Investing in Europe Private Equity Activity H1 2020 Investing in Europe Private Equity Activity H1 2020
Disclaimer The information contained in this report has been produced by Invest Europe, based on data collected as part of the European Data Cooperative (EDC) and other 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. This presentation is for the exclusive use of the persons to whom it is addressed and is intended for general information purposes only. It is not intended to constitute legal or other professional advice and should not be treated as such. Appropriate legal advice must be sought before making any decision, taking any action or refraining from taking any action in reliance on the information contained in this presentation. Invest Europe does not assume any Copyright information responsibility for any person’s reliance upon the information contained herein. No part of this publication may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Copyright enquiries should be directed to Invest Europe. In furnishing this presentation, Invest Europe undertakes no obligation to provide any Tel: + 32 2 715 00 20. additional information or to update this presentation or any additional information or to correct any inaccuracies which may become apparent. © Copyright Invest Europe October 2020 Unless otherwise specified, this presentation is confidential and may not be distributed, published, reproduced or disclosed to any other person or used for any other purpose, Version without the written permission of Invest Europe. Presentation as of 23/10/2020
www.investeurope.eu/research 2 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Introduction to Invest Europe
>Invest Europe is the association representing Europe’s private equity, venture capital and Invest Europe is the infrastructure sectors, as well as their investors. >Our members take a long-term approach to investing in privately held companies, from start- voice of investors 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 in privately held returns for Europe’s leading pension funds and insurers, to the benefit of the millions of companies in Europe 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
www.investeurope.eu/research 3 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
European Data Cooperative What is the EDC?
>The European Data Cooperative (EDC) is a joint initiative developed by Invest Europe and its The EDC is the national association partners to collect Europe-wide industry activity on fundraising, investments and divestments. most comprehensive >The EDC serves as the single data entry point for members of private equity and venture database of European capital associations and other contributors across Europe. >The EDC platform is jointly owned and operated by the private equity and venture capital private equity and associations across Europe. >Using one platform with a standardised methodology allows us to have consistent, robust pan- venture capital European statistics that are comparable across the region. >As a result we produce the most comprehensive overview of Europe’s private equity and statistics venture capital markets available, allowing us to better inform fund managers, investors, policymakers, regulators and other stakeholders. >These efforts enhance Invest Europe’s goal to be the most trusted and comprehensive source of European private equity and venture capital market data.
www.investeurope.eu/research 4 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
European Data Cooperative What is the EDC?
>The EDC replaces Invest Europe’s previous database PEREP_Analytics. All relevant historic data was migrated to the EDC system. The EDC database brings together: >All data since 2007 was restated and complemented with additional information. Audit efforts are conducted in close coordination with data contributors and partnering national associations to ensure the best coverage and consistent application of methodology and definitions. 3,400 9,500 >Improved coverage on a regional level mostly impacts the number of companies reported Firms Funds compared to earlier publications. Extensive audit efforts ensure that syndicated investments are not double-counted. >Invest Europe processes all available information at the time of the data collection cut-off to 75,000 280,000 produce its statistics. Any differences between Invest Europe’s statistics and those of other Portfolio companies Transactions associations partnering in the EDC may be related to different reporting approaches, restatements and timing of data collection cut-offs. >The most recent data publications are always available on Invest Europe’s website (www.investeurope.eu/research) or by contacting the research team With data on more than ([email protected]). 1,400 European private >Invest Europe members and data contributors are eligible to receive dedicated research and equity and venture capital data support from our research team. Please contact us at [email protected] to find out more about how to use this service. firms, the 2019 annual statistics covered 86% of the €782bn in capital under management in Europe.
www.investeurope.eu/research 5 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
What’s inside?
EXECUTIVE SUMMARY 8 FUNDRAISING INVESTMENTS DIVESTMENTS METHODOLOGY & GLOSSARY 44 INCREMENTAL FUNDRAISING MARKET STATISTICS MARKET STATISTICS ACKNOWLEDGEMENTS 49 BY FUND STAGE FOCUS 10 BY STAGE 19 BY INITIAL INVESTMENT STAGE 34
ABOUT INVEST EUROPE RESEARCH 51 BY REGION OF MANAGEMENT 14 FOLLOW-ON VS. INITIAL 24 BY EXIT ROUTE 36
BY SECTOR 25 BY GEOGRAPHY 40
BY GEOGRAPHY 29
www.investeurope.eu/research 6 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Overview - All Private Equity - Fundraising, Investments & Divestments 2007–2020 - Market statistics - Amount
FUNDRAISING INVESTMENTS DIVESTMENTS
70
62 € € billion 60 58
54 51 50 49 50 48 49 45 44 44 43 40 40 39 40 39 39 37 37 37 36 35 33 32 32 32 31 29 2929 30 27 26 26 25 25 25 24 25 23 23 2322 23 23 22 21 22 22 20 21 20 19 19 19 19 20 18 17 17 16 15 15 16 16 16 14 15 13 13 13 13 12 12 10 10 10 10 8 10 8 7 8 6
0
H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H2
H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H2 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H2
H1*
H1* H1* 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 7 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Executive summary
FUNDRAISING INVESTMENTS DIVESTMENTS
