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INVESTOR OUTLOOK FOR PRIVATE EQUITY IN 2017
40%Our latest investor survey revealed that a signifi cant 40%
of institutional investors in private equity are planning
to commit more capital to the asset class in 2017 than
they did in 2016. Here, we provide detailed insight into
investors’ plans for the next 12 months.
Find out more on page 3
PRIVATE EQUITY & VENTURE CAPITAL
SPOTLIGHT
VOLUME 12, ISSUE 3 ■ MARCH 2017
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VENTURE CAPITAL FUNDRAISING IN 2016
$55bn2016 marked the third consecutive year whereby
venture capital fundraising topped $50bn. With fewer
funds closed however, the average size reached a record
$166mn.
Find out more on page 8
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FEATURE Investor Outlook for Private Equity in 2017
3
FEATURE Venture Capital Fundraising in 2016
8
INDUSTRY NEWS 10
THE FACTS■ AUM and Dry Powder■ Investors to Watch■ Venture Capital Fund
Managers
121416
CONFERENCES 18
IN THIS ISSUE
All data in this newsletter
can be downloaded to
Excel for free
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© Preqin Ltd. 2017 / www.preqin.com3 Private Equity & Venture Capital Spotlight | March 2017
INVESTOR OUTLOOK FOR PRIVATE EQUITY IN 2017
SATISFACTION WITH PRIVATE EQUITY
Institutional investors surveyed by Preqin in December 2016 expressed a high level of satisfaction with private equity: 84% of investors reported a positive view of the asset class at present, up from 59% two years earlier (Fig. 1).
Ninety-fi ve percent of investors reported that their private equity fund investments had met or exceeded expectations in 2016, including 24% for which they had
exceeded expectations (Fig. 2). The 5% that felt that their investments had fallen short of expectations was the smallest proportion in the past six years.
In terms of longer-term performance, investors are even more positive: 40% reported that their private equity investments had exceeded expectations over the past three years, second only to private real estate (42%). Despite this, the proportion of investors that reported that
their confi dence in the ability of private equity to achieve portfolio objectives had fallen over the past year increased from 9% to 14% (Fig. 3), possibly due to concerns about whether fund managers can continue to deliver strong returns at a time of high valuations. Nevertheless, the vast majority (86%) of fund managers reported that their confi dence in the ability of private equity to achieve portfolio objectives was unchanged or had increased over the past 12 months.
INVESTOR OUTLOOK FOR PRIVATE EQUITY IN 2017
9% 14%
74%76%
18%10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-15 Dec-16
IncreasedConfidence
No Change inConfidence
ReducedConfidence
Source: Preqin Investor Interviews, December 2015 - December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 3: Investors’ Change in Confi dence in the Ability of Private Equity to Achieve Portfolio Objectives over the Past 12 Months, 2015 vs. 2016
9% 6% 3%
33%29%
13%
59%65%
84%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-14 Dec-15 Dec-16
Positive
Neutral
Negative
Source: Preqin Investor Interviews, December 2014 - December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 1: Investors’ General Perception of the Private Equity Industry, 2014 - 2016
19% 15% 11% 8% 6% 5%
75%74% 77%
75%64% 71%
6% 11% 13% 17%30% 24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
ExceededExpectations
MetExpectations
Fallen Short ofExpectations
Source: Preqin Investor Interviews, December 2011 - December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 2: Investor Views on Private Equity Portfolio Performance over the Past 12 Months Relative to Expectations, 2011 - 2016
12%19%
8%16%
6% 6%
61% 48%
53%49%
43% 46%
27% 33% 39% 36%
52% 48%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
IncreaseAllocation
MaintainAllocation
DecreaseAllocation
Source: Preqin Investor Interviews, December 2011 - December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 4: Investors’ Intentions for Their Private Equity Allocations over the Long Term, 2011 - 2016
Using data from the recently released Preqin Investor Outlook: Alternative Assets, H1 2017, we take a look at investor appetite for private equity in the year ahead, including allocations, strategies and geographies targeted, key issues and more.
© Preqin Ltd. 2017 / www.preqin.com4 Private Equity & Venture Capital Spotlight | March 2017
INVESTOR OUTLOOK FOR PRIVATE EQUITY IN 2017
Investor satisfaction with private equity is driving larger sums of capital to the asset class as investors look to maintain and increase their allocations. Over the longer term, almost half (48%) of respondents plan to increase their allocations to private equity, while a further 46% will maintain their allocations – these are some of the highest levels seen over the past six years (Fig. 4).
INVESTOR ACTIVITY IN 2017
Positive investor sentiment towards private equity is set to lead to further investment in the asset class in the year ahead, as 40% of investors plan to commit more capital to private equity funds in the next 12 months than they did over the past 12 months (Fig. 5). Although this represents a small decrease from 43% in December 2015, the proportion that plan to invest less capital
over the next 12 months has also fallen over the same period, from 13% to 11%.
With 89% of investors looking to invest the same amount or more capital in private equity in the next year, over three-quarters (76%) plan to make their next commitment in Q1 2017 and 7% intend to do so in Q2 (Fig. 6). A further 11% plan to invest in the second half of the year, with only 6% expecting to wait until 2018 or later for their next commitment.
