ANNUAL REPORT 2019/2020 ANNUAL ANNUAL REPORT 2019/2020
Invest Europe Annual Report 2019/2020
Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors.
Our members take a long-term approach to investing in privately held companies, from start-ups to established businesses. They inject not only capital but dynamism, innovation and expertise. This commitment helps deliver strong and sustainable growth, resulting in healthy returns for Europe’s leading pension funds and insurers, to the benefit of the millions of European citizens who depend on them. Invest Europe aims to make a constructive contribution to policy affecting private capital investment in Europe. We provide information to the public on our members’ role in the economy. Our research provides the most authoritative 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 21 employees based in Brussels, Belgium.
For more information please visit www.investeurope.eu Annual Report 2019/2020 01
“Invest Europe’s goal is an association that works for the whole membership, delivering high-quality services, a strong
CONTENTS voice in Europe and clear Overview
SECTION 1: leadership for the industry.” OVERVIEW Eric de Montgolfier Chief Executive Officer Read Eric’s report on page 05 Chair’s message 04 Chief Executive’s report 05 OUR MEMBERS SECTION 2: GP Members HOW WE OPERATE
Buyout 164 Governance structure 08 VC 160 How we operate Total SECTION 3: 324 WHAT WE DO Political advocacy 16 Data & research 18 LP Members Communications 20 Inst. Investor 82 Conferences & events 22 Fund of Funds 65
Industry excellence & training 24 Total What we do Finance & administration 26 147
SECTION 4: FINANCIALS Financial report 30 Associate Members
Financial statements 31 Law Firm Consulting /Advising Auditor’s report 34 Total Accounting /Audit 100 Placement Agent Financials 3rd Party Fund Admin Other
Member firms located in 37 11 countries across Europe countries outside Europe 02 Invest Europe Annual Report 2019/20202019/2020
SECTION 1 OVERVIEW
Chair’s message 04 Chief Executive’s report 05 11 AnnualAnnual ReportReport 2019/2020 03 Overview How we operate What we do 11 Financials 04 Invest Europe Annual Report 2019/2020
Chair’s message Protecting your licence to operate The last six months have been a period of unprecedented disruption on an international scale. Never in our lifetimes have we endured the forced shutdowns of businesses and large parts of the European economy to protect public health.
The impact on private equity and venture capital It has been my pleasure to serve as Chair of Invest has been significant with successful and healthy Europe for the last 12 months. I thank Eric and the companies subjected to severe stress virtually overnight. team for their work. I would also like to pay a special The outlook is uncertain, and the pressures are intense, tribute to our Chair-elect, Rory Macmillan of the but the industry has entered this crisis from a Carlyle Group, who passed away a few days ago. strong place. Rory played a significant role across our industry and at Invest Europe since 2013. He will be deeply missed. Even before the coronavirus outbreak, our industry Thierry Baudon, Mid Europa faced a difficult and changing environment. This time last The future is likely to hold more uncertainty. We do year, the priorities of an incoming European Commission not know how long the current crisis will last, nor Partners, Chair and the European Parliament were unknown, but likely how great the economic impact will be. Many private to involve fresh legislation. The US election cycle was equity-backed companies, like other private or publicly bringing scrutiny, calls for tougher regulation and listed businesses, will require financial and practical press criticism. And the potential of a no-deal Brexit operational support. In the medium term, Brexit will was hampering business decision-making and risking come back into focus, as will the reviews of the economic slowdown. Alternative Investment Fund Managers Directive and Solvency II. And yet, throughout all these challenges, European private equity demonstrated its appeal to investors It is highly probable that private equity activity in and businesses alike. Private equity and venture capital Europe will be negatively affected by the crisis, and fundraising reached €109bn in 2019, the highest level that performance at many portfolio companies will take “In the post-pandemic in over a decade, while a record €94bn was invested some time to recover. Yet there will be opportunities world, we will have into companies – some 85% of which were small and to support sound businesses that need capital and medium-sized enterprises, the backbone of the expertise to come back stronger. There will also be the opportunity to European economy. opportunities to back emerging technologies and demonstrate that industries that will benefit both from new trends Europe’s pension funds and insurers accounted for some and an acceleration in existing secular shifts. private equity 40% of private equity funds raised last year – and over outperforms when it the last five years – a clear endorsement of the industry’s Most importantly, in the post-pandemic world, contribution to better returns and pensions, in addition we will have the opportunity to demonstrate that comes to economic to leadership on issues like environment, social and we outperform other forms of ownership when it and social impact.” governance (ESG). Last year, the industry invested in comes to economic and social impact. For many 7,900 companies, including companies that are helping years, we have been better at generating jobs, driving search for solutions to the COVID-19 pandemic and change and fuelling innovation than we have at making creating services adapted to the new environment. these achievements known to decision-makers and society at large. We must show that we are good For Invest Europe, the last 12 months have been a period corporate citizens, making a positive impact on of renewal. The appointment of Eric de Montgolfier as European society in order to validate our license CEO in November reflects the association’s evolving role to operate for years to come. and priorities. With three decades of experience in private equity, he understands members’ needs and brings that The strength the industry has demonstrated in recent focus into Invest Europe’s day-to-day activities, as well years stands us in good stead. Given adequate liquidity as its longer-term strategic direction. His practitioner’s and the right regulatory support, our long-term patient viewpoint also adds a new dimension to engagement capital and hands-on operational expertise can help with policymakers. jump-start the European economy. More than ever, private equity is a critical part of the solution, now and into the future. Annual Report 2019/2020 05
Chief Executive’s report Support through unprecedented challenges
Private equity and venture capital is used to coming through periods of uncertainty. Overview The past year was always going to involve change, but as the coronavirus (COVID-19) pandemic escalated, it also brought unprecedented challenges.