Preliminary H1 2020 fundraising figures for Europe reached Preliminary figures show that €36.2bn of equity was invested Divestments at cost* for H1 2020 are down to €7.9bn, this is a €49.2bn. This could mean that by the end of the year total into European companies throughout H1 2020. This is a rather 49% drop from the €15.5bn seen in H1 2019. Number of fundraising reaches the average of the three preceding years significant year-on-year drop of 17% from H1 2019. companies divested also saw a large reduction from H1 2019 of (2017-2019). At the monthly level, from January to April investment amounts 37%, indicating firms holding onto companies to aid them Despite the difficulties presented by the pandemic, H1 2020 proved rather resilient to the pandemic. This situation changed in through the pandemic. fundraising was promising: the total (€49.2bn) was only 4% below May and June as investment levels were lower than any of the Relative importance of divestment exit routes remained largely H1 2019 results (€51.3bn). However, whilst fundraising figures previous three years (2017-2019). Number of companies receiving similar to that seen over the preceding three years (2017-2019): were rather stable in EUR terms, the number of funds raising investments remained mostly uniform and slightly below that seen trade sale and sale to another private equity firm remaining the equity decreased by 16% year-on-year (305 in H1 2019, 257 in H1 in previous years for the whole period, though 3,401 companies most common divestment routes, together totaling more than 60% 2020). were still invested into. of the amount at cost divested within H1 2020. At the monthly level, whilst in January 2020 fundraising was higher The first half of 2020 saw a change in the focus of follow-on versus Of note for H1 2020 is that whilst write offs as a percentage of than previous years, February to May overall saw relatively low initial investments. This is particularly evident when looking at the total exits in terms of number of companies has remained similar levels of activity, followed by an increase in June (explained by a proportion of total EUR amount invested: follow-on investments in H1 2020 as compared to the recent past, in terms of amount at single fundraising accounting for a large percentage of the total). accounted for around 60% of the total, more than any other half- cost it represented 8% of exits in this period, this is more than that Numbers of funds fundraising reduced month on month from year recorded. Whilst a less significant change in terms of number seen in recent years. January to May, with a recovery only being seen in June. of companies invested into was seen, follow-on investments as a On a regional level, all regions except for CEE (+11% from H1 2019) Venture fundraising reached €7.0bn. This is a slight increase proportion of the total reached their highest level since H1 2016. suffered decreases in amount divested. The most significant compared to H2 2019 and 13% below H1 2019, though it should be Venture Capital investments remained strong despite the crisis, reduction was seen in Southern Europe, which saw a 70% drop – to noted that the latter was a record-half year (€8.1bn). The UK & seeing a record high of €5.6bn equity invested into European €749m in H1 2020 – in amount divested at cost from H1 2019. Ireland raised the most (50%) and continue an upward trend in portfolio companies over this first semester. Seed investments - According to initial investment stage** of the divested companies, totals raised. €0.4bn - remained similar to results from last year, whilst Start- all stages recorded a decline in amount at cost divested. Venture, Buyout fundraising over H1 2020 is comparable with the three-year ups and Later-Stage Venture saw increases to record highs of Buyout and Growth have recorded decreases of amount divested trend (2017-2019), with approximately €38bn having been raised. €3.1bn and €2.2bn respectively. ICT saw the most VC interest, from H1 2019 to H1 2020 of 49%, 51% and 38% respectively. The UK and Ireland continue to receive the most amount of funds with 50% of total equity invested in this sector in H1 2020. and have increased their share of the total for the fifth semester Buyout investments decreased by 16% year-on-year from H1 2019 in a row (> €30bn raised). to €24.6bn. Mega buyout (>€300m) however was an outlier, having Growth funds have suffered a 47% decrease from the previous invested €12.5bn equity, similar to the record set in the previous semester, due principally to the absence of Growth fundraising semester (€12.9bn in H2 2019), and 21% above the average for the from the UK & Ireland. Of note within Growth is that the Nordics same period over the past three years (2017-2019). ICT, at 31% of region reached a record fundraising high in H1 2020, with almost the total, accounted for most investments, followed by Consumer €800m equity raised. goods & services (23%). Growth investments saw a decrease of 35% from the previous semester to €5.3bn, with decreasing levels of investment across all European regions. ICT remains the sector attracting the most Growth investments (43% of the total) followed by Business product & services (13.2%) and Consumer goods & services (13.1%). * Meaning total amount divested is equal to total amount invested before ** Divested companies categorised by the stage they were at when initially invested www.investeurope.eu/research 8 Investing in Europe Private Equity Activity H1 2020
ACTIVITY H1 2020 FUNDRAISING
9 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Funds raised by fund stage focus 2007-H1 2020 – Incremental amount raised during the year
€61.6bn
2.4 €58.1bn 0.6 €54.3bn 4.6 4.5 €51.3bn 0.5 5.5 €48.6bn 3.9 €49.2bn €48.2bn 1.9 0.4 1.3 €44.0bn €43.7bn 5.1 5.2 5.9 5.5 2.1 3.1 €40.4bn 0.4 4.0 €38.7bn 4.1 4.3 €36.9bn 1.4 2.5 3.8 1.5 2.9 €35.0bn €32.7bn €31.9bn 4.7 2.3 1.6 €31.7bn 2.9 €28.9bn 1.3 0.5 2.8 6.6 3.8 2.7 4.1 48.8 1.9 42.5 €25.1bn 1.9 €23.1bn 2.1 36.2 37.9 0.8 4.0 37.7 4.6 €20.1bn 30.7 32.0 33.4 35.8 3.6 0.7 30.1 €15.9bn 3.6 3.2 30.7 €14.3bn €15.0bn 23.8 €12.7bn 1.1 25.5 1.2 21.1 1.2 €12.6bn 21.6 €11.6bn 2.4 0.8 23.2 20.9 5.9 1.4 2.2 €8.5bn 3.5 1.4 1.3 15.9 0.7 1.8 0.8 12.6 11.9 2.2 1.1 10.7 0.4 7.9 6.8 6.2 7.1 3.6 5.4 7.7 8.1 7.0 5.8 5.2 5.1 6.7 3.9 4.0 3.4 3.7 3.2 4.8 2.7 2.0 1.4 1.9 1.6 1.9 2.6 2.5 1.5 2.0 2.7 2.5 2.8 3.1 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1* H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Venture Capital Buyout Growth Mezzanine Generalist Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 10 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Funds raised by fund stage focus 2007-H1 2020 – Number of Funds raised during the year
424
379 373 372 88 366 349 348 336 333 335 330 327 324 325 316 90 313 7 73 305 117 298
