Contents. European Bank for Reconstruction and Development

Transcription

1 EBRD Private Equity Funds Portfolio to 31 December 2012

2 Contents 1. Introduction 2. Funds Portfolio 3. EBRD Net Returns & Performance 4. Performance and Composition of Underlying Portfolio 5. LP Data 6. General Information European Bank for Reconstruction and Development

3 Introduction European Bank for Reconstruction and Development

4 Why does EBRD invest in Private Equity? Efficiently deploy equity capital to companies Build a sustainable private equity industry in the region Foster sustainable investments and strong returns Share extensive in-house experience of macro, equity sector and country issues with fund managers and institutional investors Maintain existing relationships with successful fund managers and support sustainable flow of funding Support the establishment of first time and innovative funds Provide active supervision and set high standards on integrity, processes and ESG Set return benchmarks and report widely on the regional performances through conferences and industry associations Provide co-investment facilities (debt, mezzanine and equity) Continue to cooperate with other IFIs to mobilise institutional investors into the region European Bank for Reconstruction and Development

5 0.260% 0.258% 0.247% 0.244% 0.226% 0.211% 0.190% 0.159% 0.153% 0.137% 0.137% 0.125% 0.109% 0.103% 0.086% 0.084% 0.082% 0.073% 0.069% 0.033% 0.023% 0.020% 0.018% 0.017% 0.014% 0.010% 0.312% 0.373% 0.369% 0.352% 0.530% 0.602% Private Equity Penetration Private Equity Investment as a Percentage of GDP by Country Source: EVCA/PEREP_Analytics European Bank for Reconstruction and Development

6 Key Facts about EBRD s work in Private Equity Most Active private equity fund investor in Central and South-East Europe (CSE) and the Commonwealth of Independent States (CIS). Covering a wide spectrum of fund sizes and investment strategies; regional and country-specific funds, generalist and sector-specific funds. Historic Activity: 20 years investing in the asset class with EUR 3.4 billion commitments to 147 funds with total capital of EUR 18.2 billion. Around 60% of funds (by number) are first time funds. Supporting 83 fund managers. Over 850 fully exited underlying investees in the funds portfolio. Current Portfolio: Current portfolio of 96 active funds managed by 62 fund managers with EUR 2.7 billion in commitments with total capital of EUR 16.1 billion. Around 45% of active funds (by number) are first time funds. Over 400 unrealised underlying investees in the funds portfolio. European Bank for Reconstruction and Development

7 Funds Portfolio European Bank for Reconstruction and Development

8 EUR Millions No. of Funds Equity Funds Commitments by Fund Vintage Year Fund Investment Activity by Region & Vintage Year CEE/SEE Russia/CIS SEMED Number of Funds 0 EBRD net funds portfolio as at 31/12/2012 SEMED includes: Tunisia, Morocco, Egypt and Jordan European Bank for Reconstruction and Development

9 Equity Funds Active Portfolio by Region and Fund Size EBRD Fund Commitments by Region and Fund Size 100% SEMED 100% 90% 90% 300m+ 80% Russia/CIS 80% 70% 70% m 60% 60% 50% 50% m 40% 40% 30% CEE/SEE 30% 20% 20% 0-100m 10% 10% 0% Capital Commited EBRD net funds portfolio as at 31/12/2012 SEMED includes: Tunisia, Morocco, Egypt and Jordan 0% Capital Committed European Bank for Reconstruction and Development

10 EBRD Net Returns & Performance European Bank for Reconstruction and Development

11 EBRD Equity Funds Portfolio Net Horizon IRRs vs. Benchmarks Net Horizon IRRs by Currency Three Years Five Years Ten Years Since Inception EUR EBRD Private Equity Portfolio - All 9.5% 2.2% 18.9% 9.7% Cambridge Western Europe Private Equity & Venture Capital Index (EUR) Cambridge Western Europe Private Equity Only Index 13.9% 3.7% 13.6% N/A 14.0% 3.8% 14.7% N/A MSCI Europe Index (EUR) 6.2% -2.3% 5.9% N/A USD EBRD Private Equity Portfolio - All 6.7% 0.2% 23.6% 11.4% Cambridge Global ex U.S. Private Equity & Venture Capital Index Cambridge Western Europe Private Equity & Venture Capital Index (USD) Cambridge Western Europe Private Equity Only Index 10.8% 2.8% 14.0% N/A 10.8% 1.5% 15.8% N/A 14.0% 3.7% 14.7% N/A MSCI Emerging Markets Index 5.0% -0.6% 16.9% N/A Source: EBRD Net Funds Portfolio, Cambridge Associates, as of 31/12/2012 European Bank for Reconstruction and Development

12 Performance and Composition of Underlying Portfolio European Bank for Reconstruction and Development

13 Underlying Investments by Country Active Investments in Underlying Portfolio by Country Bulgaria, 4.6% Hungary, 3.4% Lithuania, 2.4% Serbia, 1.2% Croatia, 1.1% Estonia, 1.1% Latvia, 0.9% Slovak Republic, 0.8% Albania, 0.6% Slovenia, 0.2% Kosovo, 0.1% Bosnia and Herzegovina, 0.1% SEMED 0.2% Rest CSE 16.5% Russian Federation 34.8% Rest CIS 9.1% Ukraine, 5.7% Kazakhstan, 3.0% Azerbaijan, 0.1% Georgia*, 0.1% Mongolia, 0.1% Kyrgyz Republic, 0.1% Turkey 6.7% Czech Republic 7.0% Romania 7.8% Poland 17.9% EBRD underlying investments portfolio as of 31/12/2012 *Georgia formally withdrew from the CIS effective 17 August 2009 SEMED includes: Tunisia, Morocco, Egypt and Jordan European Bank for Reconstruction and Development

