Survey - PricewaterhouseCoopers The Italian Private Equity and Venture Capital market in the first semester 2011
The Italian Private Equity and Venture Capital in the 1 st semester 2011 Players Fundraising Investments Divestments 2 2
Players full members full members 114 128 129 129 124 2007 2008 2009 2010 oct-2011 3
Players Italian private equity and venture capital players Italian banks Italian closed-end funds Pan-European funds Country funds Early stage funds Regional/public investors 26% 44 10% 16 7 4% 39 23% 13 49 8% 29% 4
Players Portfolio at 30 th June 2011 19,683 7,843 Portfolio at cost (Euro Mln) Funds available for investments (Euro Mln)* * Not considering Pan-European funds and captive players 5
Players Composition of portfolio at 30 th June 2011 Italy Abroad Private investors Public investors 1,303 1,303 88 1,136 1,136 85 417 393 1,215 1,051 886 743 Active investments Companies Active investments Companies 6
The Italian Private Equity and Venture Capital in the 1 st semester 2011 Players Fundraising Investments Divestments 7 7
Fundraising Fundraising activity (Euro Mln) 1,489 914 737 290 473 384 I sem. 2006 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 8
Fundraising Fundraising activity: annual vs 1 st semester 2011 (Euro Mln) 3,028 2,275 2,267 2,187 957 384 2006 2007 2008 2009 2010 I sem. 2011 9
Fundraising Fundraising activity by source in the 1 st semester 2011 (Euro Mln) 298.0 0.4 0,1% 383.6 77.7% 100.0% 85.2 22.2% Parent Organization Market Capital gain Total fundraising 10
Fundraising New funds raised on the market (Euro Mln) 1,103 Altri 703 Altri 470 236 379 298 I sem. 2006 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 (13) (15) (17) (8) (8) (7) * In parenthesis the number of players which raised funds in the period 11
Fundraising Geographical breakdown of new funds raised Italy Abroad 2% 32% 25% 98% 68% 75% 2009 2010 I sem. 2011 12
Fundraising Distribution by source of new funds raised I sem. 2010 I sem. 2011 55.4% 40.2% 32.8% 16.8% 16.8% 4.0% 0.0% 0.0% 8.1% 9.0% 9.3% 4.8% 0.9% 0.9% 0.0% 1.2% Banks Pension funds Insurance Companies Public Sector Private Investitors Corporate Investors Endowments Other 13
Fundraising Fundraising expected allocation Early Stage H-T Early Stage Non H-T Expansion Buy out Other 4% 5% 30% 17% 15% 27% 32% 52% 35% 49% 20% 8% 61% 38% 41% 26% 50% 52% 1% 3% 2% 4% 2% 5% 10% 3% 8% 2006 2007 2008 2009 2010 I sem. 2011 14
The Italian Private Equity and Venture Capital in the 1 st semester 2011 Players Fundraising Investments Divestments 15 15
Investment activity Number Companies Amount (Euro Mln) 2,772 1,908 1,524 826 1,069 552 119 153 170 155 129 159 104 138 147 136 113 138 I sem. 2006 I sem. 2007* I sem. 2008* I sem. 2009* I sem. 2010 I sem. 2011* * The figure concerning the amount invested includes (above the broken line) the activity of players not based in Italy 16
Investment activity: annual vs 1 st semestre 2011 Number Companies Amount (Euro Mln) 5,458 3,731 4,197 2,615 2,461 1,524 292245 302251 372284 283229 292226 159138 2006 2007* 2008* 2009* 2010** I sem. 2011* * The figure concerning the amount invested includes (above the broken line) the activity of players not based in Italy ** In order to give a complete overview about the Italian market in 2010, an add-on operation of relevant size is included 17
Invested amount by deal size Amount small and medium deal (Euro Mln) Amount large and mega deal (Euro Mln)* 1,453 856 624 1,052 1,319 383 686 215 337 900 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 * Investments with an amount between 150 and 300 Euro Mln (large deal) or more than 300 Euro Mln (mega deal) 18
Investments distribution by stage in the 1 st semester 2011 Amount (Euro Mln) Number 1,160 74 50 27 280 5 3 43 40 1 Buy out Expansion Replacement Early stage Turnaround 19
Investments distribution by type of investors in the 1 st semester 2011 Amount (Euro Mln) Number 63 894 44 388 12 15 173 7 18 26 35 8 Italian closedend funds Pan-European funds Country funds Regional/public investors Italian banks Early stage funds 20
Average invested amount by stage in the 1 st semester 2011 Amount (Euro Mln) Amount excluding large and mega deals (Euro Mln)* 43.0 21.9 9.6 5.9 3.8 8.7 0.3 0.8 Total market Buy out Expansion Replacement Turnaround Early stage * Investments with an amount between 150 and 300 Euro Mln (large deal) or more than 300 Euro Mln (mega deal) 21
Early stage investments Number Amount (Euro Mln) 55 52 56 51 50 46 39 40 41 40 24 9 I sem. 2006 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 22
Early stage investments: annual activity vs 1 st semester 2011 Number Amount (Euro Mln) 115 88 88 79 98 106 89 62 66 50 40 28 2006 2007 2008 2009 2010 I sem. 2011 23
