EVCA Private Equity Activity Survey 2007 Europe

EVCA Private Equity Activity Survey 2007 Europe 31

Europe 2006 Highlights: Demonstrating confidence in the European private equity sector with a record fundraising level of 112.3 billion in 2006, a significant increase over the 71.8 billion raised in 2005. 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 112.3 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 2005. 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 112.3 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 2005. 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 2006. Investment in high-tech and medical companies continued to be strong. 32 EVCA YEARBOOK 2007

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 2005. 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 211.4 billion. Sources of capital - Fundraising leaped to a record 112.3 billion in 2006 Funds raised in 2006 soared to 112.3 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 2005. Banks contributed 15.5 billion, or 14.4% of the total funds raised, up from 11.9 billion in 2005. Fund of funds contributed 18.2% at 19.6 billion, an increase over the 8.9 billion raised in 2005. 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 2005. Private individuals raised 9.6 billion, representing 8.9% of the funds raised, more than double the 4.1 billion amount in 2005. Government agencies were the next largest category at 8.7% of funds raised with 9.4 billion. EVCA YEARBOOK 2007 33

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 2005. 44.1 billion or 39.2% of the total was raised from international sources in 2006. 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 2006. 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 2005. 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 2006. 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 2005. 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

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 2005. 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 2006. Seed investments remained stable in 2006 representing 0.3% by amount at 197.7 million compared to 0.2% by amount at 96.5 million in 2005. 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 2005. Transnational syndication increased to 7.3% by number of investments from 5.9% in 2005. EVCA YEARBOOK 2007 35

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 2005. 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

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 2005. 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 2005. Divestment by public offering increased to 5.3 billion from 2.7 billion in 2005. Overall, divestments covered 4,448 companies in 2006 compared to 4,830 companies divested in 2005. Investment portfolio at 211.4 billion The European portfolio at cost was estimated to stand at 211.4 billion, net of divestment, on 31 December 2006, up from 173.3 billion in 2005. EVCA YEARBOOK 2007 37

Funds raised, investments and divestments in year 120 100 80 60 48 40 20 20 10 6 20 14 7 25 25 35 9 9 40 24 12 28 28 11 29 27 27 14 37 20 0 1997 1998 1999 2000 2001 2002 2003 2004 Funds Raised Investments Divestments 72 47 30 2005 112 71 33 2006 Billion 38 EVCA YEARBOOK 2007

Funds raised 120,000 100,000 80,000 60,000 40,000 20,000 20,002 0 1997 20,343 1998 25,401 1999 48,023 2000 40,012 2001 27,533 2002 71,823 27,020 27,451 2003 2004 2005 112,337 2006 Million EVCA YEARBOOK 2007 39

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

Private equity raised by type of investor in 2002-2006 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 2007 41

Geographical origin and country of management of funds raised in 2006 74,993 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

Annual European private equity raised by type of investor 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2002 2003 2004 2005 2006 Corporate Investors Private Individuals Government Agencies Banks Pension Funds Insurance Companies Fund of Funds Academic Institutions Capital Markets Not Available EVCA YEARBOOK 2007 43

Private equity raised by type of investor in 2006 100% 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

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 2007 45

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 9,655 0 1997 1998 1999 2000 2001 2002 29,096 2003 47,057 36,920 2004 2005 71,165 2006 Million 46 EVCA YEARBOOK 2007

Geographical destination and country of management of investments in 2006 45,000 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 2007 47

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

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 2007 49

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 68. 50 EVCA YEARBOOK 2007

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% 2002 2003 2004 2005 2006 EVCA YEARBOOK 2007 51

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

Stage distribution of investments by percentage of amount invested in 2006 100% 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 2007 53

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

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 2007 55

Percentage of investments by number of employees in 2006 5,000+ 22.0% 0-99 29.8% 100-199 8.2% 1,000-4,999 27.3% 200-499 7.7% 500-999 5.0% 56 EVCA YEARBOOK 2007

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 2007 57

Annual European private equity divestment 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2002 2003 2004 2005 2006 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

Private equity divestment by country in 2006 20,000 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 2007 59

Funds raised 2005/2006 2005 2006 million million Change % United Kingdom 45,644 74,993 64.3 France 11,451 10,617-7.3 Sweden 1,919 9,397 389.8 Spain 1,020 2,884 182.8 Germany 2,875 2,819-1.9 Netherlands 2,444 2,609 6.7 Italy 1,345 2,275 69.2 Switzerland 1,495 1,636 9.4 Norway 681 1,472 116.0 Poland 59 937 1,486.6 Belgium 353 722 104.6 Denmark 1,002 688-31.4 Finland 626 377-39.8 Romania 61 283 367.9 Austria 217 279 28.8 Greece 27 214 694.5 Portugal 294 90-69.5 Hungary 75 27-64.1 Ireland 74 16-78.9 Czech Republic 162 3-97.9 European Total 71,823 112,337 56.4 60 EVCA YEARBOOK 2007

Funds raised Funds Raised by Country Funds Raised by Country of Origin 2006 of Management 2006 million % million % United Kingdom 23,917 21.3 74,993 66.8 France 8,820 7.9 10,617 9.5 Sweden 5,700 5.1 9,397 8.4 Spain 2,629 2.3 2,884 2.6 Germany 4,264 3.8 2,819 2.5 Netherlands 5,512 4.9 2,609 2.3 Italy 2,647 2.4 2,275 2.0 Switzerland 1,473 1.3 1,636 1.5 Norway 1,953 1.7 1,472 1.3 Poland 35 0.0 937 0.8 Belgium 2,057 1.8 722 0.6 Denmark 1,211 1.1 688 0.6 Finland 636 0.6 377 0.3 Romania 153 0.1 283 0.3 Austria 421 0.4 279 0.2 Greece 359 0.3 214 0.2 Portugal 182 0.2 90 0.1 Hungary 27 0.0 27 0.0 Ireland 25 0.0 16 0.0 Czech Republic 2 0.0 3 0.0 Unknown European 6,248 5.6 0 0.0 European Total 68,271 60.8 112,337 100.0 Asia 3,425 3.1 Canada 594 0.5 Israel 21 0.0 USA 32,391 28.8 Other Rest of the World 7,635 6.8 Total Rest of the World 44,066 39.2 Total 112,337 100.0 EVCA YEARBOOK 2007 61

