The Italian Private Capital Market

Transcription

1 The Italian Private Capital Market Trends and Perspectives 9 June 2017 Update on Key Statistics EY Enrico Silva EY Private Equity Leader Mediterranean area

2 In 2016 fund-raising is close to historical pre-crisis maximum. USD appreciation against Euro makes Europe more attractive for USD based funds Fund-raising in USD and EUR (bln $- ) m17 Aggregate Capital Raised (USD) Aggregate Capital Raised ( ) Notes: Fund types included: Balanced, Buyout, Co-investment, Co-Investment Multi-Manager, Direct Secondaries, Distressed Debt, Early Stage, Early Stage: Seed, Early Stage: Start-up, Expansion / Late Stage, Fund of Funds, Growth, Hybrid, Hybrid Fund Of Funds, Infrastructure, Infrastructure Fund of Funds, Infrastructure Secondaries, Mezzanine, Natural Resources, Real Estate, Real Estate Co-Investment, Real Estate Fund of Funds, Real Estate Secondaries, Secondaries, Special Situations, Timber, Turnaround, Venture (General), Venture Debt Page June

3 Buyout funds maintain the leadership in fund raising even if real estate, venture capital and infrastructure funds are increasing their relevance Fund-raising by type of fund (bln $) (21.9%) (38.9%) (19.3%) (41.5%) (20.5%) (36.9%) (20.8%) (33.0%) (16.7%) (35.2%) (17.9%) 78.7 (25.6%) (20.5%) 86.5 (23.1%) (18.9%) (24.0%) (19.3%) (35.5%) (19.6%) (31.5%) (21.0%) (26.5%) (18.4%) (32.6%) (11.6%) 84.7 (40.5%) m17 Others Fund of Funds Growth Distressed & Turnaround Infrastructure Venture & Early Stage Real Estate Buyout Notes: (1) Fund types included: Balanced, Buyout, Co-investment, Co-Investment Multi-Manager, Direct Secondaries, Distressed Debt, Early Stage, Early Stage: Seed, Early Stage: Start-up, Expansion / Late Stage, Fund of Funds, Growth, Hybrid, Hybrid Fund Of Funds, Infrastructure, Infrastructure Fund of Funds, Infrastructure Secondaries, Mezzanine, Natural Resources, Real Estate, Real Estate Co-Investment, Real Estate Fund of Funds, Real Estate Secondaries, Secondaries, Special Situations, Timber, Turnaround, Venture (General), Venture Debt (2) Others include: Natural Resources, Secondaries, Mezzanine, Balanced, Expansion/Late Stage, Co-Investment, Hybrid, Direct Secondaries, PIPE Page June

4 In the recent years several new international funds have included Italy in their investment strategy Fund-raising of funds with investment focus in Italy (bln $, CAGR%) % m17 Italy focus Notes: Fund types included: Balanced, Buyout, Co-investment, Co-Investment Multi-Manager, Direct Secondaries, Distressed Debt, Early Stage, Early Stage: Seed, Early Stage: Start-up, Expansion / Late Stage, Fund of Funds, Growth, Hybrid, Hybrid Fund Of Funds, Infrastructure, Infrastructure Fund of Funds, Infrastructure Secondaries, Mezzanine, Natural Resources, Real Estate, Real Estate Co-Investment, Real Estate Fund of Funds, Real Estate Secondaries, Secondaries, Special Situations, Timber, Turnaround, Venture (General), Venture Debt Page June

5 Following high level of fund-raising, global M&A activity peaked in but retreated in 2016, with investors struggling in finding opportunities Global M&A Trend Global Private Equity buyout Trend (bln $, CAGR%) (bln $, CAGR%) 4, % 3, % ,500 3,000 2,500 2,000 1,500 1, , , , , , , , m m17 1Q 2Q 3Q 4Q Source: Monthly M&A Insider MergerMarket Notes: Deal status: Announced and Completes includes add-on Page June

6 The difficulty in allocating funds raised and the fierce competition forced GPs to broaden their geographical investment criteria, including Italy Global Private Equity M&A Trend (bln $) Italy Private Equity Trend (bln $) m m17 Notes: Deal status: Announced and Completes Notes: Deal status: Announced and Completes includes add-on Page June

7 As a consequence of strong fund raising and investments difficulties, the dry powder of Funds increased Global dry powder (bln $) (bln $) Europe dry powder m m17 Page June

8 Italy 2016 PE investment value is aligned to last year and slightly below pre-crisis level Italy investment value (mln ) 4, , , , , , , , , , , % 24.1% 36.1% 60.9% 30.3% % 34.7% 30.0% 31.1% 52.8% 40.0% 23.8% Leisure Health care and social services Retail and wholesale trade Other professional and social services Utilities Pharmaceutical and biopharmaceutical industry Media and communication Consumer goods Transportation Cleantech Food & Beverage Industrial products Construction ICT Financial services Source: PEM Page June

9 DIP remains the most attractive sector for private equity investments followed by consumer goods and food & beverage Italy investment number (Unit) (24.7%) 29.0 (31.2%) 32.0 (26.0%) 33.0 (26.8%) 30.0 (25.9%) 30.0 (25.9%) 29.0 (22.7%) 49.0 (38.3%) (13.2%) (26.4%) (21.1%) 14.0 (19.7%) 15.0 (17.6%) 21.0 (24.7%) 15.0 (18.3%) 24.0 (29.3%) (19.1%) 22.0 (32.4%) 22.0 (24.4%) 39.0 (43.3%) 19.0 (17.4%) 29.0 (26.6%) 14.0 (14.0%) 27.0 (27.0%) Leisure Health care and social services Retail and wholesale trade Other professional and social services Utilities Pharmaceutical and biopharmaceutical industry Media and communication Consumer goods Transportation Cleantech Food & Beverage Industrial products Construction ICT Financial services Source: PEM Page June

10 # of transactions EV/ EBITDA Most of the sectors shows substantial increase in EV/Ebitda multiple value Multiple trend in Italy by sectors (EV/EBITDA) Source: PEM Page June

11 Data analytics for Private Equity PE Monitor EY services Social Media EY project outputs External data Company Financial Data EY Credential Stock mkt & commodity data Macroeconomics Page June

12 Data analytics for Private Equity how are we doing this? What are we doing? Internal data sources We have launched a pilot project with a leading Italian PE house and one of its portfolio companies We are connecting our data analytics technology to all of the company s systems housing key data (fin, HR, ops, etc.) in addition to public data (market, social media, etc.) in order to enable a single, real-time data analytics financial and operational dashboard for the entire business and its markets Financial HR Operational Single data analytics platform (Spotfire) Value for client Better day-by-day management of portfolio companies and more informed decision-making Quick delivery of Vendor Due Diligence reports prior to exit Social Media Sector M&A External data sources Page June