EVCA Private Equity Activity Survey 2007 Europe

Transcription

1 EVCA Private Equity Activity Survey 2007 Europe 31

2 Europe 2006 Highlights: Demonstrating confidence in the European private equity sector with a record fundraising level of billion in 2006, a significant increase over the 71.8 billion raised in Investments also reached an all-time record level of 71.2 billion against 47.1 billion in the prior year. Funds raised in 2006 soared to billion, a significant increase by any standards demonstrating the continued confidence in Europe as a location for private equity activity. The significant increase in the size of funds being raised has obviously had a major impact on the numbers. The increase in size of investment transactions has in turn resulted in record investing activities. Investments reached the record level of 71.2 billion in 2006, a 51.2% increase over the 47.1 billion invested in The following are the survey highlights, together with a summary of the private equity activity in Europe, including comments on individual countries. Funds raised reached billion in 2006, a 56.4% increase over the previous year. UK contributed a massive 66.8% of these funds ( 75.0 billion), marginally increasing in terms of percentage over the previous year. France was second with 9.5% followed by Sweden at 8.4%. Sweden has demonstrated significant fundraising for buyout activity at 9.4 billion, reflecting the strength of domestic promoters and investment opportunities on the horizon. As in the previous year, pension funds were the largest contributor to the funds raised at 27.1%. Fund of funds showed an increase in allocation to the industry, now representing 18.2% of the funds raised. At 75.1% of funds raised, buyouts continued to be the dominant strategy. Investments of 71.2 billion clearly demonstrate that record funds raised in previous years are being applied, particularly in the UK which saw an increase of 71.6% to 40.9 billion over the previous year. France, Sweden and Germany continued to demonstrate strong growth in investment as well. Buyouts represented 70.7% of the total amount invested at 50.3 billion, up from 32.1 billion in An interesting development however is attributable to mega buyouts, which consisted of 19.5 billion in 2006 against 6.2 billion in the previous year. Mid-market buyouts remained strong with 18.6 billion invested in Investment in high-tech and medical companies continued to be strong. 32 EVCA YEARBOOK 2007

3 There has been a significant shift in investing in smaller companies with less than 100 employees: 19.9 billion was invested in such companies in 2006 against 7.5 billion in the previous year. Companies employing more than 1,000 people attracted the highest investment at 32.8 billion. Divestments continued to be strong at 33.1 billion, exceeding the previous record of 29.8 billion in Interestingly, the divested amount achieved through public offerings doubled to 5.3 billion. The largest element of divestment was 7.5 billion, achieved through trade sales. Divestment by repayment of preference shares/loans reached 5.7 billion and sales to other private equity houses amounted to 5.5 billion. Write-offs decreased, at 1.3 billion against the previous year write-offs of 1.4 billion. The European investment portfolio at cost stood at billion. Sources of capital - Fundraising leaped to a record billion in 2006 Funds raised in 2006 soared to billion, a 56.4% increase over the previous year. The largest amount of funds was again raised in the UK with some 75.0 billion, a massive increase over the previous year. This is supported by market observations on the number of mega buyout funds raised in the UK during the year. That said, other locations such as France, Sweden and Germany also continued to show strong trends in fundraising. Sweden had a 389.8% increase in funds raised, rising from 1.9 billion to 9.4 billion. Market indications are that a number of funds restricted their fund sizes and had to refuse requests for allocations. The feeling is that the demand is still strong from investors. Pension funds were the largest source of capital and there was a dramatic increase in capital coming from fund of funds Pension funds continued to be the largest single source of capital at 29.2 billion, or 27.1% of the total funds raised, an increase from 16.8 billion in Banks contributed 15.5 billion, or 14.4% of the total funds raised, up from 11.9 billion in Fund of funds contributed 18.2% at 19.6 billion, an increase over the 8.9 billion raised in Funds raised from insurance companies at 10.9 billion were the fourth largest source at 10.1% of the total funds raised, up from 7.5 billion in Private individuals raised 9.6 billion, representing 8.9% of the funds raised, more than double the 4.1 billion amount in Government agencies were the next largest category at 8.7% of funds raised with 9.4 billion. EVCA YEARBOOK

4 More than half of the funds raised came from European sources More than half (60.8%) of the funds raised in 2006 came from European sources, at 68.3 billion, compared with 47.1 billion in billion or 39.2% of the total was raised from international sources in Buyouts continued to be the dominant strategy in terms of expected allocation of funds raised Private equity organisations were asked what percentage of funds raised they expect to invest in certain stages of investment. The proportion of funds raised for buyouts increased from 57.7 billion in 2005 (an 80.4% share) to 84.3 billion or 75.1% of the total funds raised in The proportion of funds raised for venture capital investment represented 15.5% of total funds raised at 17.5 billion, up from 10.9 billion in It is worth noting that, of the 17.5 billion allocated to venture capital, 8.7 billion comes from UK based promoters, followed by France with 2.2 billion and Italy with 1.5 billion. Investment patterns - another record year Total amounts invested by European private equity firms reached an all-time high of 71.2 billion in 2006, a 51.2% increase compared to the amount invested in 2005 of 47.1 billion. The number of investments decreased slightly from 10,912 in 2005 to 10,760 in The biggest absolute contribution came again from the UK, which at 40.9 billion represented 57.5% of the total investment amount in terms of country of management, up 71.6% from 23.8 billion in French investments represented 14.2% of the total at 10.1 billion, Swedish investments represented 6.0% at 4.3 billion, German investments represented 4.9% at 3.5 billion and Italian investments represented 4.8% at 3.4 billion, followed by Spain with investments of 2.8 billion (4.0%). Initial investments represented 84.4% of the total amount invested at 60.0 billion, compared to 79.1% in 2005, and 46.3% by number (49.7% in 2005). Correspondingly, follow-on investments represented 15.6% by amount and 53.7% by number of investments. 34 EVCA YEARBOOK 2007