14 Underlying Investments by Sector Active Investments in Underlying Portfolio by Sector Agriculture & Forestry 2.0% Services 27.4% Construction 5.1% Manufacturing 5.4% Primary & Energy 6.6% ICT 24.1% Consumer 9.0% Pharma & Medical 9.3% Wholesale & Retail 11.2% EBRD underlying investments portfolio as of 31/12/2012 European Bank for Reconstruction and Development

15 No. Investments by Vintage Year Investment Activity of EBRD Supported Funds Investments by Vintage Year by Exit Status 140 Unrealised Partly Realised Fully Realised EBRD underlying investments portfolio as at 31/12/2012 European Bank for Reconstruction and Development

16 Number of Exits TVPI Exit Activity of EBRD Supported Funds Number of Exits and Mean Cash Proceeds by Exit Year Pooled TVPI of Exits (excl. Write-Offs) Number of Write-Offs Number of Exits (excl. Write-Offs) 5.0x 4.0x x x x EBRD underlying investments portfolio as at 31/12/ x European Bank for Reconstruction and Development

17 EUR Billions Gross Snapshot of all Investees Gross Snapshot of Investees by Exit Status All Investees Money Multiple: 1.7x; IRR: 17.41% Fully Realised Investees Money Multiple: 2.0x; IRR: 19.3% Partly Realised Investees Money Multiple: 3.5x; IRR: 26.4% Unrealised Investees Money Multiple: 1.2x; IRR: 7.1% Fully Realised EUR 7.4bn Fully Realised EUR 3.8bn Partly Realised EUR 0.8bn Partly Realised EUR 3.0bn 4 2 Unrealised EUR 5.6bn Unrealised EUR 6.9bn 0 Investment at Cost EUR 10.3bn Investment Value EUR 17.3bn EBRD underlying investments portfolio as at 31/12/2012 European Bank for Reconstruction and Development

18 LP Data European Bank for Reconstruction and Development

19 Composition of Investor Base in EBRD funds by Origin Geographical Origin of LPs in EBRD Funds 100% 90% 80% 70% 60% 50% 40% USA Other Middle East Europe Asia 30% 20% 10% 0% European Bank for Reconstruction and Development

20 Composition of Investor Base in EBRD Funds by Investor Type Types of Investors in EBRD Supported Funds 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sovereign Wealth Fund Private Individual / Trust Pension Fund NA/Other International Financial Institution Insurance Company GP/Sponsor Commitment Government Agency Fund of Funds Corporate Investor Capital Markets Bank Academic Institution / Endowment / Foundation European Bank for Reconstruction and Development

21 General Information European Bank for Reconstruction and Development

22 Select Equity Funds Signed in 2012/2013 Mediterannia 20 million EBRD commitment Mid Europa Fund IV 80 million EBRD commitment Maghreb Private Equity Fund III 20 million EBRD commitment Capman Russia Fund II $50 million EBRD commitment 3TS 30 million EBRD commitment September 2013 September 2013 September 2012 March 2013 May Concordia 30 million EBRD commitment Earlybird Digital East Fund $35 million EBRD commitment Avallon MBO Fund 27 million EBRD commitment Capital North Africa Venture Fund 20 million EBRD commitment Almaz Capital Russia Fund $50 million EBRD commitment September 2013 November 2013 December 2012 May 2013 May 2013 European Bank for Reconstruction and Development

23 General Information Largest available sample of PE performance in Central and South Eastern Europe (CEE/SEE), Russia and the Commonwealth of Independent States (CIS) Tracks all gross investments made by EBRD invested funds as well as net returns to EBRD ( tracked portfolio ) Obligatory reporting by fund managers No survivor bias resulting from only best fund managers reporting European Bank or Reconstruction and Development

24 EBRD Region CSE Countries Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Estonia, FYR Macedonia, Hungary, Latvia, Lithuania, Kosovo, Poland, Montenegro, Romania, Slovak Republic, Serbia, Slovenia, Turkey. SEE Countries Albania, Bosnia & Herzegovina, Bulgaria, FYR Macedonia, Montenegro, Romania, Serbia CEE Countries Croatia, Hungary, Poland, Slovak Republic, Slovenia, Czech Republic* Baltic States Latvia, Lithuania, Estonia CIS Countries Armenia**, Azerbaijan, Belarus**, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Tajikistan**, Turkmenistan, Uzbekistan**, Ukraine and Mongolia SEMED Countries Egypt, Jordan, Morocco, Tunisia * Czech Republic ceased to be a country of operation in 2007 but some funds remain exposed to investees in the country. **There are no underlying investments in these countries as of 31/12/2012. Formally withdrew from the CIS effective 17 August European Bank for Reconstruction and Development

25 Copyright 2014 EBRD. All rights reserved This material is for the recipient s private information. No part of this document may be reproduced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the Bank. Such written permission must also be obtained before any part of this publication is stored in a retrieval system of any nature. While the information contained herein was compiled by the EBRD, we do not guarantee its accuracy or completeness. We accept no liability in relation to the use of this information. Copyright 2014 European Bank for Reconstruction and Development. All rights reserved. European Bank for Reconstruction and Development European Bank for Reconstruction and Development