Distribution of early stage investments by investor type in the 1 st semester 2011 (number) 34.0% 32.0% 26.0% 2.0% 6.0% Italian banks Country funds Italian closedend funds Regional/public investors Early stage funds 24
Expansion investments Number Amount (Euro Mln) 312 322 271 280 132 145 43 44 57 58 50 74 I sem. 2006 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 25
Expansion investments: annual activity vs 1 st semester 2011 Number Amount (Euro Mln) 1,013 796 641 583 371 280 97 102 133 112 109 74 2006 2007 2008 2009 2010 I sem. 2011 26
Distribution of expansion investments by investor type in the 1 st semester 2010 (number) 47.3% 33.8% 4.0% 6.8% 8.1% Italian banks Pan-European funds Country funds Regional/public investors Italian closedend funds 27
Turnaround investments Number Amount (Euro Mln) 78 27 22 16 5 5 4 8 5 5 3 1 I sem. 2006 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 28
Turnaround investments: annual activity vs 1 st semester 2011 Number Amount (Euro Mln) 416 145 81 41 8 11 12 11 14 51 3 1 2006 2007 2008 2009 2010 I sem. 2011 29
Buy out investments Number Amount (Euro Mln) 1,509 1,220 1,160 785 444 329 34 42 49 43 20 27 I sem. 2006 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 30
Buy out investments: annual activity vs 1 st semester 2011 Number Amount (Euro Mln) 3,295 2,869 2,444 1,688 1,647 1,160 100 87 113 72 56 27 2006 2007 2008 2009 2010* I sem. 2011 * In order to give a complete overview about the Italian market in 2010, an add-on operation of relevant size is included 31
Distribution of buy out Investments by investor type in the 1 st semester 2011 (number) 55.6% 25.9% 3.7% 14.8% Italian banks Country funds Pan-European funds Italian closed-end funds 32
Distribution of buy out investments by size (number) 2009 2010 I sem. 2011 67% 73% 63% 29% 22% 33% 4% 5% 4% Small (0-14.9 Euro Mln) Medium (15.0-149.9 Euro Mln) Large e Mega (>150.0 Euro Mln) 33
Distribution of initial and follow on investments by number Initial Follow on* 40% 49% 48% 63% 58% 64% 60% 51% 52% 37% 42% 36% 2006 2007 2008 2009 2010 I sem. 2011 * Including secondary buy out 34
Geographical distribution of investments in the 1 st semester 2011 (number) 3.8% Italy 96.2% 67.9% 18.9% 9.4% South + Islands Centre North Europe + Rest of the world 35
Geographical distribution of investments in the 1 st semester 2011 (amount) 1.1% Italy 98.9% 79.7% 5.0% 14.2% South + Islands Centre North Europe + Rest of the world 36
Regional distribution of investments by number in the 1 st semester 2011 40 20 17 16 9 9 9 7 7 4 3 3 2 2 2 2 1 37
Distribution of investments by target companies employees in the 1 st semester 2011 (number) 12.6% 1.9% 5.0% 4.4% 8.2% 24.5% SME 82.4% 43.4% 0-19 20-99 100-199 200-249 250-499 500-999 >1,000 38
Distribution of investments by target companies turnover (Euro Mln) in the 1 st semester 2011 (number) 11.3% 3.8% 10.1% 10.1% 11.9% 17.0% SME 74.8% 35.8% 0-2 2-10 10-30 30-50 50-100 100-250 >250 39
Sectoral distribution of investments by number in the 1 st semester 2011 19 16 15 14 13 12 10 9 9 6 5 5 5 4 4 3 2 2 2 1 1 1 1 40
Investments distribution in high tech companies Amount Number 2006 7% 28% 2007 4% 30% 2008 4% 24% 2009 21% 26% 2010 24% 37% I sem. 2011 16% 32% 41
Sectoral distribution of investments in high tech companies in the 1 st semester 2010 (number) Medical Services (other) Media & Ent. Eletronics Biotech Energy & Ut. Telecom. Computer Manufact. Ind. Prod. Aerospace Ind. Aut. Chemicals 11.8% 11.8% 9.8% 9.8% 7.8% 5.9% 5.9% 3.9% 3.9% 2.0% 2.0% 2.0% 23.5% 42
The Italian Private Equity and Venture Capital in the 1 st semester 2011 Players Fundraising Investments Divestments 43 43
Divestments Divestment activity Number Companies Amount (Euro Mln) 2,337 1,481 1,069 567 739 470 76 90 92 67 62 75 66 83 81 56 60 65 I sem. 2006 I sem. 2007 I sem. 2008 I sem. 2009 I sem. 2010 I sem. 2011 44
Divestments Divestment activity: annual vs 1 st semester 2011 Number Companies Amount (Euro Mln) 2,633 2,337 1,763 1,821 1,185 977 181 207 181 143 123 75 151 184 152 108 112 65 2006 2007 2008 2009 2010 I sem. 2011 45
Divestments Distribution of divestments by way out in the 1 st semester 2011 Number Amount 67.8% 41.3% 6.7% 13.9% 12.0% 11.8% 21.3% 4.4% 18.7% 2.1% IPO/Sale post IPO Trade sale Sale to VC-Fin. Inst. Write off Other 46
Divestments Distribution of divestments by type of investor (number) 28.0% 26.7% 21.3% 13.3% 10.7% Country funds Pan-European funds Italian banks Regional/public investors Italian closedend funds 47
Divestments Distribution of divestments by type of original investment in the 1 st semester 2011 (number) 49.3% 28.0% 10.7% 6.7% 5.3% Turnaround Replacement Early stage Buy out Expansion 48
Survey - PricewaterhouseCoopers The Italian Private Equity and Venture Capital market in the first semester 2011