5 Independents provided two-thirds of the total amount invested Independent organisations were once again the dominant force in the European private equity industry in 2006, accounting for 67.3% of the total amount invested at 47.9 billion, up from 33.9 billion or 72.0% in Independents made 6,909 investments in 2006, 64.2% of the total number of investments, close to the 2005 figures. Captive firms invested 12.5 billion, 17.6% of the total amount invested. Semi-captives invested 10.4 billion, 14.6% of the total. Buyouts again growing Buyouts again represented about 71% of the total amount invested in 2006 at 50.3 billion compared to 32.1 billion in the prior year. It is interesting to look at the spread of large and mega buyouts across Europe, which on a combined basis amounted to 27.0 billion. The UK accounted for 18.1 billion, followed by France with 3.4 billion and Sweden with 2.0 billion. Like in 2005, the largest category of investments by number in 2006 was the expansion stage at 43.1% (41.8% in 2005). Start-up investments increased from 2.3 billion in 2005 (a 5% share) to 5.7 billion in 2006 (an 8% share). Start-ups represented 25.8% by number (29.1% in 2005) with 2,773 investments in Seed investments remained stable in 2006 representing 0.3% by amount at million compared to 0.2% by amount at 96.5 million in Seed represented 4.4% by number of investments in 2006 at 477 investments. The majority of investments did not involve syndication Once again in 2006, 69.9% of the investments by number, 52.2 billion by amount, did not involve any syndication. Investments with national syndication increased to 22.8% by number of investments in 2006 from 19.1% in Transnational syndication increased to 7.3% by number of investments from 5.9% in EVCA YEARBOOK

6 Most investments remained within Europe Overall, 95.2% of the total amount invested ( 67.7 billion) went to companies that were based in Europe (96.4% in 2005). High-tech showed increase in value invested The top three industry sectors invested in were consumer related with 11.0 billion (15.4%), followed by communications with 9.8 billion (13.8%), and industrial products and services with 7.1 billion (10.0%). The amount invested in companies confirmed as operating in the high-tech industry, was 13.1 billion in 2006 compared to 8.1 billion in 2005 representing 18.5% of the total amount invested. The number of investments made in high-tech companies was slightly lower than in 2005, 4,745 investments in 2006 compared to 4,883 investments in 2005, representing 44.1% of the total investments by number. Almost three quarters of the companies invested in had less than 100 employees Again in 2006, 70.6% of the investments by number were made in companies employing less than 100 people. However, 49.3% of the total amount invested was targeted to companies with more than 1,000 employees, compared to 60.7% in Within this group, 22.0% was targeted at companies with more than 5,000 employees (26.7% in 2005) and 27.3% at companies with between 1,000 and 4,999 employees (34.1% in 2005). This reflects the increasing dominance of investments in buyouts of larger companies. 36 EVCA YEARBOOK 2007

7 Divestment at cost increased to a considerable 33.1 billion The amount of divestments at cost made in 2006 amounted to 33.1 billion compared to the 2005 total of 29.8 billion. Divestment through trade sale was the largest exit route by amount (22.7%) in 2006 at 7.5 billion, up from 6.7 billion in 2005, with 1,114 divestments compared to 1,317 in Divestment by repayment of preference shares/loans (the second largest category by amount, representing 17.1% of all divestments by amount) decreased to 5.7 billion from 7.0 billion in Divestment by public offering increased to 5.3 billion from 2.7 billion in Overall, divestments covered 4,448 companies in 2006 compared to 4,830 companies divested in Investment portfolio at billion The European portfolio at cost was estimated to stand at billion, net of divestment, on 31 December 2006, up from billion in EVCA YEARBOOK

8 Funds raised, investments and divestments in year Funds Raised Investments Divestments Billion 38 EVCA YEARBOOK 2007

9 Funds raised 120, ,000 80,000 60,000 40,000 20,000 20, , , , , , ,823 27,020 27, , Million EVCA YEARBOOK

10 Private equity raised by type of investor in 2006 Capital Markets 1.2% Not Available 4.1% Corporate Investors 3.7% Academic Institutions 3.6% Private Individuals 8.9% Fund of Funds 18.2% Government Agencies 8.7% Insurance Companies 10.1% Banks 14.4% Pension Funds 27.1% 40 EVCA YEARBOOK 2007

11 Private equity raised by type of investor in Capital Markets 1.1% Not Available 7.1% Corporate Investors 4.9% Academic Institutions 2.7% Private Individuals 7.1% Fund of Funds 15.6% Government Agencies 8.9% Insurance Companies 10.8% Banks 17.9% Pension Funds 23.9% EVCA YEARBOOK

12 Geographical origin and country of management of funds raised in ,993 80,000 70,000 60,000 50,000 40,000 23,917 30,000 20,000 10,617 8,820 9,397 5,700 2,884 2,629 2,819 4,264 2,609 5,512 Million 10,000 0 United Kingdom France Sweden Spain Germany The Netherlands Funds Raised by Country of Management Origin of Funds Raised 42 EVCA YEARBOOK 2007

13 Annual European private equity raised by type of investor 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Corporate Investors Private Individuals Government Agencies Banks Pension Funds Insurance Companies Fund of Funds Academic Institutions Capital Markets Not Available EVCA YEARBOOK