108 164 5 73 5 59 86 113 101 260 48 125 156 104 257 248 133 245 243 238 3 5 148 130 5 6 70 116 88 27 13 24 219 3 52 4 22 6 81 3 57 66 6 72 193 3 74 94 44 78 86 3 36 61 28 6 177 51 79 45 1 72 1 4 35 3 74 24 4 36 34 6 62 90 29 64 72 47 37 57 4 4 65 86 71 45 37 7 74 25 48 29 47 56 63 47 7 2 27 72 50 58 21 42 26 37 34 36 32 46 26 43 165 148 140 144 124 125 116 112 115 115 108 109 106 103 97 104 94 91 96 86 87 93 91 94 70 64 67
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Venture Capital Buyout Growth Mezzanine Generalist Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 11 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Monthly view 2017-H1 2020 – Amount – Incremental amount raised
2017 €23.5bn €17.3bn €15.2bn €8.5bn €8.0bn €6.5bn €3.6bn €3.7bn €2.7bn €3.3bn €1.5bn €2.8bn
January February March April May June July August September October November December
2018 €17.3bn €19.2bn €13.5bn €10.7bn €11.2bn €10.1bn €6.7bn €4.1bn €4.0bn €2.0bn €1.3bn €2.8bn
January February March April May June July August September October November December
2019 €20.5bn €17.1bn €14.1bn €10.1bn €10.7bn €12.0bn €6.9bn €4.9bn €5.7bn €3.9bn €2.6bn €0.9bn
January February March April May June July August September October November December
€28.5bn 2020* **
€10.4bn €4.1bn €3.7bn €1.7bn €0.7bn
January February March April May June July August September October November December
*H1 2020 data is preliminary and subject to change Source: Invest Europe / EDC *H1 2020**June 2020data includes is preliminary one fundraising and accounting subject for to>70% change of total www.investeurope.eu/research 12 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Monthly view 2017-H1 2020 – Number of funds – Incremental fundraising
2017 214 127
44 48 45 49 50 38 27 38 35 37
January February March April May June July August September October November December
2018 219
108 78 60 49 44 50 51 36 36 23 37
January February March April May June July August September October November December
2019 182
115
54 65 51 45 35 39 37 47 46 19
January February March April May June July August September October November December
2020*
92 54 47 36 31 20
January February March April May June July August September October November December
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 13 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Funds raised by region 2007-H1 2020 – Incremental amount raised during the year
€61.6bn
€58.1bn 3.5 €54.3bn 4.3 3.0 €51.3bn 1.6 2.7 €49.2bn 4.8 €48.6bn €48.2bn 1.6 3.9 1.6 €44.0bn €43.7bn 4.3 3.8 3.2 2.4 13.6 0.6 €40.4bn 10.8 4.1 2.1 3.4 3.1 2.7 €38.7bn 4.9 15.5 1.0 €36.9bn 2.2 3.4 1.8 7.8 2.7 1.0 1.7 €35.0bn 3.9 2.4 €32.7bn 2.6 5.1 €31.9bn €31.7bn 12.7 2.1 2.0 9.9 8.7 3.2 3.3 €28.9bn 1.4 10.5 7.2 16.1 3.0 2.4 4.2 €25.1bn 4.6 9.8 4.4 3.3 3.4 2.9 0.8 €23.1bn 7.6 1.0 2.4 7.2 3.3 5.6 1.2 5.3 €20.1bn 2.1 7.8 4.5 1.3 €15.9bn 1.4 37.7 8.2 €15.0bn 3.0 15.4 34.6 €14.3bn 6.7 33.1 31.4 €12.7bn €12.6bn 7.8 €11.6bn 2.4 0.8 28.0 28.1 26.9 2.1 1.2 3.5 26.2 3.2 1.8 2.4 1.0 22.9 €8.5bn 20.8 22.4 19.1 0.7 1.6 1.7 6.6 19.6 0.4 1.6 17.2 5.9 1.2 2.9 3.2 4.8 13.3 3.6 12.8 11.6 10.6 9.6 1.8 8.9 5.2 5.6 6.8 6.1 3.0 4.3 4.6
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 14 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Venture Capital – Funds raised by region 2007-H1 2020 – Incremental amount raised during the year
€8.1bn €7.7bn 0.2
0.5 0.7 €7.0bn 0.2 0.1 €6.7bn 0.6 0.2 0.4 0.5 €5.8bn 1.5 0.5 0.3
0.4 €5.2bn 1.9 €5.1bn 1.2 €4.8bn 0.3 1.4 0.3 1.2 0.3 0.1 0.1 0.5 0.4 €4.0bn €3.9bn 0.2 1.3 €3.7bn 0.3 0.1 1.4 3.2 0.2 €3.4bn 0.9 0.5 2.0 1.5 0.6 0.3 1.2 €3.2bn 0.1 €3.1bn 0.3 0.1 1.2 €2.7bn €2.7bn €2.8bn 0.4 €2.6bn 0.1 1.0 0.6 €2.5bn €2.5bn 0.1 1.2 1.3 0.3 0.3 0.6 0.3 0.4 €2.0bn 0.2 0.1 0.1 €1.9bn 0.2 €2.0bn 0.1 1.7 2.2 0.2 €1.9bn 0.5 0.2 0.2 1.4 1.5 1.0 0.8 1.1 0.3 €1.6bn €1.5bn 0.3 €1.4bn 0.3 0.1 0.1 0.6 0.9 3.5 1.2 0.1 0.7 0.4 1.5 1.3 0.2 0.2 0.4 1.3 0.5 0.2 1.2 2.7 0.4 0.8 0.4 0.1 0.8 0.2 0.4 0.2 0.6 0.8 2.3 0.8 0.3 0.7 0.6 2.0 0.4 0.2 0.4 0.6 1.3 1.5 1.4 1.4 1.1 0.4 0.4 0.4 1.2 1.2 1.0 0.3 0.8 0.9 0.6 0.6 0.6 0.2 0.6 0.8 0.8 0.8 0.4 0.4 0.3 0.3 0.4 0.4 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1* H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 15 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Buyout – Funds raised by fund region 2007-H1 2020 – Incremental amount raised during the year
€48.8bn
1.7
4.2 €42.5bn
2.9 1.3 €37.7bn 2.0 €37.9bn €36.2bn €35.8bn 4.6 0.6 0.4 1.3 0.3 €33.4bn 0.8 0.8 €32.0bn 3.6 9.4 1.2 €30.7bn €30.7bn 4.1 1.2 €30.1bn 1.4 2.2 2.2 0.9 13.3 7.5 0.3 1.6 3.3 €25.5bn 3.3 2.9 6.1 7.1 7.6 €23.2bn 0.5 1.6 €23.8bn 2.7 €21.6bn €21.1bn €20.9bn 0.4 0.7 5.0 6.6 0.9 1.2 2.8 0.7 4.2 1.0 3.7 3.0 2.2 3.7 0.4 4.3 €15.9bn 0.8 1.8 35.3 2.3 2.1 7.5 1.9 31.1 €12.6bn €11.9bn 29.2 25.9 3.2 25.2 €10.7bn 0.8 7.4 23.2 9.7 22.9 2.7 2.6 €7.9bn 2.4 19.6 20.2 18.0 0.4 €7.1bn 19.2 €6.8bn €6.2bn 16.7 16.8 €5.4bn 0.8 15.6 2.7 0.2 11.4 €3.6bn 2.0 2.9 0.8 1.5 9.4 1.4 9.7 1.7 0.9 8.6 0.9 0.7 6.6 1.2 7.2 0.2 4.4 5.1 2.4 3.2 3.7 2.8 2.9
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 16 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Growth – Funds raised by region 2007-H1 2020 – Incremental amount raised during the year
€5.9bn
0.5
0.1 €5.1bn
0.6 €4.6bn 0.3 0.1 €4.3bn €4.0bn 0.1 €3.9bn 1.4 1.2 0.4 0.2 0.2 2.2 0.5 0.0 0.3 0.4 0.1 €2.7bn €2.8bn €2.5bn €2.3bn 3.2 0.1 0.6 €2.1bn 0.1 1.6 €2.1bn €1.9bn 0.9 0.2 €1.8bn 0.3 0.2 2.3 0.1 0.2 2.1 0.1 €1.6bn 0.1 €1.5bn 0.1 0.3 0.1 €1.4bn 0.2 3.4 0.1 €1.3bn 0.1 0.1 1.1 0.8 0.4 €1.2bn €1.1bn €1.1bn 1.1 0.5 0.2 2.4 0.8 0.1 0.1 1.3 0.1 €0.8bn 0.1 0.3 €0.8bn €0.8bn 0.9 0.1 0.1 1.1 €0.7bn €0.7bn 1.5 0.1 0.2 0.3 0.1 0.3 0.1 1.5 0.2 1.2 0.1 0.1 0.1 1.1 €0.4bn 0.3 0.4 0.9 1.0 0.2 0.1 0.1 1.0 1.0 0.9 0.9 0.4 0.7 0.7 0.7 0.3 0.2 0.2 0.4 0.1 0.6 0.4 0.2 0.4 0.4 0.5 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.0 0.0 0.0 0.1 0.0 0.0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 17 Investing in Europe Private Equity Activity H1 2020
ACTIVITY H1 2020 INVESTMENTS
18 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Investments by stage 2007-H1 2020 – Investments – Market Statistics – Amount & Number of companies 2,824 2,718 2,515 2,543 2,336 2,219 2,212 2,144 2,103 2,148 2,186 2,158 2,093 2,055 2,008 2,004 2,090 2,088 2,061 2,037 2,018 1,894 1,977 1,910 1,968 1,775 1,871
1,291 1,261 1,238 1,333 1,219 1,153 1,215 1,137 1,171 1,132 1,009 1,103 1,095 1,088 1,093 1,022 1,092 1,017 1,044 912 901 999