Funds raised Amount (in x 1,000) 2005 2006 Amount % Amount % Private Equity Raised by Source Independent Funds Raised in Year 56,896,692 79.2 86,295,086 76.8 Amount Raised by Captives 10,859,253 15.1 21,563,050 19.2 Subtotal New Funds Raised 67,755,945 94.3 107,858,136 96.0 Realised Capital Gains 4,067,477 5.7 4,479,133 4.0 Total Funds Raised 71,823,422 100.0 112,337,269 100.0 Private Equity Raised by Type of Investor Corporate Investors 3,443,715 5.1 4,007,207 3.7 Private Individuals 4,055,605 6.0 9,567,909 8.9 Government Agencies 6,692,749 9.9 9,429,451 8.7 Banks 11,934,514 17.6 15,532,522 14.4 Pension Funds 16,826,188 24.8 29,232,350 27.1 Insurance Companies 7,534,702 11.1 10,937,016 10.1 Fund of Funds 8,854,157 13.1 19,583,816 18.2 Academic Institutions 1,720,273 2.5 3,853,566 3.6 Capital Markets 842,991 1.2 1,346,378 1.2 Not Available 5,851,051 8.7 4,367,921 4.1 Subtotal New Funds Raised 67,755,945 100.0 107,858,136 100.0 Realised Capital Gains 4,067,477-4,479,133 - Total Funds Raised 71,823,422-112,337,269 - Geographical Breakdown of Private Equity Raised Within Europe 47,072,273 65.5 68,271,208 60.8 Outside Europe 24,751,149 34.5 44,066,061 39.2 Total Funds Raised 71,823,422 100.0 112,337,269 100.0 Expected Allocation of Funds Raised High-Tech Early-Stage 3,542,351 4.9 2,926,805 2.6 Non High-Tech Early-Stage 849,051 1.2 3,017,662 2.7 High-Tech Expansion/Development 1,538,037 2.1 2,075,034 1.8 Non High-Tech Expansion/Development 4,964,915 6.9 9,445,850 8.4 Venture Capital 10,894,354 15.2 17,465,351 15.5 Buyout 57,743,435 80.4 84,345,873 75.1 Not Available 3,185,633 4.4 10,526,045 9.4 Total Funds Raised * 71,823,422 100.0 112,337,269 100.0 * 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

Funds raised: 5-year trend Amount (in x 1,000) 2002 2003 2004 2005 2006 5-YEAR TOTAL Amount % Amount % Amount % Amount % Amount % Amount % Private Equity Raised by Source Independent Funds Raised in Year 20,259,689 73.6 20,746,051 76.8 16,607,685 60.5 56,896,692 79.2 86,295,086 76.8 200,805,203 75.4 Amount Raised by Captives 5,776,219 21.0 4,564,646 16.9 6,878,132 25.1 10,859,253 15.1 21,563,050 19.2 49,641,300 18.7 Subtotal New Funds Raised 26,035,908 94.6 25,310,697 93.7 23,485,817 85.6 67,755,945 94.3 107,858,136 96.0 250,446,503 94.1 Realised Capital Gains 1,496,618 5.4 1,709,059 6.3 3,965,398 14.4 4,067,477 5.7 4,479,133 4.0 15,717,685 5.9 Total Funds Raised 27,532,526 100.0 27,019,756 100.0 27,451,215 100.0 71,823,422 100.0 112,337,269 100.0 266,164,188 100.0 Private Equity Raised by Type of Investor Corporate Investors 1,896,480 7.3 1,204,650 4.8 1,645,983 7.0 3,443,715 5.1 4,007,207 3.7 12,198,035 4.9 Private Individuals 1,571,277 6.0 804,174 3.2 1,778,467 7.6 4,055,605 6.0 9,567,908 8.9 17,777,431 7.1 Government Agencies 2,893,517 11.1 1,727,465 6.8 1,442,338 6.1 6,692,749 9.9 9,429,452 8.7 22,185,522 8.9 Banks 6,844,903 26.3 5,435,518 21.5 5,090,882 21.7 11,934,514 17.6 15,532,522 14.4 44,838,340 17.9 Pension Funds 4,252,567 16.3 4,922,155 19.4 4,534,191 19.3 16,826,188 24.8 29,232,350 27.1 59,767,451 23.9 Insurance Companies 3,588,358 13.8 2,214,314 8.7 2,812,114 12.0 7,534,702 11.1 10,937,016 10.1 27,086,505 10.8 Fund of Funds 3,412,783 13.1 4,153,695 16.4 3,163,840 13.5 8,854,157 13.1 19,583,816 18.2 39,168,292 15.6 Academic Institutions 428,325 1.6 384,843 1.5 345,866 1.5 1,720,273 2.5 3,853,566 3.6 6,732,873 2.7 Capital Markets 38,086 0.1 85,209 0.3 506,324 2.2 842,991 1.2 1,346,378 1.2 2,818,987 1.1 Not Available 1,109,611 4.3 4,378,672 17.3 2,165,811 9.2 5,851,051 8.7 4,367,921 4.1 17,873,067 7.1 Subtotal New Funds Raised 26,035,908 100.0 25,310,697 100.0 23,485,817 100.0 67,755,945 100.0 107,858,136 100.0 250,446,503 100.0 Realised Capital Gains 1,496,618-1,709,059-3,965,398-4,067,477-4,479,133-15,717,685 - Total Funds Raised 27,532,526-27,019,756-27,451,215-71,823,422-112,337,269-266,164,188 - Geographical Breakdown of Private Equity Raised Within Europe 19,588,957 71.1 19,375,613 71.7 20,874,724 76.0 47,072,273 65.5 68,271,208 60.8 175,182,775 65.8 Outside Europe 7,943,570 28.9 7,644,142 28.3 6,576,491 24.0 24,751,149 34.5 44,066,061 39.2 90,981,413 34.2 Total Funds Raised 27,532,526 100.0 27,019,756 100.0 27,451,215 100.0 71,823,422 100.0 112,337,269 100.0 266,164,188 100.0 EVCA YEARBOOK 2007 63

