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2015 European Private Equity Activity Statistics on Fundraising, Investments & Divestments
Disclaimer
The information contained in this report has been produced by Invest Europe, based on
PEREP_Analytics data and third party information. While Invest Europe has made every effort
to ensure the reliability of the data included in this report, Invest Europe cannot guarantee
the accuracy of the information collected and presented. Therefore, Invest Europe cannot
accept responsibility for any decision made or action taken based upon this report or the
information provided herein.
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© Copyright Invest Europe May 2016
Version
Presentation as of 05/05/2016
2015 European Private Equity Activity
Introduction
2015 European Private Equity Activity
Invest Europe is the
voice of investors
in privately-held
companies in Europe.
> Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors.
> Our members take a long-term approach to investing in privately held companies, from start-ups to established firms. They inject not only capital but dynamism, innovation and expertise. This commitment helps deliver strong and sustainable growth, resulting in healthy returns for Europe’s leading pension funds and insurers, to the benefit of the millions of European citizens who depend on them.
> Invest Europe aims to make a constructive contribution to policy affecting private capital investment in Europe. We provide information to the public on our members’ role in the economy. Our research provides the most authoritative source of data on trends and developments in our industry.
> Invest Europe is the guardian of the industry’s professional standards, demanding accountability, good governance and transparency from our members.
> Invest Europe is a non-profit organisation with 25 employees in Brussels, Belgium.
> For more information please visit www.investeurope.eu
1
48
40
28 27 27
72
112
80 80
19 22
42
25
54 48 48
35
24 28 29
37
47
71 73
55
25
43 47
38 38 42
47
9 13 11 14
20
30 33
27
14 12 20
31
22
35 40 41
0
20
40
60
80
100
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
€ b
illion
Funds raised Investments Divestments
Overview - All Private Equity - Fundraising, Investments & Divestments
2000–2015 - Industry statistics - Amount
2015 European Private Equity Activity 2
Source: Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
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.
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.
What’s inside?
2015 European Private Equity Activity
Executive Summary 4
1. FUNDRAISING Fundraising statistics explained 5
Glossary 6
At a glance 7
Incremental fundraising
By fund stage focus 8
Concentration of capital 10
By region of management 11
Investors by type 12
Investors by geography 18
Final closing
By fund stage focus 21
Concentration of capital 23
2. INVESTMENTS Investments statistics explained 24
Glossary 26
At a glance 27
By investment stage 28
Annual trends 29
Quarterly trends 32
By geography 36
Investments as % of GDP
Location of the PE firm 41
Location of the portfolio company 46
By sector 50
Initial / follow-on 53
By portfolio company size 54
3. DIVESTMENTS Divestments statistics explained 58
Glossary 60
At a glance 61
By initial investment stage 62
By exit route 63
By sector 67
By region 70
Acknowledgements 71
About_PEREP Analytics &
Invest Europe Research 73
3
2015 European Private Equity Activity 4
Executive summary
FUNDRAISING INVESTMENTS DIVESTMENTS
In 2015 total fundraising reached €47.6bn nearly matching the level of 2014. The number of funds raised (274) decreased by 15% compared to 2014, but is still above the levels of 2012 and 2013.
European private equity and venture capital raised in the past three years was 70% more than between the years 2010 and 2012.
In 2015, 40% of institutional investors came from outside Europe. Pension funds provided nearly a quarter of the capital raised. Funds of funds contributed 18%, followed by government agencies (14%), sovereign wealth funds (13%), Family offices and private individuals (12%).
Venture capital fundraising increased by 8% to €5.3bn - the highest level since 2008. Early and later stage focused funds particularly increased.
Buyout fundraising reduced by 7% to €33.6bn. The total amount raised by funds above €1bn grew by 13%. Funds that raised €500m to €1bn reduced by 44%.
With €2.9bn raised, growth fundraising exceeded the 2014 level, which was already the highest reported since 2011.
2 The total amount of equity investment in European companies increased by 14% to €47.4bn. The number of companies decreased by 11% to nearly 5,000. 86% of them are SMEs.
Over a third of the total amount invested in European companies was attributed to cross-border investments.
Venture capital investment increased by 5% to €3.8bn. The amount invested was greater across all stages, led by seed investments with an increase of 18%. Close to 2,800 companies received investments, a reduction of 12%, which indicates a trend towards larger financing rounds.
Buyout investment increased by 16% to €36.3bn into a stable number of companies at over 900. In terms of amount, large and mega buyout activity picked up while mid-market investments remained stable.
Growth investment increased 11% to €6.5bn, reaching their highest level since 2008. The number of companies with growth investments reduced by 13% to just over 1,100.
3 Almost 2,500 European companies were exited in 2015, representing former equity investments (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 equity firm (27%) and sale of quoted equity (17%). Four out of ten companies followed these exit routes.
As in 2014, public markets supported the sale of quoted equity on flotation (IPO) for 50 companies. Exits from already listed companies in the form of sale of quoted equity increased by almost 80% to €6.7bn, by amount divested at cost.
Exits from venture capital investments by equity amount at cost increased by 10% to €2.1bn. Buyout related exits at cost remained stable at €34bn. For former growth investments the total amount divested at cost increased by 40% to €3.2bn.
1
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.
1. FUNDRAISING
Glossary
2015 European Private Equity Activity
Fund stage focus
Balanced fund: A venture capital fund focused on
both early-stage and development, with no particular
concentration on either.
Buyout fund: A fund whose strategy is predominantly
to acquire controlling stakes in established
companies.
Early-stage fund: A venture capital fund focused
on investing in companies in their primary
development stage.
Generalist fund: A fund with either a stated focus of
investing in all stages of venture capital and private
equity investment, or with a broad area of investment
activity.
Growth fund: Funds whose strategy is to invest in
relatively mature companies that are looking for
capital to expand or restructure operations.
Later-stage fund: A venture capital fund focused on
investing in later-stage companies in need of
expansion capital.
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.
Types of investors
Corporate investor: Corporations that deliver non-
financial products and services.
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.
Fund of funds: A private equity fund that primarily
takes equity positions in other funds.
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.
Pension funds: A pension fund that is regulated under
private or public sector law.
Sovereign wealth funds: State-owned investment fund
managing a pool of money derived from a country’s
reserves.
Note: Fundraising amounts include capital gains
except when reporting fundraising by type of
investors. In the following presentation, unclassified
figures concerning the type of investors have been
extrapolated. More comprehensive data is available
here: www.investeurope.eu/research/
Independent and captive funds
Captive funds: Funds that are 100% owned by the
parent organisation.