Investors are increasingly spreading their investment across a number of funds, with the proportion of investors that plan to commit to fi ve or more funds over the next 12 months increasing from 43% in the H2 2016 Investor Outlook to 51% at present (Fig. 7). Similarly, the proportion that intend to make just one or two
investments has fallen from 34% to 26% over the same period.
However, despite investing across a larger number of vehicles, for the majority of investors, the intended capital commitment to the asset class remains small: 52% of investors plan to invest less than $50mn in private equity over the next 12 months (Fig. 8). Nevertheless, a small but important group of investors will be making large commitments over the coming year: 13% of investors plan to invest $500mn or more in the asset class.
STRATEGIES AND GEOGRAPHIES
TARGETED
As investors seek to commit greater sums of capital to private equity over the coming year, they continue to identify small to mid-market buyout funds as the most attractive
52%
10%
18%
7%
13%
Less than $50mn
$50-99mn
$100-349mn
$350-499mn
$500mn or More
Source: Preqin Private Equity Online
Fig. 8: Amount of Fresh Capital Investors Plan to Invest in Private Equity Funds over the Next 12 Months
13% 11%
45% 49%
43% 40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-15 Dec-16
More Capital
Same Amountof Capital
Less Capital
Source: Preqin Investor Interviews, December 2015 - December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 5: Investors’ Expected Capital Commitment to Private Equity Funds in the Next 12 Months Compared to the Previous 12 Months, 2015 vs. 2016
26%
23%22%
29% 1-2 Investments
3-4 Investments
5-6 Investments
7 or More Investments
Source: Preqin Private Equity Online
Fig. 7: Number of Private Equity Fund Commitments Investors Plan to Make over the Next 12 Months
76%
7%
8%
3%6%
Q1 2017
Q2 2017
Q3 2017
Q4 2017
2018 or Later
Source: Preqin Investor Interviews, December 2016
Fig. 6: Timeframe for Investors’ Next Intended Commitment to a Private Equity Fund
© Preqin Ltd. 2017 / www.preqin.com5 Private Equity & Venture Capital Spotlight | March 2017
INVESTOR OUTLOOK FOR PRIVATE EQUITY IN 2017
fund type, with 58% of investors believing they present the best opportunities (Fig. 9). This is up from 50% in the H2 2016
Investor Outlook, but remains below the fi gure for H1 2016 (61%). Venture capital followed, cited by 28% of respondents, although this has fallen from 36% in June 2016, possibly due to investor concerns about overinfl ated prices for venture capital companies and their potential impact on future returns.
North America is considered the most promising region for private equity investment: 61% of investors believe it presents the best opportunities at present, followed by Europe (44%, Fig. 10). In terms of allocations, however, a greater proportion of LPs plan to increase their allocation to Europe (31%) than North
America (25%) over the coming year, with 4% and 7% planning to reduce their allocations to these regions respectively (Fig. 11).
Outside the established private equity markets of North America and Europe, 21% of investors saw Asia as among the most favourable regions for private equity investment. Eighteen percent of investors plan to increase their allocation to the region over the coming year, compared with only 5% that plan to decrease it.
Emerging markets and the Rest of World region were seen as off ering the best opportunities by 19% and 7% of investors respectively. According to investors currently active in emerging markets, the most promising countries/regions are
Emerging Asia (41%), China (39%) and India (20%, Fig. 12).
KEY ISSUES
While investor sentiment towards private equity is positive, there remain a number of challenges facing investors in the asset class. High valuations for portfolio companies remain the number one concern, cited by 70% of respondents (Fig. 13). Combined with record levels of dry powder and stiff competition for assets, investors are increasingly concerned about the impact high pricing will have on returns in future.
With valuations high, the exit environment has also become a key issue for the industry, with investors concerned that it may become more diffi cult for fund
7% 4% 5% 5%
68%65%
77% 75%
25% 31%18% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NorthAmerica
Europe Asia EmergingMarkets
IncreaseAllocation
MaintainAllocation
DecreaseAllocation
Source: Preqin Investor Interviews, December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 11: Investors’ Plans for their Private Equity Allocations over the Next 12 Months by Region
2%
9%
11%
11%
17%
17%
20%
39%
41%
0% 10% 20% 30% 40% 50%
Russia
Central & Eastern Europe
Brazil
Middle East
Latin America
Africa
India
China
Emerging Asia
Source: Preqin Investor Interviews, December 2016Proportion of Respondents
Fig. 12: Countries and Regions* within Emerging Markets that Investors View as Presenting the Best Opportunities
7%
14%
16%
18%
24%
28%
58%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Secondaries
Fund of Funds
Growth
Large to Mega Buyout
Venture Capital
Small to Mid-Market Buyout
Source: Preqin Investor Interviews, December 2016Proportion of Respondents
Fig. 9: Fund Types* that Investors View as Presenting the Best Opportunities
61%
44%
21%
7%
19%
0%
10%
20%
30%
40%
50%
60%
70%
NorthAmerica
Europe Asia Rest of World EmergingMarkets
Source: Preqin Investor Interviews, December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 10: Regions* Investors View as Presenting the Best Opportunities
*Respondents were not prompted to give their opinions on each fund type/region individually but to name those they felt best fi t these categories; therefore, the results display the fund types/regions at the forefront of investors’ minds at the time of the survey.
© Preqin Ltd. 2017 / www.preqin.com6 Private Equity & Venture Capital Spotlight | March 2017
INVESTOR OUTLOOK FOR PRIVATE EQUITY IN 2017
managers to realize their investments at current valuations. The proportion of investors citing the exit environment as a concern increased to 51% from 24% the previous year.
