2015 European Private Equity Activity
2015 European Private Equity Activity
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With data on more than 1,200 European private equity firms, the 2015 statistics
cover 91% of the €564bn in capital under management in Europe.
120 112
€ billion
100
80 80
80 72 71 73
60 55 54
48 47 47 48 48 47
40 43 42 42 40 41
35 37 38 38 35
40 33 31
28 28 27 29 27 30 27
24 25 22 25 22
20 19 20
20 13 14 14 12
9 11
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Funds raised Investments Divestments
Invest Europe statistics explained: This graph shows ‘industry statistics’ capturing activity by private equity firms’ European offices. In the following
presentation most statistics on investments and divestments are reported as ‘market statistics’. These capture activity based on the location of portfolio
companies in Europe. This data is available from 2007.
Source: Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
2015 European Private Equity Activity 2
What’s inside?
Executive Summary 4
1FUNDRAISING
In 2015 total fundraising reached €47.6bn
2 INVESTMENTS
The total amount of equity investment
3 DIVESTMENTS
Almost 2,500 European companies were
nearly matching the level of 2014. The in European companies increased by 14% exited in 2015, representing former equity
number of funds raised (274) decreased by to €47.4bn. The number of companies investments (divestments at cost) of
15% compared to 2014, but is still above the decreased by 11% to nearly 5,000. €40.5bn. This amount matches the level
levels of 2012 and 2013. 86% of them are SMEs. of 2014, which was until then the highest
reported exit volume to date for European
European private equity and venture capital Over a third of the total amount invested
private equity.
raised in the past three years was 70% more in European companies was attributed to
than between the years 2010 and 2012. cross-border investments. The most prominent exit routes by amount
In 2015, 40% of institutional investors came Venture capital investment increased by 5% to were trade sale (29%), sale to another private
from outside Europe. Pension funds provided €3.8bn. The amount invested was greater equity firm (27%) and sale of quoted equity
nearly a quarter of the capital raised. Funds across all stages, led by seed investments (17%). Four out of ten companies followed
of funds contributed 18%, followed by with an increase of 18%. Close to 2,800 these exit routes.
government agencies (14%), sovereign wealth companies received investments, a reduction As in 2014, public markets supported the sale
funds (13%), Family offices and private of 12%, which indicates a trend towards larger of quoted equity on flotation (IPO) for 50
individuals (12%). financing rounds. companies. Exits from already listed
companies in the form of sale of quoted
Venture capital fundraising increased by Buyout investment increased by 16% to
equity increased by almost 80% to €6.7bn,
8% to €5.3bn - the highest level since 2008. €36.3bn into a stable number of companies at
by amount divested at cost.
Early and later stage focused funds over 900. In terms of amount, large and mega
particularly increased. buyout activity picked up while Exits from venture capital investments by
mid-market investments remained stable. equity amount at cost increased by 10%
Buyout fundraising reduced by 7% to €33.6bn.
to €2.1bn. Buyout related exits at cost
The total amount raised by funds above €1bn Growth investment increased 11% to €6.5bn,
remained stable at €34bn. For former growth
grew by 13%. Funds that raised €500m to €1bn reaching their highest level since 2008.
investments the total amount divested at cost
reduced by 44%. The number of companies with growth
increased by 40% to €3.2bn.
With €2.9bn raised, growth fundraising investments reduced by 13% to just over
exceeded the 2014 level, which was already 1,100.
the highest reported since 2011.
2015 European Private Equity Activity 4
1. 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, distressed debt funds,
primary funds of funds, secondary funds of funds.
Glossary
Early-stage fund: A venture capital fund focused Family office: An office that provides investment
on investing in companies in their primary management and other financial services to one or Note: Fundraising amounts include capital gains
development stage. several families. except when reporting fundraising by type of
investors. In the following presentation, unclassified
Generalist fund: A fund with either a stated focus of Foundations: A non-profit organisation through which figures concerning the type of investors have been
investing in all stages of venture capital and private private wealth is contributed and distributed for extrapolated. More comprehensive data is available
equity investment, or with a broad area of investment public or charitable purposes. here: www.investeurope.eu/research/
activity.