14 Private equity raised by type of investor in % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Europe United Kingdom France Sweden Spain Germany The Netherlands Corporate Investors Private Individuals Government Agencies Banks Pension Funds Insurance Companies Fund of Funds Academic Institutions Capital Markets Not Available 44 EVCA YEARBOOK 2007

15 Expected allocation of funds raised in 2006 Non High-Tech Early-Stage 2.7% High-Tech Expansion/Development 1.8% High-Tech Early-Stage 2.6% Not Available 9.4% Buyout 75.1% Non High-Tech Expansion/ Development 8.4% EVCA YEARBOOK

16 Annual European private equity investment 80,000 70,000 60,000 50,000 40,000 34,986 30,000 27,648 25,116 24,331 20,000 14,461 10,000 9, , ,057 36, , Million 46 EVCA YEARBOOK 2007

17 Geographical destination and country of management of investments in ,000 40,897 40,000 35,000 30,000 23,478 25,000 20,000 10,100 10,798 4,259 4,428 3,518 7,227 3,415 4,916 2,815 3,581 Million 15,000 10,000 5,000 0 United Kingdom France Sweden Germany Italy Spain Management of Investments Destination of Investments EVCA YEARBOOK

18 Allocation of invested amount per country in 2006 Spain 4.0% The Netherlands 3.4% Rest of Europe 5.3% Italy 4.8% Germany 4.9% Sweden 6.0% France 14.2% United Kingdom 57.5% 48 EVCA YEARBOOK 2007

19 Stage distribution by percentage of amount invested in 2006 Seed 0.3% Start-up 8.0% Expansion 16.0% Buyout 70.7% Replacement Capital 5.0% EVCA YEARBOOK

20 Private equity investment as % of GDP in 2006 by country of destination* Sweden 1.437% United Kingdom 1.258% The Netherlands 1.048% France 0.607% Hungary 0.596% Europe 0.569% Czech Republic 0.453% Belgium 0.445% Ireland 0.394% Spain 0.367% Denmark 0.335% Italy 0.333% Germany 0.313% Switzerland 0.282% Norway 0.258% Finland 0.233% Poland 0.205% Portugal 0.115% Romania 0.112% Austria 0.103% Greece 0.033% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% * These percentages are different than those in the graph on page 57 since the numerator here includes investments by country of destination (location of the portfolio companies) as opposed to investments by country of management (location of the private equity firm) there. The differences in the two approaches of measuring investments are reflected in the table on page EVCA YEARBOOK 2007

21 Annual stage distribution by percentage of amount invested 100% 90% 80% 70% 60% 50% Seed Start-up Expansion Replacement Capital Buyout 40% 30% 20% 10% 0% EVCA YEARBOOK

22 Stage distribution by percentage of number of investments in 2006 Buyout 23.1% Seed 4.4% Start-up 25.8% Replacement Capital 3.6% Expansion 43.1% 52 EVCA YEARBOOK 2007

23 Stage distribution of investments by percentage of amount invested in % 90% 80% 70% 60% 50% Seed Start-up Expansion Replacement Capital Buyout 40% 30% 20% 10% 0% Europe United Kingdom France Sweden Germany Italy Spain EVCA YEARBOOK

24 Syndication of investments in 2006 by percentage of amount invested National Syndication 13.0% No Syndication 73.4% Transnational Syndication 13.6% 54 EVCA YEARBOOK 2007

25 Industrial sectors by percentage of total amount invested in 2006 Communications Computer Related Other Electronics Related Biotechnology Medical/Health Related Energy Consumer Related Industrial Products and Services Chemicals and Materials Industrial Automation Other Manufacturing Transportation Financial Services Other Services Agriculture Construction Other 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% EVCA YEARBOOK

26 Percentage of investments by number of employees in , % % % 1,000-4, % % % 56 EVCA YEARBOOK 2007

27 Private equity investment as % of GDP in 2006 by country of management* 2.5% 2.0% United Kingdom Sweden 1.382% Europe 0.598% France 0.567% The Netherlands 0.453% Belgium 0.299% Spain 0.288% Switzerland 0.276% Italy 0.231% Norway 0.171% Denmark 0.169% Finland 0.158% Germany 0.152% Poland 0.114% Portugal 0.111% Romania 0.101% Austria 0.062% Ireland 0.061% Hungary 0.043% Czech Republic 0.011% Greece 0.006% 2.192% 1.5% 1.0% 0.5% 0.0% * These percentages are different than those in the graph on page 50 since the numerator here includes investments by country of management (location of the private equity firm) as opposed to investments by country of destination (location of the portfolio companies) there. The differences in the two approaches of measuring investments are reflected in the table on page 68. EVCA YEARBOOK

28 Annual European private equity divestment 35,000 30,000 25,000 20,000 15,000 10,000 5, Divestment by Trade Sale Divestment by Public Offering Divestment by Write-Off Repayment of Preference Shares/Loans Sale to Another Venture Capitalist Sale to Financial Institution Sale to Management (Buy-back) Divestment by Other Means Million 58 EVCA YEARBOOK 2007

29 Private equity divestment by country in ,000 19,791 18,000 16,000 14,000 12,000 10,000 8,000 Million 6,000 4,000 3,764 2,000 1,975 1,763 1,506 1,345 0 United Kingdom France Germany Italy The Netherlands Spain EVCA YEARBOOK