The coming 12 to 18 months are likely to be just as for members to provide essential insight and advice demanding, but we will be supporting the industry every on a broad range of topics arising from the COVID-19 step of the way, providing the resources and guidance crisis, and made these member-only resources available members need to weather the crisis, while fighting in to members’ portfolio companies for as long as it takes Brussels and beyond for a fair environment that will to overcome the crisis. We communicate our efforts enable the industry to prosper long term. and policy responses regularly through emails, calls and our new weekly newsletter. All these initiatives When I joined Invest Europe in November, the have supplemented Invest Europe’s existing services, How we operate association had chalked up a number of achievements. Eric de Montgolfier reflecting members’ need for information and support You can read more about all our activities in this annual Chief Executive Officer in these exceptional times. report. I thank outgoing Chair, Thierry Baudon, for steering the association over the last 12 months. I also Over the next 12-18 months, many issues that were thank the Board of Directors, Invest Europe’s Platform priorities before the crisis will come back into focus – Councils, Committees, Task Forces and members who Brexit, the reviews of the Alternative Investment Fund have contributed to the association’s work. But I also Managers Directive and Solvency II, and the evolution wanted to let you know the extremely sad news of the of the global taxation regime. We will continue to fight sudden death of Rory Macmillan, Chair-elect. His tireless for fair and proportionate rules that support a healthy commitment and his contribution to Invest Europe for European investment ecosystem, encourage sustainable close to a decade will not be forgotten. Our thoughts long-term investment, while also managing the
are with his family. industry’s reputation. Our economic impact data survey, What we do to be published for the first time later this year, will “We will support the My goal is an association that works for the whole be one of our practical tools to show how the industry membership, delivering the services that members industry every step drives job creation and demonstrate private equity’s expect and need, while providing a strong voice in Europe positive impact. of the way, providing and clear leadership for the industry. We have been the resources and making great progress. However, in the last few months, At some point, this crisis will be over. When that time the demands on Invest Europe have changed abruptly. comes, it is possible that some things will have changed: guidance members From initiatives to build on the industry’s position in the way companies operate, the way people consume need to weather Brussels, or to deliver more member-focused services, goods and services, how societies and policymakers we – like our membership and portfolio companies expect businesses and investors to behave. Invest the crisis.” – have been thrust into crisis mode. Europe will soon start explaining to policymakers how private capital can jump-start the European economy,
Having been a private equity practitioner in Europe Financials and we will provide members with best practice for three decades, I know about working under guidance and information on how to navigate those challenging conditions. While COVID-19 has had an new challenges. unprecedented impact on businesses and the economy, there are echoes of past crises. Companies require Our members are the lifeblood of Invest Europe. immediate liquidity and financial support, while More than ever, we will be putting members’ needs managers need information and resources to help at the heart of our action. You will see changes as our them support businesses. services evolve and improve – more digital, with more debates of substance on themes critical for LPs and In March, Invest Europe began urging European GPs. The result will be an association fit for purpose policymakers for emergency financial measures – and ready to lead the European private equity industry particularly for SMEs and start-ups. We put together into the next phase of its development. a comprehensive and interactive library of resources 06 Invest Europe Annual Report 2019/20202019/2020 22 AnnualAnnual ReportReport 2019/2020 07
SECTION 2 Overview HOW WE OPERATE How we operate What we do Financials 22 Governance structure 08 08 Invest Europe Annual Report 2019/2020
Governance structure
Invest Europe is the voice of investors in privately-held companies in Europe. The industry that we represent includes private equity, venture capital and infrastructure as well as long-term investors such as pension funds and insurance companies.
Invest Europe is committed to representing the GOVERNANCE STRUCTURE interests of each segment of our membership fully and fairly. To achieve this, members are organised into four Platforms dedicated to Invest Europe Invest Europe supporting a specific member group – Limited Chief Executive Secretariat Partners, Venture Capital, Mid-Market and Officer Advisory Groups Large Buyout. The Platforms are led by a Council composed BOARD OF DIRECTORS of industry practitioners, elected by the Maximum 3 members from each platform + Chair of the Board + Past-Chair (guest) membership. The Platform Chair is elected from members of the Council and is ultimately responsible for ensuring that the Platform VC COUNCIL LP COUNCIL MM COUNCIL EPER/LBO best represents its sector and membership. (15 members) (15 members) (15 members) COUNCIL (10 members) Each Platform also puts forward a representative to the Public Affairs Executive. Venture Capital Limited Partners Mid-Market European PE The Platforms are overseen by the Invest Platform Platform Platform Roundtable/Large Europe Board of Directors. All segments Buyout Platform of our membership are equally represented on the Board of Directors.
In addition, Invest Europe’s Platforms steer PLATFORM GROUPS a number of Platform Groups, also composed Ad-hoc working groups for special platform projects of industry practitioners and reporting to the Platforms and Board of Directors. ROUNDTABLES Represent members of certain sub-segments Finally, there are several Roundtables of one or more platforms representing certain sub-segments of one or more platforms.