Fund of funds: A private equity fund that primarily
Growth fund: Funds whose strategy is to invest in takes equity positions in other funds. Independent and captive funds
relatively mature companies that are looking for
capital to expand or restructure operations. Government agencies: Country, regional, Captive funds: Funds that are 100% owned by the
governmental and European agencies or institutions parent organisation.
Later-stage fund: A venture capital fund focused on for innovation and development (including structures
investing in later-stage companies in need of such as the EBRD or EIF). Independent funds: Semi-captive funds (those in
expansion capital. which the parent owns less than 100%) as well as
Other asset manager: Financial institutions (other wholly independent funds.
Mezzanine fund: A fund that provides (generally than bank, endowment, family office, foundation,
subordinated) debt to facilitate the financing of insurance company or pension fund) managing a pool
buyouts, frequently alongside a right to some of the of capital by investing it across asset classes to
equity upside. generate financial returns.
• In 2015 total fundraising reached €47.6bn, nearly matching the level of 2014. The number of
funds raised (274) reduced by 15% compared to 2014, but is still above the level of 2012 and Incremental amounts raised during the year (€ billion)
2013. European private equity and venture capital raised in the past three years (2013-2015)
was 70% more than in the years 2010-2012. 54.4
• Pension funds provided nearly a quarter of funds raised from institutional investors. Funds of
funds contributed 18%, followed by government agencies (14%), sovereign wealth funds (13%), 3.3
Family offices and private individuals (12%) and insurance companies (9%). Institutional 1.1 48.0 47.6
investors outside Europe contributed 40% to the annual fundraising for Europe, matching 2014.
• Venture capital reached with €5.3bn its highest level since 2008, following an 8% increase over 4.0
the previous year. Fundraising for early-stage focused funds increased by 13% to €2.7bn, while 41.6 5.8
later stage fundraising nearly tripled to €870m. Government agencies contributed 31% of the 2.8
funds raised, below the levels of 2010 to 2012, in which regularly more than one third was 2.9
attributed to this source. Other major sources were fund of funds (23%), corporate investors 5.1
(14%) and family offices and private individuals (12%). North American institutional investors
contributed 11%. 4.4
• Buyout fundraising decreased by 7% to €33.6bn representing more than 70% of all fundraising.
Pension funds remained the largest institutional investor (25%) in European buyout funds,
followed by funds of funds & other asset managers (18%) and sovereign wealth funds (15%).
North American institutional investors contributed more than a quarter. While the amount 24.6 45.4
raised by funds above €1bn increased by 13%, the total amount raised by funds between
€500m to €1bn reduced by 44%. 3.4 36.3
33.6
• Growth funds with €2.9bn raised exceeded the 2014 level, which was previously the highest 0.5
reported since 2011. The 38 growth funds raised capital mostly from government agencies 26.9
and family offices & private individuals.
Legend
50
€ billion
45
Balanced 45
Later-stage
6 Early-stage
40
€ billion
5.3 36
5.2
4.9 35 34
5 4.6
4.4
1.8 30
3.9 27
4 2.2
2.3 3.7
25
2.6
1.5 0.9 2.9 2.8
3 2.8 20
17
1.0 0.3 2.3 2.2
0.2 2.1 2.1
15
2 0.3
1.8 1.7
1.5
1.3 10
2.7 1.1
2.2 2.4
1 2.0
1.7 0.5 5
0 0
Venture Capital Growth Mezzanine Generalist Buyout
Legend
Balanced