30 Funds raised 2005/ million million Change % United Kingdom 45,644 74, France 11,451 10, Sweden 1,919 9, Spain 1,020 2, Germany 2,875 2, Netherlands 2,444 2, Italy 1,345 2, Switzerland 1,495 1, Norway 681 1, Poland ,486.6 Belgium Denmark 1, Finland Romania Austria Greece Portugal Hungary Ireland Czech Republic European Total 71, , EVCA YEARBOOK 2007

31 Funds raised Funds Raised by Country Funds Raised by Country of Origin 2006 of Management 2006 million % million % United Kingdom 23, , France 8, , Sweden 5, , Spain 2, , Germany 4, , Netherlands 5, , Italy 2, , Switzerland 1, , Norway 1, , Poland Belgium 2, Denmark 1, Finland Romania Austria Greece Portugal Hungary Ireland Czech Republic Unknown European 6, European Total 68, , Asia 3, Canada Israel USA 32, Other Rest of the World 7, Total Rest of the World 44, Total 112, EVCA YEARBOOK

32 Funds raised Amount (in x 1,000) Amount % Amount % Private Equity Raised by Source Independent Funds Raised in Year 56,896, ,295, Amount Raised by Captives 10,859, ,563, Subtotal New Funds Raised 67,755, ,858, Realised Capital Gains 4,067, ,479, Total Funds Raised 71,823, ,337, Private Equity Raised by Type of Investor Corporate Investors 3,443, ,007, Private Individuals 4,055, ,567, Government Agencies 6,692, ,429, Banks 11,934, ,532, Pension Funds 16,826, ,232, Insurance Companies 7,534, ,937, Fund of Funds 8,854, ,583, Academic Institutions 1,720, ,853, Capital Markets 842, ,346, Not Available 5,851, ,367, Subtotal New Funds Raised 67,755, ,858, Realised Capital Gains 4,067,477-4,479,133 - Total Funds Raised 71,823, ,337,269 - Geographical Breakdown of Private Equity Raised Within Europe 47,072, ,271, Outside Europe 24,751, ,066, Total Funds Raised 71,823, ,337, Expected Allocation of Funds Raised High-Tech Early-Stage 3,542, ,926, Non High-Tech Early-Stage 849, ,017, High-Tech Expansion/Development 1,538, ,075, Non High-Tech Expansion/Development 4,964, ,445, Venture Capital 10,894, ,465, Buyout 57,743, ,345, Not Available 3,185, ,526, Total Funds Raised * 71,823, ,337, * Romania has evolved into a mainstream country and is part of the European totals. Due to the low number of respondents Slovakia has been turned into a pilot country and is not part of the European totals anymore. Both 2005 and 2006 European tables have been restated to include these changes and reflect identical country coverage. 62 EVCA YEARBOOK 2007

33 Funds raised: 5-year trend Amount (in x 1,000) YEAR TOTAL Amount % Amount % Amount % Amount % Amount % Amount % Private Equity Raised by Source Independent Funds Raised in Year 20,259, ,746, ,607, ,896, ,295, ,805, Amount Raised by Captives 5,776, ,564, ,878, ,859, ,563, ,641, Subtotal New Funds Raised 26,035, ,310, ,485, ,755, ,858, ,446, Realised Capital Gains 1,496, ,709, ,965, ,067, ,479, ,717, Total Funds Raised 27,532, ,019, ,451, ,823, ,337, ,164, Private Equity Raised by Type of Investor Corporate Investors 1,896, ,204, ,645, ,443, ,007, ,198, Private Individuals 1,571, , ,778, ,055, ,567, ,777, Government Agencies 2,893, ,727, ,442, ,692, ,429, ,185, Banks 6,844, ,435, ,090, ,934, ,532, ,838, Pension Funds 4,252, ,922, ,534, ,826, ,232, ,767, Insurance Companies 3,588, ,214, ,812, ,534, ,937, ,086, Fund of Funds 3,412, ,153, ,163, ,854, ,583, ,168, Academic Institutions 428, , , ,720, ,853, ,732, Capital Markets 38, , , , ,346, ,818, Not Available 1,109, ,378, ,165, ,851, ,367, ,873, Subtotal New Funds Raised 26,035, ,310, ,485, ,755, ,858, ,446, Realised Capital Gains 1,496,618-1,709,059-3,965,398-4,067,477-4,479,133-15,717,685 - Total Funds Raised 27,532,526-27,019,756-27,451,215-71,823, ,337, ,164,188 - Geographical Breakdown of Private Equity Raised Within Europe 19,588, ,375, ,874, ,072, ,271, ,182, Outside Europe 7,943, ,644, ,576, ,751, ,066, ,981, Total Funds Raised 27,532, ,019, ,451, ,823, ,337, ,164, EVCA YEARBOOK