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 86,295,086 76.8 165,427 135,403 0 510,501 346,548 8,386,069 Amount Raised by Captives 21,563,050 19.2 58,605 478,864 1,358 105,630 29,086 1,626,762 Subtotal New Funds Raised 107,858,136 96.0 224,032 614,267 1,358 616,131 375,634 10,012,831 Realised Capital Gains 4,479,133 4.0 55,057 107,419 2,000 71,510 1,165 604,494 Total Funds Raised 112,337,269 100.0 279,089 721,686 3,358 687,641 376,799 10,617,325 Private Equity Raised by Type of Investor Corporate Investors 4,007,207 3.7 19,644 19,204 0 1,108 5,154 300,285 Private Individuals 9,567,909 8.9 2,280 4,267 0 246 13,000 1,852,501 Government Agencies 9,429,451 8.7 4,176 73,934 0 188,358 66,889 449,362 Banks 15,532,522 14.4 144,464 484,235 0 51,287 630 1,885,939 Pension Funds 29,232,350 27.1 21,229 0 0 189,567 120,263 956,994 Insurance Companies 10,937,016 10.1 12,529 869 0 0 31,498 1,884,341 Fund of Funds 19,583,816 18.2 16,357 31,323 1,358 0 75,021 1,793,961 Academic Institutions 3,853,566 3.6 0 435 0 0 0 0 Capital Markets 1,346,378 1.2 0 0 0 4,782 0 680,006 Not Available 4,367,921 4.1 3,353 0 0 180,783 63,179 209,442 Subtotal New Funds Raised 107,858,136 100.0 224,032 614,267 1,358 616,131 375,634 10,012,831 Realised Capital Gains 4,479,133-55,057 107,419 2,000 71,510 1,165 604,494 Total Funds Raised 112,337,269-279,089 721,686 3,358 687,641 376,799 10,617,325 Geographical Breakdown of Private Equity Raised Within Europe 68,271,208 60.8 279,089 721,686 2,804 687,630 369,561 8,998,930 Outside Europe 44,066,061 39.2 0 0 554 11 7,238 1,618,395 Total Funds Raised 112,337,269 100.0 279,089 721,686 3,358 687,641 376,799 10,617,325 Expected Allocation of Funds Raised High-Tech Early-Stage 2,926,805 2.6 9,378 29,167 0 230,306 50,255 284,057 Non High-Tech Early-Stage 3,017,662 2.7 2,202 0 0 710 1,554 176,993 High-Tech Expansion/Development 2,075,034 1.8 4,675 9,129 0 147,766 211,282 388,420 Non High-Tech Expansion/Development 9,445,850 8.4 56,674 168,278 1,679 65,945 70,626 1,330,094 Venture Capital 17,465,351 15.5 72,929 206,574 1,679 444,727 333,717 2,179,564 Buyout 84,345,873 75.1 206,160 515,112 1,679 242,914 43,082 6,087,511 Other 10,526,045 9.4 0 0 0 0 0 2,350,250 Total Funds Raised 112,337,269 100.0 279,089 721,686 3,358 687,641 376,799 10,617,325 64 EVCA YEARBOOK 2007

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 1,854,810 214,078 2,000 9,600 1,454,058 1,578,067 1,459,934 931,723 Amount Raised by Captives 725,880 0 23,961 6,041 735,721 912,526 4,864 100 Subtotal New Funds Raised 2,580,690 214,078 25,961 15,641 2,189,779 2,490,593 1,464,798 931,823 Realised Capital Gains 238,800 109 871 0 85,122 118,236 6,930 5,109 Total Funds Raised 2,819,490 214,187 26,832 15,641 2,274,901 2,608,829 1,471,728 936,932 Private Equity Raised by Type of Investor Corporate Investors 25,890 0 0 0 0 130,774 146,230 36,166 Private Individuals 505,340 0 0 0 237,200 178,234 275,854 169,162 Government Agencies 295,030 0 19,107 3,313 23,300 107,675 47,369 103 Banks 379,180 0 4,854 6,324 1,054,871 768,137 194,966 33,893 Pension Funds 149,000 0 0 0 114,500 418,829 69,795 198,696 Insurance Companies 352,200 0 0 0 42,500 220,417 364,724 40,711 Fund of Funds 539,390 0 2,000 0 608,920 630,104 116,719 431,005 Academic Institutions 50,500 0 0 0 31,950 0 4,845 18,600 Capital Markets 221,500 0 0 0 6,000 26,369 19,378 0 Not Available 62,660 214,078 0 6,004 70,538 10,054 224,918 3,487 Subtotal New Funds Raised 2,580,690 214,078 25,961 15,641 2,189,779 2,490,593 1,464,798 931,823 Realised Capital Gains 238,800 109 871 0 85,122 118,236 6,930 5,109 Total Funds Raised 2,819,490 214,187 26,832 15,641 2,274,901 2,608,829 1,471,728 936,932 Geographical Breakdown of Private Equity Raised Within Europe 2,394,520 214,187 26,832 15,641 2,235,495 2,502,631 1,384,511 689,769 Outside Europe 424,970 0 0 0 39,406 106,198 87,217 247,163 Total Funds Raised 2,819,490 214,187 26,832 15,641 2,274,901 2,608,829 1,471,728 936,932 Expected Allocation of Funds Raised High-Tech Early-Stage 222,340 0 0 11,212 87,071 11,584 141,415 0 Non High-Tech Early-Stage 30,230 0 0 1,476 27,952 91,877 123,281 43,460 High-Tech Expansion/Development 188,280 0 864 0 45,224 176,669 199,071 0 Non High-Tech Expansion/Development 597,300 0 25,968 886 1,340,187 227,076 107,576 89,947 Venture Capital 1,038,150 0 26,832 13,574 1,500,434 507,206 571,343 133,407 Buyout 1,481,030 197,000 0 2,067 692,811 2,101,623 900,385 803,525 Other 300,310 17,187 0 0 81,656 0 0 0 Total Funds Raised 2,819,490 214,187 26,832 15,641 2,274,901 2,608,829 1,471,728 936,932 EVCA YEARBOOK 2007 65

