baltic private equity and venture capital...
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Baltic Private Equity and Venture Capital MarketMarket Overview: 2017
8JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (DG Regional Policy) and the European Investment Bank group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007-2013. Hence, private equity and venture capital funds which carry out the activities under the JEREMIE initiative in Lithuania is financed from the EU Structural Funds under 2007-2013 Economic Growth Operational Programme of Lithuania.9Total Fund size
Baltic private equity and venture capital landscape & BIF
70,0M EUR9
72,7M EUR9
43,0M EUR9
40,0M EUR9
Early Late Early Late Early Late
Seed Start-up Growth Buyout1
Stage of VC / PE Investment
1Turnaround, Maturity, MBO, LBO, Sale, etc.2ERDF 2014-2020 funds
4Reflows / National funding5ERDF 2014-2020 funds6Expected Fund size 20.0M EUR
Start-up funding
Private Equity funds
VC funds
Start-up funding & VC funds
Karma Ventures Fund
6th Fund
Livonia Partners Fund
16,2M EUR2
14,5M EUR2
13,8M EUR2
Fund size 130,0M EUR
Baltic Innovation Fund (BIF)
Fund size 58,8M EUR
New VC/PE Instruments in the Pipeline
EUR 253,5M253,5M253,5M private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle private investor monies expected to be attracted by the end of BIF lifecycle253,5M private investor monies expected to be attracted by the end of BIF lifecycle253,5MEUR 121,7M from pension funds from pension funds from pension funds from pension funds from pension funds121,7M from pension funds121,7MEUR 84,6M invested in companies to date (May 2017) invested in companies to date (May 2017) invested in companies to date (May 2017) invested in companies to date (May 2017) invested in companies to date (May 2017) invested in companies to date (May 2017) invested in companies to date (May 2017)84,6M invested in companies to date (May 2017)84,6M
81,5M EUR9 BaltCap Private Equity Fund II
New VC/PE Instruments in the Pipeline
10,2M EUR2
Selected fund managers
Lithuania SME Fund
25,0M EUR9
20,0M EUR9
8,0M EUR9
20,0M EUR9
Fund size 58,5M EUR
Business Angels Fund I (2015 12 31)8,4M EUR9
15,7M EUR9
UAB Robos Capital
UAB „Kofinansavimas“
UAB „Kofinansavimas“
13,8M EUR6
11,0M EUR4
9,3M EUR5
Development Fund I 3
Co-Investment Fund (Year 2021) 7
Co-Investment Fund II (Year 2023) 7
Venture Capital Fund I (2018 – 2022) 7
(end of year 2017, but may be extended until end-2018) 7
Development Fund II 3
Business Angels Co-Investment Fund 3
Venture Capital Fund II 3
3The selection of Fund managers is undergoing
7End of Investment period
Practica Seed Capital (2016 12 31) 7
Practica Venture Capital (2016 12 31)7
7
LitCapital I (2016 01 01) 7
(2021 July) 7 (not a Jeremie fund)
JEREMIE Holding Fund & other market players 8
(not a Jeremie fund)
Baltcap Growth Fund (Q2 or Q3 2022)7
(Q1 2019) 7
(Q3 2020) 7
(Q3 2021) 7
(Q4 2019) 7 BPM Mezzanine Fund
JEREMIE private equity and venture capital funds activity report
FundraisingFundraising of VCA members, EUR M
Cumulative fundraisingCapital attractedGPs commitment
0,41 0,29
22,83
1,015,95
0,270,03 0,89 1,03 1,13 1,13
48,1 48,4
72,1 74,281,3 82,7 85,7
2010 2011 2012
2,07 0,86
20162013 2014 2015
47,7
Investment
0,20
7,04 8,71 10,77
16,79
11,23
0,20 7,24
15,95
26,72
43,51
54,73
2010 2011 2012 2013 2014 2015
6,03
60,76
2016
0,10 0,70 0,46 0,430,41 0,84 0,94
2 10 19 1426 20 12
Funds invested, EUR M
Cumulative investmentCapital investedAverage investmentNumber of new companies
Top 5 Lithuanian PE Deals 2010 - 2016
Investment
1.17
49%(30.45)
Value of investments (EUR M and % of total) # Of investment
0.15
0.19
0.49
10%(6.17)
39%(23.99)
2%
The average investment value for all stages is at 0.51M EUR. Lithuanian funds are limiting their maximum investment into one company at 3M EUR, as is imperative by structural funding requirements by EU*.
*(2007 – 2013)
Lithuanian funds are allocating most of its funds into companies that already have an established revenue and client bases. Investments in seed stage companies are frequent, yet significantly smaller (average investment of 0.15M EUR).