34 Funds raised by country 2006 Amount (in x 1,000) Europe Austria Belgium Czech Republic Denmark Finland France Amount % Amount Amount Amount Amount Amount Amount Private Equity Raised by Source Independent Funds Raised in Year 86,295, , , , ,548 8,386,069 Amount Raised by Captives 21,563, , ,864 1, ,630 29,086 1,626,762 Subtotal New Funds Raised 107,858, , ,267 1, , ,634 10,012,831 Realised Capital Gains 4,479, , ,419 2,000 71,510 1, ,494 Total Funds Raised 112,337, , ,686 3, , ,799 10,617,325 Private Equity Raised by Type of Investor Corporate Investors 4,007, ,644 19, ,108 5, ,285 Private Individuals 9,567, ,280 4, ,000 1,852,501 Government Agencies 9,429, ,176 73, ,358 66, ,362 Banks 15,532, , , , ,885,939 Pension Funds 29,232, , , , ,994 Insurance Companies 10,937, , ,498 1,884,341 Fund of Funds 19,583, ,357 31,323 1, ,021 1,793,961 Academic Institutions 3,853, Capital Markets 1,346, , ,006 Not Available 4,367, , ,783 63, ,442 Subtotal New Funds Raised 107,858, , ,267 1, , ,634 10,012,831 Realised Capital Gains 4,479,133-55, ,419 2,000 71,510 1, ,494 Total Funds Raised 112,337, , ,686 3, , ,799 10,617,325 Geographical Breakdown of Private Equity Raised Within Europe 68,271, , ,686 2, , ,561 8,998,930 Outside Europe 44,066, ,238 1,618,395 Total Funds Raised 112,337, , ,686 3, , ,799 10,617,325 Expected Allocation of Funds Raised High-Tech Early-Stage 2,926, ,378 29, ,306 50, ,057 Non High-Tech Early-Stage 3,017, , , ,993 High-Tech Expansion/Development 2,075, ,675 9, , , ,420 Non High-Tech Expansion/Development 9,445, , ,278 1,679 65,945 70,626 1,330,094 Venture Capital 17,465, , ,574 1, , ,717 2,179,564 Buyout 84,345, , ,112 1, ,914 43,082 6,087,511 Other 10,526, ,350,250 Total Funds Raised 112,337, , ,686 3, , ,799 10,617, EVCA YEARBOOK 2007

35 Amount (in x 1,000) Germany Greece Hungary Ireland Italy Netherlands Norway Poland Amount Amount Amount Amount Amount Amount Amount Amount Private Equity Raised by Source Independent Funds Raised in Year 1,854, ,078 2,000 9,600 1,454,058 1,578,067 1,459, ,723 Amount Raised by Captives 725, ,961 6, , ,526 4, Subtotal New Funds Raised 2,580, ,078 25,961 15,641 2,189,779 2,490,593 1,464, ,823 Realised Capital Gains 238, , ,236 6,930 5,109 Total Funds Raised 2,819, ,187 26,832 15,641 2,274,901 2,608,829 1,471, ,932 Private Equity Raised by Type of Investor Corporate Investors 25, , ,230 36,166 Private Individuals 505, , , , ,162 Government Agencies 295, ,107 3,313 23, ,675 47, Banks 379, ,854 6,324 1,054, , ,966 33,893 Pension Funds 149, , ,829 69, ,696 Insurance Companies 352, , , ,724 40,711 Fund of Funds 539, , , , , ,005 Academic Institutions 50, , ,845 18,600 Capital Markets 221, ,000 26,369 19,378 0 Not Available 62, , ,004 70,538 10, ,918 3,487 Subtotal New Funds Raised 2,580, ,078 25,961 15,641 2,189,779 2,490,593 1,464, ,823 Realised Capital Gains 238, , ,236 6,930 5,109 Total Funds Raised 2,819, ,187 26,832 15,641 2,274,901 2,608,829 1,471, ,932 Geographical Breakdown of Private Equity Raised Within Europe 2,394, ,187 26,832 15,641 2,235,495 2,502,631 1,384, ,769 Outside Europe 424, , ,198 87, ,163 Total Funds Raised 2,819, ,187 26,832 15,641 2,274,901 2,608,829 1,471, ,932 Expected Allocation of Funds Raised High-Tech Early-Stage 222, ,212 87,071 11, ,415 0 Non High-Tech Early-Stage 30, ,476 27,952 91, ,281 43,460 High-Tech Expansion/Development 188, , , ,071 0 Non High-Tech Expansion/Development 597, , ,340, , ,576 89,947 Venture Capital 1,038, ,832 13,574 1,500, , , ,407 Buyout 1,481, , , ,811 2,101, , ,525 Other 300,310 17, , Total Funds Raised 2,819, ,187 26,832 15,641 2,274,901 2,608,829 1,471, ,932 EVCA YEARBOOK

36 Funds raised by country 2006 Amount (in x 1,000) Portugal Romania Spain Sweden Switzerland United Kingdom Amount Amount Amount Amount Amount Amount Private Equity Raised by Source Independent Funds Raised in Year 8, ,500 2,447,422 8,203,050 1,588,244 56,830,755 Amount Raised by Captives 73,484 31, , ,060 8,850 16,298,998 Subtotal New Funds Raised 82, ,734 2,643,448 8,448,110 1,597,094 73,129,753 Realised Capital Gains 7,346 83, , ,152 39,187 1,862,898 Total Funds Raised 89, ,131 2,883,779 9,397,262 1,636,281 74,992,651 Private Equity Raised by Type of Investor Corporate Investors ,967 16,468 28,511 3,149,806 Private Individuals 0 6, , ,521 46,267 4,925,366 Government Agencies 21,875 68, ,940 47, ,572 7,378,642 Banks 60,506 38, , , ,046 8,592,762 Pension Funds 0 6, ,298 2,004, ,372 24,402,102 Insurance Companies 0 3,026 41,318 23, ,792 7,567,686 Fund of Funds 0 28, ,907 1,122, ,977 13,283,906 Academic Institutions 0 0 3,515 6, ,737,149 Capital Markets , , ,334 Not Available 0 48,420 10,504 3,147, ,557 0 Subtotal New Funds Raised 82, ,734 2,643,448 8,448,110 1,597,094 73,129,753 Realised Capital Gains 7,346 83, , ,152 39,187 1,862,898 Total Funds Raised 89, ,131 2,883,779 9,397,262 1,636,281 74,992,651 Geographical Breakdown of Private Equity Raised Within Europe 89, ,849 2,582,570 5,961,347 1,216,883 37,630,546 Outside Europe 0 16, ,209 3,435, ,398 37,362,105 Total Funds Raised 89, ,131 2,883,779 9,397,262 1,636,281 74,992,651 Expected Allocation of Funds Raised High-Tech Early-Stage 2, ,937 92, ,669,272 Non High-Tech Early-Stage 15,151 11, , ,284,787 High-Tech Expansion/Development 2, ,638 50, , ,031 Non High-Tech Expansion/Development 42, , ,948 26,353 74,155 4,292,951 Venture Capital 62, , , , ,523 8,724,041 Buyout 26,765 20,579 1,890,663 9,227,641 1,404,758 58,500,568 Other 0 0 8, ,768,042 Total Funds Raised 89, ,131 2,883,779 9,397,262 1,636,281 74,992, EVCA YEARBOOK 2007

