2012 Pan-European Private Equity and Venture Capital Activity Activity Data on Fundraising, Investments and Divestments

European Private Equity & Venture Capital Association

The EVCA is the voice of European private equity. Our membership covers the full range of private equity activity, from early-stage venture capital to the largest private equity firms, investors such as pension funds, insurance companies, fund of funds and family offices and associate members from related professions. We represent 650 member firms and 500 affiliate members. The EVCA shapes the future direction of the industry, while promoting it to stakeholders such as entrepreneurs, business owners and employee representatives. We explain private equity to the public and help shape public policy, so that our members can conduct their business effectively.

The EVCA is responsible for the industry’s professional standards, demanding accountability, good governance and transparency from our members and spreading best practice through our training courses. We have the facts when it comes to European private equity, thanks to our trusted and authoritative research and analysis. The EVCA has 25 dedicated staff working in Brussels to make sure that our industry is heard.

2012 Pan-European Private Equity and Venture Capital Activity | Creating lasting value | 3

Disclaimer Version Presentation as of 26/4/2013

Disclaimer

The information contained in this report has been produced by the EVCA, based on PEREP_Analytics data and third party information. While the EVCA has made every effort to ensure the reliability of the data included in this report, EVCA cannot guarantee the accuracy of the information collected and presented. Therefore, the EVCA cannot accept responsibility for any decision made or action taken based upon this report or the information provided herein. This presentation is for the exclusive use of the persons to whom it is addressed and is intended for general information purposes only. It is not intended to constitute legal or other professional advice and should not be treated as such. Appropriate legal advice must be sought before making any decision, taking any action or refraining from taking any action in reliance on the information contained in this presentation. The EVCA does not assume any responsibility for any person’s reliance upon the information contained herein. In furnishing this presentation, the EVCA undertakes no obligation to provide any additional information or to update this presentation or any additional information or to correct any inaccuracies which may become apparent.

Unless otherwise specified, this presentation is confidential and may not be distributed, published, reproduced or disclosed to any other person or used for any other purpose, without the written permission of the EVCA.

Copyright information No part of this publication may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Copyright enquiries should be directed to the EVCA, Tel: + 32 2 715 00 20.

© Copyright EVCA May 2013 2012 Pan-European Private Equity and Venture Capital Activity | Creating lasting value | 4

Executive Summary

More data on www.evca.eu – Research & Data

Fundraising

→ Pages 7-26

•

Overall fundraising decreased in 2012 by 43% to €23.6bn compared to 2011. This reduction was driven by lower activity of larger funds. In 2012 only 13 funds were raising more than €250m compared to 26 in 2011. Funds that raised in excess of €250m in 2012 dropped in total volume by 51% compared to 2011. In contrast, the volume raised by funds smaller than €250m reduced by only 25% in the same period.

•

Pension funds and fund of funds accounted for almost half of all sources of funds with more than 20% each. Family offices & private individuals, government agencies and sovereign wealth funds follow as major sources with 10-12% each.

•

Despite macroeconomic challenges, €8.6bn (40%) of funds raised came from institutional investors outside of Europe.

Investments

→ Pages 27-59

•

The overall amount of €36.5bn invested in European companies in 2012 reduced by 19% compared to the previous year. This was due to the weak first half of 2012 coinciding with economic uncertainty in Europe. In contrast, the number of private equity backed companies remained stable at almost 5,000 European companies. Therefore, it was less capital intensive for the industry to invest in a constant number of companies in Europe. About 43% of the companies that received investment in 2012 were private equity backed for the first time.

•

The total amount of venture capital invested reduced year on year by 14% to €3.2bn. The number of venture capital backed companies remained stable at about 2,900. For the first time more than 1,000 companies attracted growth investments despite a decrease in amount of 26% compared to 2011. Buyout investments reached €28bn. More than 800 companies received buyout investments similar to the level from 2011 although the investment amount reduced by 19%.

Divestments

→ Pages 61-72

•

More than 2,000 European companies were exited, representing former equity investments of €22bn. While the number of companies remained stable the amount divested at cost decreased by 29%.

•

Of all exited companies in 2012 venture capital represented almost 50% and growth 23%. Their typical exits included trade sale, sale to another private equity firm and write-off. Buyout related exits attributed 85% of equity amount divested at cost. This presents a decline of 26%. Prominent exit routes were trade sale, sale to another private equity firm and public offering.

•

Initial Public Offering (IPO) levels remained very low. Only three buyout and five venture capital investments were able to take this exit route. 2012 Pan-European Private Equity and Venture Capital Activity | Creating lasting value | 5

Overview - Fundraising, Investments & Divestments

€ billion

2000–2012 - Industry statistics - Amount 120

112

100 80

80

80

72

73

71

60

55 48

40

47 40

37

35 28 28

24

27

29

30

27

9

13

11

42 37

33

31

27

25

20

20

47

43

22

19 14

14

24

20

22

12

0

2000

2001

2002

2003

2004

2005

Funds Raised

2006

Investments

2007

2008

2009

2010

2011

2012

Divestments

EVCA Statistics explained: For the purpose of a longer time series this graph shows “industry statistics” capturing activity by location of the private equity firm. In the following presentation most statistics on investments and divestments are reported as “market statistics” to focus on the impact of portfolio companies in Europe that are backed by private equity. This data is only available since 2007. Source: Thomson Reuters / EVCA (2000-2006) & EVCA / PEREP_Analytics (2007-2012) 2012 Pan-European Private Equity and Venture Capital Activity | Creating lasting value | 6

Fundraising Fundraising statistics explained •

Direct private equity investment funds that primarily focus on investments in Europe are monitored.

•

Funds raised are recorded in the country of the advisory team that is raising/managing the fund (“industry statistics”).

•

The funds included in the statistics are: private equity funds making direct private equity investments, mezzanine private equity funds, co-investment funds and rescue/turnaround funds.

•

The following funds are excluded from the statistics: infrastructure funds, real estate funds, distress debt funds, primary funds-of-funds, secondary funds-of-funds.

More data on www.evca.eu – Research & Data

Glossary – Fundraising Fund stage focus

Type of investors

•

Early-stage fund: A venture capital fund focused on investing in companies in their primary development stage.

•

Corporate investor: Corporations that deliver non-financial products and services.

•

Later-stage fund: A venture capital fund focused on investing in later-stage companies in need of expansion capital.

•

•

Balanced fund: A venture capital fund focused on both early-stage and development, with no particular concentration on either.

Endowment: An institution that is bestowed money (and possibly other assets) via a donation with the stipulation to invest it and use the gains for specific objectives so that the principal remains intact.

•

Family office: An office that provides investment management and other financial services to one or several families.

•

Foundations: A non-profit organisation through which private wealth is contributed and distributed for public or charitable purposes.

•

Mezzanine fund: A fund that provides (generally subordinated) debt to facilitate the financing of buyouts, frequently alongside a right to some of the equity upside.

Fund of funds: A private equity fund that primarily takes equity positions in other funds.

•

Generalist fund: A fund with either a stated focus of investing in all stages of private equity investment, or with a broad area of investment activity.

Government agencies: Country, regional, governmental and European agencies or institutions for innovation and development (including structures such as the EBRD or EIF).

•

Other asset manager: Financial institutions (other than bank, endowment, family office, foundation, insurance company or pension fund) managing a pool of capital by investing it across asset classes to generate financial returns.

•

•

•

•

Growth fund: Funds whose strategy is to invest in relatively mature companies that are looking for capital to expand or restructure operations. Buyout fund: A fund whose strategy is predominantly to acquire controlling stakes in established companies.

Independent and captive funds •

Captive funds: Funds that are 100% owned by the parent organisation

•

Pension funds: A pension fund that is regulated under private or public sector law.