Independent funds: Semi-captive funds (those in
which the parent owns less than 100%) as well as
wholly independent funds.
6
FUNDRAISING INVESTMENTS DIVESTMENTS
5.2 3.9 4.6 4.9 5.3
26.9
16.7
45.4
36.3 33.6
4.4
0.5
1.1
2.8
2.9 5.1
3.4
3.3
4.0 5.8 41.6
24.6
54.4
48.0 47.6
2011 2012 2013 2014 2015
Venture Capital Buyout Growth Other (2) Total
2015 Fundraising at a glance
7
Source: Invest Europe / PEREP_Analytics Note: (1) relates to fund focus
Source: Invest Europe / PEREP_Analytics Note: (2) Other includes Mezzanine and Generalist funds
2015 All Private
Equity
Venture
Capital(1) Buyout(1) Growth(1)
Incremental - Amounts raised €47.6bn €5.3bn €33.6bn €2.9bn
Incremental – No. of funds 274 98 90 38
Final closings - Cumulative
amount since inception €50.4bn €4.3bn €40.5bn €1.0bn
Final closings - No. of funds 129 40 50 13
Incremental amounts raised during the year (€ billion)
• 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 2013. European private equity and venture capital raised in the past three years (2013-2015) was 70% more than in the years 2010-2012.
• 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%), Family offices and private individuals (12%) and insurance companies (9%). Institutional 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 the previous year. Fundraising for early-stage focused funds increased by 13% to €2.7bn, while later stage fundraising nearly tripled to €870m. Government agencies contributed 31% of the funds raised, below the levels of 2010 to 2012, in which regularly more than one third was attributed to this source. Other major sources were fund of funds (23%), corporate investors (14%) and family offices and private individuals (12%). North American institutional investors contributed 11%.
• 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 raised by funds above €1bn increased by 13%, the total amount raised by funds between €500m to €1bn reduced by 44%.
• Growth funds with €2.9bn raised exceeded the 2014 level, which was previously the highest reported since 2011. The 38 growth funds raised capital mostly from government agencies and family offices & private individuals.
2015 European Private Equity Activity
FUNDRAISING INVESTMENTS DIVESTMENTS
Funds raised by fund stage focus
2015 European Private Equity Activity 8
2011–2015 - Incremental amount raised during the year
Source: Invest Europe / PEREP_Analytics
Balanced
Later-stage
Early-stage
Legend
27
17
45
36
34
0
5
10
15
20
25
30
35
40
45
50
Buyout
€ b
illion
2.0 2.2
1.7
2.4 2.7
1.0 0.2
0.3
0.3
0.9
2.2
1.5 2.6
2.3
1.8
5.2
3.9
4.6
4.9
5.3
0
1
2
3
4
5
6
€ b
illion
4.4
2.8
2.2
0.5
2.1
1.3
1.1
1.5 1.8
2.8
2.3
1.7
2.9
3.7
2.1
Growth Mezzanine Generalist
2011 2012 2013 2014 2015
Venture Capital
FUNDRAISING INVESTMENTS DIVESTMENTS
Funds raised by fund stage focus
2015 European Private Equity Activity 9
2011–2015 - Number of funds that reached first, intermediate or final closing during the year
Source: Invest Europe / PEREP_Analytics
Balanced
Later-stage
Early-stage
Legend
Venture Capital
74
60 58
80
57
20
11 9
10
6
58
46 46
39
35
152
117 113
129
98
0
20
40
60
80
100
120
140
160
81
73
84
93 90
0
20
40
60
80
100
120
140
160
Buyout
32
12
60
18
9
49
19
10
40
31
14
57
38
10
38
Growth Mezzanine Generalist
2011 2012 2013 2014 2015
FUNDRAISING INVESTMENTS DIVESTMENTS
All Private Equity - Concentration of capital
2015 European Private Equity Activity 10
2011–2015 – Incremental fundraising by amount bracket per fund during the year
269
216
203
237 197
42
37
31
44 35 14
5 12
20
25
4
4 8
12
6
8
4
12
11
11
0%
10%
20%
30%
40%
50%
60%
70%
< €100m €100m - €250m €250m - €500m €500m - €1bn > €1bn
2014 2015 2011 2012 2013
Number
of
funds
% t
ota
l am
ount
of
annual fu
ndra
isin
g
Source: Invest Europe / PEREP_Analytics
FUNDRAISING INVESTMENTS DIVESTMENTS
All Private Equity – Funds raised by region of management
2015 European Private Equity Activity 11
2011-2015 - Incremental amount raised during the year
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
17.7 14.0
34.8
22.7 22.5
4.3
2.5
1.9
5.9 2.8
8.5
1.8
7.0
6.2 7.8
8.6
5.1
9.4
10.5 11.9 1.8
0.6
0.9
2.3 2.1 0.8
0.5
0.4
0.4 0.4
0
10
20
30
40
50
60
2011 2012 2013 2014 2015
€ b
illion
UK & Ireland DACH Nordics France & Benelux Southern Europe CEE
FUNDRAISING INVESTMENTS DIVESTMENTS
All Private Equity - Funds raised by region of management and investor type
2015 European Private Equity Activity 12
2015 - Incremental amount raised during the year
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
5% 0% 7%
1% 0% 0%
4% 11%
10%
2% 4% 6%
2% 0%
1%
3% 0%
4%
2% 2%
0%
6% 0%
8%
8% 14%
8% 18%
39% 16%
20%
1%
15%
18%
28%
9%
3%
68%
13%
27%
17%
48%
11%
1%
3%
12%
3% 0%
29%
3%
21%
10%
10% 10% 15%
0%
21%
4% 0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UK & Ireland DACH Nordics France &Benelux
SouthernEurope
CEE
Sovereign wealth funds
Pension funds
Insurance companies
Government agencies
Fund of funds & Other asset managers
Family offices & Private individuals
Corporate investors
Capital markets
Banks
Academic inst. / Endowments /Foundations
FUNDRAISING INVESTMENTS DIVESTMENTS
2%
0%
11%
3%
82%
0% 1%
1%
7%
2%
1%
4%
7%
14%
8%
10% 3%
25%
4%
15%
0% 1%
0% 14%
9%
4%
12%
31%
3%
11%
7%
8% 0%
5%
2%
2%
4%
7%
12%
14%
9%
5%
22%
5%
13%
Funds raised by type of investor
2015 European Private Equity Activity 13
2015 - Incremental amount raised during the year - % of amount
Source: Invest Europe / PEREP_Analytics
Banks2.7%
Capital markets1.2%
Corporate investors2.0%
Endowments and foundations
3.7%Family offices
3.6%Fund of funds11.5%