37 Investments 2005/2006: amount invested/number of investments million million Change % Number Number Change % United Kingdom 23,832 40, ,193 3, France 7,294 10, ,046 2, Sweden 3,001 4, Germany 2,695 3, ,310 1, Italy 2,186 3, Spain 2,662 2, Netherlands 2,336 2, Belgium Switzerland Norway Denmark 1, Poland Finland Portugal Austria Ireland Romania Hungary Greece Czech Republic European Total 47,057 71, ,912 10, EVCA YEARBOOK

38 Investments 2006: amount invested Country of Management Country of Destination of Investment 2006 of Investment 2006 million % million % United Kingdom 40, , France 10, , Sweden 4, , Germany 3, , Italy 3, , Spain 2, , Netherlands 2, , Belgium , Switzerland Norway Denmark Poland Finland Portugal Austria Ireland Romania Hungary Greece Czech Republic Other Europe European Total 71, , Asia Canada Israel USA 2, Rest of the World Total Rest of the World 3, Total 71, EVCA YEARBOOK 2007

39 Investment during year by number of employees Amount (in x 1,000) Amount of % Number of % Number of % Average Size Amount of % Number of % Number of % Average Size Investment Investments Companies of Investment Investment Investments Companies of Investment ,502, , , ,135 19,856, , , , ,247, ,215 5,473, , ,571, ,492 5,151, , ,964, ,939 3,303, ,197 1,000-4,999 14,122, ,459 18,150, ,441 5, ,054, ,922 14,681, ,260 Subtotal 41,463, , , ,882 66,615, , , ,795 Unknown 5,593,409 2,418 1,681 4,548,643 2,214 1,657 Total 47,057,275 10,912 7,210 71,164,505 10,760 7,536 EVCA YEARBOOK

40 Investments 2005/2006 Amount (in x 1,000) Amount of % Number of % Number of % Amount of % Number of % Number of % Investments Investments Companies Investments Investments Companies Initial Investment 37,208, , , ,034, , , Follow-on Investment 9,848, , , ,130, , , Total Investment in Year 47,057, , , ,164, , , Distribution of Investments by Investor Type Independent 33,883, , , ,867, , , Captive 6,836, , , ,521, , , Semi-Captive 5,356, , ,426, , , Public Sector 980, , Total Investment 47,057, , , ,164, , , Stage Distribution of Investments in Year Seed 96, , Start-up 2,337, , , ,666, , , Expansion 10,250, , , ,389, , , Replacement Capital 2,275, ,573, Buyout 32,097, , , ,336, , , Small 4,081,191 2,034 1,151 4,785,382 1,993 1,289 Mid-market 13,926, ,584, Large 7,929, ,500, Mega 6,160, ,465, Total Investment 47,057, , , ,164, , , Syndication of Investments in Year No Syndication 36,549, , , ,227, , , National Syndication 5,905, , , ,240, , , Transnational Syndication 4,601, ,695, Total Investment 47,057, , , ,164, , , EVCA YEARBOOK 2007

41 Amount (in x 1,000) Amount of % Number of % Number of % Amount of % Number of % Number of % Investments Investments Companies Investments Investments Companies Geographical Distribution of Investments in Year Within Europe 45,351, , , ,742, , , Outside Europe 1,705, ,421, Total Investment 47,057, , , ,164, , , Sectoral Distribution of Investments in Year Communications 7,247, , ,848, Computer Related 2,445, , , ,397, , , Other Electronics Related 620, , Biotechnology 868, , , Medical/Health Related 3,498, , ,778, , Energy 961, ,655, Consumer Related 12,973, , ,958, , Industrial Products and Services 4,163, ,129, Chemicals and Materials 911, ,055, Industrial Automation 1,171, , Other Manufacturing 2,885, ,589, Transportation 1,014, ,047, Financial Services 1,628, ,376, Other Services 2,564, ,920, Agriculture 160, , Construction 1,460, ,554, Other 2,481, ,238, Total Investment * 47,057, , , ,164, , , Subtotal High-Tech 8,055, , , ,142, , , * Romania has evolved into a mainstream country and is part of the European totals. Due to the low number of respondents Slovakia has been turned into a pilot country and is not part of the European totals anymore. Both 2005 and 2006 European tables have been restated to include these changes and reflect identical country coverage. EVCA YEARBOOK