CROSS-PLATFORM GROUPS Professional Public Affairs Representative Legal and Tax Committee Standards Executive Group Regulatory Committee Committee Annual Report 2019/2020 09 Overview BOARD OF DIRECTORS 2019/20201
Chair Thierry Baudon Mid Europa Partners
Chair-elect Rory Macmillan 2 The Carlyle Group
Treasurer Max Römer Quadriga Capital
Vice-Chairs Anne Fossemalle European Bank for Reconstruction and Development (EBRD) Rory Macmillan 2 The Carlyle Group Ekaterina Smirnyagina Capricorn Partners THIERRY BAUDON RORY MACMILLAN (1960 – 2020) CHAIR CHAIR-ELECT & LARGE BUYOUT
PLATFORM VICE-CHAIR How we operate Members Geoffrey Bailhache Blackstone Max Bautin IQ Capital Partners Jean Bourcereau Ventech Dörte Höppner Riverside Europe Partners Henry Jackson OpCapita Elias Korosis Hermes GPE Vanessa Maydon Cinven Christina Pamberg Alcyon Holding
Past-Chair (guest) Nenad Marovac DN Capital
NENAD MAROVAC ANNE FOSSEMALLE PAST-CHAIR (guest) LIMITED PARTNERS PLATFORM VICE-CHAIR What we do
EKATERINA SMIRNYAGINA MAX RÖMER VENTURE CAPITAL PLATFORM TREASURER VICE-CHAIR Financials
Notes 1. Composition as at 31 March 2020 2. Rory Macmillan (1960 – 2020) 10 Invest Europe Annual Report 2019/2020
Governance structure continued
Four platform groups GOVERNANCE STRUCTURE Members are organised into four Platforms dedicated to supporting a specific member group – Limited Partners, Limited Venture Mid-Market European PE Partners Capital Platform Roundtable/ Venture Capital, Mid-market and Large Buyout. Platform Platform Large Buyout Platform
LIMITED PARTNERS PLATFORM COUNCIL1 MID-MARKET PLATFORM COUNCIL1 Invest Europe Anne Fossemalle European Bank for Reconstruction Invest Europe Thierry Baudon Mid Europa Partners Vice–Chair and Development (EBRD) Vice-Chair
Members Jean-Philippe Burcklen European Investment Fund Members Catherine Brossard Cerberus Capital Management Jesse de Klerk Robeco Institutional Asset Management Dörte Höppner Riverside Europe Partners Louis Flamand MetLife Investments Henry Jackson OpCapita David Hobson GIC Martin Kõdar Baltcap Rune Jepsen QIC Robert Manz Enterprise Investors Elias Korosis Hermes GPE Juha Peltola Vaaka Partners Merrick McKay Aberdeen Standard Investments Fabien Prévost Omnes Capital Christina Pamberg Alcyon Holding Max Römer Quadriga Capital Philipp Patschkowski NB Alternatives Advisers Michele Semenzato Wise SGR Mauro PfisterCapital Dynamics George Swirski Abris Capital Partners Marc Roijakkers Blue Sky Group Frans Tieleman Eurazeo Robert Schlachter LGT Capital Partners Nino Tronchetti Provera Ambienta SGR Stephen Ziff Coller Capital Kristof Vande Capelle Gimv
VENTURE CAPITAL PLATFORM COUNCIL1 EUROPEAN PRIVATE EQUITY ROUNDTABLE/ LARGE BUYOUT PLATFORM COUNCIL1 Invest Europe Ekaterina Smirnyagina Capricorn Partners Vice-Chair Invest Europe Rory Macmillan 2 The Carlyle Group Vice-Chair Members Max Bautin IQ Capital Partners Jean Bourcereau Ventech Members Jonas Agesand Warburg Pincus International Dina Chaya NeoMed Management Tom Allen Advent International Anna Daviau Nauta Capital Geoffrey Bailhache Blackstone Janke Dittmer Gilde Healthcare Partners Ludo Bammens Kohlberg Kravis Roberts & Co Christian Ehrenborg Ingka GreenTech part of Ingka Investments Christopher Crozier Permira Advisers Hakan Goker Merck Ventures Therése Lennehag EQT Partners Christoph Jung Holtzbrinck Ventures Adviser Vanessa Maydon Cinven Nenad Marovac DN Capital Klas Tikkanen Nordic Capital Patrick Polak Newion Partners Pauline Roux Elaia Partners Rainer Strohmenger Wellington Partners Ingrid Teigland Akay Hadean Ventures Radboud Vlaar Finch Capital
Notes 1. Composition as at 31 March 2020 2. Rory Macmillan (1960 – 2020) Annual Report 2019/2020 11 Overview GOVERNANCE STRUCTURE
ROUNDTABLES1 PLATFORM WORKING GROUPS1
ROUNDTABLES PLATFORM GROUPS – Represent members of certain sub-segments of one or more Platforms. – Platform working groups are ad-hoc groups set up to manage special – Invest Europe’s Roundtables are cross-Platform initiatives which projects for the Platforms and are coordinated by the association. are open to members from all segments. – Platform Councils may set up working groups at any time. – Each Platform is supported by sub-groups which deal with specific industry sectors. How we operate Single Family Office (SFO) Roundtable MID-MARKET PLATFORM GROUP The SFO Roundtable represents the interests of the SFO community within Invest Europe. It works to attract new SFO members and provides networking Central and Eastern European Taskforce opportunities. This taskforce undertakes initiatives specifically aimed at the development Chair Christina Pamberg Alcyon Holding and promotion of private equity and venture capital in the Central and Eastern Europe (CEE) region. Among its accomplishments is its annual Central and Eastern Europe private equity statistics report. Corporate Venture Capital (CVC) Roundtable Chair Robert Manz Enterprise Investors The CVC Roundtable gives a voice to the increasingly influential corporate venture capital community. Its membership includes leading companies who are active in Europe and it has strong ties with similar networks in other countries. CROSS-PLATFORM GROUPS1 Chair Christian Ehrenborg Ingka GreenTech part of Ingka Investments