Deal fl ow was also cited by 41% of investors, up from 34% in December 2015. Forty-fi ve percent of investors reported that it has become harder to fi nd attractive investment opportunities over the past
year, compared with only 5% that are fi nding it easier (Fig. 14).
In terms of broader macroeconomic developments aff ecting performance, the key factors that investors believe will aff ect their private equity portfolios in the year ahead are stock market volatility (49%), low interest rates (41%) and the geopolitical landscape (26%, Fig. 15).
All of these issues may pose a challenge to investors as they become more ambitious in their return targets for their private equity portfolios. Just under half (49%) of investors reported that they are targeting returns of 4.1% or more above public markets for their private equity portfolios, up from 37% in December 2014 (Fig. 16).
5% 8%2% 3% 5% 6%
7%9%
11% 12%18% 15%
25%29%
43%49% 37%
30%
63%54%
43%37% 40%
49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
Public Market+4.1% and over
Public Market+2.1% to +4%
Public Market+2%
Same as PublicMarket
Source: Preqin Investor Interviews, December 2011 - December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 16: Investors’ Return Expectations for Their Private Equity Portfolios, 2011 - 2016
70%
51%41% 39%
33%29% 25%
15% 15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Valu
atio
ns
Exit
Envi
ronm
ent
Dea
l Flo
w
Fees
Perfo
rman
ce
Vola
tility
/Unc
erta
inty
in G
loba
l Mar
kets
Regu
latio
n
Publ
ic P
erce
ptio
n of
Indu
stry
Tran
spar
ency
Source: Preqin Investor Interviews, December 2016
Prop
ortio
n of
Res
pond
ents
Fig. 13: Investor Views on the Key Issues Facing Private Equity in 2017
45%
50%
5%
Harder to Find AttractiveOpportunities
No Change
Easier to Find AttractiveOpportunities
Source: Preqin Investor Interviews, December 2016
Fig. 14: Investor Views on the Diffi culty of Identifying Attractive Investment Opportunities Compared to 12 Months Ago
5%
10%
8%
23%
26%
19%
49%
41%
4%
7%
10%
17%
24%
26%
42%
53%
0% 20% 40% 60%
Commodity Price Volatility
China Economic Slowdown
Brexit Vote
Central Bank Intervention
Geopolitical Landscape
Currency Market Volatility
Stock Market Volatility
Low Interest Rates
2016 2017Source: Preqin Investor Interviews, December 2016
Proportion of Respondents
Fig. 15: Investor Views on the Macroeconomic Factors that Had the Biggest Impact on Their Private Equity Portfolios in 2016 vs. Predictions for 2017
PREQIN INVESTOR OUTLOOK: ALTERNATIVE ASSETS, H1 2017
Preqin Investor Outlook: Alternative Assets, H1 2017 brings together the results of a series of in-depth
interviews conducted by Preqin’s analysts with over 500 institutional investors. With the alternative assets
industry larger than ever before, this report aims to provide insight into institutional investors’ portfolios and
future plans, their confi dence in diff erent asset classes and the challenges they face in a turbulent geopolitical
landscape.
Download your copy now: www.preqin.com/investoroutlook
PREQININVESTOR OUTLOOK:ALTERNATIVE ASSETSH1 2017
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© Preqin Ltd. 2017 / www.preqin.com8 Private Equity & Venture Capital Spotlight | March 2017
VENTURE CAPITAL FUNDRAISING
VENTURE CAPITAL FUNDRAISINGVENTURE CAPITAL FUNDRAISING IN 2016
For the third consecutive year, annual venture capital fundraising has topped
$50bn. Strong performance by post-GFC vintage funds, as well as steady growth in deal volume and value, has put venture capital on the radar of institutional investors and increased commitments to venture capital funds.
Key Findings:
■ In 2016, 382 funds reached a fi nal close, securing $55bn. While this capital is on par with the previous record in 2015 (from 442 funds), as more information becomes available, the 2016 fi gure is likely to surpass 2015 (Fig. 1).
■ Consequently, average fund size reached a record high of $166mn in 2016, an increase of 16% from 2015.
■ Generalist venture capital funds had the greatest interest from investors: 40% of venture capital funds closed in 2016 invested across all stages and raised 45% ($24bn) of total venture capital (Fig. 2).
■ Information technology remains the most prominent industry; 57% ($31bn) of all capital raised in 2016 targets the sector.
■ Technology Crossover Ventures IX was the largest venture capital fund closed in 2016, securing $2.5bn in capital
commitments, and seeks to make late stage investments in the technology sector – including internet, fi nancial services, communications and software – across North America.
GEOGRAPHIC FOCUS
North America continues to dominate the venture capital fundraising market, largely due to the high concentration of GPs in and around Silicon Valley. Proportionally, regional market share has remained relatively unchanged from 2014, with funds focused on North America, Europe, Asia and all other regions securing 62%, 11%, 24% and 3% of the capital raised in 2016 respectively.
The regional breakdown is as follows: ■ North America: 222 funds focused
on the region closed in 2016, raising an aggregate $34bn. California-based GPs managed $21bn (61%) of all North America-focused venture capital raised.
■ Europe: 53 Europe-focused funds raised a combined $6.1bn in 2016.