42 Investments: 5-year trend Amount (in x 1,000) YEAR TOTAL Amount % Amount % Amount % Amount % Amount % Amount % Stage Distribution of Investments in Year Seed 305, , , , , , Start-up 2,614, ,974, ,230, ,337, ,666, ,823, Expansion 6,870, ,240, ,893, ,250, ,389, ,645, Replacement Capital 941, ,292, , ,275, ,573, ,988, Buyout 16,916, ,438, ,743, ,097, ,336, ,531, Total Investment 27,648, ,095, ,919, ,057, ,164, ,885, Syndication of Investments in Year No Syndication 17,079, ,878, ,916, ,549, ,227, ,652, National Syndication 4,083, ,955, ,357, ,905, ,240, ,542, Transnational Syndication 6,486, ,261, ,645, ,601, ,695, ,690, Total Investment 27,648, ,095, ,919, ,057, ,164, ,885, Geographical Distribution of Investments in Year Within Europe 26,877, ,005, ,683, ,351, ,742, ,660, Outside Europe 771, ,090, ,236, ,705, ,421, ,225, Total Investment 27,648, ,095, ,919, ,057, ,164, ,885, EVCA YEARBOOK 2007

43 Amount (in x 1,000) YEAR TOTAL Amount % Amount % Amount % Amount % Amount % Amount % Sectoral Distribution of Investments in Year Communications 2,516, ,924, ,924, ,247, ,848, ,461, Computer Related 1,533, ,732, ,350, ,445, ,397, ,459, Other Electronics Related 673, , , , , ,202, Biotechnology 1,105, , , , , ,202, Medical/Health Related 1,946, ,755, ,801, ,498, ,778, ,778, Energy 263, , , , ,655, ,909, Consumer Related 5,993, ,649, ,546, ,973, ,958, ,120, Industrial Products and Services 4,712, ,989, ,949, ,163, ,129, ,945, Chemicals and Materials 859, , ,003, , ,055, ,493, Industrial Automation 202, , , ,171, , ,843, Other Manufacturing 1,819, ,238, ,623, ,885, ,589, ,156, Transportation 731, ,550, , ,014, ,047, ,237, Financial Services 1,074, , ,524, ,628, ,376, ,286, Other Services 2,333, ,845, ,070, ,564, ,920, ,735, Agriculture 239, , , , , , Construction 516, , , ,460, ,554, ,330, Other 1,127, ,964, ,233, ,481, ,238, ,045, Total Investment 27,648, ,095, ,919, ,057, ,164, ,885, Subtotal High-Tech (*) 3,465, ,950, ,398, ,055, ,142, ,012, (*) Please see Methodology and Definitions EVCA YEARBOOK

44 Investments by country 2006 Amount (in x 1,000) Europe Austria Belgium Czech Republic Denmark Finland France Amount % Amount Amount Amount Amount Amount Amount Initial Investment 60,034, , ,564 7, ,673 77,801 8,681,515 Follow-on Investment 11,130, , ,687 4,711 95, ,957 1,418,511 Total Investment in Year 71,164, , ,251 12, , ,758 10,100,026 Distribution of Investments by Investor Type Independent 47,867, , ,820 12, , ,489 4,807,979 Captive 12,521, , , ,408,578 Semi-Captive 10,426, , , ,093 4,431 3,869,881 Public Sector 349, , ,838 13,588 Total Investment 71,164, , ,251 12, , ,758 10,100,026 Stage Distribution of Investments in Year Seed 197, , ,121 0 Start-up 5,666, ,578 39, ,041 36, ,031 Expansion 11,389, , , , ,747 1,371,878 Replacement Capital 3,573, ,014 3, , ,475 Buyout 50,336, , ,928 11, ,688 78,607 8,074,642 Small 4,785,382 63, ,323 11,100 22,126 53,215 1,404,205 Mid-market 18,584, , ,562 25,392 3,307,823 Large 7,500, ,075,670 Mega 19,465, ,286,944 Total Investment 71,164, , ,251 12, , ,758 10,100,026 Syndication of Investments in Year No Syndication 52,227, , ,866 12, , ,082 3,045,945 National Syndication 9,240, ,425 5, ,136 12,360 5,335,826 Transnational Syndication 9,695, ,589 31, ,868 10,316 1,718,255 Total Investment 71,164, , ,251 12, , ,758 10,100, EVCA YEARBOOK 2007

45 Amount (in x 1,000) Europe Austria Belgium Czech Republic Denmark Finland France Amount % Amount Amount Amount Amount Amount Amount Geographical Distribution of Investments in Year Within Europe 67,742, , ,696 12, , ,606 9,609,530 Outside Europe 3,421, , ,520 10, ,496 Total Investment 71,164, , ,251 12, , ,758 10,100,026 Sectoral Distribution of Investments in Year Communications 9,848, ,867 38,171 8, ,693 11, ,540 Computer Related 5,397, ,197 52, ,363 38, ,661 Other Electronics Related 899, ,748 6, ,874 20, ,413 Biotechnology 860, , ,944 2, ,152 Medical/Health Related 6,778, ,018 26, ,085 24, ,053 Energy 1,655, ,804 73,090 Consumer Related 10,958, , , ,349 60,194 1,285,849 Industrial Products and Services 7,129, ,315 8, ,102 31,629 1,320,407 Chemicals and Materials 2,055, , , ,892 Industrial Automation 775, , ,849 Other Manufacturing 3,589, ,385 7, , ,384 Transportation 2,047, , ,058 42,640 Financial Services 2,376, ,148 Other Services 10,920, , , ,128 3,268,105 Agriculture 78, ,368 Construction 1,554, , , ,233 Other 4,238, ,062 15,990 3, , ,242 Total Investment 71,164, , ,251 12, , ,758 10,100,026 Subtotal High-Tech 13,142, , ,257 8, ,874 72,483 1,348,671 EVCA YEARBOOK