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 8,897 168,500 2,447,422 8,203,050 1,588,244 56,830,755 Amount Raised by Captives 73,484 31,234 196,026 245,060 8,850 16,298,998 Subtotal New Funds Raised 82,381 199,734 2,643,448 8,448,110 1,597,094 73,129,753 Realised Capital Gains 7,346 83,397 240,331 949,152 39,187 1,862,898 Total Funds Raised 89,727 283,131 2,883,779 9,397,262 1,636,281 74,992,651 Private Equity Raised by Type of Investor Corporate Investors 0 0 127,967 16,468 28,511 3,149,806 Private Individuals 0 6,779 444,892 906,521 46,267 4,925,366 Government Agencies 21,875 68,394 242,940 47,412 391,572 7,378,642 Banks 60,506 38,736 832,007 899,685 100,046 8,592,762 Pension Funds 0 6,053 281,298 2,004,652 299,372 24,402,102 Insurance Companies 0 3,026 41,318 23,405 351,792 7,567,686 Fund of Funds 0 28,326 635,907 1,122,542 266,977 13,283,906 Academic Institutions 0 0 3,515 6,572 0 3,737,149 Capital Markets 0 0 23,100 272,909 0 92,334 Not Available 0 48,420 10,504 3,147,944 112,557 0 Subtotal New Funds Raised 82,381 199,734 2,643,448 8,448,110 1,597,094 73,129,753 Realised Capital Gains 7,346 83,397 240,331 949,152 39,187 1,862,898 Total Funds Raised 89,727 283,131 2,883,779 9,397,262 1,636,281 74,992,651 Geographical Breakdown of Private Equity Raised Within Europe 89,727 266,849 2,582,570 5,961,347 1,216,883 37,630,546 Outside Europe 0 16,282 301,209 3,435,915 419,398 37,362,105 Total Funds Raised 89,727 283,131 2,883,779 9,397,262 1,636,281 74,992,651 Expected Allocation of Funds Raised High-Tech Early-Stage 2,577 0 85,937 92,234 0 1,669,272 Non High-Tech Early-Stage 15,151 11,111 205,993 885 0 2,284,787 High-Tech Expansion/Development 2,468 0 16,638 50,149 157,368 477,031 Non High-Tech Expansion/Development 42,766 251,441 675,948 26,353 74,155 4,292,951 Venture Capital 62,962 262,552 984,516 169,621 231,523 8,724,041 Buyout 26,765 20,579 1,890,663 9,227,641 1,404,758 58,500,568 Other 0 0 8,600 0 0 7,768,042 Total Funds Raised 89,727 283,131 2,883,779 9,397,262 1,636,281 74,992,651 66 EVCA YEARBOOK 2007

Investments 2005/2006: amount invested/number of investments 2005 2006 2005 2006 million million Change % Number Number Change % United Kingdom 23,832 40,897 71.6 3,193 3,035-4.9 France 7,294 10,100 38.5 2,046 2,396 17.1 Sweden 3,001 4,259 41.9 762 740-2.9 Germany 2,695 3,518 30.6 1,310 1,289-1.6 Italy 2,186 3,415 56.2 274 288 5.1 Spain 2,662 2,815 5.7 508 712 40.2 Netherlands 2,336 2,393 2.4 495 395-20.2 Belgium 193 940 387.6 315 349 10.8 Switzerland 363 837 130.7 191 166-13.1 Norway 427 462 8.3 279 207-25.8 Denmark 1,057 370-65.0 463 148-68.0 Poland 154 294 90.8 32 46 43.8 Finland 230 266 15.4 389 348-10.5 Portugal 243 173-28.9 217 208-4.1 Austria 143 158 10.4 217 234 7.8 Ireland 107 108 0.4 153 98-35.9 Romania 58 96 65.5 14 37 164.3 Hungary 47 36-23.4 40 43 7.5 Greece 8 15 86.5 4 10 150.0 Czech Republic 21 12-42.2 10 11 10.0 European Total 47,057 71,165 51.2 10,912 10,760-1.4 EVCA YEARBOOK 2007 67

Investments 2006: amount invested Country of Management Country of Destination of Investment 2006 of Investment 2006 million % million % United Kingdom 40,897 57.5 23,478 33.0 France 10,100 14.2 10,798 15.2 Sweden 4,259 6.0 4,428 6.2 Germany 3,518 4.9 7,227 10.2 Italy 3,415 4.8 4,916 6.9 Spain 2,815 4.0 3,581 5.0 Netherlands 2,393 3.4 5,531 7.8 Belgium 940 1.3 1,398 2.0 Switzerland 837 1.2 855 1.2 Norway 462 0.6 696 1.0 Denmark 370 0.5 736 1.0 Poland 294 0.4 528 0.7 Finland 266 0.4 391 0.5 Portugal 173 0.2 178 0.3 Austria 158 0.2 264 0.4 Ireland 108 0.2 692 1.0 Romania 96 0.1 107 0.2 Hungary 36 0.1 496 0.7 Greece 15 0.0 80 0.1 Czech Republic 12 0.0 509 0.7 Other Europe 0 0.0 854 1.1 European Total 71,165 100.0 67,743 95.2 Asia 127 0.2 Canada 39 0.1 Israel 60 0.1 USA 2,654 3.6 Rest of the World 542 0.8 Total Rest of the World 3,422 4.8 Total 71,165 100.0 68 EVCA YEARBOOK 2007