160 152 Later-stage 160
Early-stage
58 117
120 113 120
39
98
100 100 93
90
46
46 84
10 81
20
80 35 80 73
11 60
9 57
60 6 60
49
38 40 38
40 74
80 32 31 40
60 58 57
18 19
20 12 14 20
9 10 10
0 0
Venture Capital Growth Mezzanine Generalist Buyout
70% Number
% total amount of annual fundraising
of
12
funds
60%
50% 8 11
11
40% 4
30%
37
20%
216 25
42 12
203 20 44
269 14 4 35
10% 8 31 6
4 5 12 237 197
0%
2011 2012 2013 2014 2015
< €100m €100m - €250m €250m - €500m €500m - €1bn > €1bn
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 10
All Private Equity – Funds raised by region of management
2011-2015 - Incremental amount raised during the year
60
€ billion
0.4
0.9
50 0.4 0.4
9.4
2.3 2.1
0.8
40 1.8 7.0 10.5 11.9
8.6 1.9
6.2
30 7.8
8.5 0.5 5.9
0.6 2.8
20 4.3 5.1
1.8 34.8
2.5
22.7 22.5
10
17.7
14.0
0
2011 2012 2013 2014 2015
UK & Ireland DACH Nordics France & Benelux Southern Europe CEE
100% 3%
0%
4% 0% 0%
1% 10% 10%
15% 10%
90% 21% 3% 0% Sovereign wealth funds
Pension funds
80% 12% 17%
Insurance companies
70% 29%
21%
48% Government agencies
68% 27%
60%
3% 28% Fund of funds & Other asset managers
60 54.2
48.0 47.5
€ billion
41.1
40
24.5
New funds raised
20 (excluding capital gains)
0
2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 14
Venture Capital - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount
40%
Academic inst. / Endowments / Foundations
35% Banks
10
€ billion
50 45.3
€ billion
36.3
40 33.5
26.9
30
16.7 New funds raised
20
(excluding capital gains)
10
0
2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 16
Growth - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount*
70%
Academic inst. / Endowments / Foundations
60% Banks
6
€ billion
4.4
4 2.9
2.8
New funds raised
2 1.1 (excluding capital gains)
0.5
12.4%
(9.3%)
9.4%
(10.7%) 0.4%
22.4% (0.8%)
(23.5%)
Rest of world
3.0% 1.5% Australia
(2.4%) (2.2%) Asia
15.5%
Unclassified Europe (10.5%)
5.8%
(5.1%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 18
Venture Capital - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount
20.1%
(7.8%)
10.5%
(20.2%) 2.2%
32.7% (2.9%)
(41.6%)
Rest of world
0.3% 1.1% Australia
(0.2%) (5.7%) Asia
0.2%
Unclassified Europe (0.2%)
18.6%
(5.1%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 19
Buyout - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount
11.8%
(9.5%)
8.0%
(9.4%) 0.0%
14.6% (0.0%)
(15.6%)
Rest of world
4.3% 1.4% Australia
(2.9%) (1.6%) Asia
17.9%
Unclassified Europe (13.0%)
5.1%
(5.9%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 20
Final closing - Funds raised by fund stage focus
2011–2015 - Final closing during the year - Amount(1)
50 49
€ billion
€ billion
Legend
5
Balanced
45
Later-stage 4.3 40
Early-stage 40
4 3.8
1.3
35
3.2 3.3
30 28
2.9 2.8
3
1.1 25
0.9
1.2 2.1
1.4
0.2 20 18
2 1.7
1.7 15
1.5 1.6
0.3 1.4 1.4 15
0.3
1.0 1.0
1 1.0
0.1
2.0 2.1 0.9
0.8 10
0.7 0.8
1.4 0.5
1.1 5
0.5
0 0
Venture Capital Growth Mezzanine Generalist Buyout
Legend
Balanced
60 Later-stage 60
Early-stage
50 50 50
50 50
46
43 43
13 40 41
40 40
25
32 18 4
13 27 30
26
30 24 30
14 5 20
4
20 9 20
14 14
33 13 13
6 11
22
10 21 7
6 10
16 5 5
12 4
3
0 0
Venture Capital Growth Mezzanine Generalist Buyout
of
80% funds
12
70% 13
60%
50%
3 7
5
40%
30%
37
20% 7
18 10
10
17 31
4 7
10% 13 27 7
77 66 4 23 13
62 79 65
0%
2011 2012 2013 2014 2015
< €100m €100m - €250m €250m - €500m €500m - €1bn > €1bn
Source: Invest Europe / PEREP_Analytics
Note: (1) The total amount raised by funds that reached a final closing in the year. Amounts from previous incremental fundraising rounds and years are aggregated to the final amount.