■ Asia: 80 Asia-focused funds secured $13bn, with China-focused funds accounting for 64% ($8.4bn) of all Asia-focused capital raised in 2016.
■ Rest of World: 27 funds secured $1.8bn for investment outside North
America, Europe and Asia in 2016, led by Israel- and Australia-focused venture capital: eight Israel-focused vehicles secured $0.8bn, while six Australia-focused funds raised $0.5bn.
OUTLOOK
Venture capital is likely to remain an important part of private equity fundraising over 2017, with a record 940 funds currently seeking capital and $16bn already committed to funds that have held an interim close. Although the number of funds reaching a fi nal close was lower in 2016 than the year before, the aggregate capital raised remained strong. With record numbers of funds in market, managers face the challenge of convincing LPs that they can identify breakout potential among companies in order to secure institutional commitments in a competitive fundraising market.
More than a quarter (28%) of investors surveyed by Preqin see venture capital as providing the best opportunities for investment, second only to small to mid-market buyout funds (58%). Additionally, 18% of investors expect to commit more capital to the asset class in the next 12 months than they did in the previous year, and 30% of investors also plan to increase their allocation over the longer term.
7 8 10 13 12 15 19 214 410 3 6
88
10
16 16
2725
14
2929
24
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
Early Stage Expansion/Late Stage Venture Capital (All Stages)
Source: Preqin Private Equity Online
Aggr
egat
e Ca
pita
l Rai
sed
($bn
)
Year of Final Close
Fig. 2: Annual Venture Capital Fundraising by Fund Type, 2009 - 2016
15 16 1623 20
31 33 345 3 53
5
6 7 6
5 8
22 125
14 14 13
2 2
22
2
1 2 2
302 316358
380 377
443 442
382
0
50
100
150
200
250
300
350
400
450
500
0
10
20
30
40
50
60
70
2009 2010 2011 2012 2013 2014 2015 2016
North America Europe Asia Rest of World No. of Funds Closed
Source: Preqin Private Equity Online
Aggr
egat
e Ca
pita
l Rai
sed
($bn
)
Year of Final Close
Fig. 1: Annual Venture Capital Fundraising by Primary Geographic Focus, 2009 - 2016
No. of Funds Closed
We examine venture capital fundraising in 2016 by region and fund type, and look at the prospects for the strategy in 2017.
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© Preqin Ltd. 2017 / www.preqin.com10 Private Equity & Venture Capital Spotlight | March 2017
INDUSTRY NEWS
INDUSTRY NEWS
There are currently 416 first-time venture capital funds being raised, collectively targeting $41bn in commitments. The 10 largest funds in market account for roughly 34% of aggregate capital targeted by first-time venture capital funds, with the top four funds focused on Asia and all managers based in China. The largest first-time fund currently raising capital is Guangxi Beibu Gulf Industrial Investment Fund, managed by Guangxi Xijiang Venture Investment (a subsidiary of Guangxi Xijiang Development & Investment Group), which focuses on investing across all venture capital strategies, specifically China-based companies related to Beibu Gulf and West River Economic Belt. The fund is targeting $3.2bn to invest in environmental services, energy and resource-based sectors. Rounding out the five largest funds is US-based Breakthrough Energy Ventures Fund I, managed by Breakthrough Energy Ventures. This generalist venture capital fund is seeking $1bn and focuses on innovations in the cleantech sector specifically to reduce greenhouse-gas emissions in areas including electricity generation, storage, transportation, industrial processes, agriculture and energy-system efficiency. The fund has a 20-year duration and a global geographic focus.
Of the 25 largest first-time funds in market, only two primarily focus on Europe. EMH Digital Growth Fund is managed by EMH Partners and invests in IT, technology and communication start-ups. Spirit Ventures I is managed by Spirit Ventures and aims to provide early stage start-up investments in mainly Northwestern European companies, focusing on key enabling technologies such as nanotechnology, semiconductor-related businesses and communications. Each fund is seeking $320mn.
As at 22 February, 48 venture capital funds have reached a final close in 2017, raising an aggregate $6.6bn. The majority (60%) follow an early stage strategy, while 33% are generalist venture capital funds; the remaining 7% are expansion/late stage funds.
The largest venture capital fund closed in 2017 so far is Rocket Internet’s early stage
Rocket Internet Capital Partners Fund.Berlin-based Rocket Internet reached its initial target ($1bn) for its debut fund in January, which makes early stage and growth investments in companies focused on software, e-commerce, fintech, marketplaces and travel. Mithril II, managed by Mithril Capital Management in California, surpassed its initial target by $250mn to achieve a final close of $850mn. Together, these two funds account for 28% of the capital raised by venture capital funds closed so far this year.
FIRST-TIME FUNDS IN MARKET
59%
16%10%
14%
2%
48%
32%
9% 7% 5%
0%
10%
20%
30%
40%
50%
60%
70%
25 or Fewer 26-50 51-75 76-100 More than100
2013-2014
2015-2016
Source: Preqin Private Equity Online
Prop
ortio
n of
Fun
ds C
lose
d
No. of Investors
Concentration of LPs in Venture Capital Funds Closed, 2013 - 2016
The edition’s Chart of the Month, taken from the recently launched 2017 Preqin
Global Private Equity & Venture Capital Report, looks at the make-up of investors in venture capital funds closed from 2013 to 2016.