Growth Capital Roundtable Professional Public Affairs Representative Legal and Tax Committee What we do The Growth Capital Roundtable provides a platform for Invest Europe members Standards Executive Group Regulatory Committee Committee that are growth capital investors. The Roundtable facilitates the discussion and sharing of best practices among its members and seeks to promote growth capital as an asset class to institutional investors. 1 Chair Christian Strain Summit Partners PROFESSIONAL STANDARDS COMMITTEE (PSC) The PSC ensures that Invest Europe is at the forefront of creating and Infrastructure Roundtable maintaining strong professional conduct guidelines and working practices for the The Infrastructure Roundtable provides a forum for our infrastructure members industry in Europe. The Committee makes direct recommendations to the Invest to address the policy issues affecting their operations and to collect data on their Europe Board about the strategy, policy and practicalities relating to professional investment activities to inform future communications. standards, responsible investment and investor reporting. The PSC relies on the Chair Alain Rauscher Antin Infrastructure Partners input and expertise of its two sub-committees: the Invest Europe Responsible Investment Roundtable and the Invest Europe Working Group on Accounting Standards, Valuation and Reporting. Financials Turnaround & Operational Improvement Roundtable The Turnaround Roundtable aims to raise awareness of the role of these Chair Simon Powell Advent International specialised investors and promote the asset class to institutional investors. Co-Chair Henry Jackson OpCapita Vice-Chair John Renkema APG Asset Management Co-Chair Catherine Brossard Cerberus Capital Management Platform Representatives Marc Roijakkers Blue Sky Group Martin Kõdar BaltCap Sabine Vermassen Capricorn Partners
Members Daniel Gregor Allianz Capital Partners Erwann Le Ligné 2 Eurazeo Tony Lissaman 3i Group Jonathan M Martin 3 KPMG Karen Sands Hermes GPE Notes 4 1. Composition as at 31 March 2020 Maaike van der Schoot AlpInvest Partners 2. Vice-Chair, Responsible Investment Roundtable Simon Witney Debevoise & Plimpton 3. Chair, Accounting, Standards, Valuation & Reporting Working Group 4. Chair, Responsible Investment Roundtable 12 Invest Europe Annual Report 2019/2020
Governance structure continued
PUBLIC AFFAIRS EXECUTIVE (PAE)1 REPRESENTATIVE GROUP1 The PAE is the leading decision-making body for Invest Europe’s political advocacy The Representative Group consists of members of all of Europe’s national work on those EU files that have a direct impact on all market segments of the associations. It discusses industry issues at both national and European level. European private equity industry. Evgeny Angelov Bulgarian Ján Kutan Slovak Venture Capital and Chair Thierry Baudon Mid Europa Partners Private Equity and Venture Private Equity Association (SLOVCA) Invest Europe Chair Capital Association (BVCA) Sarah-Jane Larkin Irish Venture Irina Anghel-Enescu South Eastern Capital Association (IVCA) Past-Chair Nenad Marovac DN Capital Europe’s Private Equity Association Mirna Marovic Croatian Private Equity (SEEPEA) Members Anne Glover Amadeus Capital Partners and Venture Capital Association (CVCA) Representing the Invest Europe Venture Capital Platform Skaiste Budbergyte-Zabielaite Anita Matisone Latvian Private Equity Lithuanian Private Equity and Venture and Venture Capital Association (LVCA) Caroline Crowley OpCapita Capital Association (LT VCA) Representing the Invest Europe Mid-Market Platform Rajaa Mekouar-Schneider Paulo Caetano Associacão Rory Macmillan 2 The Carlyle Group Luxembourg Private Equity and Venture Portuguesa de Capital de Risco Capital Association (LPEA) Representing the Invest Europe Large Buyout Platform e de Desenvolvimento (APCRI) Michael Moore British Private Equity Sebastian Ippisch Allianz Capital Partners Alexis Dupont France Invest Representing the Invest Europe Limited Partners Platform and Venture Capital Association (BVCA) Isabella de Feudis Swedish Tjarda Molenaar Eric de Montgolfier Private Equity & Venture Representing Invest Europe Nederlandse Vereniging van Capital Association (SVCA) Participatiemaatschappijen (NVP) Michael Moore Pierre Demaerel Belgian Barbara Nowakowska Polish Representing the BVCA Venture Capital & Private (British Private Equity & Venture Capital Association) Private Equity and Venture Equity Association (BVA) Capital Association (PSIK) Ulrike Hinrichs Rikke Eckhoff Høvding Norwegian Maurice Pedergnana Swiss Representing the BVK Venture Capital & Private Equity (German Private Equity and Venture Capital Association) Private Equity & Corporate Association (NVCA) Finance Association (SECA) Alexis Dupont Anna Gervasoni Italian Private Representing France Invest Zuzana Picková Czech Private Equity Equity, Venture Capital and Private and Venture Capital Association (CVCA) Gilles Dusemon Arendt & Medernach Debt Association (AIFI) Representing the Invest Europe Legal and Regulatory Committee Ibolya Pintér Hungarian Ulrike Hinrichs German Private Equity Venture Capital and Private Marco de Lignie Loyens & Loeff and Venture Capital Association (BVK) Equity Association (HVCA) Representing the Invest Europe Tax Committee Rudolf Kinsky Austrian Private Pia Santavirta Finnish Venture Equity and Venture Capital Capital Association (FVCA) Guests Patricia Volhard Debevoise & Plimpton Organisation (AVCO) Representing the Invest Europe Financial Services José Zudaire Asociación Española and Regulatory Working Group Kristiina Koort Estonian de Capital, Crecimiento e Inversión Private Equity and Venture (ASCRI) Phil Bartram Travers Smith Capital Association (EstVCA) Representing the Invest Europe Financial Services and Regulatory Working Group George Kourtis Hellenic Venture Capital Association (HVCA)
Notes 1. Composition as at 31 March 2020 2. Rory Macmillan (1960 – 2020) Annual Report 2019/2020 13 Overview LEGAL AND REGULATORY COMMITTEE1 TAX COMMITTEE1 The Legal and Regulatory Committee deals with legal and regulatory matters affecting The Tax Committee deals with tax matters affecting European private equity, European private equity, venture capital and infrastructure. Cooperating closely with venture capital and infrastructure. Cooperating closely with the national the national associations, the Committee provides expert advice, legal argumentation associations, the Committee provides information, expert evidence and advice and concrete evidence to Invest Europe and its members, and advises Invest Europe’s to Invest Europe and its members, and advises Invest Europe’s wider public affairs wider public and regulatory affairs activities by supporting the PAE. activities by supporting the PAE.