(2) The number of funds that reached a final closing in the year. Each fund is captured only once, when the full amount has been raised.
Market statistics
CC A+B+C
DD A
Industry statistics
A+B+D
A Domestic investments in European countries
• The total amount of equity investments in European companies increased by 14% to €47.4bn. Investments – Market statistics – Amount & No. of companies
The related number of companies reduced by 11% to almost 5,000. 86% of them are SMEs.
3,237
• Over a third of the total amount invested in European companies was attributed to cross-border 3,055
investments. This was the case for all private equity as well as venture capital investments. 2,965 2,981
2,836
• Venture capital investments increased by 5% to €3.8bn. The amount invested increased across
all stages led by seed investments with an increase of 18%. Later-stage venture increased by 47.4
5% and start-up investments by 4%. The reduction in number of companies by 12% to 2,836 44.9
indicates a trend towards larger financing rounds across all stages. Most capital was 41.8
concentrated in life sciences (34%), computer & consumer electronics (20%) and 6.5
communications (19%) sectors. 5.2 36.8 36.3
• Buyout investments increased by 16% to €36.3bn into a stable number of companies at 944. 5.8 36.3
In terms of amount, large and mega buyouts increased, while mid-market investments remained
34.5
4.0 3.6
stable. More than 60% of buyout investments concentrated in companies active in business 31.3
& industrial products (18%), consumer goods & retail (15%), financial services (12%) and life 28.1 28.0 1,272
sciences (11%). 1,122 1,108
1,066
• Growth investments increased 11% to €6.5bn, reaching their highest level since 2008. 932
The number of companies receiving growth investments reduced by 13% to 1,108. Investments
concentrated in the sectors of communication(17%), energy & environment (14%), consumer
goods & retail (13%) and computer & consumer electronics (12%). 881 896 951 944
839
Growth
capital
Buyout 21.9%
76.6%
Later-stage
venture
12.7%
Venture Capital €3.8bn Venture Capital 2,836 Companies
Buyout €36.3bn Buyout 944 Companies
Growth €6.5bn Growth 1,108 Companies
€ billion
7
€ billion
35
6
30
5
25
3.8
4 3.7 3.6
0.2
3.4
0.1
0.1 20
3.2
0.1 36.3
0.1 6.5 34.5
3 5.8 31.3
2.0 15
1.8 5.2 1.9 28.1 28.0
1.8
1.8
2 4.0
10
3.6
1 1.7 5
1.5 1.6 1.7
1.3 1.1
1.0 1.0 0.8
0.5 0.6
0.3 0.3 0.2 0.3
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital Buyout
Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 29
Investments by stage
2011–2015 - Market statistics - Number of companies
4,000
3,237
3,500
3,055
2,965 2,981
2,836
3,000 470
359 413
392
431
2,500
1,000
2,000
1,679 1,796 1,948
1,833
1,500 1,812
1,272
1,066 1,122
500 939 932 843 885 853 644
1,108
76 117 62 104 58 89 80
103 65 48
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital Buyout
Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 30
Buyout – Investments by equity bracket
2011–2015 - Market statistics - Amount & Number of companies
60 886 900
Number of companies
€ billion
15 816 800
50 50 700
Number of companies
673 700
€ billion
Number of companies
20 500
816 35 18 800
8 238 7 268 7 263 300 8
8 16 200
10 700
11 13 13
30 6 2 128 100
50574 296215 2
6 8 2 600 33 3 33 4 6
27 4 32 3 400
0550 30 185 4 547 16
5 18 11 10 0 10
9 25 493 8 327 500
38 20078 2008 2009 2010 2011 20127 2013
7 378 8 400 7 298 300
20 8 327 57 268 5 269 277
18 8 16
238 7 268 7 263 300
16 200 15 15
15 11 1313 13 13 200
6 5 2 128 100
0 29 2
6 8 2 33 3 33 4 27 4 32 3
0 18 10 4 16 18 11 10 0 Small (<€15m) - Amount
2008 2009 2010 2011 2012 2013 100
5 Mid-market (€15m - €150m) - Amount
31 43
33 27 33
4 18 4 11 3 10 4 12 4 18
0 Large (€150m - €300m) - Amount 0
2011 2012 2013 Mega (> €300m) - Amount
2014 2015
Small (<€15m) - Amount Small (<€15m) - No. of companies
Mid-market (€15m - €150m) - Amount Mid-market (€15m - €150m) - No. of companies
Large (€150m - €300m) - Amount Large (€150m - €300m) - No. of companies
Mega (> €300m) - Amount Mega (> €300m) - No. of companies
Small (<€15m)
Source: Invest Europe / PEREP_Analytics - No. of companies
2015 European Private Equity Activity (€15m - €150m) - No. of companies
Mid-market FUNDRAISING INVESTMENTS DIVESTMENTS 31
Large (€150m - €300m) - No. of companies
Mega (> €300m) - No. of companies
Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Amount
12
€ billion
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1,200
1,000
800
600
400
200
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
0.7
€ billion
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
800
700
600
500
400
300
200
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Market statistics
are an aggregation of figures according to
€3.3bn the location of the portfolio company.
