Performance of EBRD Private Equity Funds Portfolio to 31 st December 211
Portfolio Overview
EBRD in Private Equity EBRD s portfolio of funds: 2 years of investing in the asset class 137 funds 92 fund managers* EUR 3. billion in commitments (USD 3.7 billion) to funds with capital of EUR 15. billion (USD 19. billion) 1,199 underlying investments, up to 7% exited. Largest PE Fund investment program dedicated to the region Current portfolio of 85 active funds managed by 62** fund managers for EUR 2.3 billion in commitments (with funds capital of EUR 13. billion). * Excludes 14 managed donor funds, ** Excludes 6 managed donor funds Note: EBRD tracked portfolio only, to end 211, excludes real estate funds, excludes 3 funds signed but not yet disbursed Note: The number of underlying investments exclude regional investments, and opt-outs EBRD 213, all rights reserved 3
EUR Million Number of Funds EBRD Commitments by Vintage 4 13 14 35 11 12 11 11 12 3 9 1 25 2 15 6 7 6 5 5 6 8 5 8 6 1 4 4 4 4 4 4 5 2 2 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 Vintage Year CEE Russia/CIS SEE Number of Funds Note: Vintages prior to 211 refer to signing year whereas 211 vintage refers to year of first disbursement. Note: The 21 vintage shows one less fund than it did in the 21 presentation this relates to a backdated reallocation. Note: Volumes are based on EBRD commitments at latest fund closing. EBRD 213, all rights reserved 4
EUR Million % of Total Fund Capital Fund Raising vs. Investment 3, 74% 8% 2,5 59% 7% 6% 2, 5% 1,5 34% 35% 4% 1, 3% 23% 28% 24% 22% 27% 2% 29% 2% 26% 28% 3% 2% 5 14% 14% 14% 13% 11% 1% 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 Vintage Year % Fund Capital Gross Investment Cost EBRD Share of Fund Capital Note: Vintages prior to 211 refer signing date whereas post 211 vintages refer to date of first disbursement. By signing date the 211 total is approximately 3m EBRD 213, all rights reserved 5
Commitments (EUR Million) Commitments (EUR Million) Commitments (EUR Million) Gross Commitment by Fund Strategy EBRD Portfolio CSE Region 12, 1 6, 73 1 5, 1, 4, 112 3, 8 9 5 1 8, 1 2, 1, 6, Buyout Growth / Expansion Other Seed / Start-up 1 4, 9 12 7 1 Russia/CIS Region 2, Buyout Growth / Expansion Other Seed / Start-up Fund Size EBRD Commitment Number of Funds Other include: Distressed/Turnaround funds, funds of funds, mezzanine and infrastructure funds 1 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 1 39 Buyout Growth / Expansion 3 Other 2 Seed / Start-up 1 1 1 EBRD 213, all rights reserved 6
Commitments (EUR Millions) Commitments (EUR Million) Commitments (EUR Millions) EBRD Commitment by Fund Size EBRD Portfolio 4,5 4, 43 45 5 45 CSE Region 3,5 3, 2,5 26 32 35 3 25 3,5 3, 2,5 22 2, 17 1,5 1, 9 5 4-2 2-5 5-15 15-3 3-5 5+ Fund Size (EUR Million) Total Fund Capital EBRD Capital Number of Funds 4 35 3 25 2 15 1 5 2, 17 1,5 11 1, 6 5 3-2 2-5 5-15 15-3 3-5 5+ EUR Million Russia/CIS Region 1,6 17 1,4 13 1,2 1, 8 6 5 6 4 3 2 1-2 2-5 5-15 15-3 3-5 5+ EUR Million 2 15 1 5 18 16 14 12 1 8 6 4 2 EBRD 213, all rights reserved 7
Number of Transactions Number of Transactions Number of Transactions Fund Investment and Exit Activity by Year EBRD Portfolio 14 12 1 8 6 4 2 2 21 22 23 24 25 26 27 28 29 21 211 Investments Exits (excl. WOs) Write-Offs CSE Region 1 9 8 7 6 5 4 3 2 1 2 21 22 23 24 25 26 27 28 29 21 211 Russia/CIS Region 45 4 35 3 25 2 15 1 5 2 21 22 23 24 25 26 27 28 29 21 211 EBRD 213, all rights reserved 8
