Performance of Private Equity Funds in Central and Eastern Europe and the CIS Data to 31 December 2007

Transcription

1 Performance of Private Equity Funds in Central and Eastern Europe and the CIS Data to 31 December 27

2 1 EBRD in Private Equity EBRD s portfolio of funds: over 15 years of investing in the asset class 114 funds 7 fund managers USD 2.7 billion in commitments (EUR 2.3 billion) to funds with capital of USD 13.4 billion (EUR 11.1 billion) 976 underlying investments; 697 exited Largest PE Fund investment program dedicated to the region Note: EBRD tracked portfolio only to end December 27, excludes real estate funds

3 2 EBRD Database Best available sample of PE performance in central and south east Europe (CSE) and Russia and CIS Tracks all gross investments made by a basket of EBRD invested funds as well as net returns to EBRD ( tracked portfolio ) Measured in both USD and EUR* Obligatory reporting by fund managers, scrutinised by EBRD reflects comprehensive performance No survivor bias resulting from only best fund managers reporting * Bloomberg exchange rate used as of date of signing (commitments), transaction date (cashflows) or valuation date (NAV)

4 3 Definitions EBRD Sponsored Funds funds established at EBRD's initiative in countries where no private sector funding was available for private equity funds. These funds are supported with significant donor grants, and EBRD investment represents usually over 9% of fund capital. Institutional Quality Funds (IQs) identified based on criteria established by Cambridge Associates. These include the characteristics of the investors in the fund, fund size relative to peers, and availability of data. Survivor Funds funds managed by managers who have or are expected to raise a follow-on fund.

5 4 Region CSE Countries - Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, FYR Macedonia, Poland, Romania, Serbia, Montenegro*, Slovak Republic and Slovenia CIS Countries Armenia*, Azerbaijan, Belarus*, Georgia, Kazakhstan, Kyrgyz Republic*, Moldova, Russia, Tajikistan*, Turkmenistan, Uzbekistan*, and Ukraine * There are no fund sub-investments in these countries as of end December 27

6 Overview

7 1.4% 1.2% 1.%.8%.6%.4%.2%.% 27 PE Investment as a % of GDP Sweden United Kingdom The Netherlands Denmark Belgium France Finland Europe Baltics* Norway Hungary Germany Switzerland Spain Romania Austria Ireland Poland Italy Greece Czech Republic Other** Portugal Russia Ukraine Source: EVCA / PEREP Analytics, RVCA and EBRD estimates * Estonia, Latvia, Lithuania ** Croatia, Slovakia, Slovenia 5

8 6 Fund Raising vs Investments - CSE 1,8 1,6 1,4 Annual Investment Commitment Raised by Year USD Millions 1,2 1, Note: CSE only. EBRD tracked portfolio only

9 7 Fund Raising vs Investments - CIS 2, 1,8 1,6 Annual Investment Commitment Raised by Year 1,4 USD Millions 1,2 1, Note: CIS only. EBRD tracked portfolio only

10 8 EBRD Net Portfolio - to end 27 3,25 3, USD Millions 2,75 2,5 2,25 2, 1,75 1,5 1,25 1, NAV Returned Funds Committed Paid-In NAV + Returned Note: CSE and CIS, EBRD tracked portfolio only

11 9 EBRD Commitments Over Time Russia/CIS Private Russia/CIS Donor / EBRD Sponsored Fund CSE Private CSE Donor / EBRD Sponsored Fund USD Millions Note: CSE and CIS, tracked portfolio only