Non-European private At European level, this relates to
investments in European companies
equity firms investing
regardless of the location of the private
in portfolio companies equity firm.
in Europe
€13.1bn
€3.2bn
European private
equity firms investing Cross-border
in portfolio companies investments
outside Europe within Europe
Market statistics
are an aggregation of figures according to
€313m the location of the portfolio company.
Non-European private At European level, this relates to
investments in European companies
equity firms investing
regardless of the location of the private
in portfolio companies equity firm.
in Europe
€994m
€495m
European private
equity firms investing Cross-border
in portfolio companies investments
outside Europe within Europe
DACH
DACH 19%
19%
France & Benelux France &
28% Benelux
29%
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 38
Investments by stage and regions
2015 - Market statistics - Amount
12
2.5
€ billion
€ billion
10.2
9.9
10
2.0
8
1.5
6.5
1.2
2.4
0.1 6
0.9 0.9
1.0 4.7
0.0 0.0
1.6 0.7
0.4 4 3.7
0.5
0.5 1.0 0.4
0.3 0.0 0.8
0.5 0.0 0.2 2
0.5 1.2
0.4 0.2 0.4 0.0 0.1
0.0 0.2 0.1 0.2
0.1 0.1 0.1 0.2 0.1 0.0 0.1 0.2 0.0
0.1 0.0 0.0 0.0
0.0
UK & Ireland France & Benelux DACH Southern Europe Nordics CEE
0
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital
900
244
800
700
578 598
600 45
33
500
545
400
400 343
368
455 300
278
300
14
224 222 190
455
36 200
200 175 362
59 144
129
100
142 100
100 187 165
127 38
97 105 35 107
6 8 14 18 18 11 74 5 7 0
48 65 5 40 47 1 0
0
UK & Ireland France & Benelux DACH Southern Europe Nordics CEE
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital
Buyout
Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 40
All Private Equity - Investments as % of European GDP
2000–2015 - Industry statistics: Location of the PE firm
0.60%
%of GDP
0.55%
0.53%
0.50%
0.40%
0.40% 0.39%
0.35%
0.33%
0.32% 0.32%
0.30%
0.30% 0.28%
0.26% 0.26% 0.26%
0.25%
0.23%
0.19%
0.20%
0.10%
0.00%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: : IMF, World Economic Outlook Database (GDP) / Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 41
All Private Equity - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
1.000%
% of GDP
0.799%
0.900%
0.800%
0.700%
0.600%
0.437%
0.433%
0.500%
0.388%
0.332%
0.302%
0.400%
0.257%
0.247%
0.198%
0.300%
0.187%
0.176%
0.142%
0.108%
0.107%
0.097%
0.200%
0.084%
0.075%
0.071%
0.050%
0.036%
0.032%
0.031%
0.026%
0.015%
0.008%
0.000%
0.100%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 42
Venture Capital - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
0.140%
% of GDP
0.109%
0.120%
0.100%
0.079%
0.080%
0.047%
0.047%
0.060%
0.041%
0.039%
0.034%
0.034%
0.033%
0.032%
0.026%
0.025%
0.025%
0.040%
0.023%
0.022%
0.015%
0.010%
0.008%
0.007%
0.005%
0.005%
0.020%
0.002%
0.002%
0.002%
0.001%
0.000%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 43
Buyout - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
0.800%
% of GDP
0.677%
0.700%
0.600%
0.500%
0.322%
0.314%
0.400%
0.313%
0.233%
0.300%
0.208%
0.179%
0.155%
0.153%
0.149%
0.137%
0.200%
0.087%
0.062%
0.062%
0.060%
0.033%
0.030%
0.029%
0.024%
0.023%
0.100%
0.013%
0.008%
0.005%
0.001%
0.000%
0.000%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 44
Growth - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
0.120%
% of GDP
0.098%
0.100%
0.084%
0.080%
0.080%
0.058%
0.060%
0.039%
0.040%
0.027%
0.024%
0.020%
0.019%
0.018%
0.018%
0.017%
0.016%
0.015%
0.014%
0.014%
0.013%
0.011%
0.008%
0.020%
0.005%
0.005%
0.004%
0.001%
0.000%
0.000%