1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 Years Years Years Holding Period by Investment Vintage EBRD Portfolio CSE Region Russia/CIS Region 8 8 8 7 7 7 6 6 6 5 5 5 4 4 4 3 3 3 2 2 2 1 Average Holding Period: 5.3 yrs 1 Average Holding Period: 5.2 yrs 1 Average Holding Period: 5.6 yrs Note: EBRD tracked portfolio only as of end 211 Note: Vintages have been limited to 27 to provide meaningful data EBRD 213, all rights reserved 9
EBRD Returns EBRD 213, all rights reserved 1
EBRD Net Horizon Returns: All Funds Returns as at December 31 211 Three Years Five Years Ten Years Fifteen Years Since Inception** EBRD Private Equity Portfolio* ($) 7.22% 6.32% 2.92% 11.87% 11.77% Cambridge Global Emerging Markets PE & VC Index 18.5% 1.12% 11.23% 7.96% N/A Cambridge Emerging Asia PE & VC Index 21.29% 11.42% 11.38% 8.39% N/A MSCI Asia Index 19.87% 2.87% 12.49% 3.4% N/A EBRD Private Equity Portfolio* ( ) 1.21% 7.23% 14.4% 1.17% 1.5% EVCA, All Private Equity ( ) 7.5% 1.55% 5.62% N/A 9.23% Source: Cambridge Associates, EVCA/Thomson Reuters, Bloomberg and EBRD * EBRD tracked portfolio pooled end-to-end return, net of fees, expenses, donor grants and carried interest. Excludes property funds, and includes liquidated partnerships. ** Pooled end-to-end return, net of fees, expenses, and carried interest. The "Since Inception" figure represents the net pooled IRR since inception for funds formed between 198 and 211. Includes Russia. Inception is consistent with 31.12.1992 EBRD 213, all rights reserved 11
EBRD Net Horizon IRRs by Region Returns as at December 31 211 Three Years Five Years Ten Years Since Inception** USD EBRD Private Equity Portfolio - All 7.22% 6.32% 2.92% 11.77% CSE -3.74% 1.48% 15.14% 8.85% Russia/CIS 23.54% 11.7% 26.99% 14.98% CSE/Survivors* -1.1% 3.99% 16.75% 11.99% Russia/CIS Survivors* 24.34% 11.98% 26.89% 2.16% EUR EBRD Private Equity Portfolio - All 1.21% 7.23% 14.4% 1.5% CSE -1.11% 2.58% 9.69% 7.77% Russia/CIS 27.17% 12.35% 18.62% 12.5% CSE Survivors* 1.44% 4.67% 11.18% 1.69% Russia/CIS Survivors* 27.9% 12.69% 2.48% 17.59% *Note: See Definitions page **Inception differs over criteria and region EBRD 213, all rights reserved 12
Multiples Net Returns by Vintage 4.x 3.5x 3.x 2.5x 2.x 1.5x 1.x.5x.x 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 EUR TVPI EUR DPI Note: TVPI is defined as the ratio of Total Value (fair value plus distributions) to Paid-In Capital Note: DPI is defined as the ratio of Distributions to Paid-In Capital Note: Data to 21 EBRD 213, all rights reserved 13
EUR Million EUR Million Gross Snapshot 16, 21 16, 211 14, Fully Realised Partially Realised FR 1.72x 17.83% 14, Fully Realised Partially Realised All 1.7x 17.73% 12, Unrealised 12, Unrealised 7,15 1, 8, FR 2.17x 2.17% 6,542 1, 8, FR 2.5x 19.65% 6, 3,56 PR 3.7x 26.45% 1,459 6, 3,466 PR 3.2x 25.55% 2,61 4, 475 UR 1.2x 6.68% 4, 817 UR 1.16x 5.19% 2, 4,367 5,247 2, 4,531 5,255 Investment Cost EUR 7,899m Investment Value EUR 13,248m Investment Cost EUR 8,814m Investment Value EUR 14,97m Note: EBRD tracked portfolio only; Data as of end 211 EBRD 213, all rights reserved 14
EUR Million Evolution of Returns Carrying Value Gross IRR of Investees in Active Funds Portfolio 9, 14.% 8, 11.51% 12.47% 12.% 7, 1.% 6, 5, 7.67% 8.% 4, 5.95% 331 Investees 353 Investees 9 Funds 6.% 3, 2, 1, 39 Investees 81 Funds 312 Investees 84 Funds 88 Funds 4.% 2.% 28 29 21 211.% Note: Number of Investees reflect unrealised investments including partially realised; EBRD tracked portfolio only. EBRD 213, all rights reserved 15