12 Net Returns Data

13 EBRD Net Horizon Returns: All Funds Returns as at December One Year Three Years Five Years Ten Years Since Inception USD EBRD Private Equity Portfolio* 5.7% 47.9% 39.4% 15.8% 15.1% Cambridge Emerging Markets Venture Capital & Private Equity Index** 45.7% 32.8% 25.9% 1.4% N/A S&P 5*** 1.5% 7.3% 1.% 4.3% 4.9% EUR EBRD Private Equity Portfolio* 36.8% 49.3% 3.4% 12.% 12.4% EVCA, All Private Equity** 16.% 17.2% 11.6% 11.6% 11.8% FTSE Emerging Markets Eastern Europe*** 18.8% 32.6% 35.% 2.8% N/A Source: Cambridge Associates, EVCA/Thomson Reuters, Bloomberg and EBRD, revised March 29 * EBRD tracked portfolio pooled end-to-end return, net of fees, expenses, donor grants and carried interest. Excludes property funds, and includes liquidated partnerships. ** Pooled end-to-end return, net of fees, expenses, and carried interest. The "Since Inception" figure represents the net pooled IRR since inception for funds formed between 198 and 27. *** Calculated assuming the same investment (cash flow) pattern as EBRD s portfolio of private equity funds since the relevant horizon.

14 11 EBRD Net Horizon Returns: Breakdown USD EUR Returns as at December EBRD Private Equity Portfolio -All One Year Three Years Five Years Ten Years Since Inception 5.7% 47.9% 39.4% 15.8% 15.1% CSE 66.2% 42.8% 35.2% 14.9% 14.% Russia/CIS 33.6% 55.% 44.9% 16.9% 16.7% CSE/Survivors 67.1% 43.9% 35.6% 18.9% 17.5% Russia/CIS Survivors 33.8% 53.2% 45.1% 22.6% 24.1% EBRD Private Equity Portfolio -All 36.8% 49.3% 3.4% 12.% 12.4% CSE 5.7% 44.1% 26.9% 11.5% 11.7% Russia/CIS 21.6% 56.6% 34.8% 12.6% 13.3% CSE/Survivors 51.4% 44.9% 27.3% 15.5% 15.5% Russia/CIS Survivors 21.6% 52.8% 35.8% 17.6% 2.1%

15 12 EBRD Net Cash Flow from Funds Disbursements Receipts 35 USD Millions Note: CSE and CIS Annual Year

16 13 Net Vintage Groups TVPI DPI IRR 6% 5% USD Multiple % 3% IRR 1.5 2% % % Note: TVPI = Total Value to Paid In, DPI = Distributions to Paid In, 26 and 27 IRR excluded due to the proportion of valuation vs disbursements, data for CSE and CIS

17 Gross Returns Data

18 14 Gross Snapshot: All Funds 16, 14, 12, Fully Realised (including WO) Partially Realised Unrealised Overall 2.25x 23.9% USD Millions 1, 8, 6, FR 2.44x 21.3% PR 4.52x 37.6% USD 6,617m USD 1,655m 4, 2, USD 366m USD 2,77m USD 2,874m UR 1.78x 31.5% USD 5,116m Investments at Cost Total Value USD 5,947m USD 13,388m Note: Excluding underlying investments of funds in which the EBRD sold on its interest.

19 15 Gross Snapshot: CSE 1, 9, 8, Fully Realised (Including WO) Partially Realised Unrealised Overall 2.9x 22.% 7, USD Millions 6, 5, 4, 3, USD 1,97m FR 2.29x 2.2% PR 3.39x 32.6% UR 1.66x 27.% USD 4,514m USD 1,35m 2, 1, USD 35m USD 1,873m USD 3,16m Investments at Cost USD 4,148m Note: Excluding underlying investments of funds in which the EBRD sold on its interest. Total Value USD 8,655m

20 16 Gross Snapshot: CIS 5, Fully Realised (including WO) 4,5 Partially Realised 4, 3,5 Unrealised Overall 2.63x 27.5% USD 2,11m USD Millions 3, 2,5 2, FR 2.74x 23.4% PR 1.19x 45.6% USD 62m 1,5 1, USD 61m USD 769m UR 2.7x 4.5% USD 2,3m 5 USD 969m Investments at Cost Total Value USD 1,799m USD 4,733m Note: Excluding underlying investments of funds in which the EBRD sold on its interest.