Government agencies5.9%
Insurance companies10.8%
Other asset managers4.7%
Pension funds37.4%
Private individuals5.1%
Academic institutions
Banks
Capital markets
Corporate investors
Endowments and foundations
Family offices
Fund of funds
Government agencies
Insurance companies
Other asset managers
Pension funds
Private individuals
Sovereign wealth funds
All Private Equity funds
Buyout funds
Venture Capital funds
Growth funds*
274 funds
207 firms
98 funds
82 firms
38 funds
26 firms
90 funds
77 firms
* Due to the comparatively small number of funds raised and extrapolation
of missing data it is recommended to take a longer term perspective to
identify the investor structure in this market segment
FUNDRAISING INVESTMENTS DIVESTMENTS
All Private Equity - Funds raised by type of investor
2015 European Private Equity Activity 14
2011–2015 - Incremental amount raised during the year - % of total amount
Source: Invest Europe / PEREP_Analytics
0%5%
10%15%20%25%30%35%40%
Academic inst. / Endowments / Foundations
Banks
Capital markets
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
Pension funds
Sovereign wealth funds
0%
5%
10%
15%
20%
25%
30%
35%
40%
2011 2012 2013 2014 2015
41.1
24.5
54.2 48.0 47.5
0
20
40
60
2011 2012 2013 2014 2015
€ b
illion
New funds raised(excluding capital gains)
FUNDRAISING INVESTMENTS DIVESTMENTS
5.2 3.9
4.6 4.9 5.3
0
5
10
2011 2012 2013 2014 2015
€ b
illion
New funds raised(excluding capital gains)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2011 2012 2013 2014 2015
Venture Capital - Funds raised by type of investor
2015 European Private Equity Activity 15
2011–2015 - Incremental amount raised during the year - % of total amount
Source: Invest Europe / PEREP_Analytics
0%5%
10%15%20%25%30%35%40%
Academic inst. / Endowments / Foundations
Banks
Capital markets
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
Pension funds
Sovereign wealth funds
FUNDRAISING INVESTMENTS DIVESTMENTS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2011 2012 2013 2014 2015
Buyout - Funds raised by type of investor
2015 European Private Equity Activity 16
2011–2015 - Incremental amount raised during the year - % of total amount
Source: Invest Europe / PEREP_Analytics
0%5%
10%15%20%25%30%35%40%
Academic inst. / Endowments / Foundations
Banks
Capital markets
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
Pension funds
Sovereign wealth funds
26.9
16.7
45.3
36.3 33.5
0
10
20
30
40
50
2011 2012 2013 2014 2015
€ b
illion
New funds raised(excluding capital gains)
FUNDRAISING INVESTMENTS DIVESTMENTS
0%
10%
20%
30%
40%
50%
60%
70%
2011 2012 2013 2014 2015
4.4
0.5 1.1
2.8 2.9
0
2
4
6
2011 2012 2013 2014 2015
€ b
illion
New funds raised(excluding capital gains)
Growth - Funds raised by type of investor
2015 European Private Equity Activity 17
2011–2015 - Incremental amount raised during the year - % of total amount*
Source: Invest Europe / PEREP_Analytics
0%5%
10%15%20%25%30%35%40%
Academic inst. / Endowments / Foundations
Banks
Capital markets
Corporate investors
Family offices & Private individuals
Fund of funds & Other asset managers
Government agencies
Insurance companies
Pension funds
Sovereign wealth funds
* Due to the comparatively small number of funds raised
and extrapolation of missing data it is recommended to
take a longer term perspective to identify the investor
structure in this market segment
FUNDRAISING INVESTMENTS DIVESTMENTS
All Private Equity - Fundraising geographic breakdown
2015 European Private Equity Activity 18
2015 (2014) - Source of funds - % of total amount
Source: Invest Europe / PEREP_Analytics
12.4% (9.3%)
22.4% (23.5%)
0.4% (0.8%)
Rest of world
3.0% (2.4%)
Australia
Asia
15.5% (10.5%)
North America
20.9% (27.7%)
Unclassified Europe
5.8% (5.1%)
9.4% (10.7%)
1.5% (2.2%)
8.8% (7.8%)
FUNDRAISING INVESTMENTS DIVESTMENTS
Venture Capital - Fundraising geographic breakdown
2015 European Private Equity Activity 19
2015 (2014) - Source of funds - % of total amount
Source: Invest Europe / PEREP_Analytics
20.1% (7.8%)
32.7% (41.6%)
2.2% (2.9%)
Rest of world
0.3% (0.2%)
Australia
Asia
0.2% (0.2%)
North America
11.0% (10.5%)
Unclassified Europe
18.6% (5.1%)
10.5% (20.2%)
1.1% (5.7%)
3.3% (5.8%)
FUNDRAISING INVESTMENTS DIVESTMENTS
Buyout - Fundraising geographic breakdown
2015 European Private Equity Activity 20
2015 (2014) - Source of funds - % of total amount
Source: Invest Europe / PEREP_Analytics
11.8% (9.5%)
14.6% (15.6%)
0.0% (0.0%)
Rest of world
4.3% (2.9%)
Australia
Asia
17.9% (13.0%)
North America
25.5% (33.5%)
Unclassified Europe
5.1% (5.9%)
8.0% (9.4%)
1.4% (1.6%)
11.4% (8.7%)
FUNDRAISING INVESTMENTS DIVESTMENTS
0.5
1.1 1.4
2.0 2.1 1.0 0.1
0.3
0.2
0.9
1.4
0.3
1.2
1.1
1.3
2.9
1.5
2.8
3.2
4.3
0
1
2
3
4
5
€ b
illion
Final closing - Funds raised by fund stage focus
2015 European Private Equity Activity 21
2011–2015 - Final closing during the year - Amount(1)
Balanced
Later-stage
Early-stage
Legend
Venture Capital
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.
1.4 1.6
1.4
0.5
3.3
1.7
0.9 0.7
1.0
1.7
2.1
0.8 1.0
3.8
0.8
Growth Mezzanine Generalist
2011 2012 2013 2014 2015
18
15
49
28
40
0
5
10
15
20
25
30
35
40
45
50
Buyout
€ b
illion
FUNDRAISING INVESTMENTS DIVESTMENTS
Final closing - Funds raised by fund stage focus
2015 European Private Equity Activity 22
2011–2015 - Final closing during the year - Number of funds(1)
Balanced
Later-stage
Early-stage
Legend
Venture Capital
Source: Invest Europe / PEREP_Analytics
Note: (1) 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.