Portfolio Breakdown EBRD 213, all rights reserved 16
Gross Investments by Country by Investment Cost Since Inception to End 211 Western CIS & Caucasus 4.5% Baltics 4.5% Others 7.% Bulgaria 5.1% Hungary 6.% Czech Republic 7.% Romania 8.5% Central Asia 3.4% Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and Herzegovina and Kosovo, Slovak Republic Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan Baltic countries include: Latvia, Lithuania and Estonia Note: EBRD tracked portfolio only as of end 211 Poland 21.3% Russian Federation 32.8% 211 Romania 2.5% 21 Croatia 2.1% Latvia 2.2% Turkey 5.2% Ukraine 9.2% Lithuania 1.7% Czech Republic 11.8% Czech Republic 3.9% Ukraine 11.2% Poland 8.6% Bulgaria 1.4% Hungary 12.6% Croatia 2.6% Slovenia.9% Estonia 1.3% Romania 11.5% Turkey 11.7% Azerbaijan.6% Russian Federation 24.6% Kazakhstan.5% Poland 24.5% Hungary.5% Russian Federation 48.8% EBRD 213, all rights reserved 17
Gross Investments by Country by Investment Value Since Inception to End 211 Others 4.7% Bulgaria 3.8% Hungary 4.7% Romania 8.4% Western CIS & Caucasus 3.5% Baltics 2.5% Czech Republic 8.5% Central Asia 5.9% Poland 19.6% Russian Federation 38.4% 211 21 Czech Republic 8.1% Western CIS & Caucasus 9.4% Hungary 1.2% Czech Republic 3.5% Baltics 3.9% Others 7.8% Romania 6.% Poland 6.9% Romania 2.3% Croatia 2.9% Estonia.9% Bulgaria 1.8% Russian Federation 33.8% Poland 22.1% Hungary.7% Central Asia.6% Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and Herzegovina and Kosovo Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan Baltic countries include: Latvia, Lithuania and Estonia Note: EBRD tracked portfolio only as of end 211 Ukraine 9.2% Turkey 1.9% Russian Federation 59.1% EBRD 213, all rights reserved 18
Gross Investments by Sector by Investment Cost Since Inception to End 211 Primary & Energy 6.3% Construction 6.% Pharma & Medical 8.1% Consumer 8.8% Manufacturing 5.6% Wholesale & Retail 9.2% Agriculture & Forestry 2.2% TIM 25.8% Services 28.2% 211 21 Primary & Energy 1.% Wholesale & Retail 1.3% Pharma & Medical 14.8% Primary & Energy 2.% Construction 2.1% Manufacturing 5.6% Construction 2.8% Manufacturing TIM.8% 6.5% TIM 12.5% Consumer 17.6% Wholesale & Retail 1.8% Services 37.2% Consumer 1.7% Services 44.6% Agriculture & Forestry 13.9% Pharma & Medical 15.8% Note: EBRD tracked portfolio only as of end 211 EBRD 213, all rights reserved 19
Gross Investments by Sector by Investment Value Since Inception to End 211 Manufacturing 5.1% Wholesale & Retail 5.7% Pharma & Medical 6.1% Primary & Energy 7.5% Consumer 7.8% Agriculture & Forestry Construction 1.5% 3.8% TIM 36.7% 211 21 Construction Primary & Energy 8.4% Wholesale & Retail 11.4% 2.9% Manufacturing 6.% Pharma & Medical 15.% Primary & Energy 1.9% Construction 2.9% TIM 7.3% Consumer 1.9% Manufacturing.9% Consumer 16.8% Services 37.2% Wholesale & Retail.6% Services 25.8% Pharma & Medical 12.1% TIM 12.8% Services 48.1% Note: EBRD tracked portfolio only as of end 211 Agriculture & Forestry 13.6% EBRD 213, all rights reserved 2
EUR Million Fund Strategy Evolution (by Investment Cost) 7 6 5 4 3 2 1 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 Expansion Other Buyout Seed Note: EBRD tracked portfolio only; Data as of end 211. Note: As measured by investment cost EBRD 213, all rights reserved 21
EUR Million Fund Strategy Evolution (by Exit Proceeds) 8 7 6 5 4 3 2 1 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 Expansion Other Buyout Seed Note: EBRD tracked portfolio only; Data as of end 211. Note: As measured by Exit Proceeds EBRD 213, all rights reserved 22