On average, private equity funds closed in 2016 had 39 investors, a slight increase from 38 LPs per fund in 2015. This number remains in line with recent years despite average fund size reaching a record $471mn in 2016. However, diff ering trends can be seen among diff erent fund strategies in recent years. The proportion of buyout funds with 25 or fewer investors increased from 35% in 2013-2014 to 48% in 2015-2016, while the proportion with greater than 50 investors has fallen from 33% to 24%. On the other hand, the proportion of venture capital funds with 25 LPs or fewer has fallen from 59% to 48% over the same period, while the proportion with between 26 and 50 has increased from 16% to 32%.
CHART OF THE MONTH
We take a look at the latest news from the venture capital industry, including fi rst-time funds in market and recently closed venture capital funds.
RECENTLY CLOSED FUNDS
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*Private equity includes buyout, growth, venture capital, turnaround, private equity fund of funds, private equity secondaries, direct secondaries, balanced, hybrid, hybrid fund of funds, PIPE, co-investment and co-investment multi-manager funds.**Buyout deals: Preqin tracks private equity-backed buyout deals globally, including LBOs, growth capital, public-to-private deals, and recapitalizations. Our coverage does not include private debt and mezzanine deals.***Venture capital deals: Preqin tracks cash-for-equity investments by professional venture capital firms in companies globally across all venture capital stages, from seed to expansion phase. The deals figures provided by Preqin are based on announced venture capital rounds when the capital is committed to a company.
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PRIVATE
EQUITY*HEDGE FUNDS REAL ESTATE INFRASTRUCTURE PRIVATE DEBT
NATURAL
RESOURCES
INVESTOR
COVERAGE
6,437Active
Private Equity LPs
5,132Active
Hedge Fund Investors
5,588Active
Real Estate LPs
2,969Active
InfrastructureLPs
2,539Active
Private Debt Investors
2,525Active
Natural Resources Investors
FUND
COVERAGE
16,415Private Equity
Funds
23,754Hedge Funds
6,261PE Real Estate
Funds
1,119Infrastructure
Funds
2,211Private Debt
Funds
1,671Natural Resources
Funds
FIRM
COVERAGE
10,722Private Equity
Firms
8,831Hedge Fund
Firms
3,775PE Real Estate
Firms
506Infrastructure
Firms
1,431Private Debt
Firms
899Natural Resources
Firms
PERFORMANCE
COVERAGE
5,737Private Equity
Funds
15,800Hedge Funds
1,639PE Real
Estate Funds
223Infrastructure
Funds
788Private Debt
Funds
472Natural Resources
Funds
FUNDRAISING
COVERAGE
1,884Private Equity
Funds
15,806Hedge Funds
1,072PE Real
Estate Funds
279Infrastructure
Funds
284Private Debt
Funds
251Natural Resources
Funds
Alternatives Investment Consultants
Coverage:
546Consultants Tracked
Funds Terms Coverage: Analysis Based on Data for Around
15,530Funds
Best Contacts: Carefully Selected from our Database of over
386,261Contacts
DEALS & EXITS
COVERAGE
BUYOUT VENTURE CAPITAL REAL ESTATE INFRASTRUCTURE
78,323 Buyout Deals** and Exits
128,941 Venture Capital Deals*** and Exits
32,552Real Estate Deals
26,148Infrastructure Deals
2015 Annual CAIA Corporate
As at 1 March 2017
ALTERNATIVES COVERAGE
FIRMS FUNDSFUNDS OPEN TO
INVESTMENT
INVESTORS
MONITORED
FUNDS WITH
PERFORMANCEDEALS & EXITS
26,164 47,697 18,821 14,142 24,659 265,964
© Preqin Ltd. 2017 / www.preqin.com12 Private Equity & Venture Capital Spotlight | March 2017
THE FACTS
ASSETS UNDER MANAGEMENT AND DRY POWDERWe analyze private equity assets under management and dry powder by fund type, vintage year and more.