738 794 775 735 794 Number companiesof 742 748 755 607 637 612 601 628 690 680 640 532 529 542 501 533 517 533 577 514 532 474 394 411 422 471 437 €50.5bn 1.2 €44.7bn €43.4bn 8.1 1.2 €40.3bn 1.0 €39.0bn €38.7bn 6.6 €36.9bn €36.7bn €36.2bn 1.2 1.6 8.0 3.0 1.3 €32.5bn 1.4 7.4 0.8 2.5 €31.3bn 6.5 5.3 1.2 €29.2bn €29.0bn 5.3 €27.3bn 0.9 4.7 €26.3bn 1.4 0.9 1.0 €24.7bn €24.6bn €24.4bn 6.3 billion €23.3bn €23.2bn €22.4bn 1.2 5.1 € €22.1bn 6.4 4.3 1.2 1.3 1.2 5.1 35.8 €18.9bn 4.1 3.6 €19.2bn 0.8 4.5 €17.9bn 3.6 5.2 32.1 3.5 4.7 29.1 31.8 €15.3bn 1.3 1.7 28.1 30.6 1.4 26.7 24.6 3.5 3.0 26.6 23.5 1.8 3.2 €10.5bn 21.7 19.2 3.5 20.1 19.3 17.6 18.1 17.2 18.1 16.1 16.5 15.0 15.7 2.8 12.3 12.7 11.5 8.2 5.2 5.3 5.3 5.6 3.4 3.8 4.1 4.8 2.5 3.1 3.0 2.8 1.7 1.8 1.8 1.8 2.1 1.7 1.8 1.5 1.8 1.8 1.9 1.9 2.3 2.4 2.6 2.4 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Invest Europe / EDC Venture Capital Buyout Growth Other (includes Rescue/Turnaround and Replacement capital) *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 19 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Monthly view 2017-H1 2020 – Investments – Market Statistics – Amount
2017 €9.9bn €7.6bn €6.5bn €6.5bn €5.7bn €5.6bn €5.6bn €5.4bn €5.4bn €6.0bn €4.0bn €4.6bn €2.6bn
January February March April May June July August September October November December Unknown
2018 €10.8bn €7.8bn €8.2bn €8.4bn €6.3bn €6.1bn €6.7bn €6.8bn €6.4bn €7.0bn €5.1bn €4.6bn €0.7bn
January February March April May June July August September October November December Unknown
2019 €12.0bn €10.5bn €9.2bn €9.3bn €6.7bn €7.3bn €7.2bn €7.0bn €7.5bn €7.3bn €5.4bn €3.4bn €1.0bn
January February March April May June July August September October November December Unknown
2020*
€8.3bn €7.6bn €6.5bn €5.5bn €4.9bn €3.4bn €0.1bn
January February March April May June Unknown
*H1 2020 data is preliminary and subject to change Source: Invest Europe / EDC *H1 2020 data**Exact is preliminary month of investment and notsubject known into these change cases www.investeurope.eu/research 20 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Monthly view 2017-H1 2020 – Investments – Market Statistics – Number of companies
2017 1,040 1,000 1,065 804 699 712 686 715 681 607 591 508 235
January February March April May June July August September October November December Unknown
2018 1,227 1,035 1,030 860 871 810 742 787 805 704 640 592 294
January February March April May June July August September October November December Unknown
2019 1,112 1,175 936 805 807 716 690 776 777 725 702 510 147
January February March April May June July August September October November December Unknown
2020* 826 675 569 546 565 577
57
January February March April May June Unknown
*H1 2020 data is preliminary and subject to change Source: Invest Europe / EDC *H1 2020 data**Exact is preliminary month of investment and notsubject known into these change cases www.investeurope.eu/research 21 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Venture Capital – Investments by stage 2007-H1 2020 – Investments – Market Statistics – Amount & Number of companies 1,617 1,592 1,460 1,516 1,280 1,310 1,343 1,278 1,246 1,203 1,264 1,202 1,265 1,145 1,144 1,133 1,184 1,094 1,056 1,093 1,056 1,102 1,109 963 985 956 848 820 723 731 627 624 619 600 642 647 650 590 563 592 596 532 572 577 569 470 471 462 508 501 799 830 823 830
Number of companies Number of 475 476 420 447 423 405 417 444 390 340 345 339 336 349 398 369 368 278 314 259 320 278 282 259 285 323 312 €5.65bn €5.33bn €5.27bn
€4.78bn
2.17 €4.13bn 1.88 1.89 €3.83bn 1.76 €3.38bn 1.07 €3.13bn €3.01bn €2.80bn 1.35 €2.61bn €2.49bn €2.44bn €2.40bn 1.30 €2.29bn €2.07bn 1.87 €1.95bn €1.86bn 1.78 €1.78bn €1.78bn €1.77bn €1.78bn €1.84bn €1.78bn 1.12 1.57 €1.69bn €1.71bn 0.95 0.86 3.06 2.90 3.08 1.40 €1.46bn 1.11 2.68 2.61 1.20 0.79 0.77 0.75 0.67 0.81 0.86 0.81 1.01 2.13 billion 0.78 0.88 1.66
€ 0.63 1.29 1.23 1.33 1.12 1.09 1.01 1.12 0.92 0.97 1.05 0.83 0.89 0.81 0.93 0.78 0.88 0.74 0.89 0.87 0.85 0.43 0.35 0.37 0.40 0.39 0.47 0.40 0.08 0.13 0.11 0.14 0.08 0.12 0.09 0.09 0.08 0.12 0.08 0.09 0.10 0.09 0.09 0.11 0.13 0.20 0.26 0.22 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Seed Start-up Later Stage Venture Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 22 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Buyout – Investments by stage 2007-H1 2020 – Investments – Market Statistics – Amount & Number of companies
454 464 Small (< €15m), 260 429 429 579 405 418 415 553 385 380 390 399 395 399 519 368 356 353 356 373 491 348 328 328 336 301 293 Mid-market (€15m - €150m), 183 271 256 273 251 250 227 215 238 234 of companiesof 195 175 171 173 146 145 168 148 160 157 142 121 Mega (> €300m), 17 86 102 51 35 Number 28 22 16 14 14 22 15 18 8 18 15 13 19 16 21 23 24 23 23 23 24 28 25 6 Large (€150m-€300m) , 14 15 16 12 10 2 3 8 8 6 11 6 8 4 8 4 10 4 14 7 6 20 18 18 17 17 21 €35.8bn
€31.8bn €32.1bn €30.6bn €29.1bn €28.1bn €26.6bn €26.7bn 12.9 6.6 10.5 10.2 €24.6bn €23.5bn €21.7bn €20.1bn 9.4 7.8 10.0 €19.3bn 6.6 €19.2bn 10.5 Mega (> €300m) 6.3 €17.6bn €18.1bn €18.1bn
billion €17.2bn 5.3 €16.5bn 5.8 3.1 6.6 8.2 € €16.1bn €15.7bn 2.6 12.5 Large (€150m-€300m) €15.0bn 5.6 4.7 5.9 3.4 3.8 4.1 4.6 3.5 4.4 5.2 Upper mid-market (€100m-€150m) 3.1 €12.3bn 2.7 €12.7bn 3.2 1.9 4.7 €11.5bn 2.0 5.5 4.6 2.7 5.1 2.2 2.5 Core mid-market (€50m-€100m) 2.3 2.8 3.1 3.5 1.5 3.1 5.3 4.7 3.3 4.1 4.8 3.8 3.2 3.3 4.5 4.1 1.4 1.7 1.6 3.5 3.2 3.0 2.9 1.9 €8.2bn 2.1 1.9 3.2 Lower mid-market (€15m - €50m) 1.9 2.6 3.6 2.4 1.6 1.5 3.4 2.5 3.4 2.4 1.4 2.7 1.4 1.7 2.3 2.9 1.9 2.1 2.5 €5.2bn 3.1 2.7 1.8 1.3 Small (< €15m) 5.7 1.5 2.2 2.0 2.1 2.5 2.8 5.8 5.2 1.6 1.9 0.9 2.1 6.5 6.6 6.0 6.4 1.2 1.3 1.3 5.9 5.3 5.7 3.9 3.6 3.9 3.1 4.1 5.0 1.3 3.0 3.2 2.8 2.6 3.6 3.0 3.2 3.6 0.8 1.5 2.1 2.8 3.3 3.1 1.0 2.4 1.3 1.4 1.6 1.9 2.0 2.0 1.8 1.8 1.6 1.6 2.0 2.1 1.6 2.2 1.7 1.9 2.1 2.2 2.1 2.5 2.3 2.6 1.3 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1* H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 23 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Follow-on vs. Initial (GP perspective1) 2009-H1 2020 – Investments – Market Statistics - Amount & No. of companies 100% 0.6 1.0 0.8 1.2 1.3 1.2 0.8 1.4 1.2 1.6 1.1 1.9 2.6 3.0 3.1 3.9 2.4 4.1 5.0 5.1 3.8 90% 7.1 8.6 80% 11.3 70% 5.2 7.7 13.6 12.9 13.1 11.4 13.9 15.1 16.7 60% 17.6 17.6 15.2 16.1 15.6 19.5 24.5 23.9 25.7 17.2 35.6 50% 26.3 29.1
40% Amount (€bn) 30% 21.1 4.6 6.7 20% 8.4 5.4 7.4 7.7 7.4 9.9 12.7 5.2 5.9 5.7 5.3 5.5 5.5 8.7 8.1 9.6 10.7 10% 6.9 7.0 9.8 0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
100% 360 337 238 306 257 301 220 303 239 296 344 320 289 442 547 630 622 788 90% 975 1,140 835 1,242 1,621 80% 1,122 1,127 1,145 1,133 1,107 884 1,151 1,436 1,383 1,333 1,298 1,252 1,404 1,459 983 1,135 70% 1,223 1,316 609 1,468 60% 1,369 1,683 1,619 50% 40% 30% 2,095 2,197 2,233 2,419 2,450 2,451 2,430 2,545 2,491 2,518 2,306 2,094 2,206 2,264 2,331 2,455 2,311 2,342 2,405 Number companiesof 2,044 2,076 20% 1,960 2,080 10% 0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Follow-on Initial Unknown**