LP Data EBRD 213, all rights reserved 23
Investor by Type Trend 1% 9% 16% 18% 12% Fund of Funds 8% 9% 13% Other 7% 18% 6% 5% 41% 24% 55% IFIs & Government Agencies 4% 1% Corporate Investor 3% 7% 2% 15% 17% 2% Banks & Insurance 1% % 17% 13% 12% 2% 1992-2 21-28 29-211 Vintage Year Pension Fund EBRD 213, all rights reserved 24
IFI & GA Fundraising Contribution Evolution of IFI Contributions 7% 6% 5% 4% 3% 2% 1% % * 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 Vintage Year IFI & Ga per year 7 year rolling average Note: EBRD tracked portfolio, excludes donor funds * International Financial Organisation & Government Agency EBRD 213, all rights reserved 25
Commitment EUR Millions Investors by Origin by Vintage Year 3,5 3, 2,5 EBRD USA Other Europe 2, 1,5 1, 5 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 Vintage Year Note: EBRD tracked portfolio EBRD 213, all rights reserved 26
General Information EBRD 213, all rights reserved 27
.27%.27%.26%.25%.24%.22%.19%.19%.19%.15%.14%.11%.9%.6%.5%.3%.2%.1%.35%.33%.44%.48%.48%.59%.68%.88% 211 PE Investment as a % of GDP 1.%.9%.8%.7%.6%.5%.4%.3%.2%.1%.% *Baltic Countries include: Estonia, Latvia, Lithuania **Other CEE Countries include: Croatia, Slovak Republic, Slovenia Source: EVCA/PEREP Analytics, RVCA and EBRD Estimates EBRD 213, all rights reserved 28
EBRD Database Best available sample of PE performance in central and south eastern Europe (CSE), Russia and CIS Tracks all gross investments made by a basket of EBRD invested funds as well as net returns to EBRD ( tracked portfolio ) Measured in both EUR and USD Obligatory reporting by fund managers, analysed by EBRD reflects comprehensive performance No survivor bias resulting from only best fund managers reporting EBRD 213, all rights reserved 29
Definitions EBRD Sponsored Funds funds established at EBRD's initiative in countries where no private sector funding was available for private equity funds. These funds are supported with significant donor grants, and EBRD investment represents usually over 9% of fund capital. Institutional Quality Funds (IQs) identified based on criteria established by Cambridge Associates. These include the characteristics of the investors in the fund, fund size relative to peers, and availability of data. Survivor Funds funds managed by managers who have raised or are expected to raise follow-on funds. EBRD 213, all rights reserved 3
EBRD Region CSE Countries Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Estonia, FYR Macedonia, Hungary, Latvia, Lithuania, Kosovo, Poland, Montenegro, Romania, Slovak Republic, Serbia, Slovenia, Turkey. SEE Countries Albania, Bosnia & Herzegovina, Bulgaria, FYR Macedonia, Montenegro, Romania, Serbia CEE Countries Croatia, Hungary, Poland, Slovak Republic, Slovenia, Czech Republic* Baltic States Latvia, Lithuania, Estonia CIS Countries Armenia**, Azerbaijan, Belarus**, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Tajikistan**, Turkmenistan, Uzbekistan**, Ukraine and Mongolia. * Czech Republic ceased to be a country of operation in 27 but some funds remain exposed to investees in the country. **There are no fund sub-investments in these countries as of end 211. EBRD 213, all rights reserved 31
Copyright 213 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 213 European Bank for Reconstruction and Development. All rights reserved. EBRD 213, all rights reserved 32