254 305 322 309 289 385 525 632 678 671 615 593 558 672 687 752 869324 285 271 349 419496
630837 743 904
1,1061,200
1,3821,512
1,5521,635
1,617
0
500
1,000
1,500
2,000
2,500
Dec
-00
Dec
-01
Dec
-02
Dec
-03
Dec
-04
Dec
-05
Dec
-06
Dec
-07
Dec
-08
Dec
-09
Dec
-10
Dec
-11
Dec
-12
Dec
-13
Dec
-14
Dec
-15
Jun-
16
Dry Powder ($bn) Unrealized Value ($bn)
Source: Preqin Private Equity Online
Ass
ets
unde
r Man
agem
ent (
$bn)
Fig. 1: Private Equity Assets under Management, 2000 - 2016
528
937137
371
105
214
57
117
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Dry Powder ($bn) Unrealized Value ($bn)
Other
Growth
Venture Capital
Buyout
Source: Preqin Private Equity Online
Fig. 2: Private Equity Assets under Management by Fund Type (As at June 2016)
4 2 2 1 2 5 13 15 11 8 10 29 4389
164225 237
3 5 1 5 11 48
137
201 186
92129
226 193149
14467 20
0
50
100
150
200
250
300
350
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Dry Powder ($bn) Unrealized Value ($bn)
Source: Preqin Private Equity Online
Ass
ets
unde
r Man
agem
ent (
$bn)
Vintage Year
Fig. 3: Private Equity Assets under Management by Vintage Year (As at June 2016)
0
100
200
300
400
500
600
700
800
900
Dec
-03
Dec
-04
Dec
-05
Dec
-06
Dec
-07
Dec
-08
Dec
-09
Dec
-10
Dec
-11
Dec
-12
Dec
-13
Dec
-14
Dec
-15
Dec
-16
Buyout Venture Capital Growth Other
Source: Preqin Private Equity Online
Dry
Pow
der (
$bn)
Fig. 4: Private Equity Dry Powder by Fund Type, 2003 - 2016
2.7
4.74.5
3.4 3.3
3.93.6
2.5
3.2
3.9
2.52.3
2.6
3.1
2.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Dec
-01
Dec
-02
Dec
-03
Dec
-04
Dec
-05
Dec
-06
Dec
-07
Dec
-08
Dec
-09
Dec
-10
Dec
-11
Dec
-12
Dec
-13
Dec
-14
Dec
-15
Source: Preqin Private Equity Online
Ratio
Fig. 5: Ratio of Year-End Private Equity Dry Powder Levels to Prior-Year Total Capital Called
-200
-100
0
100
200
300
400
500
600
Dec
-00
Dec
-01
Dec
-02
Dec
-03
Dec
-04
Dec
-05
Dec
-06
Dec
-07
Dec
-08
Dec
-09
Dec
-10
Dec
-11
Dec
-12
Dec
-13
Dec
-14
Dec
-15
Jun-
16
Capital Called-up ($bn) Capital Distributed ($bn)Net Capital Distributed ($bn)
Source: Preqin Private Equity Online
Fig. 6: Private Equity - Annual Amount Called up and Distributed, 2000 - H1 2016
For more information or to purchase your copies, please visit:
www.preqin.com/reports
alternative assets. intelligent data.
2017 PREQIN GLOBAL ALTERNATIVES REPORTS
$175/£125/€150
Data, intelligence and insights on fundraising, investor appetite, performance, deals and fund terms across the following asset classes:
■ PRIVATE EQUITY & ■ VENTURE CAPITAL
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■ INFRASTRUCTURE
2017PREQIN GLOBALHEDGE FUNDREPORT
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2017PREQIN GLOBALINFRASTRUCTUREREPORT
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Also in this series: The 2017 Preqin Global Private Debt Report and the 2017 Preqin Global Natural
Resources Report are due for release in March 2017.
© Preqin Ltd. 2017 / www.preqin.com14 Private Equity & Venture Capital Spotlight | March 2017
THE FACTS
INVESTORS TO WATCHWe provide examples of prominent investors in venture capital funds that are looking to make new commitments in the next 12 months.
UNIGRAINS
AUM: €1.2bn ($1.3bn)Type: Private Equity Firm (Investor)Location: Paris, FrancePlans for Next 12 Months: Will continue to invest in venture capital funds with an agribusiness focus.
1
1HIRTLE, CALLAGHAN & CO.
AUM: $26bnType: Private Equity Fund of Funds ManagerLocation: Pennsylvania, USPlans for Next 12 Months: Will make up to six new fund commitments through its fund of funds vehicles, investing with managers it has not previously worked with.
2
2
DIGITAL VENTURES
AUM: THB 50mn ($1.4mn)Type: Investment CompanyLocation: Bangkok, ThailandPlans for Next 12 Months: Considering investment in venture capital vehicles only. Geographically, it seeks investment opportunities globally in a diversifi ed range of industries.
3
3
AMERICAN RED CROSS
AUM: $1.6bnType: Endowment PlanLocation: Washington DC, USPlans for Next 12 Months: Will invest in new buyout and venture capital funds over the next 12 months.
4
5
AP-FONDEN 2
AUM: SEK 324bn ($35bn)Type: Public Pension FundLocation: Goteborg, SwedenPlans for Next 12 Months: Will invest in a limited number of new manager relationships primarily in buyout, early stage, growth and venture capital funds focused mainly on North America and, to a lesser extent, Europe and Asia.
5
4
DATA SOURCE:
Preqin’s Private Equity Online tracks over 4,200 institutional
investors in venture capital, providing detailed information
on their plans for investment, allocations and more.
www.preqin.com/privateequity
14th Annual AVCA Conference
4th – 5th April 2017GP-LP Summit & Welcome Cocktails: 3rd April 2017
Professional Development Programmes: 6th – 7th April 2017
ABIDJAN, CÔTE D’IVOIRE#AVCACon2017 avcaconference.com
11th May 2017 |
Contact us: [email protected] +351 211 335 966
The Iberian Private Equity Conference
20% DISCOUNT!With Preqin!