16 12
21
33
22
9
6
4
4
5
25
14
18
13
13
50
32
43
50
40
0
10
20
30
40
50
60
14
4
24
7 5
27
11
3
14 13
5
26
13
6
20
Growth Mezzanine Generalist
2011 2012 2013 2014 2015
41
30
43
46
50
0
10
20
30
40
50
60
Buyout
77 66 62 79 65
37
18
23 27
31 10
7 13
17
13
4
7
4
10
7
5
3
12
7
13
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
< €100m €100m - €250m €250m - €500m €500m - €1bn > €1bn
Final closing - All Private Equity - Concentration of capital
2011–2015 - Final closing during the year - Amount(1) & Number of funds(2)
2015 European Private Equity Activity 23
2014 2015 2011 2012 2013
Number
of
funds
% t
ota
l am
ount
of
annual fu
ndra
isin
g
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.
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 portfolio 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, quasi-equity, mezzanine, unsecured debt and secured debt provided by the private equity firm.
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.
2. INVESTMENTS
Market versus industry statistics
B
C
D A
Market statistics
A + B + C
Industry statistics
A + B + D A Domestic investments in European countries
B Cross-border investments within Europe
C Non-European private equity firms investing in
portfolio companies in Europe
D European private equity firms investing in
portfolio companies outside Europe
D
C
2015 European Private Equity Activity 26
Glossary
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 financing: 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 operations, restructure operations or 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 FUNDRAISING DIVESTMENTS
3.7 3.2 3.4 3.6 3.8
34.5
28.1 28.0
31.3
36.3
5.2
4.0 3.6
5.8
6.5
44.9
36.8 36.3
41.8
47.4
881 896 839 951 944
932 1,066 1,122
1,272 1,108
2,965 2,981 3,055
3,237
2,836
2011 2012 2013 2014 2015
No. of companies:
Venture Capital
Buyout
Growth
2015 - Market statistics All Private
Equity
Venture
Capital(1) Buyout(1) Growth(1)
Amount €47.4bn €3.8bn €36.3bn €6.5bn
No. of companies 4,971 2,836 944 1,108
No. of firms 1,028 589 427 400
No. of funds 1,656 930 572 582
2015 European Private Equity Activity 27
2015 Investments at a glance
• The total amount of equity investments in European companies increased by 14% to €47.4bn. The related number of companies reduced by 11% to almost 5,000. 86% of them are SMEs.
• Over a third of the total amount invested in European companies was attributed to cross-border investments. This was the case for all private equity as well as venture capital investments.
• 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 5% and start-up investments by 4%. The reduction in number of companies by 12% to 2,836 indicates a trend towards larger financing rounds across all stages. Most capital was concentrated in life sciences (34%), computer & consumer electronics (20%) and communications (19%) sectors.
• Buyout investments increased by 16% to €36.3bn into a stable number of companies at 944. In terms of amount, large and mega buyouts increased, while mid-market investments remained stable. More than 60% of buyout investments concentrated in companies active in business & industrial products (18%), consumer goods & retail (15%), financial services (12%) and life sciences (11%).
• Growth investments increased 11% to €6.5bn, reaching their highest level since 2008. 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%).
Source: Invest Europe / PEREP_Analytics Note: (1) relates to the investment stage of the portfolio company
Source: Invest Europe / PEREP_Analytics Note: (2) Other includes Rescue/Turnaround and Replacement capital
Investments – Market statistics – Amount & No. of companies
Amount (€bn):
Venture Capital
Buyout
Growth
Other(2)
Total
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 28
Investments by stage
2015 - Market statistics - % of Amount & Number of companies
Source: Invest Europe / PEREP_Analytics
% of Amount % of Number of companies
Venture Capital €3.8bn
Buyout €36.3bn
Growth €6.5bn
Venture Capital 2,836 Companies
Buyout 944 Companies
Growth 1,108 Companies
Seed 0.2%
Start-up 4.2%
Later-stage venture
3.5% Growth capital 13.6%
Rescue/ Turnaround
0.5%
Replacement capital 1.2%
Buyout 76.6%
Seed 8.5%
Start-up 35.8%
Later-stage venture 12.7%
Growth capital 21.9%
Rescue/ Turnaround
0.9%
Replacement capital 1.6%
Buyout 18.6%
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 29
Investments by stage
2011–2015 - Market statistics - Amount
Source: Invest Europe / PEREP_Analytics
1.7 1.3 1.5 1.6 1.7
1.8
1.8 1.8
1.9 2.0
0.2
0.1 0.1
0.1 0.1
5.2
4.0 3.6
5.8
6.5
0.5 0.3 0.3 0.2 0.3
1.0 1.1 1.0 0.8 0.6
3.7
3.2 3.4
3.6 3.8
0
1
2
3
4
5
6
7
2011 2012 2013 2014 2015
€ b
illion
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital
Venture Capital
34.5
28.1 28.0
31.3
36.3
0
5
10
15
20
25
30
35
40
2011 2012 2013 2014 2015
€ b
illion
Buyout
INVESTMENTS FUNDRAISING DIVESTMENTS
881 896 839
951 944
0
500
1,000
2011 2012 2013 2014 2015
Buyout
939 843 885 853 644
1,679 1,833 1,796 1,948
1,812
392 359 413
470
431
932 1,066 1,122
1,272 1,108
103 65 62 58 48 76 117 104 89 80
2,965 2,981 3,055
3,237
2,836
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2011 2012 2013 2014 2015
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital
2015 European Private Equity Activity 30
Investments by stage
2011–2015 - Market statistics - Number of companies
Source: Invest Europe / PEREP_Analytics
Venture Capital
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 31
Buyout – Investments by equity bracket
