where funds are still raising, target sizes have been used All figures as of Dec ** Fundraising time measured as Concept Approval to First Disbursement and therefore excludes the often significant time spent fundraising pre-approval 5

6 Portfolio Allocation 6

7 Capital Allocation By Region (Active Funds) Number of Funds Commitments (EUR Millions) Disbursements (EUR Millions) SEE 12% Turkey 8% SEMED 8% Russia/CIS 28% CEE 44% Turkey SEMED 8% 6% SEE 8% Russia/CIS 29% CEE 49% Turkey SEMED 5% 3% SEE 8% Russia/CIS 36% CEE 48% All figures as of Dec

8 Net Financial Performance to December

9 Horizon IRRs Annualised Returns - Net Horizon IRR (%) as of December % 10% 5% 0% 26y 25y 24y 23y 22y 21y 20y 19y 18y 17y 16y 15y 14y 13y 12y 11y 10y 9y 8y 7y 6y 5y 4y 3y 2y 1y Equity Funds Portfolio Performance of December 2017 Horizon 5Y 10Y 15Y 20Y EBRD 2.9% 2.2% 6.7% 8.2% Horizon Internal Rate of Return (IRR) uses fair value of the investment at the beginning of the period as an initial cash outflow and the fair value at the end of the period as the terminal cash flow. The IRR is computed using those values, plus any cash received from/disbursed to the company in the defined period (horizon). Cambridge data is self-reported so shows survivor bias. All figures as of Dec

10 Net Financial Performance Breakdown Performance by Region (IRR, %) Performance by Fund Size (IRR, %) 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% CEE SEE Russia/CIS Turkey SEMED All Funds Nb of Funds Active Liquidated 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Under 50m m m Over 300m All Funds Active Liquidated Nb of Funds Note: The Bank s portfolio of EUR 300m+ funds is recent and performance of these funds is affected by their J-curve. Performance by Manager Experience (IRR, %) Performance by Vintage Cluster (IRR, %) 20.0% % % 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% First Time Fund Follow-On All Funds Active Liquidated Nb of Funds 0.0% -5.0% '92-96 '97-00 '01-04 '05-08 '09-12 '13-16 All Funds Active Liquidated Nb of Funds All figures as of Dec IRRs are since inception. 10

11 Underlying Investment Activity 11

12 EUR Millions Number of Investments EUR Millions Number of Exits Underlying Activity Profile Investment Activity of EBRD Supported Funds Exit Activity of EBRD Supported Funds* 2, , , , , , , , , , , , EBRD Share Investment Volume Number of Investments EBRD Share Exit Volume Number of Exits All figures as of Dec *Exit volume includes partial realisations; number of exits does not. 12

13 Investment Trends - Geography Number of Investments by EBRD Supported Funds 100% 90% 80% 70% 60% 50% 40% 30% Other CEE Baltics CIS & Caucasus SEMED Poland Russia SEE Turkey 20% 10% 0% All figures as of Dec

14 Investment Trends - Sector Number of Investments Made by EBRD Supported Funds 100% 90% 80% 70% 60% 50% 40% 30% Primary & Energy Manufacturing Construction Agriculture & Forestry Pharma & Medical Consumer Wholesale & Retail Services ICT 20% 10% 0% All figures as of Dec

15 Underlying Investee Exposure Snapshot Snapshot of Underlying Investee FV Exposure - Country Snapshot of Underlying Investee FV Exposure - Sector Tunisia 2% Construction 5% Agriculture & Forestry 3% Manufacturing 2% Czech Rep. 2% Estonia 2% Morocco 2% Others 15% Russia 21% Primary & Energy 5% Consumer 6% Services 31% Ukraine 3% Kazakhstan 5% Turkey 19% Wholesale & Retail 13% Romania 10% Poland 19% Pharma & Medical 16% ICT 19% All figures as of Dec January

16 LP profiles 16

17 LP Profiles Investor Geography LP origin in EBRD supported funds by signing year and pooled capital committed 100% 90% 80% 70% 60% 50% 40% Middle East Asia Rest of the World North America Europe 30% 20% 10% 0% NB: EBRD portfolio; All figures are as of Dec Note that proportions of recent vintages may change as a result of funds reaching subsequent closes 17

18 LP Profiles Investor Type LP type in EBRD supported funds by signing year & pooled capital committed 100% 90% 80% 70% 60% 50% 40% 30% 20% SWF Fund Manager Pension Funds Banks Private Individuals / Trusts EBRD Insurance Other Fund of Funds IFIs / Government Agencies 10% 0% NB: EBRD portfolio; All figures are as of Dec. 17. Note that proportions of recent vintages may change as a result of funds reaching subsequent closes 18

19 EBRD Database Best available sample of PE performance in Central and South Eastern Europe (CSEE), Russia and CIS Tracks all gross investments made by a basket of EBRD invested funds as well as net returns to EBRD ( tracked portfolio ) Obligatory reporting by fund managers, analysed by EBRD Reflects comprehensive performance No survivor bias resulting from only best fund managers reporting 19

20 Copyright 2017 EBRD. All rights reserved This material is for the recipient s private information. No part of this document may be reproduced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the Bank. Such written permission must also be obtained before any part of this publication is stored in a retrieval system of any nature. While the information contained herein was compiled by the EBRD, we do not guarantee its accuracy or completeness. We accept no liability in relation to the use of this information. Copyright 2017 European Bank for Reconstruction and Development. All rights reserved. 20