46 Investments by country 2006 Amount (in x 1,000) Germany Greece Hungary Ireland Italy Netherlands Norway Poland Amount Amount Amount Amount Amount Amount Amount Amount Initial Investment 3,196,030 15,075 23,999 60,108 1,503,462 1,858, ,965 82,237 Follow-on Investment 321, ,755 47,762 1,911, , , ,486 Total Investment in Year 3,517,920 15,075 35, ,870 3,415,157 2,392, , ,723 Distribution of Investments by Investor Type Independent 2,690,790 12,535 6,883 98, , , , ,214 Captive 658,380 2,540 3, ,413,725 1,142,957 78,357 0 Semi-Captive 124, ,207 9, , ,162 12,845 4,509 Public Sector 43, , , Total Investment 3,517,920 15,075 35, ,870 3,415,157 2,392, , ,723 Stage Distribution of Investments in Year Seed 31, ,966 3,879 15,298 9,700 1,249 Start-up 233,100 2,957 3,310 23,674 24,698 49,346 24,642 1,223 Expansion 675,550 12,000 31,554 69, , , ,433 15,182 Replacement Capital 97, ,234 57, ,151 Buyout 2,480, ,809 2,255,521 1,847, , ,918 Small 340, , , , ,557 14,419 Mid-market 279, ,338,774 1,077,051 48,849 96,799 Large 349, , ,700 Mega 1,510, , , Total Investment 3,517,920 15,075 35, ,870 3,415,157 2,392, , ,723 Syndication of Investments in Year No Syndication 1,688,240 15,075 35,754 95,247 2,239,205 1,843, , ,790 National Syndication 256, , , ,260 8,606 1,500 Transnational Syndication 1,573, , , ,865 24,650 2,433 Total Investment 3,517,920 15,075 35, ,870 3,415,157 2,392, , , EVCA YEARBOOK 2007

47 Amount (in x 1,000) Germany Greece Hungary Ireland Italy Netherlands Norway Poland Amount Amount Amount Amount Amount Amount Amount Amount Geographical Distribution of Investments in Year Within Europe 3,452,870 15,075 33,246 89,332 3,412,671 2,357, , ,723 Outside Europe 65, ,508 18,538 2,486 35,194 19,583 0 Total Investment 3,517,920 15,075 35, ,870 3,415,157 2,392, , ,723 Sectoral Distribution of Investments in Year Communications 108, ,614 7, , ,485 25, ,977 Computer Related 121,110 2, ,970 41,013 41,136 32,561 0 Other Electronics Related 117, ,606 16,411 4,726 6,094 0 Biotechnology 62, ,401 2,669 3,618 58,189 29,671 0 Medical/Health Related 138, ,609 7, ,349 58,245 32,453 3,046 Energy 19,560 8, ,631 3,849 42,163 0 Consumer Related 225, , , , ,748 9,219 Industrial Products and Services 587,800 4,414 6, , ,470 77,319 0 Chemicals and Materials 778, ,337 63,807 2,622 0 Industrial Automation 60, ,514 1, Other Manufacturing 199, , , , ,633 Transportation 9, ,145 85,257 27,319 7,460 Financial Services 61, , ,727 41,308 1,396 41,437 Other Services 838, , , ,757 1, Agriculture 2, ,964 0 Construction 97, ,473 64,510 30,432 5,001 Other 86, , ,876 18,022 34,664 1,847 Total Investment 3,517,920 15,075 35, ,870 3,415,157 2,392, , ,723 Subtotal High-Tech 469,380 2,132 6,605 66, , ,536 93, ,977 EVCA YEARBOOK

48 Investments by country 2006 Amount (in x 1,000) Portugal Romania Spain Sweden Switzerland United Kingdom Amount Amount Amount Amount Amount Amount Initial Investment 117,632 57,106 2,623,129 3,560, ,386 36,333,538 Follow-on Investment 55,233 39, , , ,237 4,563,889 Total Investment in Year 172,865 96,463 2,815,126 4,258, ,623 40,897,427 Distribution of Investments by Investor Type Independent 30,507 72,688 2,092,223 3,867, ,974 30,059,609 Captive 46,757 13, ,023 59, ,257,306 Semi-Captive 86,340 10, , ,456 6,649 4,580,512 Public Sector 9, ,086 51, Total Investment 172,865 96,463 2,815,126 4,258, ,623 40,897,427 Stage Distribution of Investments in Year Seed 4, ,258 14, ,855 Start-up 10,951 4, , ,399 71,821 4,171,538 Expansion 56,991 32, , , ,245 5,193,973 Replacement Capital 2,691 33, , ,016 2,036 2,494,743 Buyout 98,158 26,702 1,574,726 3,321, ,940 28,968,318 Small 68,266 26, , ,960 7,365 1,555,912 Mid-market 29, ,110,892 1,121, ,575 9,267,326 Large , , ,949,305 Mega ,590, ,195,775 Total Investment 172,865 96,463 2,815,126 4,258, ,623 40,897,427 Syndication of Investments in Year No Syndication 156,832 94,263 1,897,158 4,166, ,911 33,937,139 National Syndication 10, ,550 52,746 24,588 1,781,181 Transnational Syndication 5,700 2,200 82,418 39,853 67,124 5,179,107 Total Investment 172,865 96,463 2,815,126 4,258, ,623 40,897, EVCA YEARBOOK 2007