21 17 Gross Snapshot: All Survivors 14, Fully Realised (Including WO) 12, 1, Partially Realised Unrealised Overall 2.36x 28.4% USD 5,5m USD Millions 8, 6, FR 2.74x 26.% PR 4.53x 42.5% USD 1,546m 4, USD 2,7m UR 1.8x 34.9% 2, USD 342m USD 2,728m USD 4,913m Investments at Cost USD 5,77m Total Value USD 11,959m Note: Excluding underlying investments of funds in which the EBRD sold on its interest.

22 18 Gross Snapshot: CSE Survivors 7, 6, 5, Fully Realised (including WO) Partially Realised Unrealised Overall 2.18x 25.7% USD Millions 4, 3, FR 2.57x 24.2% PR 3.27x 36.9% USD 3,949m 2, USD 1,534m UR 1.66x 3.2% USD 931m USD 284m 1, USD 1,772m USD 2,941m Investments at Cost USD 3,59m Note: Excluding underlying investments of funds in which the EBRD sold on its interest. Total Value USD 7,821m

23 19 Gross Snapshot: CIS Survivors 4,5 4, Fully Realised (including WO) Partially Realised Unrealised 3,5 Overall 2.78x 34.5% USD 1,551m 3, USD Millions 2,5 2, FR 3.28x 31.1% PR 1.76x 49.% USD 615m 1,5 1, USD 57m USD 473m UR 2.6x 42.1% USD 1,972m 5 USD 956m Investments at Cost USD 1,486m Total Value USD 4,138m

24 2 Aggregated USD Gross Results: CSE CSE, USD All Survivors IQ Private TVPI IRR TVPI IRR TVPI IRR TVPI IRR Fully Realised % % % % Fully Realised and Partially Realised All (including Unrealised) % % % % % % % %

25 21 Aggregated USD Gross Results: CIS CIS, USD All Survivors IQ Private TVPI IRR TVPI IRR TVPI IRR TVPI IRR Fully Realised % % % % Fully Realised and Partially Realised All (including Unrealised) % 4.8% 33.3% % % % % % %

26 22 Gross Cash Flow 2,5 Annual Investments by funds (cash out) Annual Proceeds to funds (cash in) 2, USD Millions 1,5 1, Note: CSE and CIS Annual Year Note: cash movement between funds and the underlying portfolio companies

27 Gross Trends

28 23 Investments by Country to end 27 Russia 23% Other* 4% Central Asia 3% Western CIS and Caucasus** 4% Bulgaria 7% Czech Republic and Slovakia 1% Hungary 8% Romania 8% Poland 27% Baltics 6% * Other includes: Albania, Bosnia & Herzegovina, Croatia, FYR Macedonia, Serbia, Slovenia ** Western CIS and Caucasus includes: Azerbaijan, Georgia, Moldova and Ukraine *** Central Asia includes: Kazakhstan and Turkmenistan Note: CSE and CIS, since inception

29 24 Investment by Country - 27 Serbia 11% Ukraine 4% Bulgaria 2% Other Russia 14% 3% Hungary 2% Romania 7% Poland 27% Lithuania 12% * Other includes: Croatia, Czech Republic, Estonia, Kazakhstan and Slovenia Note: CSE and CIS, vintage year 27 only

30 25 Investments by Stage Over Time Investment Cost USD Millions Expansion Other Sec. Purchase / Buyout Seed/Early Stage Note: CSE and CIS Vintage Year

31 26 Investments by Sector to end 27 Wholesale & Retail Agriculture & Forestry 1% Construction 5% 1% Consumer 12% Manufacturing 9% TIM 34% Pharma & Medical 5% Services 2% Primary & Energy 4% Note: since inception, in USD, CSE and CIS

32 27 Investments by Sector 27 Wholesale & Retail 9% Agriculture & Forestry 1% Construction 5% Consumer 2% Manufacturing 2% Pharma & Medical 13% Primary & Energy 1% TIM 49% Services 18% Note: in USD, CSE and CIS, vintage year 27 only

33 28 Unrealised Investments to end 27 2,5 2, Investment Cost Investment Value USD Millions 1,5 1, 5 Expansion Sec. Purchase / Buyout Seed/Early Stage Note: CSE and CIS