Investment during year by number of employees Amount (in x 1,000) 2005 2006 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 0-99 7,502,414 18.0 6,608 77.8 4,297 77.7 1,135 19,856,548 29.8 6,035 70.6 4,187 71.2 3,290 100-199 2,247,758 5.4 699 8.2 456 8.3 3,215 5,473,511 8.2 899 10.5 604 10.3 6,091 200-499 3,571,822 8.6 550 6.5 361 6.5 6,492 5,151,276 7.7 603 7.1 415 7.0 8,544 500-999 2,964,264 7.1 229 2.7 151 2.7 12,939 3,303,271 5.0 295 3.5 192 3.3 11,197 1,000-4,999 14,122,983 34.1 311 3.7 203 3.7 45,459 18,150,257 27.3 543 6.4 365 6.2 33,441 5,000 + 11,054,626 26.7 96 1.1 61 1.1 114,922 14,681,000 22.0 172 2.0 116 2.0 85,260 Subtotal 41,463,866 100.0 8,494 100.0 5,530 100.0 4,882 66,615,862 100.0 8,546 100.0 5,879 100.0 7,795 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 2007 69

Investments 2005/2006 Amount (in x 1,000) 2005 2006 Amount of % Number of % Number of % Amount of % Number of % Number of % Investments Investments Companies Investments Investments Companies Initial Investment 37,208,428 79.1 5,428 49.7 3,683 50.8 60,034,182 84.4 4,981 46.3 3,816 50.6 Follow-on Investment 9,848,847 20.9 5,484 50.3 3,573 49.2 11,130,323 15.6 5,779 53.7 3,720 49.4 Total Investment in Year 47,057,275 100.0 10,912 100.0 7,210 100.0 71,164,505 100.0 10,760 100.0 7,536 100.0 Distribution of Investments by Investor Type Independent 33,883,858 72.0 7,037 64.5 4,493 61.3 47,867,315 67.3 6,909 64.2 4,601 61.0 Captive 6,836,340 14.5 1,713 15.7 1,264 17.2 12,521,426 17.6 1,617 15.0 1,250 16.6 Semi-Captive 5,356,795 11.4 1,411 12.9 994 13.6 10,426,546 14.6 1,693 15.8 1,228 16.3 Public Sector 980,282 2.1 751 6.9 580 7.9 349,218 0.5 541 5.0 457 6.1 Total Investment 47,057,275 100.0 10,912 100.0 7,210 100.0 71,164,505 100.0 10,760 100.0 7,536 100.0 Stage Distribution of Investments in Year Seed 96,497 0.2 409 3.8 355 4.8 197,704 0.3 477 4.4 350 4.6 Start-up 2,337,629 5.0 3,178 29.1 2,130 28.7 5,666,756 8.0 2,773 25.8 1,905 25.3 Expansion 10,250,529 21.8 4,559 41.8 3,186 42.9 11,389,936 16.0 4,644 43.1 3,335 44.3 Replacement Capital 2,275,531 4.8 397 3.6 307 4.1 3,573,674 5.0 384 3.6 293 3.9 Buyout 32,097,089 68.2 2,369 21.7 1,441 19.4 50,336,435 70.7 2,482 23.1 1,653 21.9 Small 4,081,191 2,034 1,151 4,785,382 1,993 1,289 Mid-market 13,926,168 281 244 18,584,754 410 342 Large 7,929,082 39 34 7,500,497 38 34 Mega 6,160,648 15 12 19,465,802 41 31 Total Investment 47,057,275 100.0 10,912 100.0 7,210 100.0 71,164,505 100.0 10,760 100.0 7,536 100.0 Syndication of Investments in Year No Syndication 36,549,972 77.7 8,188 75.0 5,517 76.0 52,227,976 73.4 7,523 69.9 5,634 74.8 National Syndication 5,905,394 12.5 2,081 19.1 1,305 18.0 9,240,965 13.0 2,453 22.8 1,405 18.6 Transnational Syndication 4,601,909 9.8 643 5.9 433 6.0 9,695,564 13.6 784 7.3 497 6.6 Total Investment 47,057,275 100.0 10,912 100.0 7,210 100.0 71,164,505 100.0 10,760 100.0 7,536 100.0 70 EVCA YEARBOOK 2007

