washington, dc october 12, 2006
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T H O M S O N F I N A N C I A L. LAVCA 2006 LP/GP Roundtable Darrell Pinto Director, Global Private Equity Performance Thomson Financial. Washington, DC October 12, 2006. Agenda. Data collection at TF PE Fundraising Venture Capital Deals Buyout Deals Global PE Performance. - PowerPoint PPT PresentationTRANSCRIPT
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Washington, DCOctober 12, 2006
LAVCA 2006 LP/GPRoundtable
Darrell PintoDirector, Global Private Equity PerformanceThomson Financial
T H O M S O N F I N A N C I A L
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T H O M S O N F I N A N C I A L
• Data collection at TF
• PE Fundraising
• Venture Capital Deals
• Buyout Deals
• Global PE Performance
Agenda
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T H O M S O N F I N A N C I A L
• Quarterly Surveys in Partnership with associations and other third parties
• Quarterly Financial Statement Analysis of GPs and their Investors
• Daily Research through public sources and government filings
Benchmarking Tool
Private Equity Differentiators for Thomson Financial
Private Equity Data Collection at TF
Global ContentEndorsed by Global VCA
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T H O M S O N F I N A N C I A L
An Illuminating Perspective on Global PE
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T H O M S O N F I N A N C I A L
Global PE Investments (January – September 30th, 2006)
3678 deals$41
12 deals$0.1
91 deals$0.9
237 deals$3
All figures in USD billions
12 deals$1.8
7 deals$0.03
1573 deals$12
78 deals$0.6
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T H O M S O N F I N A N C I A L
PE Fundraising
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T H O M S O N F I N A N C I A L
$0
$50
$100
$150
$200
$250
$300
$350
1997 1998 1999 2000 2001 2002 2003 2004 2005 YTD Q32006
Fundraising - All PE
PE Fundraising Trend
Global PE Fundraising is Near All-time High
1
2
All figures in USD billions
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T H O M S O N F I N A N C I A L
8% of the Funds Have Raised 59% of the Capital to Date
US Europe ROW
Fund Size # Funds $ Raised # Funds $ Raised # Funds $ Raised
0 - 25 $mill 42 $422 14 $186 2 $30
25.1 - 50 $mill 16 $434 6 $186 3 $72
50.1 - 100 $mill 25 $1,497 12 $631 7 $486
100.1 - 250 $mill 61 $7,334 17 $2,353 7 $1,056
250.1 - 500 $mill 37 $9,555 16 $4,680 7 $2,438
500.1 - 1000 $mill 29 $16,307 9 $4,843 1 $509
1000.1 $mill + 23 $57,990 5 $17,051
Total 233 $93,539 79 $29,928 27 $4,587
PE Funds raised between January and July 15th, 2006
59% Europe23%
US77%
1 billion+ funds
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T H O M S O N F I N A N C I A L
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 YTD Q32006
Buyout VC Generalist
Latin American-based Funds – Fundraising by Vintage Year
All figures in USD billions
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T H O M S O N F I N A N C I A L
Venture Capital Deals
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T H O M S O N F I N A N C I A L
Latin America Captures 1% of Global YTD VC Investments
YTD Q3 2006 - VC$33.9 billion
All figures in USD billions
Europe14%
Middle East2%
North America74%
Asia8%
Latin America1%
Africa0.3% Australasia
1%
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T H O M S O N F I N A N C I A L
Latin America Captures 10% of YTD VC Investments in Developing Markets
YTD Q3 2006 - VC$4.2 billion
Latin America10%
Asia64%
Middle East13%
Africa2%
Australasia11%
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T H O M S O N F I N A N C I A L
Financial Service Companies Garner Lion’s Share of this Year’s VC Investments in the Region
YTD Q3 2006 - VC$417 million
Financial Services
93% Consumer Related
6%
Other1%
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T H O M S O N F I N A N C I A L
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
YTDQ3
2006
0
20
40
60
80
100
120
140
$ Invested # Deals
Trends in VC Investment in Latin AmericaA
mou
nt I
nves
ted
(US
D M
illio
ns)
# D
eals
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T H O M S O N F I N A N C I A L
Average VC Deal Sizes in Latin America (2003-YTDQ3 2006)
$0.1
$0.1
$0.1
$0.1
$0.2
$0.2
$0.5
$0.6
$0.9
$1.1
$1.1
$1.5
$3.4
$4.9
$5.1
$8.2
$61.9
$7.6
$3.7
Bahamas
Dominican Rep.