0.000%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 45
All Private Equity - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
1.254%
1.400%
% of GDP
1.200%
1.000%
0.800%
0.633%
0.497%
0.496%
0.478%
0.453%
0.600%
0.381%
0.376%
0.337%
0.322%
0.305%
0.302%
0.400%
0.218%
0.215%
0.188%
0.155%
0.146%
0.142%
0.141%
0.125%
0.119%
0.090%
0.085%
0.064%
0.200%
0.021%
0.008%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 46
Venture Capital - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
0.060%
% of GDP
0.051%
0.044%
0.050%
0.037%
0.035%
0.040% 0.033%
0.033%
0.033%
0.031%
0.029%
0.028%
0.025%
0.024%
0.024%
0.030%
0.023%
0.016%
0.015%
0.014%
0.020%
0.010%
0.005%
0.005%
0.004%
0.010%
0.003%
0.002%
0.001%
0.001%
0.000%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 47
Buyout - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
1.400%
% of GDP
1.198%
1.200%
1.000%
0.800%
0.542%
0.600%
0.407%
0.389%
0.380%
0.310%
0.300%
0.300%
0.251%
0.400%
0.236%
0.232%
0.219%
0.164%
0.160%
0.151%
0.142%
0.139%
0.108%
0.103%
0.088%
0.087%
0.050%
0.200%
0.028%
0.013%
0.002%
0.001%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 48
Growth - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
0.160%
% of GDP
0.137%
0.140%
0.120%
0.087%
0.086%
0.100%
0.072%
0.080%
0.059%
0.056%
0.051%
0.046%
0.060%
0.041%
0.038%
0.035%
0.028%
0.025%
0.023%
0.040%
0.019%
0.017%
0.016%
0.015%
0.014%
0.014%
0.011%
0.011%
0.005%
0.005%
0.020%
0.001%
0.000%
0.000%
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 49
All Private Equity - Investments by sector
2015 - Market statistics - % of Amount & Number of companies
€ billion
€ billion
45 3.5
40 3
Transportation
35
30 Real estate
2.5
25 2
Life sciences
20 1.5
15 Financial services
1
10 Energy and environment
5 0.5
Consumer services
0 0
2011 2012 2013 2014 2015 Consumer goods & retail 2011 2012 2013 2014 2015
€ billion
€ billion
35 Communications
6
30 Chemicals and materials
5
25 Business & industrial services
4
20 Business & industrial products
3
15
Agriculture
10 2
5 1
2008 2009 2010 2011 2012 2013
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 51
Investments by sector
2011-2015 - Market statistics - Number of companies
All Private Equity Venture Capital
6,000
3,500
5,000 3,000
Transportation
4,000 2,500
Real estate
2,000
3,000 Life sciences
1,500
2,000 Financial services
1,000
1,000 Energy and environment
500
Consumer services
0 0
2011 2012 2013 2014 2015 Consumer goods & retail 2011 2012 2013 2014 2015
Follow-on investment
for the company
11.1%
15.8%
16.6%
21.1%
5.1% 28.3%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 54
Venture Capital - Investments by portfolio company size
2015 - Market statistics - Amount & Number of companies
2,000 2,500
companies
Number of
1,843
€ million
1,200 1,500
1,000
800 1,000
600
400 342 500
200 94 133
54 1 19
0 0
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +
14 250
companies
Number of
12.9
Amount invested
12
200
10
150
8
6.6
6 5.3
100
4.2
3.8
4
2.5 50
2
0.4 0.7
0 0
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +
1.8 450
€ billion
companies
Number of
Amount invested
1.6 1.5 400
1.4 350
1.2 300
0.9 1.0
1.0 0.9 250
0.8 200
0.6 0.6
0.6 0.5 150
0.2 50
0.0 0
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +
Market statistics
CC A+B+C
DD A
Industry statistics
A+B+D
A Domestic divestments in European countries
Initial public offering (IPO): The sale or distribution of Sale to another private equity firm: The sale of
a company’s shares to the public for the first time by company shares to another direct private equity firm.