(1,3)
Average investment (EUR M)
Growth Turnaround Seed Start-up
26
7
40
49
20162015201520112010
Providence Equity Partners acquired TV3 and other Baltic media businesses from Modern Times Group at EV of 115MEURHubert Burda Media, Accel Partners, Insight Venture Partners acquired Vinted for 25MEURProvidence Equity Partners acquired Bitė from Mid Europa Partners
Valeant Pharmaceuticals acquired Sanitas from Invalda, Citi VC funds and other shareholders for 270MEURThermo Fisher Scientific acquired Fermentas, a major biotech company, from Summit Partners and other shareholders for reported 260MUSD
Capital invested by county
2,4
6,4
34,38,0
1,0
1,5
1,5
0,30,4
Panevėžys
Šiauliai
Vilnius
Kaunas
Tauragė
KlaipėdaTelšiai
Marijampolė
Alytus
Investment
Industrial and business products1
Consumer goods and retail2
Consumer services3
Communication4
Energy and environment5
Business and industrial services6
Computer and consumer electronics7
Financial services8
Transportation9
Chemicals and materials10
Construction11
Other12
investments(EUR M, 2010-2016)
Industry investments(# of companies, 2010-2016)
15,5
8,3
7,8
6,9
5,8
5,4
4,6
1,2
0,4
0,3
0,014,6
16
16
6
36
6
10
15
4
1
1
13
Average investment (EUR M)
1
2
3
4
5
6
7
8
9
10
11
12
0.97
0.52
1.31
0.19
0.97
0.54
0.31
0.30
0.43
0.30
0.01
1.53
Consumer goods & services
ICT (Communications, computer and electronics)
Business products & services
Biotech & healthcare
Energy & environment
Financial & insurance activities
Chemicals & materials
Construction
Unclassified
Transportation
Real estate
Agriculture
28,220,119,811,35,55,23,22,1
21,40,90,4
Investments(EUR M, 2010-2016)
Industry
Investments(# of companies, 2010-2016)
26,518,934,3
0,39,51,90,50,07,20,70,00,0
26,518,934,30,39,51,90,50,07,20,70,00,0
19,144,422,60,95,23,50,90,91,7
0,90,00,0
# Of investment Average investment (EUR M)
Value of investments (EUR M, 2010-2016)
Šiauliai
Tauragė
Alytus
Panevėžys
Marijampolė
Kaunas
Telšiai
Vilnius
Klaipėda
1,61,51,51,21,00,50,40,40,2
41121
161
892
Investment (European Private Equity vs Lithuanian Private Equity)
Europe Lithuania
Number of employees in the portfolio (since investment)
The average annual increase of the number of employees within the portfolio company when comparing the number of employees in the company a day before investment and after up to 4-5 years of the PE/VC investment is 26%. The employ-ment growth within the portfolio company across the di�erent investment stages of the fund varies between 17 – 34%. 14 718
1280 1543 1768
2790 3048
2010 2011 2012 2013 2014 2015 2016
Providence Equity Partners acquired TV3 and other Baltic media businesses from Modern Times Group at EV of 115MEURHubert Burda Media, Accel Partners, Insight Venture Partners acquired Vinted for 25MEURProvidence Equity Partners acquired Bitė from Mid Europa Partners
Valeant Pharmaceuticals acquired Sanitas from Invalda, Citi VC funds and other shareholders for 270MEURThermo Fisher Scientific acquired Fermentas, a major biotech company, from Summit Partners and other shareholders for reported 260MUSD
Total Turnover (EUR M)
Active Portfolio Companies
16
3159Total Employees
84.60M already invested in 16 companies
EXPECTED TOTAL FUND SIZE 383.5M
Private Investors 253.5MBaltic Innovation Fund of Funds 130.0M
52MEIF
26MLT
26MLV
26MEE
Livonia Partners Fund
BaltCap Private Equity Fund II BPM Mezzanine Fund
Karma Ventures Fund
Baltcap Growth Fund
6th Fund
30M15M 25M 20M20M 20M 30M25M 30M55M61.5M 52M
121.70M of those, Pension funds
BIF portfolio (data as of end 2017 Q1 on companies)
Phone: +370 525 46713Mail: [email protected]: +370 525 46978
This material published and prepared by solely the Lithuanian private equity and venture capital association (LT VCA) for member firms, portfolio companies andpublic who find the findings being useful. It must not be reproduced or disclosed without prior consent. Whilst every e�ort has been made, the LT VCA cannot guarantee the accuracy of the information contained herein.This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice.
BIF capital structure (data as of end 2017 Q1 on companies)
Waste management services
Real estate services
Health services
Automation of financial processes
Waste management services
Industrial equipment rental
Business services
Online IT&electronics purchasing platform for corporate buyersEye care chain
Paint producer
Data center services provider
Manufacturing of saunas and thermal wood productsSpecialized retail
ICT
ICT
ICT
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Poland
Poland
Primarily Europe
Primarily Europe
UK
Finland
Apr-14
Sep-15
Nov-15
Jan-16
Jan-16
Jan-16
Mar-17
Mar-16
May-16
Sep-16
Oct-16
Mar-16
Nov-16
Nov-16
Dec-16
Q1-17
Karma Ventures Fund
BPM Mezzanine Fund
BaltCap Private Equity Fund II
Livonia Partners Fund
Fund IndustryGeography of jobs/taxes
LV LT EE OtherInvestment date
X
X
X
X
X
X
X
X
X
X
X
X
EE
Poland
Poland
Primarily Europe
Primarily Europe
UK
Finland
Other
X
X
X
X
X
X
X
X
LV
X
X
X
X
X
X
X
LT
Total invested (EUR M)
Investments in 2016 (EUR M)
AUM (EUR M)
46,1
257,3
307,2
84,6