•

Independent funds: Semi-captive funds (those in which the parent owns less than 100%) as well as wholly independent funds.

•

Sovereign wealth funds: State-owned investment fund managing a pool of money derived from a country's reserves.

NB: In the following presentation, unclassified figures concerning the type of investors have been extrapolated.

Fundraising

| Creating lasting value | 8

2012 Fundraising at a glance

€ billion

Incremental amounts raised during the year 90 80 70

79.6 11.4

• Overall fundraising decreased in 2012 by 43% to €23.6bn compared to 2011. This reduction was driven by lower activity of larger funds. In 2012, only 13 funds were raising more than €250m compared to 26 in 2011. Funds that raised more than €250m in 2012 dropped in total volume by 51% compared to 2011. The volume raised by funds smaller than €250m reduced only by 25% in the same period.

80.5 3.6

5.8

• Pension funds and fund of funds accounted for almost half of all sources of funds with over 20% each. Family offices & private individuals, government agencies and sovereign wealth funds follow as major sources with 10-12% each. Despite the macroeconomic challenges, €8.6bn (40%) of funds raised came from institutional investors outside of Europe.

1.3

60 50

40

41.6 58.6

64.8

4.4

30 18.9

20

8.3

6.3

1.1 3.3 10.8 3.7

2007

2008

10 0

Venture Capital

5.1 23.6

21.8 2.6 2.6

26.9

0.4 3.1 16.5

13.4 3.2

5.2

3.6

2009

2010

2011

2012

Buyout

Growth

Other*

Total

• Venture capital accounted for 15% of total fundraising compared to 12% in 2011, beating with € 3.6bn raised the 2010 fundraising low of the past five years. 102 venture capital funds raised new capital in 2012 compared to 152 in 2011. For the fourth year running government agencies attributed a new high of 40% to venture capital fundraising coming from 33% in 2011. • Buyout fundraising reduced by 39%. The €16.5bn raised presented a €10bn drop compared to the previous year, while still covering 70% of all fundraising. This can be attributed to the strong fundraising year of 2011 which saw 81 funds successfully raising new capital. Eight of these funds in 2011 were taking up more than €1bn. In 2012, 68 funds raised capital with only 3 reaching more than €1bn. • Growth fundraising reached only 9% of its 2011 level. Only 15 funds raised new capital compared to 32 in the previous year.

Key Figures 2012

All Private Equity

Venture Capital**

Buyout**

Growth**

Incremental amounts raised

€23.6bn

€3.6bn

€16.5bn

€0.4bn

Incremental number of funds

239

102

68

15

€19.8bn

€1.5bn

€13.8bn

€0.5bn

30

30

Final closings - Cumulative amount since inception Final closings – Number of funds

96

*Other includes Mezzanine and Generalist funds

Source: EVCA / PEREP_Analytics

Fundraising

6 ** Relates to fund focus | Creating lasting value | 9

Funds raised by fund stage focus

€ billion

9

€ billion

2007–2012 - Incremental amount raised during the year 8.3

70.3 64.8

60.3

58.6

8 7

50.3 3.2

6.3 6.0

6 5

2.5

4.4

1.2 2.2

3.7

4

40.3

5.3

5.2

3.6

30.3

3.7

3.6

26.9

3.2

3

1.5

1.3

1.6 1.6

2 1

1.0

2.3

1.3

0.6 2.0

1.8

2.0

0.2

0.4

3.8

2.8

2.6

0.7

2.0

13.4

1.7

10.8 1.1

0.9

10.3

0.4

1.0

0 Venture Capital

16.5

2.2

2.0

1.1

20.3

2.6

Growth capital

Mezzanine

0.3

Generalist

Buyout

Balanced Later-stage

Early-stage

2007

2008

2009

2010

2011

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 10

Funds raised by fund stage focus 2007–2012 – Number of funds that reach first, intermediary or final closing during the year 200

196

180 160

200 180

165 69

152

148

160

134

140

140

66

120

58

60

27

17

80

120

100 20

18

80

39

60

80

72

17

56

11

57

82

70

74 60

46

20

26

52

24

23

28

77

81 68

60 40

32 15

21 11

10

12

12

20

8

0 Venture Capital

78

60

100

40

135

102

57

100

160

Growth capital

Mezzanine

Generalist

Balanced

0 Buyout

Later-stage

Early-stage

2007

2008

2009

2010

2011

2012 NB: Also contains funds that only reported capital gains as fundraising

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 11

Funds raised by type of investor 80% 2007–2012 - Incremental amount raised during the year - % of total amount 70%

35%

Academic inst. / Endowments / Foundations

60%

Banks

30%

Capital markets

50%

25%

Corporate investors 40% 20%

Family offices & Private individuals

15%

Fund of funds & Other asset managers

30%

10%

Government agencies

20%

5%

Insurance companies

10%

Pension funds

0%

2007

2008

2009

2010

2011

2012

Sovereign wealth funds

€ billion

0%

100

2007 78.5

2008 80.4

2009

2010

2011

2012 41.1

50 18.6

21.8

2009

2010

23.6

New funds raised (excluding capital gains)

0 2007

2008

2011

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 12

Venture funds raised by type of investor 80% 2007–2012 - Incremental amount raised during the year - % of total amount 70%

45%

Academic inst. / Endowments / Foundations

60%

40%

Banks

35%

Capital markets

50%

30%

Corporate investors

40% 25%

Family offices & Private individuals

20%

Fund of funds & Other asset managers

30%

15%

Government agencies

10% 20%

Insurance companies

5%

Pension funds

10% 0%

2007

2008

2009

2010

2011

2012

Sovereign wealth funds

0%

€ billion

10

2007 8.2

2008

2009

2010

2011

6.2

5

2012 5.2

3.6

3.2

2009

2010

3.6

New funds raised (excluding capital gains)

0 2007

2008

2011

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 13

Buyout funds raised by type of investor 80% 2007–2012 - Incremental amount raised during the year - % of total amount 70%

45%

Academic inst. / Endowments / Foundations

60%

40%

Banks

35%

Capital markets

50%

30%

Corporate investors

25% 40%

Family offices & Private individuals

20%

Fund of funds & Other asset managers

30%

15% 10%

Government agencies

5%

Insurance companies

20%

0% 10%

Pension funds

2007

2008

2009

2010

2011

2012

Sovereign wealth funds

€ billion

0%

100

2007

2008

58.1

2009

2010

2011

2012

64.8

50

26.9 10.6

13.4

2009

2010

16.5

New funds raised (excluding capital gains)

0 2007

2008

2011

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 14

Growth funds raised by type of investor 80% 2007–2012 - Incremental amount raised during the year - % of total amount 70%

80%

Academic inst. / Endowments / Foundations

60%

70%

Banks

60% 50%

Capital markets

50%

Corporate investors

40%

Family offices & Private individuals

30% 30%

Fund of funds & Other asset managers

20%

Government agencies

10%

Insurance companies

40%

20%

Pension funds

10% 0%

2007

2008

2009

2010

2011

€ billion

0%

5

2007

2008

3.6

2009

2010

2011

4.4

2012

2012

2.6

1.2

Sovereign wealth funds

New funds raised (excluding capital gains)

1.1

0.4

0 2007

2008

2009

2010

2011

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 15

Funds raised by type of investor 2012 - Incremental amount raised during the year - % of amount All Private Equity funds