2011–2015 - Market statistics - Amount & Number of companies
Source: Invest Europe / PEREP_Analytics
4 4 3 4 4
16
13 13 15 15
8
7 7
7
10
8
5 5
6
8
574
621
570
673
622
327
268 269 277 298
33 27 31 33 43
18 11 10 12 18 0
100
200
300
400
500
600
700
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014 2015
Num
ber o
f com
panie
s
€ b
illion
6 52
3 4 4 3
24
18
6
1116
13 13
12
7
2
88
7 7
15
9
2
88
5 5
886816
493550 574
621547
438378
128
238
327268 263
50 29 8 33 33 27 3230 18 4 16 18 11 10 0
100
200
300
400
500
600
700
800
900
0
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012 2013
Num
ber o
f com
panie
s
€billion
Small (<€15m) - Amount
Mid-market (€15m - €150m) - Amount
Large (€150m - €300m) - Amount
Mega (> €300m) - Amount
Small (<€15m) - No. of companies
Mid-market (€15m - €150m) - No. of companies
Large (€150m - €300m) - No. of companies
Mega (> €300m) - No. of companies
6 52
3 4 4 3
24
18
6
1116
13 13
12
7
2
88
7 7
15
9
2
88
5 5
886816
493550 574
621547
438378
128
238
327268 263
50 29 8 33 33 27 3230 18 4 16 18 11 10 0
100
200
300
400
500
600
700
800
900
0
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012 2013
Num
ber o
f com
panie
s
€billion
Small (<€15m) - Amount
Mid-market (€15m - €150m) - Amount
Large (€150m - €300m) - Amount
Mega (> €300m) - Amount
Small (<€15m) - No. of companies
Mid-market (€15m - €150m) - No. of companies
Large (€150m - €300m) - No. of companies
Mega (> €300m) - No. of companies
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 32
Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Amount
Source: Invest Europe / PEREP_Analytics
2014 2011 2012 2015 2013
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
€ b
illion
Venture Capital Buyout Growth
INVESTMENTS FUNDRAISING DIVESTMENTS
0
200
400
600
800
1,000
1,200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Venture Capital Buyout Growth
2015 European Private Equity Activity 33
Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Number of companies
Source: Invest Europe / PEREP_Analytics
2014 2011 2012 2015 2013
INVESTMENTS FUNDRAISING DIVESTMENTS
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
€ b
illion
Seed Start-up Later-stage venture
2015 European Private Equity Activity 34
Venture Capital - Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Amount
Source: Invest Europe / PEREP_Analytics
2014 2011 2012 2015 2013
INVESTMENTS FUNDRAISING DIVESTMENTS
0
100
200
300
400
500
600
700
800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Seed Start-up Later-stage venture
2015 European Private Equity Activity 35
Venture Capital - Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Number of companies
Source: Invest Europe / PEREP_Analytics
2014 2011 2012 2015 2013
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 36
All Private Equity - Geographical investment flows
2015 - Industry vs. Market statistics - Amount
Source: Invest Europe / PEREP_Analytics
€13.1bn
€31.0bn
€3.3bn
€3.2bn
European private
equity firms investing
in portfolio companies
outside Europe
Cross-border
investments
within Europe
Domestic investments
in European countries
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.
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 portfolio company.
Non-European private
equity firms investing
in portfolio companies
in Europe
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
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 37
Venture Capital - Geographical investment flows
2015 - Industry vs. Market statistics - Amount
Source: Invest Europe / PEREP_Analytics
€994m
€2,499m
€313m
€495m
European private
equity firms investing
in portfolio companies
outside Europe
Cross-border
investments
within Europe
Domestic investments
in European countries
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.
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 portfolio company.
Non-European private
equity firms investing
in portfolio companies
in Europe
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
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 38
All Private Equity - Investments by region
2015 - Industry vs. Market statistics - Amount
Industry statistics Market statistics
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
UK & Ireland 25%
France & Benelux 28%
DACH 19%
Southern Europe 10%
Nordics 14%
CEE 3%
UK & Ireland 27%
France & Benelux
29%
DACH 19%
Southern Europe
9%
Nordics 13%
CEE 3%
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 39
Investments by stage and regions
2015 - Market statistics - Amount
Source: Invest Europe / PEREP_Analytics
Venture Capital
0.5 0.4
0.5
0.1 0.2 0.0
0.4 0.5
0.7
0.2
0.2
0.1
0.0 0.0
0.1
0.0
0.0
0.0
1.6
2.4
1.0
0.4
0.8
0.2 0.1 0.1
0.0 0.0 0.0 0.0 0.1 0.2 0.2
0.1 0.1 0.0
0.9 0.9
1.2
0.3
0.4
0.1
0.0
0.5
1.0
1.5
2.0
2.5
UK & Ireland France & Benelux DACH Southern Europe Nordics CEE
€ b
illion
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital
10.2 9.9
6.5
3.7
4.7
1.2
0
2
4
6
8
10
12
€ b
illion
Buyout
INVESTMENTS FUNDRAISING DIVESTMENTS
97
187 165
48 107
40
175
368
545
142
455
127
14
33
244
36
45
59
105
362
455
65 74 47 6 14 18 5 5 0 8
35 18 11 7 1
278
578
936
224
598
222
0
100
200
300
400
500
600
700
800
900
1,000
UK & Ireland France & Benelux DACH Southern Europe Nordics CEE
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital
2015 European Private Equity Activity 40
Investments by stage and regions
2015 - Market statistics - Number of companies
Source: Invest Europe / PEREP_Analytics