Amount (in x 1,000) 2005 2006 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 45,351,408 96.4 10,443 95.7 6,843 94.9 67,742,921 95.2 10,266 95.4 7,192 95.4 Outside Europe 1,705,867 3.6 469 4.3 367 5.1 3,421,584 4.8 494 4.6 344 4.6 Total Investment 47,057,275 100.0 10,912 100.0 7,210 100.0 71,164,505 100.0 10,760 100.0 7,536 100.0 Sectoral Distribution of Investments in Year Communications 7,247,098 15.4 1,050 9.6 718 10.0 9,848,836 13.8 935 8.7 634 8.4 Computer Related 2,445,356 5.2 2,006 18.4 1,253 17.4 5,397,718 7.6 2,012 18.7 1,284 17.0 Other Electronics Related 620,138 1.3 540 5.0 339 4.7 899,294 1.3 556 5.2 340 4.5 Biotechnology 868,257 1.8 1,049 9.6 620 8.6 860,204 1.2 749 7.0 522 6.9 Medical/Health Related 3,498,191 7.4 1,291 11.8 767 10.6 6,778,255 9.5 1,257 11.7 846 11.2 Energy 961,458 2.0 213 2.0 166 2.3 1,655,576 2.3 267 2.5 199 2.7 Consumer Related 12,973,329 27.6 1,276 11.7 928 12.9 10,958,633 15.4 1,037 9.6 790 10.5 Industrial Products and Services 4,163,936 8.9 771 7.1 543 7.5 7,129,389 10.0 906 8.4 688 9.1 Chemicals and Materials 911,712 1.9 273 2.5 185 2.6 2,055,674 2.9 223 2.1 171 2.3 Industrial Automation 1,171,586 2.5 155 1.4 93 1.3 775,627 1.1 122 1.1 92 1.2 Other Manufacturing 2,885,462 6.1 387 3.5 285 3.9 3,589,226 5.1 412 3.8 339 4.5 Transportation 1,014,793 2.2 183 1.7 121 1.7 2,047,618 2.9 156 1.4 117 1.6 Financial Services 1,628,383 3.5 198 1.8 127 1.8 2,376,655 3.3 299 2.8 206 2.7 Other Services 2,564,618 5.5 721 6.6 473 6.6 10,920,336 15.3 966 9.0 664 8.8 Agriculture 160,999 0.3 73 0.7 53 0.7 78,525 0.1 71 0.7 63 0.9 Construction 1,460,936 3.1 242 2.2 162 2.2 1,554,292 2.2 301 2.8 183 2.4 Other 2,481,021 5.3 483 4.4 377 5.2 4,238,647 6.0 491 4.5 398 5.3 Total Investment * 47,057,275 100.0 10,912 100.0 7,210 100.0 71,164,505 100.0 10,760 100.0 7,536 100.0 Subtotal High-Tech 8,055,717 17.1 4,883 44.7 3,050 42.3 13,142,551 18.5 4,745 44.1 3,113 41.3 * 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 2007 71

Investments: 5-year trend Amount (in x 1,000) 2002 2003 2004 2005 2006 5-YEAR TOTAL Amount % Amount % Amount % Amount % Amount % Amount % Stage Distribution of Investments in Year Seed 305,135 1.1 150,107 0.5 147,771 0.4 96,497 0.2 197,704 0.3 897,214 0.4 Start-up 2,614,436 9.5 1,974,248 6.8 2,230,233 6.0 2,337,629 5.0 5,666,756 8.0 14,823,302 7.0 Expansion 6,870,386 24.8 6,240,854 21.4 7,893,645 21.4 10,250,529 21.8 11,389,936 16.0 42,645,350 20.1 Replacement Capital 941,468 3.4 2,292,526 7.9 904,910 2.5 2,275,531 4.8 3,573,674 5.0 9,988,109 4.7 Buyout 16,916,957 61.2 18,438,184 63.4 25,743,206 69.7 32,097,089 68.2 50,336,435 70.7 143,531,870 67.8 Total Investment 27,648,381 100.0 29,095,918 100.0 36,919,765 100.0 47,057,275 100.0 71,164,505 100.0 211,885,844 100.0 Syndication of Investments in Year No Syndication 17,079,054 61.8 18,878,436 64.9 30,916,913 83.7 36,549,972 77.7 52,227,976 73.4 155,652,351 73.5 National Syndication 4,083,045 14.8 4,955,816 17.0 3,357,575 9.1 5,905,394 12.5 9,240,965 13.0 27,542,795 13.0 Transnational Syndication 6,486,282 23.5 5,261,666 18.1 2,645,277 7.2 4,601,909 9.8 9,695,564 13.6 28,690,698 13.5 Total Investment 27,648,381 100.0 29,095,918 100.0 36,919,765 100.0 47,057,275 100.0 71,164,505 100.0 211,885,844 100.0 Geographical Distribution of Investments in Year Within Europe 26,877,330 97.2 28,005,284 96.3 35,683,212 96.7 45,351,408 96.4 67,742,921 95.2 203,660,154 96.1 Outside Europe 771,052 2.8 1,090,635 3.7 1,236,554 3.3 1,705,867 3.6 3,421,584 4.8 8,225,691 3.9 Total Investment 27,648,381 100.0 29,095,918 100.0 36,919,765 100.0 47,057,275 100.0 71,164,505 100.0 211,885,845 100.0 72 EVCA YEARBOOK 2007