Chair Gilles Dusemon Arendt & Medernach Chair Marco de Lignie Loyens & Loeff
Vice-Chair Ed Hall Goodwin Procter Vice-Chair Édouard Chapellier Linklaters
Platform Lionel Bergeron Siparex Platform Andrew Collier Advent International Representatives Babett Carrier Cinven Representatives Clare Copeland The Carlyle Group
Simon Powell Advent International Richard Thomson PwC How we operate Benedikt Sudbrock Acton Capital Thijs van Dongen European Investment Fund David Thompson Aberdeen Standard Investments Regional Mikko Alakare Castrén & Snellman Attorneys Regional Ana Sofia Batista Abreu Advogados Representatives Angelo Bonissoni CBA Studio Legale e Tributario Representatives Stephanie Biggs Travers Smith Alexandra Courela Abreu Advogados Véronique De Hemmer Gudme Clifford Chance Ewa Grzejszczyk Deloitte Fabian Euhus Schnittker Möllmann Partners Tim Hughes PwC Kees Groffen De Brauw Blackstone Westbroek Patrick Mischo Allen & Overy Charles-Antoine Leunen Linklaters John Murphy PwC Jörg Menzer Kanzlei Noerr & Partner Daniel Noe Harboe PwC Jakob Mosegaard Larsen Mazanti-Andersen Korsø Jensen Rodrigo Ogea Baker McKenzie Isabel Rodríguez King & Wood Mallesons Christian Schatz Flick Gocke Schaumburg Enzo Schiavello Legance Per Stenbeck EY
Jyrki Tähtinen Borenius Attorneys Nick Van Gils EY What we do Patricia Taylor William Fry Dieter Wirth PwC Philippe Trolez Omnes Capital Patricia Volhard Debevoise & Plimpton Guest Timur Celik Antin Infrastructure Partners Carl Johan Zimdahl Mannheimer Swartling
Guest Wendy Ng Antin Infrastructure Partners Financials
Notes 1. Composition as at 31 March 2020 14 Invest Europe Annual Report 2019/20202019/2020
SECTION 3 WHAT WE DO
Political advocacy 16 Data & research 18 Communications 20 Conferences & events 22 Industry excellence & training 24 Finance & administration 26 3 AnnualAnnual ReportReport 2019/2020 15 Overview How we operate What we do 3Financials 16 Invest Europe Annual Report 2019/2020
Political advocacy
It was a year of significant change in Brussels, Other successes included improved conditions “Our strategy is to combined with evolving priorities for Invest for pre-marketing and denotification in the Europe. European elections last May were AIFMD and EuVECA frameworks. Meanwhile, inform and educate followed in the autumn by the appointment Invest Europe also continued to lay the of a new European Commission and European groundwork for the reviews of the Alternative policymakers, prioritise Council of Ministers. While there is welcome Investment Fund Managers Directive and continuity for the private equity industry as Solvency II. our advocacy to achieve Valdis Dombrovskis reprises his role as In coordination with national associations, Vice-President overseeing financial services we raised awareness about the general and maximum impact, and and capital markets union, some 65% of MEPs specific concerns of our industry regarding and many Commissioners are new to their posts. build relationships that the potential impact of Brexit. We engaged As a result, Invest Europe has redoubled efforts the key Brexit stakeholders on either side to strengthen its voice in Brussels and build ensure access and of the channel, and supported members on the industry’s reputation. in considering the implications of Brexit improve support for In preparation for the arrival of many new and in making suitable preparations. policymakers, Invest Europe published its our objectives.” On other agendas, we helped members policy objectives for the five years to 2024, address the evolving international tax regimes, Martin Bresson which focused on promoting long-term including the EU’s ATAD II and DAC 6 rules. Public Affairs Director investment and a favourable private equity ecosystem. We supported our positioning with In March, Invest Europe’s immediate focus an intense period of meetings and discussions shifted to helping our members understand with policymakers to explain not only our and address issues arising from the priorities, but also how the industry operates coronavirus (COVID-19) pandemic. and its impact on the wider economy. Lockdowns brought severe disruption to companies, and we responded with calls to Securing positive developments in EU policy European Commissioners for emergency can take time and during the year Invest liquidity and support measures. We created Europe’s long-running efforts delivered a guide to the EU and Member States’ policy tangible results. Among our successes was the responses and aid measures, an important creation of a new long-term equity category part of Invest Europe’s interactive library of for insurers investing in private equity funds, resources on COVID-19, and held policy calls subject to capital charges of 22% rather than to update members on the initiatives, as well 49%. Our continued work on this topic ensured as new crisis valuation guidance from IPEV. that the proposal supported by the European Commission a year earlier passed into EU law in 2019.