Venture funds 0.7% 7.5% 1.5% 11.7% 3.1% 1.5%

4.9%

1.5% 8.1% 4.5%

5.3%

5.3%

0.7%

239 funds

7.7%

191 firms

22.1%

12.3%

4.5%

102 funds

6.5%

89 firms

14.2%

9.3%

8.5%

10.1% 8.8%

14.9% 8.0% 1.7%

14.9%

1.0% 8.0%

1.7%

27.4% 1.7% 1.0% 1.8% 4.5%

39.7%

1.8% 4.5%

Family offices Fund of funds

Growth funds

Government agencies

0.3% 11.1%

2.3%

Insurance companies

2.8% 2.0%5.1%

10.2% 8.5%

Other asset managers

1.9%

Pension funds

68 funds

Private individuals

15 funds

61 firms

16.9%

37.3%

27.4%

Capital markets

Endowments and foundations

1.0%

16.9%

Buyout funds

Banks Corporate investors

1.7%

1.0%

Academic institutions

14 firms

31.3%

Sovereign wealth funds

2.3% 10.2%

8.5%

6.5% 1.6%

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 16

Concentration of capital % total amount of annual fundraising

2007–2012 – Incremental fundraising by amount bracket per fund during the year 70%

Number of funds

14

60%

50%

8

14

4

40%

30%

266 14

29

20%

5

36 10%

0%

15

40

70

347

2007

13 47 305

4 252

193

42 14

9

27 1

33

269

3

2008 2009 2010 €1bn

5

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 17

Funds raised by type of investor & region of the fund 2012 - Incremental amount raised during the year 100%

0.2%

0.0%

0.9%

0.0% 1.3% 0.0%

8.7%

90%

12.4%

20.5%

21.1%

26.8%

12.8%

Pension funds

9.3%

80%

Sovereign wealth funds

13.8%

15.8%

Insurance companies

6.7%

2.6%

Government agencies

8.6% 18.7%

3.8%

70% 29.4%

13.6%

3.9%

60% 29.7%

50%

Capital markets 23.2%

0%

3.1%

Banks 34.6%

17.3%

20% 3.6%

4.3% 1.8%

60.7%

22.5%

24.4%

1.2%

Family offices & Private individuals Corporate investors

1.8%

30%

10%

26.8%

18.6%

23.8%

10.2%

40%

Fund of funds & Other asset managers

0.0%

2.7%

UK & Ireland

Source: EVCA / PEREP_Analytics

0.0%

8.6% 3.9%

DACH

5.4% 3.6% 6.4%

Academic inst. / Endowments / Foundations

7.2% 0.2% 0.0%

1.5%

Nordics

13.2% 0.0%

1.3%

5.3% 0.7% 1.1% 0.4% 0.0%

France & Benelux

Southern Europe

CEE

DACH: Austria, Germany, Switzerland Southern Europe: Greece, Italy, Portugal, Spain

Fundraising

Nordics: Denmark, Finland, Norway, Sweden CEE: Central Eastern Europe | Creating lasting value | 18

Funds raised by country of management & country of origin (LP country)

€ billion

2012 - Incremental amount raised during the year 16 14

13.4

12 10 8 6

4.7 3.7

4 2.3

2.6 1.7

2

1.6

1.9 0.6

0.6

0.5

0.0

UK & Ireland

DACH

Nordics

France & Benelux

by country of management

Source: EVCA / PEREP_Analytics

Southern Europe

CEE

by country of origin

DACH: Austria, Germany, Switzerland Southern Europe: Greece, Italy, Portugal, Spain

Fundraising

Nordics: Denmark, Finland, Norway, Sweden CEE: Central Eastern Europe | Creating lasting value | 19

Funds raised by country of management € billion

2007-2012 - Incremental amount raised during the year 90 80

1.2 6.3

70 11.3

60 50

7.9 6.7

4.0

1.3

11.8

9.7 6.0 1.8 0.8

40

8.6 30 20

46.2

8.5

47.7 4.1 4.0 1.5 2.4 6.6

10 0 2007

2008 UK & Ireland

Source: EVCA / PEREP_Analytics

1.5 0.5 6.9 1.9 2.1

0.3

Nordics

NB: Include capital gains as fundraising

17.7

8.9

2009 DACH

4.3

2010 France & Benelux

2011 Southern Europe

0.6 0.5 4.7 1.6 2.6 13.5 2012

CEE

DACH: Austria, Germany, Switzerland Nordics: Denmark, Finland, Norway, Sweden Southern Europe: Greece, Italy, Portugal, Spain CEE: Central Eastern Europe

Fundraising

| Creating lasting value | 20

Fundraising geographic breakdown 2012 (2011) - Source of funds - % of total amount 9.1%

North America 25.2%

(9.8%)

(20.0%)

10.8% (17.2%)

8.0% (9.1%)

17.4%

0.1% (0.9%)

(12.0%)

Rest of World 1.5%

2.9%

(0.2%)

(3.7%)

Other Western Europe 11.9% Source: EVCA / PEREP_Analytics

Australia Asia 13.1% (14.5%)

(12.7%)

Fundraising

| Creating lasting value | 21

Venture Capital - Fundraising geographic breakdown 2012 (2011) - Source of funds - % of total amount 17.5%

North America 4.5%

(8.5%)

(1.6%)

10.1% (15.1%)

10.7% (31.7%)

34.5%

0.8% (2.4%)

(28.0%)

Rest of World 0.4%

4.9%

(0.0%)

(4.9%)

Other Western Europe 16.2% Source: EVCA / PEREP_Analytics

Australia Asia 0.3% (1.3%)

(6.6%)

Fundraising

| Creating lasting value | 22

Buyout - Fundraising geographic breakdown 2012 (2011) - Source of funds - % of total amount 7.4%

North America 31.3%

(12.2%)

(28.2%)

11.7% (7.8%)

7.8% (4.9%)

11.1%

0.0% (0.3%)

(8.7%)

Rest of World 2.0%

2.6%

(0.1%)

(3.0%)

Other Western Europe 10.7% Source: EVCA / PEREP_Analytics

Australia Asia 15.3% (19.2%)

(15.6%)

Fundraising

| Creating lasting value | 23

Funds raised by fund stage focus

€ billion

5.0

4.8

€ billion

2007–2012 - Final closing during the year - Amount 4.7

58.9

60 53.8

50

4.5 4.0

1.6

4.0

40

3.5 3.0

2.7

0.5

2.1 0.9

2.7

0.3

2.1

1.4

0.9

1.5 1.4

0.3 1.0

0.2

0.8

0.8 0.5

13.3

1.1

0.1

1.0

17.7

1.4

1.3

1.2

1.6 1.1

20

1.6

1.5 1.4

0.7

0.5

0.0

30

2.3

2.0

1.0

2.9

0.6

2.5

1.5

3.3

3.1

1.4

0.7

10

13.8

10.0

0.5

0.5

Venture Capital

0 Growth capital

Mezzanine

Generalist

Buyout

Balanced Later-stage

Early-stage

2007

2008

2009

2010

2011

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 24

Funds raised by fund stage focus 2007–2012 - Final closing during the year - Number of funds 90

90

80

80

70

70

60 50

83

59

60

54 49

17

70

50

50

45 20

40

8 22

30

20 10

24

25 30

8 5

5

12 6

18

20

20

9

34

26

39

40

16

9

6

6

30

30 22

3

5

4

4

20

10

5

0 Venture Capital

25

12 6

12

23 16

14

12

23

24

41

Growth capital

Mezzanine

Generalist

0 Buyout

Balanced Later-stage

Early-stage

2007

2008

2009

2010

2011

2012

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 25

Concentration of capital

% total amount of cumulative fundraising until final closing

2007–2012 - Final closing during the year - Amount & Number of funds 80%

Number of funds

70% 14 60%

12

50%

2

5

40% 2 30%

3

20%

10

37

14

13

48

17

81 2007

2008

10%

0%

9 4 17

28 39

69

6 21 74

6 18 7

10 4 77

63

2011

2012

79

€1bn

Source: EVCA / PEREP_Analytics

Fundraising

| Creating lasting value | 26

Investments Investments statistics explained •

Industry statistics are an aggregation of figures according to the country of the private equity firm’s office in charge of the investment. At European level, this relates to investments made by European private equity firms regardless of the location of the target company.