Amount (in x 1,000) 2002 2003 2004 2005 2006 5-YEAR TOTAL Amount % Amount % Amount % Amount % Amount % Amount % Sectoral Distribution of Investments in Year Communications 2,516,985 9.1 4,924,362 16.9 4,924,434 13.3 7,247,098 15.4 9,848,836 13.8 29,461,715 13.9 Computer Related 1,533,558 5.5 1,732,607 6.0 2,350,597 6.4 2,445,356 5.2 5,397,718 7.6 13,459,835 6.4 Other Electronics Related 673,100 2.4 552,954 1.9 457,506 1.2 620,138 1.3 899,294 1.3 3,202,993 1.5 Biotechnology 1,105,583 4.0 681,576 2.3 686,617 1.9 868,257 1.8 860,204 1.2 4,202,237 2.0 Medical/Health Related 1,946,177 7.0 1,755,057 6.0 2,801,209 7.6 3,498,191 7.4 6,778,255 9.5 16,778,889 7.9 Energy 263,205 1.0 351,189 1.2 677,844 1.8 961,458 2.0 1,655,576 2.3 3,909,272 1.8 Consumer Related 5,993,005 21.7 5,649,256 19.4 8,546,600 23.1 12,973,329 27.6 10,958,633 15.4 44,120,822 20.8 Industrial Products and Services 4,712,859 17.0 1,989,561 6.8 1,949,670 5.3 4,163,936 8.9 7,129,389 10.0 19,945,415 9.4 Chemicals and Materials 859,685 3.1 663,050 2.3 1,003,508 2.7 911,712 1.9 2,055,674 2.9 5,493,629 2.6 Industrial Automation 202,314 0.7 474,375 1.6 219,350 0.6 1,171,586 2.5 775,627 1.1 2,843,252 1.3 Other Manufacturing 1,819,108 6.6 2,238,871 7.7 2,623,866 7.1 2,885,462 6.1 3,589,226 5.1 13,156,534 6.2 Transportation 731,629 2.6 1,550,334 5.3 892,870 2.4 1,014,793 2.2 2,047,618 2.9 6,237,245 2.9 Financial Services 1,074,068 3.9 683,474 2.3 1,524,058 4.1 1,628,383 3.5 2,376,655 3.3 7,286,639 3.4 Other Services 2,333,762 8.4 2,845,916 9.8 5,070,747 13.7 2,564,618 5.5 10,920,336 15.3 23,735,379 11.2 Agriculture 239,658 0.9 56,227 0.2 140,358 0.4 160,999 0.3 78,525 0.1 675,767 0.3 Construction 516,023 1.9 982,386 3.4 816,928 2.2 1,460,936 3.1 1,554,292 2.2 5,330,564 2.5 Other 1,127,663 4.1 1,964,723 6.8 2,233,603 6.0 2,481,021 5.3 4,238,647 6.0 12,045,657 5.7 Total Investment 27,648,381 100.0 29,095,918 100.0 36,919,765 100.0 47,057,275 100.0 71,164,505 100.0 211,885,844 100.0 Subtotal High-Tech (*) 3,465,317 12.5 6,950,254 23.9 7,398,782 20.0 8,055,717 17.1 13,142,551 18.5 39,012,621 18.4 (*) Please see Methodology and Definitions EVCA YEARBOOK 2007 73

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 60,034,182 84.4 108,781 647,564 7,665 274,673 77,801 8,681,515 Follow-on Investment 11,130,323 15.6 49,187 292,687 4,711 95,663 187,957 1,418,511 Total Investment in Year 71,164,505 100.0 157,968 940,251 12,376 370,336 265,758 10,100,026 Distribution of Investments by Investor Type Independent 47,867,315 67.3 90,673 422,820 12,376 243,243 235,489 4,807,979 Captive 12,521,426 17.6 29,398 150,379 0 0 0 1,408,578 Semi-Captive 10,426,546 14.6 37,494 331,589 0 127,093 4,431 3,869,881 Public Sector 349,218 0.5 403 35,463 0 0 25,838 13,588 Total Investment 71,164,505 100.0 157,968 940,251 12,376 370,336 265,758 10,100,026 Stage Distribution of Investments in Year Seed 197,704 0.3 4,325 126 0 0 9,121 0 Start-up 5,666,756 8.0 4,578 39,049 285 32,041 36,140 536,031 Expansion 11,389,936 16.0 80,273 490,987 780 147,607 111,747 1,371,878 Replacement Capital 3,573,674 5.0 5,014 3,161 211 0 30,143 117,475 Buyout 50,336,435 70.7 63,778 406,928 11,100 190,688 78,607 8,074,642 Small 4,785,382 63,778 120,323 11,100 22,126 53,215 1,404,205 Mid-market 18,584,754 0 286,605 0 168,562 25,392 3,307,823 Large 7,500,497 0 0 0 0 0 1,075,670 Mega 19,465,802 0 0 0 0 0 2,286,944 Total Investment 71,164,505 100.0 157,968 940,251 12,376 370,336 265,758 10,100,026 Syndication of Investments in Year No Syndication 52,227,976 73.4 132,954 902,866 12,376 258,332 243,082 3,045,945 National Syndication 9,240,965 13.0 8,425 5,985 0 70,136 12,360 5,335,826 Transnational Syndication 9,695,564 13.6 16,589 31,400 0 41,868 10,316 1,718,255 Total Investment 71,164,505 100.0 157,968 940,251 12,376 370,336 265,758 10,100,026 74 EVCA YEARBOOK 2007

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 67,742,921 95.2 157,968 925,696 12,376 327,816 255,606 9,609,530 Outside Europe 3,421,584 4.8 0 14,555 0 42,520 10,152 490,496 Total Investment 71,164,505 100.0 157,968 940,251 12,376 370,336 265,758 10,100,026 Sectoral Distribution of Investments in Year Communications 9,848,836 13.8 1,867 38,171 8,417 108,693 11,402 453,540 Computer Related 5,397,718 7.6 43,197 52,861 0 26,363 38,421 382,661 Other Electronics Related 899,294 1.3 3,748 6,363 0 1,874 20,242 270,413 Biotechnology 860,204 1.2 0 131,344 0 50,944 2,418 166,152 Medical/Health Related 6,778,255 9.5 33,018 26,676 0 41,085 24,345 749,053 Energy 1,655,576 2.3 12 0 0 0 8,804 73,090 Consumer Related 10,958,633 15.4 1,325 354,981 0 97,349 60,194 1,285,849 Industrial Products and Services 7,129,389 10.0 38,315 8,965 0 43,102 31,629 1,320,407 Chemicals and Materials 2,055,674 2.9 3,579 749 0 0 8,785 602,892 Industrial Automation 775,627 1.1 0 10,181 0 733 0 210,849 Other Manufacturing 3,589,226 5.1 20,385 7,391 0 16 38,951 136,384 Transportation 2,047,618 2.9 0 2,856 0 0 3,058 42,640 Financial Services 2,376,655 3.3 0 0 0 0 0 321,148 Other Services 10,920,336 15.3 2,460 276,985 0 0 6,128 3,268,105 Agriculture 78,525 0.1 0 0 0 177 0 47,368 Construction 1,554,292 2.2 0 6,738 0 0 1,637 601,233 Other 4,238,647 6.0 10,062 15,990 3,959 0 9,744 168,242 Total Investment 71,164,505 100.0 157,968 940,251 12,376 370,336 265,758 10,100,026 Subtotal High-Tech 13,142,551 18.5 48,812 112,257 8,417 187,874 72,483 1,348,671 EVCA YEARBOOK 2007 75