Private Equity: Driving European Growth 88 Policy Priorities 2019 – 2024 MEPs received a personal copy of the 2019-2024 Manifesto Annual Report 2019/2020 17
2019 HIGHLIGHTS Overview MAXIMISING PUBLIC AFFAIRS 2020/21 PRIORITIES IMPACT FOR MEMBERS Published 2019-2024 Manifesto Deliver non-discriminatory access Invest Europe is focused on public affairs highlighting Invest Europe policy objectives initiatives that improve the operating for our members to COVID-19 loan environment for private equity and venture Engaged Brexit stakeholders on guarantee and aid schemes capital and avoid the potential negative either side of the channel and helped Secure regulatory relief from impacts of policy measures for the industry. members consider implications Our strategy is to inform and educate new non-essential administrative and existing policymakers, prioritise our Conducted in-person meetings procedures advocacy to achieve maximum impact, with several new and returning MEPs, Ensure well-functioning and and build relationships that ensure access as well as the cabinets of relevant relevant rules on European How we operate to key policymakers and improve support Commissioners to introduce our for our objectives. investment vehicles industry and flag relevant policy issues While Invest Europe’s key priorities have Continue work for securing Secured creation of new long-term been redefined over the last few months, understanding and concrete our underlying strategy of increasing and equity category for insurers benefitting considerations for our industry’s point broadening our relevance to stakeholders, from lower risk weighting amplifying our reputation and strengths, of view in the Brexit negotiations and laser sharp focus in our advocacy Improved pre-marketing and Advocate for an AIFMD review remains the same. denotification terms in the AIFMD which leverages positive market and EuVECA frameworks experiences and offers no intrusive
Built a global industry coalition on regulatory initiatives What we do international tax issues to advocate our position to the OECD and other international institutions Pushed for emergency EU response and support for businesses impacted by COVID-19 Financials
3 258 113 policy guides and reporting members joined advocacy meetings with policymakers, templates produced for members Invest Europe policy calls officials and stakeholders (including Solvency II and Brexit) 18 Invest Europe Annual Report 2019/2020
Data & research
Invest Europe is the source of the most While initiating new projects, Invest Europe’s “Invest Europe data comprehensive data on private equity and Data & Research team has maintained the high venture capital activity in Europe. The statistics level of bespoke services that our members enables stakeholders to we produce give a detailed picture of where demand, as well as the cooperation and support firms are investing, what companies they are our partners expect. Each month, we respond make better-informed backing, and how they are choosing to exit to some 30 requests for data to support various when investments reach maturity. Our data initiatives. We also work closely with public and decisions by giving a enables us to demonstrate the industry’s reach private organisations, including the OECD, the and importance to the investment ecosystem European Investment Fund (EIF) and Bpifrance, detailed picture of in Europe. as well as venture capital firm Atomico. All these projects lift the profile of the private equity private equity activity Since its launch in 2016, the European Data industry and demonstrate its impact. Cooperative (EDC) has become the benchmark and impact in Europe.” for industry data collection, supported and Research serves both immediate member Julien Krantz promoted by fund managers and national private demands and long-term industry objectives. Research Director equity associations across Europe. Our 2019 Together with colleagues across Invest Europe, European Private Equity Statistics were gathered we launched an interactive resource library in from over 1,400 general partners, more than March to bring together third-party research, any commercial private equity database. policy information and news for members In addition to our annual activity data, we also on handling the impact of the coronavirus produced our half-year update in 2019 and our (COVID-19). At the same time, our ongoing annual Central and Eastern European Statistics. data and research efforts serve members by helping influence understanding of the potential We continue to expand the EDC to demonstrate effects of Brexit, the expansion of sustainable the private equity industry’s contribution to finance, and the review of the Alternative the European economy. One major step has Investment Fund Managers Directive. Rigorous been to start collection of economic impact and extensive data will be essential for the data to illustrate how private equity drives industry to be heard and for private equity’s job creation (see box). benefits to be fully understood.
Investing in Europe: Private Equity activity 2019 86% of industry’s €782bn in capital under management in Europe covered by 2019 European Private Equity Activity report 1,400 5,000 fund managers’ activity data collected portfolio companies’ employment data collected in first economic impact survey Annual Report 2019/2020 19
2019 HIGHLIGHTS Overview ECONOMIC IMPACT DATA 2020/21 PRIORITIES Extended coverage of EDC to 1,400 In June 2019, Invest Europe began the Publish first ever economic impact collection of economic impact data to managers, responsible for 86% of data report on industry’s impact highlight the private equity and venture €782bn of capital under management on employment capital industry’s positive contribution to in Europe the European economy through the creation Extend economic impact data of jobs across the continent. Our aim is to Launched economic impact data collection to all monitored fund introduce real data and insight into a topic collection on employment from that has been emotive and often lacked managers in Europe hard evidence. 5,000 member-backed portfolio companies Continue expansion of data coverage In the first year of the project, we collected to more European managers and How we operate data from 5,000 companies backed by Revised 2007-2019 Activity continue to improve the EDC platform our members. We are currently preparing Statistics dataset format to be a report, to be published later this year, more user friendly Initiate research into PME that will demonstrate how employment methodology and benchmarking has evolved at those companies during Hired Data & Research Manager private equity ownership. to oversee EDC and manage relations We are also preparing for our second large- with national associations scale collection of economic impact data in June. This will give us the opportunity Contributed to third-party reports, to build on last year’s initiative, extending including EIF’s The VC Factor and it beyond Invest Europe’s GP members to Atomico’s State of European Tech a wider cross-section of European private What we do equity firms. In the coming year, we will be looking for ways to expand and improve