•

Market statistics are an aggregation of figures according to the location of the portfolio company. At European level, this relates to investments in European companies regardless of the location of the private equity firm.

•

Equity value: The amount of capital invested to acquire shares in an enterprise. The equity value includes equity, quasiequity, mezzanine, unsecured debt and secured debt provided by the firm.

More data on www.evca.eu – Research & Data

Glossary – Investment Stages

• Venture Capital • Seed: Financing provided to research, assess and develop an initial concept before a business has reached the start-up phase. • Start-up: Financing provided to companies for product development and initial marketing. Companies may be in the process of being set up or may have been in business for a short time, but have not sold their product commercially. • Later-stage venture: Financing provided for the expansion of an operating company, which may or may not be breaking even or trading profitably. Later-stage venture tends to finance companies already backed by venture capital firms.

• Growth: A type of private equity investment – most often a minority investment but not necessarily – in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets. • Buyout: Financing provided to acquire a company. It may use a significant amount of borrowed money to meet the cost of acquisition.

• Rescue/Turnaround: Financing made available to an existing business, which has experienced trading difficulties, with a view to re-establishing prosperity. • Replacement capital: The purchase of a minority stake of existing shares in a company from another private equity firm or from another shareholder or shareholders.

Investments

| Creating lasting value | 28

2012 Investments at a glance

50

6.7 6.7

40

38.4 38.4

40

30 30

1,299 1,299

20 20 10 10 00

1,161 1,161

593 593

348 348

6.0

6.3

2007 2007

2008 2008

Buyout - Amount VC - Amount Buyout - No. of companies Other - Amount Growth - No. of companies

Key Figures

€ billion

€ billion

€ billion € billion

3,667

4.3 4.3 57.2 3,339 53.4 57.2 3,339 6

70

60

60

703,155

4,000

70 70 3,6673,667

3,039 3,155 4.3 4.3 3,039 3,339 3,339

3,500 3,500

2,965 2,923 3,1553,155 3,000 2,965 3,0393,039 2,923 2,9652,965

3,000

57.257.2 53 53 44.9 4 41.9 50 6.7 4 6.7 5.2 5.2

19% compared to the previous year. This was due to the weak first half of 2012 coinciding with economic uncertainty in Europe. 4,0004,000 Number of companies financed

60 50

4,000

3,667

Number of companies financed

70 60

69.8 6

Number ofofcompanies Number companiesfinanced financed

• Overall €36.5bn was invested in European companies in 2012 with a decrease of Investments – Market statistics – Amount & No. of companies 70 4,500

• The number of private equity backed companies remained stable at almost 5,000 European companies. Therefore, it was less capital intensive for the industry to 3,5003,500 invest in a constant number of companies in Europe. About 43% of the companies 2,9232,923 3,000 that3,000 received investments in 2012 were private equity backed for the first time.

2,500 • The total amount of venture capital invested decreased year on year by 14% to 45 45 2,500 2,5002,500 €3.2bn. The number of venture backed companies remained stable at about 36.542 42 3 2,000 6.3 38.4 38.4 5.2 6.3 36 2,900. Start-up stage investments accounted for the majority of venture capital 5.2 36 34.5 40 40 2,000 34.5 3.8 2,0002,000 3.8 6.3 6.3 activity by amount and number of companies (56-60%). Life sciences, computer & 34.534.5 29.7 3.8 3.8 28.0 24.3 1,500 28.0 consumer electronics, communications and energy & environment accounted for 1,500 30 30 29.729.7 24 241,047 1,2991,299 28.028.0 1,5001,500 1,047 994 4 three quarters of all venture capital investments. 1,161 994 1,161 932 932 1,0471,047 5.1 994 994 1,000 932 1,000 932 • For1,000 the1,000 first time more than 1,000 companies attracted growth investments 20 20 5.1 5.1 5.1 775 775

50

881 593 593881 615 783 615 783 10 348 348 12.7 1012.7

878 775 775 878 500 500881 881 615 615783 783

despite a decrease in amount of 26% compared to 2011. Almost two thirds were in business 500 500 & industrial products and services, computer & consumer electronics, consumer services, energy and environment and life sciences.

878 878

12.712.7 3.7 3.7 3.2 0 6 6 6 4 4 4 4 4 40 3 3 0 0 • More 800 companies received buyout investments similar to the 2011 level 02009 0 than 2010 2011 2012 2009 2011 2012 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 although the investment amount reduced by 19% to €28bn. Buyout investments Growth - Amount VC - Amount 3.8

6

Buyout - Amount Growth - No. of companies VC - Amount VC - Amount Total - Amount - Amount OtherOther - Amount VC - No. of companies Growth of companies Growth - No. -ofNo. companies

Growth - Amount VC - No. of companies Buyout - Amount Buyout - Amount Buyout - No. of companies - Amount TotalTotal - Amount

broadly concentrate Growth - Amount Growth - Amount

VC -ofNo. of companies VC - No. companies

and life sciences.

2012

across sectors of business & industrial products and services, electronics, consumer goods and retail, consumer services

computer &companies consumer Buyout of companies Buyout - No. -ofNo.

All Private Equity

Venture Capital*

Buyout*

Growth*

€36.5bn

€3.2bn

€28.0bn

€3.8bn

Investments – Number of companies (Market statistics)

4,975

2,923

878

1,047

Number of firms involved (Market statistics)

1,004

556

428

329

Number of funds involved (Market statistics)

1,687

952

607

511

Investments – Amount (Market statistics)

Source: EVCA / PEREP_Analytics

* Relates to the investment stage of the portfolio company

Investments

| Creating lasting value | 29

Investments by stage focus Quarterly trend Q1 2007 – Q4 2012 - Market statistics - Amount

€ billion

18

16 14 12 10 8

6 4 2 0 Q1

Q2

Q3

Q4

2007

Q1

Q2

Q3

2008

Q4

Q1

Q2

Q3

Q4

Q1

2009

Q2

Q3

2010

Q4

Q1

Q2

Q3

Q4

Q1

2011

Venture Capital

Q2

Q3

Q4

2012

Buyout

Growth

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 30

Investments by stage focus Quarterly trend Q1 2007 – Q4 2012 - Market statistics - Number of companies 1,400 1,200 1,000 800 600 400 200 0 Q1

Q2

Q3

Q4

2007

Q1

Q2

Q3

2008

Q4

Q1

Q2

Q3

Q4

Q1

2009

Q2

Q3

2010

Q4

Q1

Q2

Q3

Q4

Q1

2011

Venture Capital

Q2

Q3

Q4

2012

Buyout

Growth

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 31

Venture Capital - Investments by stage focus

€ million

Quarterly trend Q1 2007 – Q4 2012 - Market statistics - Amount 1,200

1,000

800

600

400

200

0 Q1

Q2

Q3

Q4

2007

Q1

Q2

Q3

Q4

Q1

2008

Q2

Q3

Q4

Q1

2009

Seed

Q2

Q3

Q4

Q1

2010

Start-up

Q2

Q3

2011

Q4

Q1

Q2

Q3

Q4

2012

Later-stage venture

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 32

Venture Capital - Investments by stage focus Quarterly trend Q1 2007 – Q4 2012 - Market statistics - Number of companies 700 600 500 400 300 200 100 0 Q1