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 1,858,641 261,965 82,237 Follow-on Investment 321,890 0 11,755 47,762 1,911,695 534,082 200,216 211,486 Total Investment in Year 3,517,920 15,075 35,754 107,870 3,415,157 2,392,723 462,181 293,723 Distribution of Investments by Investor Type Independent 2,690,790 12,535 6,883 98,323 700,057 933,604 370,979 289,214 Captive 658,380 2,540 3,771 0 2,413,725 1,142,957 78,357 0 Semi-Captive 124,840 0 21,207 9,547 273,160 316,162 12,845 4,509 Public Sector 43,910 0 3,893 0 28,215 0 0 0 Total Investment 3,517,920 15,075 35,754 107,870 3,415,157 2,392,723 462,181 293,723 Stage Distribution of Investments in Year Seed 31,150 78 890 1,966 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 69,421 965,825 422,731 205,433 15,182 Replacement Capital 97,850 0 0 0 165,234 57,552 0 6,151 Buyout 2,480,270 40 0 12,809 2,255,521 1,847,796 222,406 269,918 Small 340,711 40 0 12,809 396,747 222,158 173,557 14,419 Mid-market 279,804 0 0 0 1,338,774 1,077,051 48,849 96,799 Large 349,755 0 0 0 0 186,087 0 158,700 Mega 1,510,000 0 0 0 520,000 362,500 0 0 Total Investment 3,517,920 15,075 35,754 107,870 3,415,157 2,392,723 462,181 293,723 Syndication of Investments in Year No Syndication 1,688,240 15,075 35,754 95,247 2,239,205 1,843,598 428,925 289,790 National Syndication 256,610 0 0 2,765 667,094 167,260 8,606 1,500 Transnational Syndication 1,573,070 0 0 9,858 508,858 381,865 24,650 2,433 Total Investment 3,517,920 15,075 35,754 107,870 3,415,157 2,392,723 462,181 293,723 76 EVCA YEARBOOK 2007

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 2,357,529 442,598 293,723 Outside Europe 65,050 0 2,508 18,538 2,486 35,194 19,583 0 Total Investment 3,517,920 15,075 35,754 107,870 3,415,157 2,392,723 462,181 293,723 Sectoral Distribution of Investments in Year Communications 108,950 0 1,614 7,772 350,990 611,485 25,382 164,977 Computer Related 121,110 2,132 0 41,970 41,013 41,136 32,561 0 Other Electronics Related 117,450 0 321 13,606 16,411 4,726 6,094 0 Biotechnology 62,940 0 5,401 2,669 3,618 58,189 29,671 0 Medical/Health Related 138,880 0 3,609 7,797 248,349 58,245 32,453 3,046 Energy 19,560 8,529 0 0 23,631 3,849 42,163 0 Consumer Related 225,210 0 0 33,034 858,755 397,276 112,748 9,219 Industrial Products and Services 587,800 4,414 6,454 0 973,128 331,470 77,319 0 Chemicals and Materials 778,310 0 0 572 8,337 63,807 2,622 0 Industrial Automation 60,940 0 0 208 75,514 1,930 0 0 Other Manufacturing 199,130 0 2,454 0 190,579 350,857 0 60,633 Transportation 9,500 0 0 0 99,145 85,257 27,319 7,460 Financial Services 61,870 0 10,692 0 147,727 41,308 1,396 41,437 Other Services 838,810 0 1,952 0 198,611 259,757 1,393 103 Agriculture 2,750 0 923 0 0 899 5,964 0 Construction 97,730 0 226 0 70,473 64,510 30,432 5,001 Other 86,980 0 2,108 242 108,876 18,022 34,664 1,847 Total Investment 3,517,920 15,075 35,754 107,870 3,415,157 2,392,723 462,181 293,723 Subtotal High-Tech 469,380 2,132 6,605 66,017 246,537 715,536 93,708 164,977 EVCA YEARBOOK 2007 77

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 3,560,875 542,386 36,333,538 Follow-on Investment 55,233 39,357 191,997 698,008 294,237 4,563,889 Total Investment in Year 172,865 96,463 2,815,126 4,258,883 836,623 40,897,427 Distribution of Investments by Investor Type Independent 30,507 72,688 2,092,223 3,867,349 829,974 30,059,609 Captive 46,757 13,738 256,023 59,517 0 6,257,306 Semi-Captive 86,340 10,037 329,794 280,456 6,649 4,580,512 Public Sector 9,261 0 137,086 51,561 0 0 Total Investment 172,865 96,463 2,815,126 4,258,883 836,623 40,897,427 Stage Distribution of Investments in Year Seed 4,074 0 32,258 14,154 581 68,855 Start-up 10,951 4,189 233,784 163,399 71,821 4,171,538 Expansion 56,991 32,391 658,142 518,226 329,245 5,193,973 Replacement Capital 2,691 33,181 316,216 242,016 2,036 2,494,743 Buyout 98,158 26,702 1,574,726 3,321,088 432,940 28,968,318 Small 68,266 26,702 128,989 162,960 7,365 1,555,912 Mid-market 29,892 0 1,110,892 1,121,410 425,575 9,267,326 Large 0 0 334,845 446,135 0 4,949,305 Mega 0 0 0 1,590,583 0 13,195,775 Total Investment 172,865 96,463 2,815,126 4,258,883 836,623 40,897,427 Syndication of Investments in Year No Syndication 156,832 94,263 1,897,158 4,166,284 744,911 33,937,139 National Syndication 10,333 0 835,550 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 4,258,883 836,623 40,897,427 78 EVCA YEARBOOK 2007