The Italian Private Equity Market: 2013 Data and Performances

Transcription

1 The Italian Private Equity Market: 2013 Data and Performances Anna Gervasoni, General Manager, Francesco Giordano, Partner, PwC Transaction Services Zurich, 3 April 2014

2 2013 data Fundraising Total: 4,047 mln Euro (+199% on 2012 data) Market: 623 mln Euro (-34% on 2012 data) 11 players Investment activity 3,430 mln Euro (+6% on 2012 data) 368 investments (+5% on 2012 data) Divestment activity 1,933 mln Euro (+23% on 2012 data) 141 exits (+32% on 2012 data) Performance Gross IRR 18.2% (6.2% in 2012) 10YR net IRR 6.6% (4.6% in 2012) 2

3 Different type of players in the Italian market 171 monitored players EuVECA Early stage players Banks 3.5% Regional/ public pl. 7.6% 8.8% SGR and investment companies 47.7% International players 32.7% AIFM 100% 80% 60% 40% 20% 0% Active players Opt-in PLAYERS 3

4 Euro Mln Fundraising activity remains difficult Amount invested by pan European players based in Italy Captive Institutional (market) Market 3,036 Total market (market+institutional) 4, final closing of pan European players active in Italy: 30 Euro Bn ,080 2,147 1, ,903 2 Euro Bn can be invested in Italy* FUNDRAISING * Estimate based on the actual composition of portfolios of the pan European players that reached a final closing in 2013 Source: Preqin, Unquote, players institutional websites 4

5 Euro Mln Funds of funds the first source of capital in 2013 Market fundraising Funds of Pension Insurance Individual Banks Public sector Endow. and Industrial Other funds funds comp. inv. found. groups FUNDRAISING ACTIVITY 5

6 Euro Mln Number Amount invested in Italy raised at 7% CAGR in last 5 years FY09-FY13 PE Italian investments Total amount N of investments N of companies 3, ,430 3, ,615 2, II Sem. II Sem. II Sem. II Sem. II Sem. I Sem. I Sem. I Sem. I Sem. I Sem. 0 FY09 FY10 FY11 FY12 FY Avg ticket 9m 8m 11m 9m 9m INVESTMENT ACTIVITY 6

7 Euro Mln Buy outs accounted for 63% of total 2013 investments Buy out Expansion Replacement Seed/Start up 2,615m deals 9 deals 123 deals 2,461m deals 7 deals 123 deals 3,583m deals 12 deals 145 deals 3,230m deals 10 deals 138 deals 3,430m deals 17 deals 143 deals 72 deals 1,688 1, deals 2, deals 65 deals 2,069 2, deals INVESTMENT ACTIVITY 7

8 Euro Mln The majority of 2013 investments were made by local PE Foreign PE not based in Italy Pan European PE based in Italy Italian PE 3,583m 3,230m 3,430m 2,461m 1, deals deals 1, deals 2, deals deals deals deals deals deals 1, deals 17 deals deals INVESTMENT ACTIVITY 8

9 No. of Deals 2013 global results show signals of recovery in investments International market Investments trend 2013 investments trend in Spain and Germany % of investments in 2013 vs PY transactions for 1,701 Euro Mln (-33% vs PY) Aggregate Deal Value ($bn) 86 transactions for 4,678 Euro Mln (-29% vs PY) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q No. of Deals Aggregate Deal Value ($bn) INVESTMENT ACTIVITY Source: Preqin, ASCRI, BVK 9

10 Euro Mln Number FY09-FY13 Italian divestments CAGR is slightly positive FY09-FY13 PE Italian divestments Total amount N of divestments N of companies , , CAGR FY09- FY % , % 1, FY09 FY10 FY11 FY12 FY13 - DIVESTMENT ACTIVITY 10

11 Euro Mln The European markets show a positive trend for divestments Write-off Trade sale IPO/Sale after IPO Sale to other financial investors 2013 divestments trend in Spain and Germany Other +23% deals deals deals 268 transactions for 1,451 Euro Mln (+52% vs PY) deals 50 deals 7 deals 15 deals deals 11 deals 15 deals 879 transactions for 5,734 Euro Mln (+144% vs PY) DIVESTMENT ACTIVITY 11

12 avg CAGR % avg CAGR % PE/VC continue to have a positive impact on the Italian economy Italian GDP vs companies held by PE 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% % 1.7% The Revenue growth of PE backed companies was significantly higher than the Italian Gross Domestic Product (GDP) growth. Italian GDP Companies held by PE houses Italian employment rate vs companies held by PE Over the period the Employment growth rate in PE backed companies was higher compared to the Italian employment growth rate. 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% (1.0%) Italian employment rate Employment rate (Companies held by PE ) 5.0% -0.2% ECONOMIC IMPACT Source: ISTAT, and PwC analysis 12

13 PE/VC backed companies outperformed similar sized companies Comparative annual revenue growth Average CAGR % Comparative annual EBITDA growth Average CAGR % Venture Capital +7,6% 11.7% 4.1% 1,5% - 0,1% 1,4% Benchmark (*) Venture Capital companies Benchmark (*) Venture Capital companies Comparative annual revenue growth Average CAGR % Comparative annual EBITDA growth Average CAGR % Buy out +2,6% 6.3% +10,2% 10.9% 3.7% 0.7% Benchmark (*) Buy-out companies Benchmark (*) Buy-out companies ECONOMIC IMPACT (*) the selected benchmark for comparison was extrapolated from the information included in Dati cumulativi di società italiane, a survey compiled by Mediobanca s Research Department 13

14 Euro Mln Evolution of Italian PE performances Total cash out and gross pooled from inception IRR 2500 Total Cash Out IRR 40% % 24.7% 25.1% 28.5% 29.2% 18.9% 18.2% 30% 20% % 6.2% % -16.6% 10% 0% -10% -20% IRR PERFORMANCE 14

15 Net pooled IRR: Italian and European data 10YR net pooled IRR 17.0% IRR Italy netto Italia IRR Europe netto Europa 13.5% 12.5% 13.2% 14.1% 11.8% 11.9% 10.4% 11.4% 10.3% 11.5% 9.3% 8.0% 8.8% 7.3% 8.0% 8.1% 4.6% 6.6% 5.1% 5.6% PERFORMANCE Note: 2013 performance figures related to the European market are not yet available Source: EVCA 15

16 The Italian Private Equity Market: 2013 Data and Performances Anna Gervasoni, General Manager, Francesco Giordano, Partner, PwC Transaction Services Zurich, 3 April 2014