Q2

Q3

Q4

2007

Q1

Q2

Q3

2008

Q4

Q1

Q2

Q3

Q4

Q1

2009

Seed

Q2

Q3

Q4

Q1

2010

Start-up

Q2

Q3

2011

Q4

Q1

Q2

Q3

Q4

2012

Later-stage venture

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 33

Investments by stage focus € billion

€ billion

2007–2012 - Market statistics - Amount 8

60

57.2

50

7 6.3 6.0

6

0.3

0.2

40

34.5

5

2.4

2.3

3.8

4

0.1 6.7 1.9

3.7

0.1

0.2

0.1

20

1.8 5.2

1.8

5.1

28.0

3.2

4.3

1.8 3.6

3.5

12.7

3.8

10

1 0

3.7

29.7

30

6.3

3 2

38.4

1.9

1.6

0.5

2008

Later-stage venture

Start-up

1.7 1.0

0.5

2009 Seed

1.8

1.7

0.7

0.3

2007

2.0

1.8

2010 Growth

0.5

2011

Rescue/Turnaround

1.3

1.1 0.4

2012 Replacement capital

0 2007 2008 2009 2010 2011 2012 Buyout

Venture Capital Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 34

Investments by stage focus 2007–2012 - Market statistics - Number of companies 4,000 3,500

4,000

3,667 3,339

527

3,500

3,155

500

3,039

2,965

2,923

392

353

371

3,000

3,000

393

2,500

2,500

1,796 1,528

2,000

2,000

1,724 1,711

1,679

1,796

1,500

1,500 1,000

1,161

1,000 1,151

500 348

2008

Later-stage venture

150 176

68 174

52 140

990 994

775

593

2007

783

881

878

615

1,513

1,413

0

1,299

Start-up

2009 Seed

132 135

2010 Growth

500

1,047 839

939 932 103 76

2011

Rescue/Turnaround

67 118

2012 Replacement capital

0 2007 2008 2009 2010 2011 2012 Buyout

Venture Capital Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 35

Buyout - Investments by stage focus / equity split

70

1,400

60

1,200

50

1,000

40

800

30

600

20

400

10

200

0

Number of companies

€ billion

2007–2012 - Market statistics - Amount & Number of companies

0 2007

2008 Buyout < €150m (Amount) Buyout < €150m (Number of companies)

2009

2010 Buyout > €150m (Amount) Buyout > €150m (Number of companies)

2011

2012

Growth (Amount) Growth (Number of companies)

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 36

Investments by stage focus 2012 - Market statistics - % of Amount & Number of companies % of Amount

% of Number of companies Seed Start-up 4.9% 0.4%

Seed Later-stage venture 3.4%

Buyout 17.2%

Seed 6.9%

Start-up

Growth capital 10.4% Rescue/ Turnaround 1.0% Replacement capital 3.0%

Later-stage Replacement capital venture 2.3% Growth capital Rescue/ Turnaround 1.3% Rescue/ Turnaround

Start-up 35.2%

Replacement capital Growth capital Buyout 20.5% Buyout 76.8% Later-stage venture 16.5%

Venture Capital Buyout Growth

Venture Capital Buyout Growth

€3.2bn €28bn €3.8bn

2,923 Companies 878 Companies 1,047 Companies

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 37

Investments by stage focus & regions 2012 - Market statistics - Amount € billion

€ billion

9

1.2

8.1

8 6.9

7 1

0.8

6

0.8

0.8

0.0

0.0

0.7

5.6

5

0.1

1.1

0.5

0.5 0.4

0.8

0.4

3.9

4

0.4

0.6

0.0

3

2.8

0.8 0.3 0.2 0.4

0.2

0.4

0.4

0.0 0.3

0.3 0.1

0.1

UK & Ireland

France & Benelux

Later-stage venture

Start-up

DACH Seed

0.4

0.1 0.0 0.1

0

0.4

0.1

0.2 0.1 0.1

Southern Europe Growth

2

0.0 0.0

Nordics

Rescue/Turnaround

0.1 0.0 0.2 0.1 0.0 0.0 0.0

0.7

0

CEE Replacement capital

Buyout

Venture Capital Source: EVCA / PEREP_Analytics

1

DACH: Austria, Germany, Switzerland Southern Europe: Greece, Italy, Portugal, Spain

Investments

Nordics: Denmark, Finland, Norway, Sweden CEE: Central Eastern Europe | Creating lasting value | 38

Investments by stage focus & regions 2012 - Market statistics - Number of companies 1000

931

900 217

800 700

657

500 400 300

506

426 17

400

430

333

319

300 295

200

217 26

410

200

325 242

227

100 120 109

0

58

569 17

600

11 15

UK & Ireland

29 37

France & Benelux

Later-stage venture

Start-up

158 11 21

DACH Seed

36

183 71

8

24

Southern Europe Growth

123 18 74

74

7

Nordics

Rescue/Turnaround

12

100

31 58

1

9

173

139 91

123 33

0

CEE Replacement capital

Buyout

Venture Capital Source: EVCA / PEREP_Analytics

DACH: Austria, Germany, Switzerland Southern Europe: Greece, Italy, Portugal, Spain

Investments

Nordics: Denmark, Finland, Norway, Sweden CEE: Central Eastern Europe | Creating lasting value | 39

Investments by region 2012 - Industry vs. Market statistics - Amount By location of private equity firm

Nordics 11%

By location of portfolio company

CEE 2%

Nordics 14%

CEE 3%

UK & Ireland 28%

Southern Europe 8% UK & Ireland 43%

Southern Europe 10%

DACH 16%

DACH 23% France & Benelux 20%

Source: EVCA / PEREP_Analytics

DACH: Austria, Germany, Switzerland Southern Europe: Greece, Italy, Portugal, Spain

Investments

France & Benelux 22%

Nordics: Denmark, Finland, Norway, Sweden CEE: Central Eastern Europe | Creating lasting value | 40

Geographic investment flows 2012 - Industry vs. Market statistics - Amount Market statistics €0.8bn

are an aggregation of figures according to the location of the portfolio company. At European level, this relates to investments in European companies regardless of the location of the private equity firm.

Non-European private equity firms investing in portfolio companies in Europe

€1.2bn

€8.3bn

European private equity firms investing in portfolio companies outside Europe

Cross-border investments within Europe

€27.4bn

Industry statistics are an aggregation of figures according to the country of the private equity firm’s office in charge of the investment. At European level, this relates to investments made by European private equity firms regardless of the location of the target company.

Domestic investments in European countries

Source: EVCA / PEREP_Analytics

Investments

Europe includes: Austria, Baltic countries (Estonia, Latvia, Lithuania), Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Other CEE (Bosnia-Herzegovina, Croatia, Macedonia, Montenegro, Serbia, Slovenia, Slovakia), Poland, Portugal, Romania, Spain, Sweden, Switzerland, Ukraine, United Kingdom | Creating lasting value | 41

Venture Capital - Geographic investment flows 2012 - Industry vs. Market statistics - Amount Market statistics €210m

are an aggregation of figures according to the location of the portfolio company. At European level, this relates to investments in European companies regardless of the location of the private equity firm.

Non-European private equity firms investing in portfolio companies in Europe

€369m

€610m

European private equity firms investing in portfolio companies outside Europe

Cross-border investments within Europe

€2,365m

Industry statistics are an aggregation of figures according to the country of the private equity firm’s office in charge of the investment. At European level, this relates to investments made by European private equity firms regardless of the location of the target company.