listing the company on the stock exchange.
Sale to financial institution: The sale of company
Repayment of principal loans: If a private equity firm shares to banks, insurance companies, pension funds,
provided loans or purchased preference shares in the endowments, foundations and other asset managers
company at the time of the investment, then their other than private equity firms.
repayment according to the amortisation schedule
represents a decrease of the financial claim of the Trade sale: The sale of company shares to industrial
firm into the company, and hence a divestment. investors.
Repayment of silent partnership: A silent partnership Write-off: The total or partial write-down of a
is a type of mezzanine financing instrument. It is portfolio company’s value to zero or a symbolic
similar to a long-term bank loan but, in contrast to a amount (sale for a nominal amount) with the
loan, a silent partnership is subject to a subordination consequent exit from the company or reduction of
clause, so that in the event of insolvency all other the shares owned. The value of the investment is
creditors are paid before the silent partner. The eliminated and the return to investors is a full or
company has to repay the partnership and has to pay partial loss.
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.
• Almost 2,500 European companies were exited in 2015, representing former equity investments Divestments – Market statistics – % total amount divested at cost
(divestments at cost) of €40.5bn. This amount matches the level of 2014, which was until then
the highest reported exit volume to date for European private equity.
• The most prominent exit routes by amount were trade sale (29%), sale to another private Sale to
equity firm (27%) and public offering (23%). Over 40% of all the divested companies followed management
these exit routes. 2%
Repayment of
• Public markets supported again sale of quoted equity on flotation (IPO) for 50 companies. principal loans Other means
Exits from already listed companies in the form of sale of quoted equity increased by almost 4% 1%
80% to €6.7bn, by amount divested at cost. Write-off
• Exits from venture capital investments represented 40% of all divested companies, remaining 4%
at over 1,000 companies and accounting for 5% of the amount divested at cost. The equity
amount divested increased by 10% to €2.1bn. Trade sale, write-off, sale of quoted equity or on Sale to financial Trade sale
flotation (IPO), and sale to another private equity firm were the most prominent exit routes. institution 29%
• Buyout divestments’ share was 84% of the equity amount at cost and 32% by number of 10%
companies. The amount divested remained stable at €34bn and number of companies almost
800. Sale to another private equity firm, trade sale, and sale of quoted equity or on flotation
(IPO) were the most prominent exit routes.
• Growth divestments represented 8% of equity amount at cost and 27% by number of companies.
The amount divested increased by 40% to €3.2bn and the number of companies increased by
9% to 660. Trade sale, sale to another private equity firm and write-off were the most
prominent exit routes.