Venture Capital
190
343
144
100 129
38
0
100
200
300
400
Buyout
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 41
All Private Equity - Investments as % of European GDP
2000–2015 - Industry statistics: Location of the PE firm
Source: : IMF, World Economic Outlook Database (GDP) / Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
0.35%
0.23%
0.25% 0.26%
0.32%
0.39%
0.55% 0.53%
0.40%
0.19%
0.32% 0.33%
0.26% 0.26% 0.28%
0.30%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
%of
GD
P
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 42
All Private Equity - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
0.7
99%
0.4
37%
0.4
33%
0.3
88%
0.3
32%
0.3
02%
0.2
57%
0.2
47%
0.1
98%
0.1
87%
0.1
76%
0.1
42%
0.1
08%
0.1
07%
0.0
97%
0.0
84%
0.0
75%
0.0
71%
0.0
50%
0.0
36%
0.0
32%
0.0
31%
0.0
26%
0.0
15%
0.0
08%
0.0
00%
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
0.700%
0.800%
0.900%
1.000%
% o
f G
DP
INVESTMENTS FUNDRAISING DIVESTMENTS
0.1
09%
0.0
79%
0.0
47%
0.0
47%
0.0
41%
0.0
39%
0.0
34%
0.0
34%
0.0
33%
0.0
32%
0.0
26%
0.0
25%
0.0
25%
0.0
23%
0.0
22%
0.0
15%
0.0
10%
0.0
08%
0.0
07%
0.0
05%
0.0
05%
0.0
02%
0.0
02%
0.0
02%
0.0
01%
0.0
00%
0.000%
0.020%
0.040%
0.060%
0.080%
0.100%
0.120%
0.140%
% o
f G
DP
2015 European Private Equity Activity 43
Venture Capital - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
INVESTMENTS FUNDRAISING DIVESTMENTS
0.6
77%
0.3
22%
0.3
14%
0.3
13%
0.2
33%
0.2
08%
0.1
79%
0.1
55%
0.1
53%
0.1
49%
0.1
37%
0.0
87%
0.0
62%
0.0
62%
0.0
60%
0.0
33%
0.0
30%
0.0
29%
0.0
24%
0.0
23%
0.0
13%
0.0
08%
0.0
05%
0.0
01%
0.0
00%
0.0
00%
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
0.700%
0.800%
% o
f G
DP
2015 European Private Equity Activity 44
Buyout - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
INVESTMENTS FUNDRAISING DIVESTMENTS
0.0
98%
0.0
84%
0.0
80%
0.0
58%
0.0
39%
0.0
27%
0.0
24%
0.0
20%
0.0
19%
0.0
18%
0.0
18%
0.0
17%
0.0
16%
0.0
15%
0.0
14%
0.0
14%
0.0
13%
0.0
11%
0.0
08%
0.0
05%
0.0
05%
0.0
04%
0.0
01%
0.0
00%
0.0
00%
0.0
00%
0.000%
0.020%
0.040%
0.060%
0.080%
0.100%
0.120%
% o
f G
DP
2015 European Private Equity Activity 45
Growth - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
INVESTMENTS FUNDRAISING DIVESTMENTS
1.2
54%
0.6
33%
0.4
97%
0.4
96%
0.4
78%
0.4
53%
0.3
81%
0.3
76%
0.3
37%
0.3
22%
0.3
05%
0.3
02%
0.2
18%
0.2
15%
0.1
88%
0.1
55%
0.1
46%
0.1
42%
0.1
41%
0.1
25%
0.1
19%
0.0
90%
0.0
85%
0.0
64%
0.0
21%
0.0
08%
0.000%
0.200%
0.400%
0.600%
0.800%
1.000%
1.200%
1.400%
% o
f G
DP
2015 European Private Equity Activity 46
All Private Equity - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
INVESTMENTS FUNDRAISING DIVESTMENTS
0.0
51%
0.0
44%
0.0
37%
0.0
35%
0.0
33%
0.0
33%
0.0
33%
0.0
31%
0.0
29%
0.0
28%
0.0
25%
0.0
24%
0.0
24%
0.0
23%
0.0
16%
0.0
15%
0.0
14%
0.0
10%
0.0
05%
0.0
05%
0.0
04%
0.0
03%
0.0
02%
0.0
01%
0.0
01%
0.0
00%
0.000%
0.010%
0.020%
0.030%
0.040%
0.050%
0.060%
% o
f G
DP
2015 European Private Equity Activity 47
Venture Capital - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
INVESTMENTS FUNDRAISING DIVESTMENTS
1.1
98%
0.5
42%
0.4
07%
0.3
89%
0.3
80%
0.3
10%
0.3
00%
0.3
00%
0.2
51%
0.2
36%
0.2
32%
0.2
19%
0.1
64%
0.1
60%
0.1
51%
0.1
42%
0.1
39%
0.1
08%
0.1
03%
0.0
88%
0.0
87%
0.0
50%
0.0
28%
0.0
13%
0.0
02%
0.0
01%
0.000%
0.200%
0.400%
0.600%
0.800%
1.000%
1.200%
1.400%
% o
f G
DP
2015 European Private Equity Activity 48
Buyout - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
INVESTMENTS FUNDRAISING DIVESTMENTS
0.1
37%
0.0
87%
0.0
86%
0.0
72%
0.0
59%
0.0
56%
0.0
51%
0.0
46%
0.0
41%
0.0
38%
0.0
35%
0.0
28%
0.0
25%
0.0
23%
0.0
19%
0.0
17%
0.0
16%
0.0
15%
0.0
14%
0.0
14%
0.0
11%
0.0
11%
0.0
05%
0.0
05%
0.0
01%
0.0
00%
0.000%
0.020%
0.040%
0.060%
0.080%
0.100%
0.120%
0.140%
0.160%
% o
f G
DP
2015 European Private Equity Activity 49
Growth - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 2011-2015 Annual Average
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 50
All Private Equity - Investments by sector
2015 - Market statistics - % of Amount & Number of companies
Source: Invest Europe / PEREP_Analytics
15.8%
14.0%
12.2%
11.2%
10.0%
9.0%
7.3%
7.2%
5.4%
2.4%
1.9%
1.8%
1.1%
0.6%
0.1%
12.4%
10.2%
16.2%
19.1%
2.2%
5.5%
10.0%
12.2%
5.5%
1.7%
0.7%
1.8%
1.3%
0.4%
0.9%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Business & industrial products
Consumer goods & retail
Life sciences
Computer & consumer electronics
Financial services
Consumer services
Business & industrial services
Communications
Energy and environment
Transportation
Agriculture
Chemicals and materials
Construction
Real estate
Unclassified
Amount
Number of companies
INVESTMENTS FUNDRAISING DIVESTMENTS
0
1
2
3
4
5
6
7
2011 2012 2013 2014 2015€ b
illion
0
5
10
15
20
25
30
35
40
2011 2012 2013 2014 2015
€ b
illion
0
0.5
1
1.5
2
2.5
3
3.5
4
2011 2012 2013 2014 2015
€ b
illion
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014 2015
€ b
illion
2015 European Private Equity Activity 51
Investments by sector
2011-2015 - Market statistics - Amount
Source: Invest Europe / PEREP_Analytics
Venture Capital
Growth
All Private Equity
Buyout
0
10
20
30
40
50
60
70
80
2007 2008 2009 2010 2011 2012 2013
€billion
Transportation
Real estate
Life sciences
Financial services
Energy and environment
Consumer services
Consumer goods & retail
Construction
Computer & consumer electronics
Communications
Chemicals and materials
Business & industrial services
Business & industrial products
Agriculture
INVESTMENTS FUNDRAISING DIVESTMENTS