Domestic investments in European countries

Source: EVCA / PEREP_Analytics

Investments

Europe includes: Austria, Baltic countries (Estonia, Latvia, Lithuania), Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Other CEE (Bosnia-Herzegovina, Croatia, Macedonia, Montenegro, Serbia, Slovenia, Slovakia), Poland, Portugal, Romania, Spain, Sweden, Switzerland, Ukraine, United Kingdom | Creating lasting value | 42

Investments as % of GDP 2000–2012 - Industry statistics - % of GDP %of GDP

0.60%

0.60% 0.55%

0.50%

0.40%

0.42%

0.41%

0.38% 0.35% 0.33%

0.30% 0.28%

0.34%

0.29% 0.26%

0.25%

0.20%

0.20%

0.10%

0.00% 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: Thomson Reuters Datastream (GDP) / Thomson Reuters / EVCA (2000-2006) & EVCA / PEREP_Analytics (2007-2012)

Investments

| Creating lasting value | 43

Investments as % of GDP 2012 - Industry statistics

1.000% 0.834%

0.000%

0.011%

0.016%

0.019%

0.029%

0.037%

0.052%

0.054%

0.078%

0.104%

0.134%

0.137%

0.140%

0.142%

0.144%

0.164%

0.200%

0.194%

0.219%

0.220%

0.248%

0.253%

0.264%

0.400%

0.283%

0.600%

0.482%

0.800%

0.558%

% of GDP

1.200%

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 44

Venture Capital - Investments as % of GDP 2012 - Industry statistics

0.140%

0.120%

0.118%

0.000%

0.000%

0.000%

0.000%

0.000%

0.001%

0.002%

0.004%

0.008%

0.009%

0.020%

0.010%

0.018%

0.021%

0.024%

0.025%

0.027%

0.030%

0.030%

0.032%

0.041%

0.038%

0.040%

0.044%

0.060%

0.053%

0.080%

0.067%

0.100%

0.072%

% of GDP

0.160%

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 45

Buyout - Investments as % of GDP

1.000% 0.900% 0.800%

0.706%

% of GDP

2012 - Industry statistics

0.700%

0.000%

0.000%

0.008%

0.008%

0.010%

0.010%

0.012%

0.022%

0.035%

0.055%

0.058%

0.087%

0.090%

0.100%

0.106%

0.108%

0.137%

0.148%

0.148%

0.150%

0.163%

0.171%

0.200%

0.180%

0.300%

0.201%

0.400%

0.330%

0.500%

0.400%

0.600%

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 46

Growth - Investments as % of GDP 2012 - Industry statistics % of GDP

0.200% 0.180%

0.160% 0.140%

0.100%

0.088%

0.120%

0.000%

0.000%

0.001%

0.003%

0.003%

0.004%

0.007%

0.008%

0.011%

0.013%

0.020%

0.017%

0.019%

0.020%

0.021%

0.023%

0.027%

0.028%

0.033%

0.034%

0.036%

0.041%

0.043%

0.036%

0.040%

0.052%

0.060%

0.053%

0.080%

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 47

Investments as % of GDP 2012 - Market statistics

1.400%

1.200%

0.018%

0.020%

0.033%

0.042%

0.066%

0.069%

0.084%

0.086%

0.103%

0.125%

0.137%

0.153%

0.159%

0.200%

0.190%

0.211%

0.226%

0.244%

0.247%

0.258%

0.260%

0.312%

0.352%

0.400%

0.369%

0.600%

0.373%

0.800%

0.530%

1.000%

0.602%

% of GDP

1.600%

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 48

Venture Capital - Investments as % of GDP 0.100% 0.090% 0.080%

0.000%

0.000%

0.001%

0.002%

0.002%

0.002%

0.003%

0.005%

0.010%

0.010%

0.020%

0.011%

0.011%

0.021%

0.021%

0.023%

0.024%

0.025%

0.027%

0.029%

0.032%

0.033%

0.029%

0.030%

0.038%

0.040%

0.041%

0.050%

0.054%

0.060%

0.054%

0.070%

0.065%

% of GDP

2012 - Market statistics

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 49

Buyout - Investments as % of GDP

% of GDP

2012 - Market statistics 1.200%

1.000%

0.000%

0.012%

0.012%

0.018%

0.035%

0.056%

0.063%

0.063%

0.064%

0.067%

0.067%

0.076%

0.106%

0.142%

0.152%

0.173%

0.179%

0.200%

0.211%

0.215%

0.309%

0.285%

0.193%

0.200%

0.316%

0.400%

0.421%

0.600%

0.515%

0.800%

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 50

Growth - Investments as % of GDP

% of GDP

2012 - Market statistics 0.300%

0.250%

0.200%

0.150%

0.000%

0.000%

0.003%

0.003%

0.005%

0.008%

0.008%

0.009%

0.012%

0.012%

0.019%

0.020%

0.020%

0.021%

0.024%

0.027%

0.027%

0.033%

0.036%

0.038%

0.039%

0.041%

0.051%

0.045%

0.050%

0.053%

0.060%

0.100%

0.000%

2012

2007-2011 Annual Average *Other CEE consists of Ex-Yugoslavia and Slovakia

Source: Thomson Reuters Datastream (GDP) / EVCA / PEREP_Analytics

Investments

| Creating lasting value | 51

Investments by sector focus 2012 - Market statistics - % of Amount & Number of companies 0% Agriculture

2%

4%

6%

8%

10%

12%

18%

20%

12.4% 12.5%

Business & industrial services

10.9%

8.3%

Chemicals and materials

2.5%

4.9% 9.0%

Communications

12.1%

8.1%

Computer & consumer electronics

17.0%

2.1% 1.8%

Construction

Consumer goods & retail Consumer services

9.5% 9.0%

5.9% 4.9%

Energy and environment Financial services

1.5%

15.2%

7.7%

4.3% 14.9%

Life sciences 0.5%

16.9%

1.7% 2.1% 1.6%

Transportation Unclassified

16%

0.3% 0.8%

Business & industrial products

Real estate

14%

0.3%

1.2%

Amount

Number of companies

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 52

Investments by sector focus 2007-2012 - Market statistics - Amount All Private Equity

Venture Capital 7

€ billion

€ billion

80

70 60 50

5 4

40

3

30

2

20 10

1

0

0

2007

2008

2009

2010

2011

2012

Buyout

2007

2008

2009

2010

2011

2012

2007

2008

2009

2010

2011

2012

Growth 8

€ billion

60

€ billion

6

50 40

7 6 5 4

30

3

20

2

10

1

0

0

2007

2008

2009

2010

2011

2012

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 53

Investments by sector focus 2007-2012 - Market statistics - Number of companies All Private Equity

Venture Capital 4,000

6,000

3,500

5,000

3,000

4,000

2,500 2,000

3,000

1,500

2,000

1,000

1,000

500 0

0 2007

2008

2009

2010

2011

2012

Buyout

2007

2008

2009

2010

2011

2012

2007

2008

2009

2010

2011

2012

Growth

1,400

1,200

1,200

1,000

1,000

800

800

600

600

400

400

200

200

0

0 2007

2008

2009

2010

2011

2012

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 54

Initial / Follow-on investments 2012 - Market statistics - % of Number of companies

44%

47%

54%

55%

57%

57%

Follow-on investment for the company Initial investment for the company 56%

62% 53%

55% 43%

2007

2008

50%

2009

60%

58% 45%

2010

46%

2011

57%

Initial investment for the private equity firm

43%

2012

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 55

Investments by number of employees 2012 - Market statistics - % of Number of companies All Private Equity 3.6%