the project further in collaboration In Partnership with & with partners. The State of European Tech The most comprehensive data-driven analysis of European technology stateofeuropeantech.com 10,000 downloads of annual activity report and CEE statistics
290 Financials
reports available in Coronavirus library www.stateofeuropeantech.com 1 In Partnership with (as of mid-May 2020) & 20 Invest Europe Annual Report 2019/2020
Communications
Invest Europe builds global understanding robust messaging to address common criticisms “We make the case and awareness of private equity and venture and misconceptions, at the same time as shining capital and promotes its contribution to jobs a light on industry’s benefits. We supported for investing in and growth. We make the case for investing our Chair and CEO in interviews and briefings, in European private capital and manage the and engaged with the press, commentators European private reputation of the industry with policymakers and and opinion formers to secure positive media media. We do this to help Invest Europe to deliver coverage and ensure our industry’s voice was equity and venture a better operating environment for the private heard in articles about private equity. equity industry and enable the association to When the coronavirus outbreak escalated capital and manage meet its long-term objectives. in March, we stepped up our efforts to the reputation of The last 12 months was a period of political help members deal with the ensuing crisis. change, as well as intense disruption at a Communications worked closely with the Public the industry.” societal and economic level, making clear Affairs and Research teams to develop an online Eric Drosin communications vital to the success of many library of resources, open to members and Communications Director Invest Europe initiatives. One of our key portfolio companies, to support the industry objectives was to enhance the positioning of in handling the wide-ranging repercussions. Invest Europe – and the private equity industry We launched a weekly newsletter to deliver – among incoming policymakers in Brussels, essential information directly to members and following European elections in May 2019. created a social media campaign to highlight Central to our strategy was the relaunch of the positive actions being taken at member our website to give us a better platform from firms and member portfolio companies during which to demonstrate our industry’s impact the crisis. on the European investment ecosystem, while While the future remains highly uncertain, at the same time improving our service for the measures we are putting in place today members (see box). will help the industry tomorrow. On the We continued to raise awareness of the long-term one hand, we are developing better and benefits of private equity and venture capital deeper communication with Invest Europe’s investment through our thought leadership membership to ensure that member GPs, LPs programme of blogs and opinion articles – while and associated service providers can access, also building up our social media presence on interpret, and act on essential information. LinkedIn and Twitter, taking our messages out And on the other, we are accelerating Invest to an ever-wider audience. Europe’s engagement in Brussels and with global stakeholders, including policymakers and press, We executed our proactive strategy to promote to ensure that the industry is more visible and private equity in Europe and defended the better understood. industry as the political cycle in the US brought attention to the industry globally. We developed
MEDIA RELATIONS MEMBER COMMUNICATIONS 1,400+ Daily + weekly interactions with media newsletters 300+ 300+ pieces of global scale media coverage emails to members Annual Report 2019/2020 21
DIGITAL COMMUNICATIONS 2019 HIGHLIGHTS Overview
Invest Europe website relaunch revamped digital strategy that focuses Relaunched Invest Europe website as on better engagement with members, part of digital transformation strategy policymakers and other key audiences. Over 1,400 media interactions In addition to an improved experience for users, the website has been designed and 300 positive articles secured to maximise member-only content 542 interactions with journalists and publicly available material. We have implemented better analytics to track via social media, up 24% on 2018 engagement in order to tailor content more Launched weekly newsletter effectively, while the format is more flexible
to deliver essential and timely How we operate and scalable to enable us to react to evolving Following an extensive review process, we communications requirements. information to members relaunched www.investeurope.eu in October44,484 2019. The website was completely redesigned+22% Worked across Invest Europe to develop to make it more engaging and easier36,493 to use, Website interactive resource library for members 27,600 while creating a format that better highlights and portfolio companies on handling the the association’s18,600 actions and the industry’s 49,500 11,200 page views per month unique users per month impact of COVID-19 outbreak contribution4,398 to the European economy. The relaunched website is at the centre of a 2015 2016 2017 2018 2019 2020/21 PRIORITIES Social media Followers at year end Deepen and expand member
communications to deliver greater What we do LinkedIn 11,946 Twitter value for members +27% 44,484 +22% 9,420 36,493 Reshape communications strategy 7,947 6,635 27,600 to maximise impact of existing 4,953 18,600 resources 4,398 Develop thought leadership 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 positioning to increase Invest Europe’s visibility and strengthen LinkedIn clicks LinkedIn likes 37% 2018 – 2019 42% 2018 – 2019 our voice on relevant topics 11,946 Enhance digital communications Financials Coronavirus (COVID-19) library +27% Progressive web-page traffic 3740 strategy to broaden our reach and of resources (Google analytics) 9,420 The creation of our coronavirus library of 7,947 reinforce our messages 6,635 resources in March 2020 reflected our 4,953 members’ urgent need for guidance to help navigate the growing crisis. Working across Invest Europe departments, we assembled essential resources in a 2015 2016 2017 2018 2019 156 comprehensive and interactive online library to enable members and their March April May portfolio companies to identify and access Total unique page views (running total) information critical to their needs. 22 Invest Europe Annual Report 2019/2020
Conferences & events
