The italian private equity, venture capital and private debt market I semester 2017
THE ITALIAN PRIVATE EQUITY AND VENTURE CAPITAL MARKET IN THE FIRST SEMESTER 2017
Agenda Fundraising Investments Divestments 3
Fundraising activity (Euro Mln) 3,365 1,671 1,195* 775 491 I sem. 2013 I sem. 2014 I sem. 2015 I sem. 2016 I sem. 2017 *It includes a significant amount raised by an istitutional player 4
Fundraising activity: annual vs I semester 2017 (Euro Mln) 4,027 2,833 1,477 1,714 1,195 2013 2014 2015 2016 I sem. 2017 5
Fundraising activity by source in the I semester 2017 (Euro Mln) 1,164 1,195 31 Captive fundraising Market fundraising Total fundraising 6
New funds raised on the market (Euro Mln) 1,328 1,164* 721 434 162 I sem. 2013 I sem. 2014 I sem. 2015 I sem. 2016 I sem. 2017 *It includes a significant amount raised by an istitutional player 7
Distribution by source of indipendent fundraising I sem. 2016 I sem. 2017 48% 37% 31% 12% 12% 8% 8% 8% 1% 7% 2% 4% 3% 9% 2% 2% 0% 4% Individual investors and family office Pension funds Banks Fund of funds Other assets manager Industrial investors Fundations Insurance comp. Other Note: data from I semester 2017 do not include the significant amount raised by the institutional investor 8
Geographical breakdown of funds raised Italy Abroad 26% 48% 37% 21% 68% 74% 52% 63% 79% 32% 2013 2014 2015 2016 I sem. 2017 Note: data from I semester 2017 do not include a significant amount raised by an institutional investor 9
Fundraising expected allocation Early Stage Expansion Buy out Infrastructure/Other 2% 1% 4% 29% 20% 20% 5% 63% 52% 56% 49% 72% 29% 44% 17% 23% 7% 1% 7% 2013 2014 2015 2016 I sem. 2017 Note: data from I semester 2017 do not include a significant amount raised by an institutional investor 10
Agenda Fundraising Investments Divestments 11
Investment activity per semester Number Companies Amount (Euro Mln) 4,898 1,407 1,890 1,787 1,916 161 139 168 138 139 144 112 150 116 120 I sem. 2013 I sem. 2014 I sem. 2015 I sem. 2016 I sem. 2017 12
Investment activity Number Companies Amount (Euro Mln) 8,191 4,620 3,430 3,528 1,916 368 281 311 248 342 272 322 245 139 120 2013 2014 2015 2016 I sem. 2017 13
Invested amount by deal size Amount of small and medium deal (Euro Mln) Amount of large and mega deal (Euro Mln)* 4,093 558 961 849 930 403 1,384 915 805 1,001 I sem. 2013 I sem. 2014 I sem. 2015 I sem. 2016 I sem. 2017 *Investments with an amount included between 150 and 300 Euro Mln (large deal) or more than 300 Euro Mln (mega deal) 14
Investments distribution by stage in the I semester 2017 Amount (Euro Mln) Number 65 1,195 34 373 20 12 138 128 5 43 39 3 Buy out Infrastructure Expansion Replacement Early stage Turnaround 15
Investments distribution by type of players in the I semester 2017 Amount (Euro Mln) Number 1,365 51 32 31 25 369 161 International players Private generalist domestic players Regional/public/institutional players Venture capital domestic players 21 16
Average invested amount by stage in the I semester 2017 (Euro Mln) Average amount (Euro Mln) 35.1 31.1 25.7 13.8 13.0 6.9 0.7 Average market Buy out Infrastructure Replacement Turnaround Expansion Early stage 17
Average invested amount by stage without large and mega deals in the I semester 2017 (Euro mln) Average amount (Euro Mln) 25.7 13.8 15.7 15.5 13.0 6.9 0.7 Average market Buy out Infrastructure Replacement Turnaround Expansion Early stage 18
Evolution of initial and follow on investments by number Initial Follow on* 61% 61% 63% 58% 57% 39% 39% 37% 42% 43% 2013 2014 2015 2016 I sem. 2017 * Secondary buy out included 19
Geographical distribution of investments by number in 2016 ITALY 92% 8% 67% 16% 9% South and Islands Centre North Europe and rest of the world 20