60+ LPs | 70+ GPs | 50+ CxOs | 250+ Attendees
Register now online:pe-conference.org/iberian/register
IPEC_PreqinSpecial Coupon for Registration:
an exclusive
© Preqin Ltd. 2017 / www.preqin.com16 Private Equity & Venture Capital Spotlight | March 2017
THE FACTS
VENTURE CAPITAL FUND MANAGERS
51%
32%
9%
8%
1 Fund
2-3 Funds
4-5 Funds
6 or More Funds
Source: Preqin Private Equity Online
Fig. 1: Venture Capital Fund Managers by Number of Funds Raised
77%
52% 52%42%
31% 30%23%
18% 17%
4%0%
10%20%30%40%50%60%70%80%90%
Info
rmat
ion
Tech
nolo
gy
Hea
lthca
re
Tele
com
s, M
edia
&Co
mm
unic
atio
ns
Cons
umer
Dis
cret
iona
ry
Busi
ness
Ser
vice
s
Indu
stria
ls
Ener
gy &
Util
ities
Food
& A
gric
ultu
re
Mat
eria
ls
Real
Est
ate
Source: Preqin Private Equity Online
Prop
ortio
n of
Firm
s
Industry Preference
Fig. 3: Venture Capital Fund Managers’ Industry Preferences for Underlying Investments
68%
53% 54%
44%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Early
Sta
ge
Early
Sta
ge:
Seed
Early
Sta
ge:
Star
t-up
Expa
nsio
n/La
te S
tage
Vent
ure
Capi
tal
(All
Stag
es)
Source: Preqin Private Equity Online
Prop
ortio
n of
Firm
s
Investment Stage
Fig. 4: Venture Capital Fund Managers by Investment Stage Preference
Fig. 5: 10 Largest Fund Managers by Total Capital Raised for Venture Capital Funds in the Last 10 Years
FirmTotal Capital Raised in
Last 10 Years ($bn)
Total Estimated Dry
Powder ($bn)Headquarters
Tiger Global Management 12.0 3.5 New York, US
New Enterprise Associates 8.2 1.9 Menlo Park, US
Sequoia Capital 7.9 1.6 Menlo Park, US
DST Global 7.2 2.3 Hong Kong
Kleiner Perkins Caufi eld & Byers 7.1 1.9 Menlo Park, US
Andreessen Horowitz 5.7 2.3 Menlo Park, US
Accel Partners 5.5 1.9 Palo Alto, US
IDG Capital Partners 5.0 1.1 Beijing, China
Index Ventures 4.7 1.5 London, UK
Lightspeed Venture Partners 4.6 1.9 Menlo Park, US
Source: Preqin Private Equity Online
Fig. 2: Number of Active Venture Capital Fund Managers by Location
Headquarters No. of Firms
US 1,020
China 170
UK 93
India 68
Japan 67
Canada 60
France 57
South Korea 54
Germany 44
Israel 44
Source: Preqin Private Equity Online
We take a look at venture capital fund managers by number of funds raised, location, investment preferences and more.
April 27-28, 2017 | Panama City, Panama
Chairman: Rodolfo J. Paiz, President and Founder, 55 Fidelius Family OfficeVeronica Yepez, Founder, Perpetum ConsultingRafael Alcantara-Lansberg, Founder and Managing Partner, Harbor IthakaFerran Fisas, CEO, TransmissionJaime Garcia, Managing Director, Strategic Capital Family Office
LATIN PRIVATE WEALTH MANAGEMENT SUMMIT
The Latin Private Wealth Management Summit is the premium forum bringing leaders from America’s leading single and multi-family offices and qualified service providers together.• Schedule one on one business meetings with qualified buyers • Grow sales faster through a time efficient format• Network with high level executives in a luxurious and stimulating environment• All inclusive investment
FOR MORE INFORMATION, PLEASE CONTACT DEBORAH SACAL AT:[email protected] or call +52 55 4170 5555 ext. 2437
NETWORK WITH INDUSTRY EXPERTS LIKE:
• The Human Side of Family Businesses – Aligning family plans with the financial goals of the company
• The Natural Cycle of an Enterprise – Succession planning. How and when to involve the next generation in the family business?
• Private Equity & Venture Capital – Exploring alternative investments in emerging industries and companies. Co-Investments among Family Offices.
• Asset Allocation and Diversification Strategies – Identifying strategies to manage cash flow, improving ROI and managing liquidity
• Economic Perspectives for Latin America – Handling uncertainty in the investment market. Impact of volatility on the economy
KEY TOPICS TO BE DISCUSSED
knowledgeAn investment in
pays the best interestBenjamin Franklin
The PE Investor Relations Conference27 April, London
LPs attend free of charge. For details email Andras at [email protected] or call +44 (0) 203 286 1730.The number of delegate places is limited, register early.