Note 1: follow-on/initial investment levels stated in this slide are based on classification of the investment from the perspective of the GP *H1 2020 data is preliminary and subject to change Source: Invest Europe / EDC **Initial/follow*H1 2020-on data status is of preliminary the investment notand provided subject and notto changededucible www.investeurope.eu/research 24 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Investments by sector 2007-H1 2020 – Investments – Market Statistics - Amount
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Agriculture Biotech & healthcare Business products & services Chemicals & materials
Construction Consumer goods & services Energy & environment Financial & insurance activities
ICT (Communications, computer and electronics) Real estate Transportation
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 25 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Venture Capital – Investments by sector 2007-H1 2020 – Investments – Market Statistics - Amount
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Agriculture Biotech & healthcare Business products & services Chemicals & materials
Construction Consumer goods & services Energy & environment Financial & insurance activities
ICT (Communications, computer and electronics) Real estate Transportation
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 26 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Buyout – Investments by sector 2007-H1 2020 – Investments – Market Statistics - Amount
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Agriculture Biotech & healthcare Business products & services Chemicals & materials
Construction Consumer goods & services Energy & environment Financial & insurance activities
ICT (Communications, computer and electronics) Real estate Transportation
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 27 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Growth – Investments by sector 2007-H1 2020 – Investments – Market Statistics - Amount
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Agriculture Biotech & healthcare Business products & services Chemicals & materials Construction Consumer goods & services Energy & environment Financial & insurance activities ICT (Communications, computer and electronics) Real estate Transportation
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 28 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Investments by region 2007-H1 2020 – Investments – Market Statistics - Amount
€50.5bn
1.4
€44.7bn €43.4bn 8.9 2.0 €40.3bn 1.4 €39.0bn €38.7bn 0.7 €36.9bn 7.2 1.2 €36.7bn 6.8 3.6 €36.2bn 0.8 4.5 4.8 6.7 0.5 €32.5bn 2.9 4.1 €31.3bn 3.9 3.6 6.1 3.2 €29.2bn €29.0bn 4.8 10.7 1.5 1.1 4.5 4.8 2.2 4.3 €27.3bn 5.2 €26.3bn 1.2 3.9 0.4 2.5 8.0 6.0 1.0 €24.7bn €24.6bn €24.4bn €23.3bn €23.2bn 5.1 5.6 7.1 8.1 7.2 2.8 4.3 0.8 €22.1bn €22.4bn 3.2 3.1 7.1 9.3 0.9 2.9 2.5 7.6 3.8 0.6 0.9 2.4 €18.9bn 3.2 €19.2bn 3.5 4.4 2.8 5.2 2.5 2.8 €17.9bn 2.8 4.6 9.7 3.7 3.4 12.2 3.6 €15.3bn 1.4 2.5 2.3 2.2 2.3 1.9 4.0 5.8 5.6 9.8 2.0 2.4 4.1 14.1 10.9 4.4 2.7 5.0 11.2 11.1 1.9 3.6 4.3 4.1 3.7 10.5 3.4 5.8 2.9 10.9 11.1 10.1 €10.5bn 2.2 3.3 6.3 1.6 2.7 6.6 10.0 3.9 9.5 1.8 7.1 6.9 8.0 6.7 7.8 7.2 2.8 5.2 4.4 14.4 1.3 1.0 5.6 13.7 11.9 11.0 9.5 2.8 3.9 9.7 9.5 9.2 7.7 7.5 7.7 7.3 7.9 7.8 5.8 5.5 5.2 5.4 6.3 6.1 5.3 5.9 6.0 5.3 2.9 2.9 4.1
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 29 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Venture Capital – Investments by region 2007-H1 2020 – Investments – Market Statistics - Amount
€5.6bn 0.1 €5.3bn €5.3bn 0.3 0.2 0.2 €4.8bn 0.4 0.5 0.7 0.1 0.4 0.7 €4.1bn 0.4 €3.8bn 0.1 0.6 0.1 0.4 1.3 €3.4bn 0.4 1.3 1.3 €3.1bn 0.5 €3.0bn 0.3 0.3 1.0 €2.8bn 0.3 0.2 €2.6bn 0.3 €2.5bn 0.1 0.3 €2.4bn €2.4bn 0.9 1.0 0.2 €2.3bn 0.6 0.2 €2.1bn 0.3 1.6 0.5 0.5 €1.9bn 0.4 0.2 0.8 €1.8bn €1.9bn 0.2 1.1 1.5 1.5 0.4 €1.8bn €1.8bn €1.8bn €1.8bn €1.8bn 0.3 0.3 €1.7bn 0.2 €1.7bn 0.2 0.7 0.2 0.2 0.6 0.1 €1.5bn 0.2 0.2 1.0 0.7 0.2 0.2 0.2 0.4 0.2 0.2 0.3 1.1 0.4 0.2 0.2 0.7 0.7 0.7 0.3 0.4 0.3 0.3 0.3 0.6 0.8 0.2 0.3 0.3 0.2 0.5 0.5 0.6 0.6 0.4 0.4 0.4 0.2 0.5 0.5 0.6 0.5 0.5 0.5 0.5 0.4 0.6 0.6 0.4 0.6 0.6 1.6 1.6 0.5 0.4 0.5 0.6 0.3 1.4 1.4 0.4 0.4 0.5 0.5 1.2 0.4 0.4 0.3 1.0 1.0 0.7 0.8 0.8 0.8 0.5 0.6 0.6 0.6 0.5 0.4 0.3 0.4 0.3 0.5 0.4 0.5 0.3 0.4 0.4 0.4
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 30 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Buyout – Investments by region 2007-H1 2020 – Investments – Market Statistics - Amount
€35.8bn
1.0
€31.8bn €32.1bn €30.6bn 0.6 1.6 7.1 0.6 €29.1bn 3.2 €28.1bn 2.8 €26.7bn 0.9 €26.6bn 0.4 5.7 2.5 0.2 2.4 €24.6bn 3.6 €23.5bn 2.6 5.2 5.4 3.7 0.4 5.1 1.1 €21.7bn 3.2 2.5 3.6 €20.1bn 7.7 0.9 €19.3bn 3.8 1.2 6.6 3.6 €19.2bn 4.0 4.8 €18.1bn €18.1bn 2.9 0.9 1.8 0.5 €17.6bn €17.2bn 0.2 5.3 €16.5bn 2.3 €16.1bn 3.4 6.0 3.0 1.7 €15.7bn 4.4 8.0 2.1 €15.0bn 2.5 4.6 2.7 5.3 4.7 0.7 1.6 2.5 3.8 1.6 0.7 1.4 2.2 6.3 2.2 2.8 €12.7bn 4.2 €12.3bn 1.8 1.8 2.9 1.8 8.0 2.7 €11.5bn 1.9 9.4 2.8 4.4 1.9 1.5 1.3 2.9 0.7 3.2 6.5 10.4 2.6 1.5 3.3 4.2 6.9 1.3 2.1 4.8 3.6 7.5 €8.2bn 3.2 2.7 3.0 7.7 7.3 2.2 6.8 2.4 7.0 4.0 1.5 2.2 5.8 4.4 6.8 €5.2bn 2.1 5.2 2.9 1.9 3.2 12.4 0.9 4.2 5.5 0.7 4.3 5.0 3.1 9.7 1.1 1.6 7.5 3.0 8.0 7.5 5.8 6.5 6.0 5.5 2.1 5.5 5.1 5.0 5.1 5.6 5.5 4.7 0.8 4.2 3.7 4.1 3.6 4.2 3.9 2.5 3.4 3.2 1.8 1.4 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 31 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Growth – Investments by region 2007-H1 2020 – Investments – Market Statistics - Amount
€8.1bn €8.0bn 0.2 €7.4bn 0.4 1.2 0.3 0.6 €6.6bn €6.5bn €6.4bn 0.3 €6.3bn 1.0 0.4 0.4 0.1 0.3 0.1 0.3 0.4 0.5 0.8 0.8 1.6 €5.3bn €5.3bn €5.2bn 0.4 0.4 1.8 €5.1bn €5.1bn 0.3 0.2 0.1 0.1 0.2 1.4 €4.7bn €4.7bn 0.1 0.6 0.2 0.3 0.5 0.9 €4.5bn 0.4 0.9 0.2 0.2 0.1 €4.3bn 0.7 0.8 1.4 €4.1bn 0.1 0.4 0.3 0.7 0.2 0.6 0.7 0.1 1.1 €3.6bn 0.4 0.3 1.9 €3.5bn €3.5bn 0.4 €3.6bn €3.5bn 0.2 0.2 0.7 0.3 1.2 0.9 0.2 0.1 0.2 €3.2bn 0.3 0.1 0.2 0.7 0.5 €3.0bn 0.1 2.6 €3.0bn 0.4 €2.8bn 0.5 0.2 0.7 2.4 2.6 0.6 0.3 0.5 0.8 3.4 0.2 0.3 2.9 €2.5bn 0.5 0.1 0.6 0.2 2.1 2.3 0.4 0.2 0.3 0.4 0.2 0.2 0.4 0.2 0.2 0.2 2.6 2.1 0.1 0.4 0.3 0.2 0.5 2.1 0.7 0.5 2.0 0.5 2.4 2.1 0.7 1.6 0.2 1.0 0.3 0.2 0.1 0.1 0.2 1.7 1.0 1.9 1.7 3.1 1.2 1.3 1.7 1.3 1.1 0.7 0.7 2.0 2.0 1.8 1.8 1.7 1.4 1.4 1.4 1.2 1.1 1.1 1.1 1.3 1.0 0.9 1.1 0.7 0.7 0.7 0.7 0.7 0.7 0.6 0.4 0.6 0.5
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 32 Investing in Europe Private Equity Activity H1 2020