Geographical distribution of investments by amount ITALY 99% 1% 85% 2% 12% South and Islands Centre North Europe and rest of the world 21
Regional distribution of investments by number 53 14 13 12 7 6 5 5 3 3 2 2 1 1 1 22
Distribution of investments by target companies employees (number) SME 88% 31% 7% 2% 6% 2% 4% 48% 0-19 20-99 100-199 200-249 250-499 500-999 >1,000 23
Distribution of investment by target companies turnover (number) SME 87% 9% 6% 4% 3% 16% 11% 51% 0-2 2-10 10-30 30-50 50-100 100-250 >250 24
Distribution of investments by sector (number) 24 21 17 16 10 9 8 8 7 5 5 4 3 1 1 25
% of investments in high-tech companies by number and amount Amount Number 2013 26% 42% 2014 23% 40% 2015 12% 35% 2016 17% 30% I sem. 2017 1% 25% 26
Distribution of investments in high-tech companies by sector ICT (communications, computer and electronics) 11 Biotech 8 Healthcare 7 Chemicals and materials 3 Consumer related services 2 Business products and services 1 Energy and environment 1 Financial and insurance activities 1 Manufacturing - Other 1 27
Agenda Fundraising Investments Divestments 28
Divestment activity Number Companies Amount invested (Euro mln) 1,914 1,518 1,106 1,238 886 65 68 99 57 57 88 57 49 78 67 I sem. 2013 I sem. 2014 I sem. 2015 I sem. 2016 I sem. 2017 29
Divestment activity: annual vs I semester 2017 Number Companies Amount invested (Euro mln) 3,656 2,632 2,903 1,933 1,238 141 119 174 147 178 153 145 113 78 67 2013 2014 2015 2016 I sem. 2017 30
Distribution of divestments by way out Number Amount invested (Euro mln) 40% 28% 24% 23% 25% 13% 16% 10% 9% 8% 4% 0% Trade sale Sales to financial institutions/private individuals/family offices/spac IPO/Post IPO/Sales of quoted equity Management or owner buy-back/other Sales to PE/VC Write off 31
Distribution of divestments by original investment (number) 40% 35% 18% 1% 6% Turnaround Replacement Early stage Buy out Expansion 32
THE ITALIAN PRIVATE DEBT MARKET I SEMESTER 2017
Agenda Fundraising Investments 34
Evolution and characteristics of market fundraising activity Amount (Euro Mln) I sem. II sem. Distribution of market fundraising by source I sem. 2017 633 Public sector 53% 275 Pension funds 24% 315 383 109 282 Individual investors and family office 8% 159 Banks 8% 100 274 358 282 Insurance companies 7% 100 156 Other 0% 2013 2014 2015 2016 I sem. 2017 Note: on a sample of 17 players 35
Agenda Fundraising Investments 36
Investment activity Evolution of amount invested (Euro Mln) Italian players International players 379 Evolution of number of investments Italian players International players 65 18 201 236 198 43 3 24 29 128 32 96 177 143 112 86 20 3 17 40 47 17 12 2014 2015 2016 I sem. 2017 2014 2015 2016 I sem. 2017 37
Characteristics of investment activity Distribution of deals by instruments (Period between 2014-I sem. 2017) Distribution of bonds by amount (Bonds, period 2014-I sem. 2017) Loans Hybrid instruments Bonds 10% 9% >15 10-15 5-10 4% 7% 36% 81% 0-5 53% Note: classes in Euro Mln 38
Regional and sectorial distribution of target companies Regional distribution of target companies (Main regions) Sectorial distribution of target companies (Main sectors) 8 8 4 3 3 3 Lombardia Toscana Trentino Alto Adige Business products and services Energy and environment Manufacturing - Food and beverages Note: statistics based on companies financed and not on the financial instrument used 39
Distribution of target companies by size Distribution of target companies by number of employees Distribution of target companies by turnover (Euro Mln) 0-250 0-50 > 250 28% > 50 44% 56% 72% Note: statistics based on companies financed and not on the financial instrument used (period 2014 - I semester 2017) 40
The italian private equity, venture capital and private debt market I semester 2017