www.bieevents.com/ir2017-details
Johanna BarrManaging DirectorAdvent International
Chris DavisonPartnerPermira
Laura CoquisPartnerBC Partners
Angela WillettsManaging DirectorCapital Dynamics
John CampbellChairmanCampbell Lutyens
Adam LygoeManaging Director, Head of MIRA Investor Solutions Group EuropeMacquarie Infrastructure and Real Assets
Spence ClunieManaging PartnerAncala Partners
Farah Buckley Executive Director, Head of UK Offi ce Adveq
The biggest and longest-running investor relations conference in Europe. World class speakers include:
Sponsor Media partner
© Preqin Ltd. 2017 / www.preqin.com18 Private Equity & Venture Capital Spotlight | March 2017
CONFERENCES
CONFERENCES
MARCH 2017
Conference Dates Location Organizer Preqin Speaker Discount Code
7th Annual Global Fund Finance Symposium 14 March 2017 New York Fund Finance Association Chris Elvin -
AVCJ Private Equity and Venture Forum - China 2017 15 - 16 March 2017 Beijing AVCJ - -
North American Pensions Summit 20 - 21 March 2017 Chicago, IL marcus evans Summits - -
Jersey Finance Annual Funds Conference 2017 21 March 2017 London Jersey Finance Limited - -
Polish & CEE Private Equity Conference 23 March 2017 Warsaw Private Equity Insights - 20% Discount -
PPEC_Preqin
Global Sovereign Wealth Forum 29 - 30 March 2017 London IRN - -
Co-Invest 2017 29 March 2017 New York, NY Financial Research Associates Leopold Peavy -
Alternative Lending Forum 30 March 2017 London BVCA Mark O'Hare -
APRIL 2017
Conference Dates Location Organizer Preqin Speaker Discount Code
14th Annual AVCA Conference 3 - 7 April 2017 Ivory Coast AVCA - -
The 4th Annual Real Estate Private Equity Forum on Land, Homebuilding & Condo Development (East) 4 - 5 April 2017 Miami, FL IMN - 15% Discount -
PQ15
Family Offi ce & Private Equity Dealmakers Breakfast Series: Private Equity in Health, Fitness & Wellness 06 April 2017 New York, NY Tricap Partners
& Co. - -
Private Wealth Management Summit APAC 2017 10 - 12 April 2017 Macau marcus evans Summits - -
Pension Bridge Annual Conference 18 - 19 April 2017 San Francisco, CA Pension Bridge - -
The Private Equity Awards 2017 19 April 2017 London Real Deals - -
Impact Investing Forum 2017 23 - 25 April 2017 Boca Raton, FL Opal Financial Group - -
SuperReturn China 24 - 26 April 2017 Beijing KNect365 Ee Fai Kam -
Latin Private Wealth Management Summit 27 - 28 April 2017 Panama City marcus evans Summits - -
PE IR Conference 27 April 2017 London BIE Events - -
MAY 2017
Conference Dates Location Organizer Preqin Speaker Discount Code
Iberian Private Equity Conference 11 May 2017 Madrid Private Equity Insights - 20% Discount -
IPEC_Preqin
European Pensions and Investments Summit 2017 15 - 17 May 2017 Montreux marcus evans Summits - -
LPGP Connect Private Debt New York 16 May 2017 New York LPGP Connect Ryan Flanders -
ASK 2017 Private Debt & Equity Summit 17 May 2017 Seoul The Korea Economic Daily Ryan Flanders -
Swiss Private Equity Conference 18 May 2017 Zurich Private Equity Insights - 20% Discount -
SPEC_Preqin
© Preqin Ltd. 2017 / www.preqin.com19 Private Equity & Venture Capital Spotlight | March 2017
THE FACTS
DATE: 4 - 5 April 2017
INFORMATION: www.avcaconference.com
LOCATION: Abidjan, Côte d’Ivoire
ORGANIZER: African Private Equity and Venture Capital Association (AVCA)
The annual AVCA Conference is the largest private equity gathering globally, attracting investors who collectively manage over US$1.5tn in assets.
The conference will take place on Tuesday, 4th April – Wednesday, 5th April 2017 at Sofi tel Abidjan Hôtel Ivoire. A Welcome Cocktail will precede the conference on Monday, 3rd April 2017.
14th ANNUAL AVCA CONFERENCE
DATE: 27 - 28 April 2017
INFORMATION: http://events.marcusevans-events.com/latin-pwm-preqin/
LOCATION: Panama City, Panama
ORGANIZER: marcus evans Summits
The Latin PWM Summit is the premium forum bringing leaders from Latin America’s leading single and multi-family offi ces and service providers together. As an invitation-only event, taking place behind closed doors, the Summit off ers service providers and executives from single and multi-family offi ces an intimate environment for a focused discussion of key new drivers shaping the future of the industry in the region.
THE LATIN PWM SUMMIT
DATE: 27 April 2017
INFORMATION: www.bieevents.com/IR2017-details
LOCATION: Ambassadors Bloomsbury Hotel, London
ORGANIZER: BIE Events
Now in its 8th iteration, this is the longest running conference serving the private equity and private infrastructure investor relations community in Europe.
THE PE INVESTOR RELATIONS CONFERENCE
DATE: 11 May 2017
INFORMATION: http://pe-conference.org/iberian
LOCATION: The Westin Palace, Madrid
ORGANIZER: Private Equity Insights Ltd
The Iberian PE Conference is a one-day event in Madrid with inspirational keynote speakers, enriching panel discussions, and valuable networking opportunities. We gather 50+ speakers and 250 attendees from across the PE ecosystem. With over 60 LPs, 70 GPs and 50 CEOs, IPEC is the place to be on 11th May 2017.
IBERIAN PRIVATE EQUITY CONFERENCE
© Preqin Ltd. 2017 / www.preqin.com20 Private Equity & Venture Capital Spotlight | March 2017
DATE: 16 May 2017
INFORMATION: www.lpgpconnect.com
LOCATION: New York
ORGANIZER: LPGP Connect
The LPGP Connect 3rd Annual Private Debt New York conference brings together over 200+ LPs & GPs within the global private debt community to analyse the latest trends in the market, discover new investment opportunities and build meaningful business relationships for long term growth.
LPGP CONNECT PRIVATE DEBT NEW YORK
DATE: 12 - 15 June 2017
INFORMATION: https://fi nance.knect365.com/superreturn-us-east/?vip_code=FKR2437PRQW
LOCATION: Boston
ORGANIZER: KNect365
Learn, network and discover new opportunities in North American private equity. Create new connections with 550+ attendees. Explore trends and drivers of private equity and venture capital in North America.
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