0
200
400
600
800
1,000
1,200
1,400
2011 2012 2013 2014 2015
0
200
400
600
800
1,000
2011 2012 2013 2014 2015
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2011 2012 2013 2014 20150
1,000
2,000
3,000
4,000
5,000
6,000
2011 2012 2013 2014 2015
2015 European Private Equity Activity 52
Investments by sector
2011-2015 - Market statistics - Number of companies
Source: Invest Europe / PEREP_Analytics
Venture Capital
Growth
All Private Equity
Buyout
0
10
20
30
40
50
60
70
80
2007 2008 2009 2010 2011 2012 2013
€billion
Transportation
Real estate
Life sciences
Financial services
Energy and environment
Consumer services
Consumer goods & retail
Construction
Computer & consumer electronics
Communications
Chemicals and materials
Business & industrial services
Business & industrial products
Agriculture
INVESTMENTS FUNDRAISING DIVESTMENTS 2015 European Private Equity Activity 53
All Private Equity - Initial / Follow-on investments
2015 - Market statistics - % of Number of companies
Source: Invest Europe / PEREP_Analytics
2014 2011 2012 2015 2013
60% 57% 56% 59% 61%
46% 44% 42% 46% 45%
54% 56% 58% 54% 55%
Follow-on investmentfor the company
Initial investment forthe company
Initial investment forthe private equity firm
INVESTMENTS FUNDRAISING DIVESTMENTS
35.0%
28.3%
15.8%
2.8%
7.9%
5.7% 3.0% 1.4% 6.2%
22.2%
21.1%
5.1%
16.6%
11.1%
14.1%
3.5%
68.8%
26.4%
3.1%
0.4%
0.9% 0.1% 0.1%
0.2%
48.5%
25.9%
9.8%
1.8%
5.8%
3.6% 3.5% 1.1%
2015 European Private Equity Activity 54
Investments by portfolio company size
2015 - Market statistics - % of Number of companies
Source: Invest Europe / PEREP_Analytics
Venture Capital
Growth
All Private Equity
Buyout
44.1%
31.6%
9.1%
2.5%
4.5%
3.6%3.7%0.9%
0 - 19
20 - 99
100 - 199
200 - 249
250 - 499
500 - 999
1000 - 4999
5000 +
SME: 85.9% SME: 98.7%
SME: 54.7% SME: 81.9%
SME
Full-time equivalent
staff by interval
INVESTMENTS FUNDRAISING DIVESTMENTS
1,318
1,843
342
54 94 133
1 19 0
500
1,000
1,500
2,000
2,500
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +
Num
ber o
f com
panie
s € m
illion
Amount invested Number of companies
SMEs
2015 European Private Equity Activity 55
Venture Capital - Investments by portfolio company size
2015 - Market statistics - Amount & Number of companies
Source: Invest Europe / PEREP_Analytics
Full-time equivalent staff by interval
Amount invested Number of companies
SME % 93% 99%
INVESTMENTS FUNDRAISING DIVESTMENTS
0.4
2.5
3.8
0.7
4.2
5.3
12.9
6.6
0
50
100
150
200
250
0
2
4
6
8
10
12
14
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +
Num
ber o
f com
panie
s
€ b
illion
Amount invested
SMEs
2015 European Private Equity Activity 56
Buyout - Investments by portfolio company size
2015 - Market statistics - Amount & Number of companies
Source: Invest Europe / PEREP_Analytics
Full-time equivalent staff by interval
Amount invested Number of companies
SME % 20% 55%
INVESTMENTS FUNDRAISING DIVESTMENTS
0.6
0.9
1.5
0.3
1.0
0.9
0.6 0.5
0
50
100
150
200
250
300
350
400
450
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +
Num
ber o
f com
panie
s
€ b
illion
Amount invested
SMEs
2015 European Private Equity Activity 57
Growth - Investments by portfolio company size
2015 - Market statistics - Amount & Number of companies
Source: Invest Europe / PEREP_Analytics
Full-time equivalent staff by interval
Amount invested Number of companies
SME % 52% 82%
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 portfolio 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).
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.
3. DIVESTMENTS
Market versus industry statistics
B
C
D A
Market statistics
A + B + C
Industry statistics
A + B + D A Domestic divestments in European countries
B Cross-border divestments within Europe
C Non-European private equity firms divesting
portfolio companies in Europe
D European private equity firms divesting
portfolio companies outside Europe
D
C
Glossary
2015 European Private Equity Activity
Initial public offering (IPO): The sale or distribution of
a company’s shares to the public for the first time by
listing the company on the stock exchange.
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 long-term 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 of quoted equity: The sale of quoted shares only
if connected to a former private equity investment,
e.g. sale of quoted shares after a lock-up period.
60
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 INVESTMENTS FUNDRAISING
Source: Invest Europe / PEREP_Analytics Note: (1) relates to the investment stage of the portfolio company
2015 European Private Equity Activity 61
2015 Divestments at a glance
• Almost 2,500 European companies were exited in 2015, representing former equity investments (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 equity firm (27%) and public offering (23%). Over 40% of all the divested companies followed these exit routes.
• Public markets supported again sale of quoted equity on flotation (IPO) for 50 companies. Exits from already listed companies in the form of sale of quoted equity increased by almost 80% to €6.7bn, by amount divested at cost.
• Exits from venture capital investments represented 40% of all divested companies, remaining 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 flotation (IPO), and sale to another private equity firm were the most prominent exit routes.
• Buyout divestments’ share was 84% of the equity amount at cost and 32% by number of 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.