ACTIVITY H1 2020 DIVESTMENTS
33 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Divestments at cost – Venture Capital / Buyout / Growth 2007-H1 2020 – Market Statistics – Amount
942 910 903 910 894 896 866 849 858 842 842 797 761 767 777 736 749 748 708 719 715 724 825 695 693 653 651 625 635 627 641 627 782 631 594 605 738 736 576 575 707 726 713 508 515 616 442 454 446 432 574 567 571 499 383 534 Number companiesof 513 523 526 517 502 507 489 510 435 460 452 422 438 429 398 400 414 408 419 €26.1bn 323 330 310 293 €24.9bn 234 259 1.5 0.9 €22.5bn €22.7bn 2.8 €21.8bn €21.8bn 3.3 0.8 €21.3bn 0.9 €20.6bn 1.0 0.8 €20.4bn 1.4 €19.0bn 1.1 €18.8bn 3.5 3.1 1.0 3.7 0.8 0.6 4.3 €16.8bn 3.2 3.2 €16.8bn €16.1bn €15.4bn 3.6 0.5 2.9 0.7 5.3 €15.5bn €15.7bn 0.4 0.4 0.3 0.4 3.2 2.1 2.8 1.8 €13.0bn €12.8bn 2.2 2.8 €12.2bn 0.3 0.7 billion 1.9 0.4 € €10.3bn €10.4bn 1.2 20.6 €9.5bn 1.5 19.1 0.6 0.4 17.2 17.5 €8.0bn 0.9 1.4 1.5 14.9 15.7 15.5 16.4 €7.9bn €7.4bn 14.3 0.4 1.5 13.2 12.9 0.1 11.6 1.0 0.3 11.7 12.8 12.1 11.7 1.4 1.3 €5.6bn 11.2 9.4 9.8 0.3 9.4 1.1 5.2 7.4 7.1 5.3 4.7 5.8 3.5 1.7 1.9 1.3 1.3 1.1 0.7 1.0 1.2 1.4 1.3 1.0 0.8 0.9 1.5 1.0 1.2 1.5 1.0 1.0 1.0 1.0 1.1 1.1 1.2 1.2 1.3 0.6 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Invest Europe / EDC Venture Capital Buyout Growth Other (includes Rescue/Turnaround and Replacement capital) *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 34 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Divestments at cost – All Private Equity H1 2020 – Market Statistics – % of Amount – Number of companies
Other means, 739,590, 9% Other means 11% Sale to management, Trade sale 346,734, 4% 17% Trade sale, 2,484,379, 31% Sale to management Sale to financial 11% institution, 230,096, 3% Public offering 12%
Sale to financial All Private Equity All Private Equity institution 2% 1,147* companies divested €7.9bn* divested at cost
Sale to another private equity firm 12% Sale to another private equity firm, Write-off 2,405,988, 31% Public offering, 12% 819,361, 10%
Write-off, 593,703, Repayment of 8% Repayment of preference shares/ preference shares/ loans or mezzanine, loans or mezzanine 280,104, 4% 27%
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 35 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Divestments at cost by exit route 2007-H1 2020 – Market Statistics - % of total amount at cost
100% 2% 2% 1% 1% 2% 1% 2% 2% 1% 1% 2% 2% 2% 2% 3% 5% 4% 3% 3% 3% 5% 3% 3% 3% 2% 4% 3% 6% 4% 5% 3% 4% 7% 4% 5% 4% 4% 8% 3% 6% 5% 4% 9% 3% 5% 6% 2% 3% 10% 5% 13% 5% 1% 8% 4% 3% 4% 9% 6% 5% 90% 4% 3% 5% 8% 5% 6% 7% 5% 9% 6% 6% 4% 4% 12% 7% 4% 4% 2% 3% 9% 5% 19% 5% 80% 24% 14% 18% 20% 26% 3% 29% 24% 27% 31% 24% 29% 28% 28% 18% 5% 24% 33% 40% 70% 37% 20% 27% 30% 32% 5% 30% 39% 7% 40% 4% 14% 11% 6% 60% 9% 6% 6% 4% 8% 37% 5% 9% 13% 9% 6% 12% 7% 10% 30% 7% 8% 2% 5% 50% 11% 8% 4% 20% 5% 11% 4% 2% 6% 31% 18% 20% 3% 7% 4% 15% 4% 6% 12% 8% 6% 10% 3% 7% 11% 30% 17% 9% 40% 13% 1% 6% 21% 13% 22% 3% 10% 15% 3% 12% 10% 3% 11% 17% 25% 10% 11% 13% 4% 30% 10% 12% 15% 15% 10% 11% 43% 45% 20% 39% 36% 33% 34% 33% 31% 32% 30% 31% 31% 27% 29% 27% 29% 27% 25% 25% 25% 26% 27% 22% 23% 22% 22% 10% 19%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Trade sale Public offering Write-off Repayment of preference shares/ loans or mezzanine Sale to another private equity firm Sale to financial institution Sale to management Other means
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 36 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Venture Capital – Divestments at cost by exit route 2007-H1 2020 – Market Statistics - % of total amount at cost
100% 3% 2% 2% 3% 2% 2% 3% 2% 2% 3% 3% 1% 2% 3% 3% 3% 2% 2% 3% 4% 6% 6% 5% 9% 9% 9% 8% 3% 4% 4% 7% 3% 4% 6% 6% 1% 8% 5% 5% 6% 2% 2% 3% 8% 9% 3% 8% 12% 3% 8% 10% 2% 90% 6% 3% 4% 4% 6% 6% 4% 5% 15% 5% 1% 5% 14% 7% 9% 7% 13% 5% 1% 4% 9% 1% 2% 7% 5% 3% 4% 4% 3% 4% 8% 6% 3% 6% 10% 10% 8% 6% 1% 7% 80% 5% 4% 4% 9% 2% 6% 12% 5% 12% 27% 15% 12% 16% 8% 4% 26% 5% 8% 22% 15% 7% 6% 12% 6% 7% 40% 20% 6% 70% 12% 3% 23% 15% 17% 9% 10% 7% 4% 10% 4% 15% 9% 6% 6% 7% 16% 17% 21% 60% 10% 5% 8% 5% 19% 28% 14% 16% 16% 35% 11% 9% 13% 19% 19% 29% 20% 14% 19% 13% 14% 20% 21% 7% 3% 13% 50% 10% 7% 8% 18% 8% 21% 14% 16% 17% 7% 15% 15% 5% 16% 40% 7% 8% 13% 12% 11% 22% 6% 14% 10%
30% 11% 52% 50% 46% 47% 46% 43% 44% 43% 20% 39% 41% 40% 38% 38% 36% 35% 35% 33% 32% 34% 33% 33% 33% 33% 28% 29% 28% 23% 10%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Trade sale Public offering Write off Repayment of preference shares/ loans or mezzanine Sale to another private equity firm Sale to financial institution Sale to management Other means
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 37 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Buyout – Divestments at cost by exit route 2007- H1 2020 – Market Statistics - % of total amount at cost
100% 1% 4% 2% 4% 2% 2% 3% 2% 3% 2% 2% 2% 1% 2% 2% 3% 2% 2% 3% 2% 2% 5% 5% 2% 2% 2% 2% 2% 3% 2% 3% 7% 5% 10% 3% 2% 7% 2% 5% 4% 4% 1% 1% 13% 9% 11% 4% 4% 3% 6% 7% 6% 5% 3% 2% 5% 13% 8% 6% 90% 5% 10% 11% 4% 4% 2% 2% 23% 2% 12% 4% 7% 21% 28% 80% 20% 27% 1% 24% 6% 36% 28% 29% 30% 36% 5% 30% 35% 31% 39% 47% 70% 23% 28% 27% 44% 7% 32% 38% 34% 40% 46% 5% 4% 12% 4% 5% 60% 12% 3% 8% 34% 3% 9% 6% 5% 7% 47% 10% 13% 6% 4% 23% 12% 1% 1% 2% 50% 6% 18% 5% 2% 10% 9% 6% 3% 7% 32% 3% 1% 4% 19% 9% 8% 24% 6% 7% 34% 8% 8% 10% 22% 15% 40% 1% 6% 9% 15% 25% 3% 0% 16% 13% 7% 3% 6% 11% 0% 21% 21% 12% 12% 11% 20% 28% 10% 30% 2% 5% 17% 8% 10% 47% 20% 11% 40% 40% 34% 34% 35% 33% 32% 32% 31% 31% 32% 27% 28% 30% 25% 26% 27% 27% 22% 22% 22% 24% 10% 20% 18% 18% 15%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Trade sale Public offering Write off Repayment of preference shares/ loans or mezzanine Sale to another private equity firm Sale to financial institution Sale to management Other means Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 38 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Growth – Divestments at cost by exit route 2007-H1 2020 – Market Statistics - % of total amount at cost
100% 1% 1% 2% 1% 1% 1% 1% 2% 2% 3% 3% 2% 4% 3% 3% 2% 2% 2% 2% 3% 2% 5% 5% 6% 6% 5% 5% 6% 5% 8% 8% 5% 9% 8% 12% 11% 9% 8% 6% 6% 12% 12% 11% 90% 9% 17% 14% 14% 8% 5% 1% 10% 21% 14% 5% 20% 12% 6% 15% 11% 2% 3% 7% 7% 4% 10% 9% 2% 20% 6% 80% 3% 4% 9% 6% 16% 7% 1% 5% 12% 16% 10% 11% 2% 22% 13% 5% 9% 10% 23% 24% 10% 14% 5% 22% 70% 26% 8% 12% 4% 20% 61% 19% 26% 25% 12% 8% 20% 8% 5% 4% 8% 12% 14% 27% 60% 10% 4% 12% 29% 11% 57% 3% 26% 11% 28% 1% 5% 4% 24% 11% 10% 13% 17% 5% 13% 16% 50% 3% 11% 6% 3% 25% 13% 14% 22% 33% 5% 18% 10% 4% 9% 28% 4% 29% 40% 8% 15% 13% 23% 4% 8% 10% 24% 23% 4% 17% 1% 16% 2% 9% 3% 6% 14% 7% 6% 5% 6% 30% 8% 56% 5% 4% 4% 12% 9% 10% 4% 3% 46% 12% 4% 5% 41% 5% 4% 6% 20% 4% 40% 40% 38% 36% 3% 30% 33% 32% 28% 28% 28% 30% 30% 25% 27% 25% 26% 21% 10% 20% 18% 20% 19% 18% 17% 15%