0.8%

Venture Capital

4.1% 1.1%

0.2% 0.1%

0.3%

0.0%

4.4%

5.6% 2.6%

9.3%

29.2%

43.0%

65.0%

30.8%

Buyout

3.9%

3.1%

Growth

4.4%

14.5% 25.7%

Full-time equivalent staff by interval 0 - 19

4.6% 0.9% 20.6%

8.8%

4.6%

20 - 99

10.9%

42.8%

100 - 199 200 - 249 250 - 499

15.6%

500 - 999 17.4%

17.4% Source: EVCA / PEREP_Analytics

7.1%

1000 - 4999

40.6%

5000 +

Investments

| Creating lasting value | 56

Venture Capital - Investments by number of employees

1,600 1,400

1,403

Amount invested

1,412

2,000

Number of companies

1,800 1,600

1,200

1,400

1,000

1,200

800

1,000

600

800

Number of companies

€ million

2012 - Market statistics - Amount & Number of companies

600

400

307

400

200

0 0 - 19

20 - 99

100 - 199

7

30

24

2

0

200 - 249

250 - 499

500 - 999

1000 - 4999

5000 +

Amount invested

Number of companies

98%

99%

SME %

200

0

Full-time equivalent staff by interval

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 57

Buyout - Investments by number of employees

12,000

250 Amount invested

Number of companies

10,000

9,588

200

8,000

150

6,000

4,743

4,000 2,025

2,000 0

4,317

3,963

2,011

Number of companies

€ million

2012 - Market statistics - Amount & Number of companies

100 50

1,258 84

0

0 - 19

20 - 99

100 - 199

200 - 249

Amount invested

Number of companies

19%

53%

SME %

250 - 499

500 - 999

1000 - 4999

5000 +

Full-time equivalent staff by interval

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 58

Growth - Investments by number of employees 2012 - Market statistics - Amount & Number of companies

€ million

450

1,125

Amount invested

968

1,000

400

Number of companies

350

800

300 250

600

523 360

400

200

200 338

Number of companies

1,200

150

324

100

137

50

33

0

0 0 - 19

20 - 99

100 - 199

200 - 249

Amount invested

Number of companies

68%

81%

SME %

250 - 499

500 - 999

1000 - 4999

5000 +

Full-time equivalent staff by interval

Source: EVCA / PEREP_Analytics

Investments

| Creating lasting value | 59

Divestments Divestments statistics explained •

Industry statistics are an aggregation of figures according to the country of the private equity firm’s office in charge of the divestment. At European level, this relates to divestments made by European private equity firms regardless of the location of the target company.

•

Market statistics are an aggregation of figures according to the location of the portfolio company. At European level, this relates to divestments of European companies regardless of the location of the private equity firm.

•

Divestment amounts (including write-offs) are recorded at cost (i.e. the total amount divested is equal to the total amount invested before).

More data on www.evca.eu – Research & Data

Glossary – Divestment Stages •

Public offering: the sale or distribution of a company’s shares to the public for the first time by listing the company on the stock exchange, also includes sale of quoted shares after a lock-up period.

•

Repayment of principal loans: If a private equity firm provided loans or purchased preference shares in the company at the time of the investment, then their repayment according to the amortisation schedule represents a decrease of the financial claim of the firm into the company, and hence a divestment.

•

Repayment of silent partnership: A silent partnership is a type of mezzanine financing instrument. It is similar to a longterm bank loan but, in contrast to a loan, a silent partnership is subject to a subordination clause, so that in the event of insolvency all other creditors are paid before the silent partner. The company has to repay the partnership and has to pay interest and possibly a profit-related compensation. The subordination clause gives the capital the status of equity despite its loan character. This financing instrument is frequently used in Germany.

•

Sale to another private equity firm: The sale of company shares to another direct private equity firm.

•

Sale to financial institution: The sale of company shares to banks, insurance companies, pension funds, endowments, foundations and other asset managers other than private equity firms.

•

Trade sale: The sale of company shares to industrial investors.

•

Write-off: The total or partial write-down of a portfolio company’s value to zero or a symbolic amount (sale for a nominal amount) with the consequent exit from the company or reduction of the shares owned. The value of the investment is eliminated and the return to investors is a full or partial loss.

Divestments

| Creating lasting value | 62

2012 Divestments at a glance Divestments – Market statistics – No. of companies by exit route Buyout Growth

Venture Capital

Initial public offering

5 44

Sale of quoted equity

242

51 3 32 10 41

Write-off

243

Repayment silent partnership

102

91 29 199 72 46

Repayment of principal loans

65

165

Sale to another PE firm

51

Sale to financial institution

77

Sale to management

33

Other means

• Divestments from venture capital investments represented almost 50% of all exited companies in 2012. However, they only accounted for 9% of the amount divested at cost. The most prominent exit routes for venture backed companies were trade sale, write-off and sale to another private equity firm.

149

Trade sale

159

• Buyout related exits represented 85% of equity amount divested at cost and 27% by number of companies. The total amount divested reduced by 26% to €18.3bn. With 566 companies exited, buyout divestments reduced by only 13%. Trade sale, sale to another private equity firm and sale of quoted equity were the most prominent exit routes. • Growth exits represented 5% of equity amount divested at cost and 23% by number of companies. The total amount divested reduced by 51% to €1.2bn, while the number of companies exited increased by 32% to 475. Trade sale, sale to another private equity firm and write-off were the most prominent exit routes.

35 16 5 59 35 21 18

• IPO levels remained very low. Only 3 buyout and 5 venture capital investments were able to take this exit route.

Key Figures 2012

• More than 2,000 European companies were exited, representing former equity investments of €21.7bn. While the number of companies remained stable the amount divested at cost decreased by 29%.

All Private Equity

Venture Capital*

Buyout*

Growth*

€21.7bn

€1.9bn

€18.3bn

€1.2bn

2,074

999

566

475

Number of firms involved (Market statistics)

571

272

298

133

Number of funds involved (Market statistics)

1,006

480

490

182

Divestments – Amount at cost (Market statistics) Divestments – Number of companies (Market statistics)

Source: EVCA / PEREP_Analytics

* Relates to the investment stage

Divestments

| Creating lasting value | 63

Divestments at cost – Venture Capital / Buyout / Growth

35

1,600

30

1,400 2.4

25 20

3.2

1,000

2.0

1.9 1.2

2.1

800

2.1

15 10

1,200

2.3

Number of companies

€ billion

2007–2012 - Market statistics - Amount & Number of companies

20.4

5

2.4 0.7

600

24.8 2.1 1.1

18.3

400

14.5

10.4

200

7.5

0

0 2007

2008

2009

2010

2011

2012

Buyout - Amount divested

Growth - Amount divested

Venture Capital - Amount divested

Buyout - Number of companies

Growth - Number of companies

Venture Capital - Number of companies

Source: EVCA / PEREP_Analytics

Divestments

| Creating lasting value | 64

Divestments at cost by exit route 2007–2012 – Market statistics - Amount at cost € billion

12

10

8

6

4

2

0

2007

2008

2009

2010

2011

2012

Trade sale

Initial public offering

Sale of quoted equity

Write-off

Repayment of silent partnerships

Repayment of principal loans

Sale to another private equity firm

Sale to financial institution

Sale to management

Other means Source: EVCA / PEREP_Analytics

Divestments

| Creating lasting value | 65

Divestments at cost by exit route 2007–2012 - Market statistics - Number of companies 700 600 500 400 300 200 100

0 2007

2008

2009

2010

2011

2012

Trade sale

Initial public offering

Sale of quoted equity

Write-off

Repayment of silent partnerships

Repayment of principal loans

Sale to another private equity firm

Sale to financial institution

Sale to management

Other means Source: EVCA / PEREP_Analytics

Divestments

| Creating lasting value | 66

Divestments at cost by exit route – Venture Capital / Buyout / Growth 2012 - Market Statistics - % of Amount 2.2% 3.2% 1.5%