45 1,200
Number of companies
€ billion
40
2.1
1.9 1,000
3.2
35 2.3
2.2
30 1.9 800
2.4
2.3
25
600
20 1.9
1.1
33.4 34.3
15 29.1 400
24.8
10 18.3
200
5
0 0
2011 2012 2013 2014 2015
Buyout - Amount divested Growth - Amount divested Venture Capital - Amount divested
Buyout - Number of companies Growth - Number of companies Venture Capital - Number of companies
11% 0%
1%
27%
Buyout
1% 1%
5% 28% €34.3bn 5%
4%
8% 7%
10%
33%
4%
3% Venture Capital 3% 18% Growth
2%
50% 0%
€2.1bn €3.2bn
Trade sale
31%
14% 1%
Initial public offering
4.7% 4.1%
Sale of quoted equity
2%
4.4%
Write-off 5% 10%
9%
36.7%
Repayment of silent partnerships
5%
16.8% 2%
Repayment of principal loans
3%
10%
6% 29%
Buyout
1% 1%
7%
797 Companies 3% 11%
3% 7% 1%
24% 4%
24%
6% 8% 3%
6%
8% 4%
Venture Capital 11% 3% 8% Growth 12%
1%
1,005 Companies 7% 660 Companies
Trade sale
Initial public offering
20%
4.7% 4.1%
Sale of quoted equity
4.4%
23% Write-off
36.7%
46%
Repayment of silent partnerships
16.8%
Repayment of principal loans
12
€ billion
10
0
2011 2012 2013 2014 2015
600
500
400
300
200
100
0
2011 2012 2013 2014 2015
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
8 450
7.1
7 400
Amount at cost
350
6
5.0 Number of companies exited 300
5 4.5
4.3
250
4 3.5 3.4
383 3.1 200
3
295 150
252 2.0 2.0 257
2 237
1.6
186 100
175 1.1
1 52 0.6 50
81 76 67 0.3
13 16
40 0.0 0.0 5
0 0
36%
Life sciences 7%
19%
5%
Consumer goods & retail 16%
19%
21%
Communications 9%
11%
4%
Business & industrial products 10%
14%
1%
Financial services 12%
12%
14%
Computer & consumer electronics 5%
6%
7%
Consumer services 6%
8%
3%
Business & industrial services 9%
9%
7%
Energy & environment 2%
8%
1%
Chemicals & materials 1%
6% Venture Capital
0%
Transportation 2%
4% Buyout
0% Growth
Construction 1%
2%
0%
Agriculture 0%
1%
1%
Real estate 0%
0%
0%
Unclassified 0%
1%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 68
Divestments at cost by sector – Venture Capital / Buyout / Growth
2015 - Market statistics - Number of companies (excluding write-offs)
11%
Business & industrial products 18%
27%
8%
Consumer goods & retail 16%
18%
8%
Business & industrial services 13%
14%
20%
Computer & consumer electronics 7%
8%
19%
Life sciences 5%
8%
5%
Consumer services 9%
11%
14%
Communications 4%
7%
3%
Financial services 2%
6%
5%
Energy & environment 2%
3%
2%
Construction 3%
5% Venture Capital
3%
Chemicals & materials 2%
3% Buyout
1% Growth
Transportation 2%
3%
0%
Agriculture 1%
1%
0%
Real estate 0%
0%
1%
Unclassified 1%
0%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 69
All Private Equity - Divestments at cost by region
2015 - Industry vs. Market statistics - % of Amount
20
€ billion
17.7
18
16
14
12.6
12
10.8
9.7
10
8 7.5
6.5
6
4.4 4.0
4 3.2 3.0
2 0.9 1.2
-
UK & Ireland DACH Nordics France & Benelux Southern Europe CEE
Industry statistics - Country of the private equity firm Market statistics - Country of portfolio company
We also thank all the regional and national private equity associations that collect
their activity data via PEREP_Analytics, the pan-European statistics platform.
We thank the following associations for their participation to make PEREP_Analytics
the most comprehensive private equity database on private equity in Europe:
HVCA - Hungary
About PEREP_Analytics and Invest Europe Research
63%
PEREP is a joint Pan-European statistics platform of the following private equity associations:
APCRI - Portugal CVCA - The Czech Republic HVCA - Hungary PSIK - Poland
BVA - Belgium EstVCA - Estonia LTVCA - Lithuania SEEPEA - South Eastern Europe
91%
The 2015 annual survey BVK - Germany Invest Europe - Europe NVCA - Norway SLOVCA - Slovakia