0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Trade sale Public offering Write off Repayment of preference shares/ loans or mezzanine Sale to another private equity firm Sale to financial institution Sale to management Other means
Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 39 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
All Private Equity – Divestments at cost by region 2007-H1 2020 – Market Statistics – Amount at cost
€26.1bn €24.9bn
€22.5bn €22.7bn 4.4 €21.8bn €21.8bn 4.0 €21.3bn €20.6bn €20.4bn 3.6 €19.0bn €18.8bn 3.1 3.3 2.8 2.6 2.8 2.5 3.7 2.8 €16.8bn €16.8bn 2.1 €16.1bn 1.8 3.4 €15.4bn 2.0 2.9 2.8 €15.5bn €15.7bn 2.7 3.9 3.6 2.1 3.2 2.2 2.9 1.7 1.6 1.1 3.8 3.3 2.1 €13.0bn €12.8bn 3.0 2.5 2.7 €12.2bn 3.4 1.9 2.4 2.4 4.1 2.3 1.4 3.6 3.5 2.1 4.2 €10.3bn €10.4bn 0.8 6.3 2.3 1.9 2.3 €9.5bn 3.0 2.7 3.4 1.5 2.3 3.2 8.4 1.0 1.2 6.5 1.6 1.8 €8.0bn 0.5 7.0 6.4 €7.9bn €7.4bn 1.7 1.3 1.3 6.8 2.3 4.4 1.8 2.2 6.2 5.6 8.1 4.8 1.2 1.0 1.8 5.5 0.7 1.1 €5.6bn 5.0 0.9 1.5 3.2 4.8 0.9 0.4 6.2 3.0 5.7 6.2 3.4 2.2 1.0 1.3 1.6 0.9 0.3 3.5 0.9 8.1 3.2 2.7 2.8 2.4 6.1 5.9 6.3 6.0 2.5 5.5 5.0 4.6 1.9 4.3 4.6 4.3 4.9 3.5 4.1 3.9 3.9 3.5 2.5 2.6 2.9 2.6 2.0 1.5 1.4 2.0 2.1 2.0
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1* H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 40 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Venture Capital – Divestments at cost by region 2007-H1 2020 – Market Statistics – Amount at cost
€1.9bn
0.1 €1.7bn 0.1
0.2 0.2 €1.5bn €1.5bn €1.4bn 0.2 €1.3bn 0.1 €1.3bn €1.3bn 0.2 €1.2bn €1.3bn €1.2bn 0.1 €1.2bn 0.2 €1.2bn 0.1 0.1 0.1 €1.1bn 0.0 0.3 0.1 €1.1bn €1.1bn 0.1 0.2 0.1 €1.0bn €1.0bn 0.2 €1.0bn 0.1 €1.0bn 0.1 0.2 €1.0bn 0.3 €1.0bn €1.0bn 0.1 0.1 0.9 0.3 0.3 €0.9bn 0.1 0.2 0.1 0.3 0.1 0.3 0.3 €0.8bn 0.2 0.2 0.3 0.2 0.1 0.1 0.1 0.2 0.3 0.2 0.2 0.2 €0.7bn 0.2 0.1 0.1 0.5 0.1 0.3 0.1 0.1 0.2 0.1 0.3 0.3 0.1 €0.6bn 0.1 0.1 0.3 0.3 0.1 0.3 0.4 0.2 0.2 0.3 0.3 0.3 0.3 0.4 0.4 0.2 0.1 0.2 0.3 0.2 0.1 0.2 0.3 0.2 0.2 0.2 0.1 0.2 0.2 0.3 0.3 0.3 0.2 0.4 0.1 0.3 0.3 0.6 0.3 0.4 0.4 0.4 0.3 0.6 0.6 0.2 0.3 0.2 0.3 0.3 0.5 0.5 0.4 0.4 0.3 0.2 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.1
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1* H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 41 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Buyout – Divestments at cost by region 2007-H1 2020 – Market Statistics – Amount at cost
€20.6bn
€19.1bn
3.3 €17.5bn €17.2bn 2.7 €16.4bn €15.7bn €15.5bn 2.7 €14.9bn 2.6 €14.3bn 2.3 2.4 €13.2bn 1.9 2.5 3.1 €12.8bn 1.7 €12.9bn 2.6 1.9 1.9 2.9 €12.1bn €11.6bn €11.7bn 1.6 €11.7bn 1.0 3.2 €11.2bn 2.5 1.4 1.0 2.7 2.4 1.2 1.8 1.4 1.5 €9.8bn 2.0 2.9 2.5 €9.4bn 1.3 €9.4bn 2.7 2.0 1.6 1.8 1.0 2.1 2.4 0.4 3.8 2.5 1.2 3.2 4.3 3.0 €7.4bn 2.1 2.5 1.9 1.6 1.9 €7.1bn 2.9 6.5 1.2 1.9 2.8 1.9 4.1 1.6 0.7 4.0 1.0 1.3 0.2 0.9 1.1 4.9 €5.8bn €5.3bn 1.9 €5.2bn 1.3 3.5 3.1 €4.7bn 1.8 1.0 3.3 3.8 3.9 3.6 0.5 0.8 3.5 2.9 3.2 €3.5bn 1.3 1.2 4.2 0.7 0.6 0.6 2.1 4.2 4.2 2.1 0.2 1.5 4.6 0.6 0.7 1.0 1.2 0.6 6.3 0.2 0.7 2.3 5.3 0.7 1.7 4.9 5.0 1.8 1.4 4.2 4.1 3.9 1.5 3.4 3.8 2.9 1.0 1.4 3.1 3… 3.2 3.3 3.2 3.1 2.4 2.2 1.6 1.6 1.5 2.0 1.7 1.5 1.1 1.0 1.0
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 42 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Growth – Divestments at cost by region 2007-H1 2020 – Market Statistics – Amount at cost
€5.3bn
0.1
0.6
€4.3bn 0.2 0.1 0.4 0.6 €3.7bn €3.6bn €3.5bn 0.1 €3.3bn 0.1 0.1 €3.2bn €3.2bn 0.1 €3.2bn 0.3 0.4 0.4 €3.1bn 0.1 0.3 0.2 €2.9bn 0.5 0.1 0.1 €2.8bn €2.8bn €2.8bn 0.1 0.4 0.4 1.0 0.1 0.7 0.5 0.1 0.1 0.5 0.1 0.0 0.6 0.0 0.2 0.7 0.5 0.5 €2.2bn 0.1 0.4 0.6 €2.1bn 0.6 0.1 0.2 0.6 €1.9bn 0.1 0.1 3.4 0.1 0.0 0.2 0.1 €1.8bn 0.1 0.0 0.8 0.3 0.2 0.4 0.1 0.3 0.3 2.9 0.0 0.2 €1.5bn €1.5bn €1.5bn 0.2 0.7 €1.3bn €1.4bn 0.2 €1.4bn 0.3 0.1 €1.2bn 1.9 0.2 0.1 0.2 1.5 1.8 1.7 1.3 0.1 €1.0bn 0.1 €1.1bn 0.0 0.4 0.1 0.1 0.1 0.2 0.4 1.9 1.6 0.0 0.4 0.2 2.3 0.2 1.5 1.2 1.5 0.1 0.1 0.3 0.3 0.3 1.3 0.1 1.2 0.2 0.1 0.4 0.1 0.1 0.1 1.0 1.0 0.1 0.8 0.7 0.6 0.7 0.7 0.8 0.6 0.6 0.6 0.7 0.6 0.5 0.6 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.2 0.3 0.2 0.3 0.2 0.2 0.1 0.1 0.1 0.0 0.1 0.1 0.2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 * H2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UK&Ireland France&Benelux DACH Nordics Southern Europe CEE Source: Invest Europe / EDC *H1 2020 data is preliminary and subject to change www.investeurope.eu/research 43 Investing in Europe Private Equity Activity H1 2020
ACTIVITY H1 2020 METHODOLOGY & GLOSSARY
44 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Methodology & Glossary Fundraising
FUND STAGE FOCUS FUNDRAISING STATISTICS EXPLAINED Buyout fund: Funds acquiring companies by Venture Capital Direct private equity investment funds that primarily purchasing majority or controlling stakes, financing focus on investments in Europe are monitored. the transaction through a mix of equity and debt. Early-stage fund: Venture capital funds focused on investing in companies in the early stages of their Funds raised are recorded in the country of the Generalist fund: Funds investing in all stages of lives. advisory team that is raising/managing the fund private equity. (‘industry statistics’). Later-stage fund: Venture capital funds providing Growth fund: Funds that make private equity capital for an operating company which may or may The funds included in the statistics are: private investments (often minority investments) in relatively not be profitable. Typically in C or D rounds. equity funds making direct private equity mature companies that are looking for primary capital investments, mezzanine private equity funds, co- to expand and improve operations or enter new Venture fund (all stages): Venture capital funds investment funds and rescue/turnaround funds. markets to accelerate the growth of the business. focused on both early and later stage investments. The following funds are excluded from the Note: Fundraising amounts include capital Mezzanine fund: Funds using a hybrid of debt and gains. More comprehensive data is available statistics: infrastructure funds, real estate funds, equity financing, comprising equity-based options here: www.investeurope.eu/research/ private debt funds, distressed debt funds, primary (such as warrants) and lower-priority (subordinated) funds of funds, secondary funds of funds, debt. accelerator/incubator funds, business angel activity.