38.2%

26.0% 4.1%

Buyout

€18.3bn 8.8%

4.7% 4.4% 5.1%

36.7% 16.8%

0.7%

6.8%

Trade sale

1.6% 2.1%

6.4%

35.7%

14.8%

Venture Capital

€1.9bn

1.6%

4.6%

Growth €1.2bn

13.6%

Initial public offering 4.1% 4.4% 0.3%

4.7%

4.7%

Sale of quoted equity Write-off 36.7%

16.8%

24.4%

1.6%

Repayment of silent partnerships Repayment of principal loans

0.3% 4.7%

Source: EVCA / PEREP_Analytics

6.1%

6.9% 12.9%

Sale to another private equity firm

2.1%

24.4%

0.0%

4.9%

Sale to financial institution Sale to management

Other means

Divestments

| Creating lasting value | 67

Divestments at cost by exit route – Venture Capital / Buyout / Growth 2012 - Market Statistics - % of Number of companies 3.6% 10.1% 25.4%

2.7%

Buyout 3.2%

5.0%

7.0%

0.5%

6.4%

4.3% 12.3%

Venture Capital

4.1% 4.4%

2.0%

4.9%

Trade sale

23.7%

10.4% 0.0%

1.0% 7.1%

9.4%

999 Companies 4.7%

3.7% 7.1%

5.5%

28.1%

15.6%

7.5%

10.0%

0.5%

566 Companies

Growth

18.6%

475 Companies

Initial public offering Sale of quoted equity Write-off

23.8%

36.7% 16.8%

1.6%

Repayment of silent partnerships Repayment of principal loans Sale to another private equity firm

2.1% 0.3% 4.7% 24.4%

Source: EVCA / PEREP_Analytics

40.6%

Sale to financial institution Sale to management

Other means

Divestments

| Creating lasting value | 68

Divestments at cost by sector 4,500

400 353

4,000

3,500

3,895

350

3,262

3,161

3,000

248

250

2,500

211 2,254

198 159 1,710

2,000 1,500

1,810

150 109 1,017 42

37

15

Source: EVCA / PEREP_Analytics

404

135

Amount at cost

100

79

66

500

200

140 1,213

1,000

0

300

Number of companies exited

€ million

2012 - Market statistics - Amount & Number of companies (excluding write-offs)

483

337 31

25 17

12

23 19

50 0

Number of companies exited

Divestments

| Creating lasting value | 69

Divestments at cost by sector – Venture Capital / Buyout / Growth 2012 - Market statistics - Amount (excluding write-offs) Buyout Growth

Venture Capital 0.5%

Agriculture

0.1% 1.3% 17.3% 18.6%

Business & industrial products

4.8% 1.7%

Business & industrial services

1.6%

Chemicals & materials Communications

16.1%

9.3% 8.5% 6.9%

1.0%

21.3%

2.3% 7.4% 8.6%

Computer & consumer electronics

29.7% 0.3%

Construction

0.5%

3.6% 16.7% 14.1%

Consumer goods & retail

5.7%

5.1%

Consumer services

2.6%

Energy & environment

8.4%

Financial services

7.1%

1.0%

11.3%

2.1% 1.3% 10.7%

Life sciences

20.8% 0.0% 0.7% 0.1%

Real estate Transportation Unclassified

10.2%

13.5%

0.0% 1.5% 1.5%

3.9%

0.1% 0.2%

Source: EVCA / PEREP_Analytics

Divestments

| Creating lasting value | 70

Divestments at cost by sector – Venture Capital / Buyout / Growth 2012 - Market statistics - Number of companies (excluding write-offs) Buyout Growth

Venture Capital 0.9%

Agriculture

0.6% 1.3% 20.4%

Business & industrial products

19.1%

11.1%

Business & industrial services

5.7%

5.3% 4.1%

Communications

11.9%

Computer & consumer electronics

19.7% 1.0%

Consumer goods & retail

5.2%

Consumer services

5.4%

Energy & environment 0.7%

9.5% 2.5%

Construction

5.0%

Financial services

1.0%

Real estate

0.8%

Transportation

1.2%

Unclassified

11.5%

4.9% 13.6% 5.4%

3.2%

18.1%

8.1%

5.4%

2.3% 1.8%

Life sciences

18.3%

13.8%

4.2% 3.1%

Chemicals & materials

4.2%

25.6%

6.6%

9.1%

0.4% 0.5% 2.5% 3.1% 0.9% 1.5%

Source: EVCA / PEREP_Analytics

Divestments

| Creating lasting value | 71

Divestments at cost by region

€ billion

2012 - Industry vs. Market statistics - % of Amount 12 10.5

10

8

6

5.4 4.6

4.5 4.1

4

3.3

3.3

2.7

2.3

2

1.4

1.1 0.3

-

UK & Ireland

DACH

Nordics

France & Benelux

Industry statistics - Country of the private equity firm

Source: EVCA / PEREP_Analytics

Southern Europe

CEE

Market statistics - Country of portfolio company

DACH: Austria, Germany, Switzerland Southern Europe: Greece, Italy, Portugal, Spain

Divestments

Nordics: Denmark, Finland, Norway, Sweden CEE: Central Eastern Europe | Creating lasting value | 72

Acknowledgements

We are grateful for the generous support of General Partners representing private equity and venture capital firms across Europe who provided us with their activity data. The following comprehensive and verified pan-European statistics would not be possible without their on-going commitment. We also thank all the regional and national private equity associations that collect their activity data via PEREP_Analytics, the pan-European statistic platform. We thank the following associations for their participation to make PEREP_Analytics the most comprehensive private equity database on private equity in Europe: APCRI (Portugal), AVCO (Austria), BVA (Belgium), BVK (Germany), CVCA (Croatia), CVCA (the Czech Republic), DVCA (Denmark), EstVCA (Estonia), FVCA (Finland), HVCA (Hungary), IVCA (Ireland), LTVCA (Lithuania), NVCA (Norway), NVP (the Netherlands), PSIK (Poland), SECA (Switzerland), SEEPEA (South Eastern Europe), SLOVCA (Slovakia) and SVCA (Sweden).

2012 Pan-European Private Equity and Venture Capital Activity | Creating lasting value | 74

About PEREP_Analytics and EVCA Research • The overall coverage rate of all European private equity firms was 64% based on 1,883 eligible private equity firms. In terms of capital under management, the 2012 annual survey covered 89% of the total European market (base €534bn). • PEREP is a joint Pan-European statistics platform of the following private equity associations: APCRI (Portugal), AVCO (Austria), BVA (Belgium), BVK (Germany), CVCA (Croatia), CVCA (the Czech Republic), DVCA (Denmark), EstVCA (Estonia), EVCA (Europe), FVCA (Finland), HVCA (Hungary), IVCA (Ireland), LTVCA (Lithuania), NVCA (Norway), NVP (the Netherlands), PSIK (Poland), SECA (Switzerland), SEEPEA (South Eastern Europe), SLOVCA (Slovakia), SVCA (Sweden).

PEREP_Analytics Staff

EVCA Research Staff

Statistics Manager Dan Magirescu

Head of Research Dr Cornelius Mueller

Analyst Team Adriana Andronic Andreea Banica Monica Biolan Alina Ciucardel Raluca Coroi Cristina Cristea

Laura Dumitrascu Iuliana Furica Adelina Stefan Andrei Teslici Ioana Turbatu

Email: [email protected] Web: www.perepanalytics.eu

Research Manager Julien Krantz

Email: [email protected] Web: www.evca.eu 2012 Pan-European Private Equity and Venture Capital Activity | Creating lasting value | 75

EVCA European Private Equity and Venture Capital Association Bastion Tower Place du Champ de Mars 5 B – 1050 Brussels – Belgium www.evca.eu Tel: +32 2 715 00 20