Bolivia
Argentina
Costa Rica
Nicaragua
Peru
Venezuela
Honduras
Guatemala
Ecuador
Chile
Cayman Islands
United Kingdom
Cuba
Brazil
United States
Trinidad/Tob.
Bermuda
All figures in USD millions
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T H O M S O N F I N A N C I A L
North America (2003-YTD Q3 2006)
14,690 VC deals
Distribution of VC Deals by Round
128%
218%
315%
412%
>427%
Latin America (2003-YTD Q3 2006)
171 VC deals
166%
219%
37%
44%
>44%
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T H O M S O N F I N A N C I A L
Buyout Deals
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T H O M S O N F I N A N C I A L
Latin America Captures 6% of Global Buyout Investments
Europe28%
North America61%
Middle East0.3%
Asia3%
Latin America6%
Africa0.1% Australasia
2%
YTD Q3 2006 - Buyouts$31.9 billion
Only equity portion of deals with disclosed transaction values
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T H O M S O N F I N A N C I A L
Latin America Captures 51% of Buyout Investments in Developing Markets
Latin America51%
Asia26%
Middle East3%
Africa1%
Australasia19%
YTD Q3 2006 - Buyouts$3.5 billion
Only equity portion of deals with disclosed transaction values
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T H O M S O N F I N A N C I A L
Distribution of Latin American Buyout Deals Almost Entirely in Financial Services
Consumer Related
1%
Financial Services
99%
YTD Q3 2006 - Buyouts$1.8 billion
Only equity portion of deals with disclosed transaction values
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T H O M S O N F I N A N C I A L
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
YTDQ3
2006
0
10
20
30
40
50
60
$ Invested # Deals
Trends in Buyout Investment in Latin AmericaA
mou
nt I
nves
ted
(US
D M
illio
ns)
# D
eals
Only equity portion of deals with disclosed transaction values
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T H O M S O N F I N A N C I A L
Distribution of Global Average Buyout Deal Sizes by Nation (2003-YTDQ3 2006)
$10$11
$11
$12
$13
$17
$18
$20
$20
$26
$29
$30
$34
$34
$44
$72
$91
$97
$18
$712
$53
$21
Germany
United Kingdom
Netherlands
Belgium
Switzerland
Australia
Canada
Mexico
China
India
Brazil
United States
Luxembourg
Ireland
Bulgaria
New Zealand
Hong Kong
Cayman Islands
Japan
South Korea
Singapore
Bermuda
All figures in USD millionsOnly equity portion of deals with disclosed transaction values
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T H O M S O N F I N A N C I A L
Distribution of Latin American-based PE Fund Investments by Nation (2003-YTDQ3 2006)
1
1
1
1
2
2
2
2
3
5
5
9
11
105
France
Costa Rica
Poland
Germany
Australia
Honduras
Trinidad/Tob.
Nicaragua
Ecuador
Israel
Argentina
Bahamas
United States
Brazil
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T H O M S O N F I N A N C I A L
Global PE Performance
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T H O M S O N F I N A N C I A L
-100
0
100
200
300
400
500
600
700
-100
-50
0
50
100
150
200
250
300
US1844 funds
Europe1071 funds
TF’s PE Benchmarking Samples are Comprehensive
Cumulative since inception IRRs to 12/31/2005
(1980-2005)
(1969-2005)
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T H O M S O N F I N A N C I A L
Venture Capital Buyouts All Private Equity
US
# Funds in Sample 1178 475 1807
Pooled Average IRR 16% 13.4% 14.3%
Maximum 721% 243.9% 721%
Upper 15.6% 18.2% 15.9%
Lower -3.7% -0.6% -2.4%
Minimum -100% -90.2% -100%
EUROPE
# Funds in Sample 636 350 1070
Pooled Average IRR 6.3% 13.6% 10.3%
Maximum 303.8% 268.1% 303.8%
Upper 6.1% 17.8% 10.6%
Lower -8.3% 0% -5.3%
Minimum -100% -100% -100%
Cumulative since inception IRRs to 12/31/2005 for Europe and to 3/31/2006 for the US
Sample – Cumulative Industry Returns
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T H O M S O N F I N A N C I A L
An Illuminating Perspective on Latin American PE
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T H O M S O N F I N A N C I A L
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