www.investeurope.eu/research 45 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Methodology & Glossary Investments
INVESTMENTS STAGES INVESTMENTS STATISTICS EXPLAINED Seed: Funding provided before the investee company Growth: A type of private equity investment (often a Industry statistics are an aggregation of figures has started mass production/distribution with the aim minority investment) in relatively mature companies according to the country of the private equity firm’s to complete research, product definition or product that are looking for primary capital to expand and office in charge of the investment. At European design, also including market tests and creating improve operations or enter new markets to level, this relates to investments made by European prototypes. This funding will not be used to start mass accelerate the growth of the business. private equity firms regardless of the location of the production/distribution. portfolio company. Buyout: Financing provided to acquire a company. It Start-up: Funding provided to companies, once the may use a significant amount of borrowed capital to Market statistics are an aggregation of figures product or service is fully developed, to start mass meet the cost of acquisition. Typically involves according to the location of the portfolio company. production/distribution and to cover initial marketing. purchasing majority or controlling stakes. At European level, this relates to investments in Companies may be in the process of being set up or Rescue / Turnaround: Financing made available to an European companies regardless of the location of the may have been in business for a shorter time, but existing business, which has experienced financial private equity firm. have not sold their product commercially yet. The use distress, with a view to re-establishing prosperity. of the capital would be mostly to cover capital Equity value: The amount of capital invested to expenditures and initial working capital. Replacement Capital: Minority stake purchase from acquire shares in an enterprise. The equity value This stage also contains also the investments reported another private equity investment organisation or includes equity, quasi-equity, mezzanine, unsecured as “Other early stage” which represents funding from another shareholder or shareholders. debt and secured debt provided by the private equity provided to companies that have initiated commercial firm. manufacturing but require further funds to cover The funds included in the statistics are: private additional capital expenditures and working capital equity funds making direct private equity before they reach the break-even point. Such investments, mezzanine private equity funds, co- companies will not be generating a profit yet. investment funds and rescue/turnaround funds. Later-stage venture: Financing provided for an The following funds are excluded from the operating company, which may or may not be statistics: infrastructure funds, real estate funds, profitable. Later-stage venture tends to involve private debt funds, distressed debt funds, primary financing into companies already backed by VCs, funds of funds, secondary funds of funds, typically in C or D rounds. accelerator/incubator funds, business angel activity.
www.investeurope.eu/research 46 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Methodology & Glossary Divestments
EXIT ROUTE DIVESTMENTS STATISTICS EXPLAINED Management/ Owner buyback: The buyer of the Sale to financial institution: A financial institution is Industry statistics are an aggregation of figures company is its management team. an entity that provides financial services for its according to the country of the private equity firm’s clients: Public offering: office in charge of the divestment. At European ‒ Depositary Institutions: deposit-taking institutions level, this relates to divestments made by European ‒ First divestment following flotation (IPO): The sale that accept and manage deposits and make loans, private equity firms regardless of the location of the or distribution of a private company’s shares to the including banks, building societies, credit unions, portfolio company. public for the first time by listing the company on trust companies and mortgage loan companies. the stock exchange. Market statistics are an aggregation of figures ‒ Contractual Institutions: Insurance companies and ‒ Sale of quoted equity post flotation: It includes sale pension funds. according to the location of the portfolio company. of quoted shares only if connected to a former At European level, this relates to divestments of ‒ Investment Institutions other than direct private private equity investment, e.g. sale of quoted shares equity firms. European companies regardless of the location of the after a lock-up period. private equity firm. Trade sale: The sale of a company's shares to Repayment of preference shares / loans or industrial investors. Divestment amounts (including write-offs) are mezzanine: If the private equity firm provided loans recorded at cost (i.e. the total amount divested is or bought preference shares in the company at the Write-off: The value of the investment is eliminated equal to the total amount invested before). time of investment, then their repayment according and the return to investors is zero or negative. to the amortisation schedule represents a decrease of The funds included in the statistics are: the financial claim of the firm into the company, and Note: Recapitalisations are not considered in the divestment private equity funds making direct private equity statistics. hence a divestment. investments, mezzanine private equity funds, co- investment funds and rescue/turnaround funds. Sale to another private equity firm: The buyer of the portfolio company is a private equity firm. The following funds are excluded from the statistics: infrastructure funds, real estate funds, private debt funds, distressed debt funds, primary funds of funds, secondary funds of funds, accelerator/incubator funds, business angel activity.
www.investeurope.eu/research 47 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
Methodology and glossary
MARKET STATISTICS A Domestic divestments in European countries B Cross-border divestments within Europe C Non-European private equity C Non-European private equity firms divesting firms divesting portfolio portfolio companies in Europe companies in Europe INDUSTRY STATISTICS A B A Domestic divestments in European countries Domestic Cross-border divestments B Cross-border divestments within Europe divestments in European within Europe D European private equity firms divesting countries portfolio companies outside Europe
D European private equity firms divesting portfolio companies outside Europe
www.investeurope.eu/research 48 Investing in Europe Private Equity Activity H1 2020
ACTIVITY H1 2020 ACKNOWLEDGEMENTS
49 Investing in Europe Introduction Fundraising Investments Divestments Methodology & Glossary Acknowledgements Private Equity Activity H1 2020
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. These 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 formally partnering with Invest Europe as part of the European Data Cooperative (EDC):
AIFI – Italy FVCA – Finland ASCRI - Spain LPEA - Luxembourg BVA - Belgium NVCA - Norway
BVCA - Bulgaria NVP - The Netherlands BVCA - UK PSIK - Poland BVK - Germany SECA - Switzerland CVCA - The Czech Republic SEEPEA - South Eastern Europe DVCA - Denmark SVCA - Sweden France Invest - France
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About Invest Europe Research
Invest Europe is recognised as the authoritative data source for European private equity and venture capital by institutions including the European Commission and OECD (Organisation for Economic Co-operation and Development). Rigorous research has underpinned Invest Europe’s work with policymakers, press, the public and investors since 1984. To deliver this robust, trusted research data and insight, Invest Europe collects data on more than 1,400 firms.
INVEST EUROPE PEREP_ANALYTICS RESEARCH TEAM AUTHORISED STATISTICS PROVIDER FOR INVEST EUROPE Research Director Statistics Manager Julien Krantz Iuliana Furica Research Manager Knowledge Manager Daniel Irwin-Brown Monica Biolan Senior Research Officer Statistics Team Ariane Mortelmans Alexandru Burloiu Paul Buzoianu [email protected] Silvia Costea www.investeurope.eu Adriana Craciun Ana-Maria Cristea Luiza Dima Alexandra Ehupov Sofian Giuroiu Iuliana Petre Cristina Porumboiu Anastasia Stan Dragos Tanasescu [email protected] www.investeurope.eu/research 51