34 29 Exits by Sector to end 27 3, 2,5 Investment Profitability Investment Cost USD Millions 2, 1,5 1, 5 Agriculture Construction Consumer Manufacturing Pharma Primary Services TIM Wholesale & Forestry & Medical & Energy & Retail Note: fully realised investments, including partial realisations, excluding write offs, CSE and CIS

35 3 Exits by Country to end 27 2,5 2, Investment Profitability Investment Cost USD Millions 1,5 1, 5 Poland Russia Romania Central Asia* * Central Asia includes: Kazakhstan and Turkmenistan ** Baltics includes: Estonia, Latvia and Lithuania *** Other CSE includes: Albania, Bosnia & Herzegovina, Croatia, Serbia, FYR Macedonia, Slovenia **** Other CIS includes: Azerbaijan, Moldova and Georgia All exits since inception (fully realised, partially realised including write-offs) Czech Republic Hungary Bulgaria Slovakia Baltics ** Other CSE*** Other CIS**** Ukraine

36 31 Exits by Country ,4 1,2 1, Investment Profitability Investment Cost USD Millions Poland Russia Other CIS* * Other CIS includes Turkmenistan and Ukraine ** Other CSE includes: Albania, Bosnia & Herzegovina, FYR Macedonia, Moldova, Slovenia, Serbia *** Baltics includes: Estonia, Latvia, and Lithuania Exits in 27 for fully realised and partially realised deals (including write-offs) Hungary Other CSE** Bulgaria Croatia Baltics*** Czech Republic Romania

37 32 Exits by Investment Stage Over Time 1,4 1,2 Expansion Sec. Purchase / Buyout Other Seed/Early Stage Exit Proceeds (USD Millions) 1, Exit Year Note: Fully realised and partially realised (excludes write-offs), CSE and CIS

38 33 Type of Exits Over Time 1,6 MBO Other Public Market Trade Sale 1,4 Exit Proceeds - USD Millions 1,2 1, Exit Year Note: fully realised investments, including partial realisations, excluding write-offs, CSE and CIS

39 34 Performance by Exit Type to end 27 4, 3,5 3, Investment Cost Exit Proceeds & Cash Returns Multiple USD Millions 2,5 2, 1, Multiple 1, Write Off MBO Other Public Market Trade Sale. Note: CSE and CIS, fully realised deals, including write-offs, since inception

40 Performance by Investment Stage and Exit Type 35 Investment Stage Exit Type Expansion Sec. Purchase/ Buyout Seed/ Early Stage Sale to Management Flotation/ Secondary Sales 1.84x 1.81x.62x 4.28x 3.37x 3.23x Trade Sale 3.25x 3.55x 1.94x Other 1.95x 2.49x 2.33x Note: all fully realised and partially realised deals, excluding write-offs, CSE and CIS

41 36 Gross Vintages & Money Multiples 2,5 2, Investment Cost Total Investment Value TVPI All TVPI FR Only USD Millions 1,5 1, Multiple Vintage Year Note: Includes write-offs, data for 27 TVPI FR only not applicable, CSE and CIS

42 37 Exit Performance Over Time 2,5 2, Investment Cost Exit Proceeds & Cash Returns TVPI USD Millions 1,5 1, Multiple Exit Year. Note: fully realised deals, including partial realisation and excluding write-offs, CSE and CIS

43 Investor Data

44 38 Investor by Type - Trends 1% 9% 8% 7% 6% 5% 4% Banks and Insurance Corporate Investors Fund of Funds IFI and Govt Pension Funds Others 3% 2% 1% % Note: CSE and CIS. Includes EBRD (in IFI/Govt), tracked portfolio, in USD

45 39 Investor Type by Region CSE Funds CIS Funds USD Millions Banks Corporate Investors Fund of Funds IFI and Govt Insurance Pension Funds Private Investors Others Note: includes EBRD (in IFI/Govt) tracked portfolio, in USD, vintage year 27 only

46 4 Investors by Origin Over Time 3, 2,5 Other USA Europe 2, USD Millions 1,5 1, Note: CSE and CIS funds, excludes EBRD (from Europe)

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