Source: Invest Europe / PEREP_Analytics
Divestments – Market statistics – % total amount divested at cost
2015 - Market statistics All Private
Equity
Venture
Capital(1) Buyout(1) Growth(1)
Divestments – Amount €40.5bn €2.1bn €34.3bn €3.2bn
Divestments – No. Companies 2,487 1,005 797 660
Number of Firms 640 297 321 162
Number of Funds 1,123 531 531 230
Trade sale 29%
Sale to another private equity
firm 27%
Public offering 23%
Sale to financial institution
10%
Write-off 4%
Repayment of principal loans
4%
Sale to management
2%
Other means 1%
DIVESTMENTS INVESTMENTS FUNDRAISING 2015 European Private Equity Activity 62
Divestments at cost – Venture Capital / Buyout / Growth
2011–2015 - Market statistics - Amount & Number of companies
Source: Invest Europe / PEREP_Analytics
24.8
18.3
29.1
33.4 34.3
2.3
1.1
1.9
2.3 3.2
2.4
1.9
2.2
1.9 2.1
0
200
400
600
800
1,000
1,200
0
5
10
15
20
25
30
35
40
45
2011 2012 2013 2014 2015
Num
ber o
f com
panie
s
€ b
illion
Buyout - Amount divested Growth - Amount divested Venture Capital - Amount divested
Buyout - Number of companies Growth - Number of companies Venture Capital - Number of companies
DIVESTMENTS INVESTMENTS FUNDRAISING
50%
2%
9%
14%
2% 3%
10%
5% 4%
1%
27%
8%
18% 3%
0%
4%
28%
11%
1%
0%
33%
1%
2%
10%
5% 5%
31%
7% 5%
1%
2015 European Private Equity Activity 63
Divestments at cost by exit route – Venture Capital / Buyout / Growth
2015 - Market Statistics - % of Amount
Source: Invest Europe / PEREP_Analytics
Buyout
€34.3bn
Growth
€3.2bn
Venture Capital
€2.1bn
36.7%
0.3%
4.7%
24.4%
2.1%1.6%
16.8%
4.7%4.4%
4.1%
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
DIVESTMENTS INVESTMENTS FUNDRAISING
11% 1%
3%
12%
46%
8%
8%
3% 7%
1%
24%
1%
7%
23%
20%
8%
6%
3% 7%
1%
29%
4%
6%
4% 3% 11%
24%
6%
10%
3%
2015 European Private Equity Activity 64
Divestments at cost by exit route – Venture Capital / Buyout / Growth
2015 - Market Statistics - % of Number of companies
Source: Invest Europe / PEREP_Analytics
Buyout
797 Companies
Growth
660 Companies
Venture Capital
1,005 Companies
36.7%
0.3%
4.7%
24.4%
2.1%1.6%
16.8%
4.7%4.4%
4.1%
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
DIVESTMENTS INVESTMENTS FUNDRAISING 2015 European Private Equity Activity 65
All Private Equity - Divestments at cost by exit route
2011–2015 – Market statistics - Amount at cost
Source: Invest Europe / PEREP_Analytics
0
2
4
6
8
10
12
2011 2012 2013 2014 2015
€ b
illion
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
DIVESTMENTS INVESTMENTS FUNDRAISING
0
100
200
300
400
500
600
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
2015 European Private Equity Activity 66
All Private Equity - Divestments at cost by exit route
2011–2015 - Market statistics - Number of companies
Source: Invest Europe / PEREP_Analytics
DIVESTMENTS INVESTMENTS FUNDRAISING 2015 European Private Equity Activity 67
All Private Equity - Divestments at cost by sector
2015 - Market statistics - Amount & Number of companies (excluding write-offs)
Source: Invest Europe / PEREP_Analytics
7.1
5.0
4.5 4.3
3.5 3.4 3.1
2.0 2.0
1.6
1.1
0.6 0.3
0.0 0.0
295
383
81
186
237 252
175
52
257
40 76 67 13 16
5
0
50
100
150
200
250
300
350
400
450
0
1
2
3
4
5
6
7
8 Num
ber o
f com
panie
s exite
d
€ b
illion
Amount at cost
Number of companies exited
DIVESTMENTS INVESTMENTS FUNDRAISING 2015 European Private Equity Activity 68
Divestments at cost by sector – Venture Capital / Buyout / Growth
2015 - Market statistics - Amount (excluding write-offs)
Source: Invest Europe / PEREP_Analytics
36%
5%
21%
4%
1%
14%
7%
3%
7%
1%
0%
0%
0%
1%
0%
7%
19%
11%
14%
12%
5%
8%
9%
2%
6%
4%
2%
1%
0%
0%
19%
16%
9%
10%
12%
6%
6%
9%
8%
1%
2%
1%
0%
0%
1%
Life sciences
Consumer goods & retail
Communications
Business & industrial products
Financial services
Computer & consumer electronics
Consumer services
Business & industrial services
Energy & environment
Chemicals & materials
Transportation
Construction
Agriculture
Real estate
Unclassified
Venture Capital
Buyout
Growth
DIVESTMENTS INVESTMENTS FUNDRAISING
11%
8%
8%
20%
19%
5%
14%
3%
5%
2%
3%
1%
0%
0%
1%
18%
18%
13%
8%
8%
9%
7%
6%
3%
3%
3%
2%
1%
0%
1%
27%
16%
14%
7%
5%
11%
4%
2%
2%
5%
2%
3%
1%
0%
0%
Business & industrial products
Consumer goods & retail
Business & industrial services
Computer & consumer electronics
Life sciences
Consumer services
Communications
Financial services
Energy & environment
Construction
Chemicals & materials
Transportation
Agriculture
Real estate
Unclassified
Venture Capital
Buyout
Growth
2015 European Private Equity Activity 69
Divestments at cost by sector – Venture Capital / Buyout / Growth
2015 - Market statistics - Number of companies (excluding write-offs)
Source: Invest Europe / PEREP_Analytics
DIVESTMENTS INVESTMENTS FUNDRAISING 2015 European Private Equity Activity 70
All Private Equity - Divestments at cost by region
2015 - Industry vs. Market statistics - % of Amount
17.7
6.5
3.2
9.7
3.0
0.9
12.6
7.5
4.4
10.8
4.0
1.2
-
2
4
6
8
10
12
14
16
18
20
UK & Ireland DACH Nordics France & Benelux Southern Europe CEE
€ b
illion
Industry statistics - Country of the private equity firm Market statistics - Country of portfolio company
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
ACKNOWLEDGEMENTS
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 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:
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
SVCA - Sweden
CVCA - The Czech Republic
DVCA - Denmark
EstVCA - Estonia
Invest Europe - Europe
FVCA - Finland
Statistics Manager Knowledge Manager
Iuliana Furica Monica Biolan
Statistics Team
Adriana Andronic Adriana Craciun Dan Magirescu Dina Valah
Ana-Maria Cazacu Cristina Cristea Alexandru Mazilu
Claudiu Costache Denisa Florea Ioana Turbatu
About PEREP_Analytics and Invest Europe Research
2015 European Private Equity Activity 73
APCRI - Portugal
AVCO - Austria
BVA - Belgium
BVK - Germany
CVCA - Croatia
PSIK - Poland
SECA - Switzerland
SEEPEA - South Eastern Europe
SLOVCA - Slovakia
SVCA - Sweden
PEREP is a joint Pan-European statistics platform of the following private equity associations:
HVCA - Hungary
IVCA - Ireland
LTVCA - Lithuania
NVCA - Norway
NVP - The Netherlands
Research Director
Dr Cornelius Mueller
Research Manager
Julien Krantz
info@perepanalytics.eu www.perepanalytics.eu research@investeurope.eu www.investeurope.eu
The coverage rate of all
European private equity
firms based on 2,029 eligible
private equity firms
63%
The 2015 annual survey
covered 91% of the European
market in terms of capital
under management
(base €564bn)
91%
Invest Europe Bastion Tower
Place du Champ de Mars 5
B-1050 Brussels, Belgium
T +32 2 715 00 20
www.investeurope.eu
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