Invest Europe prides itself on creating In March 2020, as the COVID-19 pandemic conferences and events that are uniquely tailored escalated, Invest Europe took the extraordinary “Invest Europe will to members’ needs. Our events offer high- step of postponing the Investors’ Forum, continue to innovate quality content and networking opportunities the first time the event has been postponed in an environment that is specially adapted for since it was created in 2000. We also postponed in the development private equity and venture capital LPs and fund our Chair’s Dinner scheduled to take place in managers to meet, debate and forge connections. Paris. And in April, in the light of continued and format of events to uncertainty and concern, we cancelled the Like many businesses and event organisers, CFO Forum scheduled for June 2020. ensure members have our programme in 2020 is impacted by lockdown measures to reduce the spread of While we are disappointed not to have been opportunities to network the coronavirus (COVID-19). Nevertheless, able to hold these events in the first half of the earlier months of the period under review 2020, nothing is more important than the health and exchange ideas featured many highlights. and safety of our staff, members, and events partners. We rescheduled the Investors’ Forum The 2019 Investor’s Forum attracted 413 throughout the year.” in Geneva for October and relocated our Venture delegates, the highest attendance in several Patricia Delaney Capital Forum to take place straight afterwards years. The 1:1 LP/GP ratio, high quality content in the same location (see box). We plan to Membership, Events & Training Director and discussion, along with exceptional hold our next CFO Forum in June 2021 in Nice, networking opportunities continue to be the while we also intend to restart Invest Europe’s hallmarks of this event that members value. networking events as soon as guidance The CFO Forum, held in Valencia in June 2019, changes and it is safe to do so. brought valuable exchange and debate on Despite disruption to the programme, this topics including value creation and building year we have implemented initiatives to ensure resilient portfolios. We hosted a highly successful that our conferences deliver more of what Venture Capital Forum in Paris in October members demand. For instance, we have 2019, with an innovation showcase highlighting increased the input of member-led taskforces the local VC ecosystem, as well as a cocktail to help set the agendas and we are further reception hosted by French Prime Minister improving networking at each event. Investors’ Édouard Philippe at his official residence, Forum attendees will find greater availability the Hôtel Matignon. The event programme, and capacity for meeting fellow delegates. designed for LP/GP interaction and discussion, At the same time, the event will retain popular attracted a larger-than-ever audience of features that make it unique – such as the LPs from across Europe. 1:1 ratio of GPs and LPs, and the rotating Meanwhile, our expansion of networking events LP-GP networking dinner. included well-attended 2019-2020 Chair’s Dinners in Warsaw, Amsterdam, Frankfurt and London. Our improved format enabled attendees to hear more about Invest Europe’s actions on their behalf and have greater opportunity to interact with our staff and fellow members to give feedback on priorities and concerns within the industry. The London Chair’s Dinner alone, held in February 2020, drew an unprecedented attendance of over 120 members. Annual Report 2019/2020 23
2019 HIGHLIGHTS PROACTIVE EVENTS 2020/21 PRIORITIES MANAGEMENT 18% increase in delegates at 2019 Deliver tailored content to support To support the industry in dealing with Investors’ Forum the impact of COVID-19, Invest Europe members in addressing issues arising took steps to tailor and amend our key High-profile VC Forum in Paris, attended from COVID-19 outbreak events programme. By running Investors’ by 223 delegates, featuring welcome Continue to improve content, debate Forum and the Venture Capital Forum reception hosted by French PM consecutively in Geneva in October 2020, and networking opportunities for we aim to allow delegates to maximise 23% increase in LP delegates at the members at conferences and events the use of their time while also relieving Venture Capital Forum Overview the pressures of attending two separate Develop new formats and channels events in two different locations. 51% increase in attendees at Chair’s dinners for delivering content and facilitating The agenda at each event is being shaped Improved format for Chair’s Dinner exchange throughout the year to address specific issues arising for the to allow greater interaction between Ensure balanced ratios of high-quality industry as a result of the pandemic, attendees and Invest Europe team delegates at all conferences while the formats will be adapted to foster interaction between Investors’ Forum and Delivered on commitment to gender Venture Capital Forum attendees. diversity in events programmes In parallel, given the evolving circumstances, we are actively evaluating KEY EVENTS new channels for delivery of content How we operate and exchange. These include virtual conferences and webinars to ensure members continue to have access to events, whatever the restrictions we may face in the future. We will continue to innovate in the development and format of events to ensure members have opportunities to engage with each other and exchange ideas throughout the year. 120
members attended What we do London Chair’s Dinner Financials 2019
e to o 8 ene a 2019 Chair’s dinners
Investors’ Forum CFO Forum VC Forum 2019 Geneva: 2019 Valencia: 2019 Paris: 23% 413 delegates 132 delegates 223 delegates increase in LP attendees at VC Forum 24 Invest Europe Annual Report 2019/2020
Industry excellence & training
Invest Europe works with members to create We have identified areas where we can enhance, “Invest Europe is and maintain guides and standards that ensure finetune and tailor our professional standards the industry can continue to operate in line work, such as governance, proportionality, committed to market- with good global market practice. We strive to communication and terminology. We want to develop initiatives that are adequate and suited ensure that our guidelines have the support and leading industry to the needs and capabilities of our diverse buy-in of the member constituencies, that they membership and reflect the high degree of are firm enough to be relevant whilst sufficiently guidance and reviewing professionalism that the industry aspires to flexible to fit member needs, and that they are and stakeholders expect. clearly worded and presented. Our concrete steps how we can improve will include reviewing all professional standards Professional standards have been a hallmark materials to ensure they meet those objectives this function for of the association since it was established 37 and increasing direct member participation in years ago. Consistently followed guidelines the creation, development and review process. members.” of ethical behaviour and strong professional Erika Blanckaert conduct underpin trust between private As the pan-European association bringing Senior Public Affairs Manager equity managers and their investors. They are together general partners, limited partners fundamental to the success of the industry by and associated professions, Invest Europe is in providing a baseline from which all members a unique position to continue to deliver leading should operate. However, Invest Europe’s guides guidance “by the industry, for the industry”. do not exist in isolation. Rather, they form part The measures that we have and will put in of an extensive and complex framework of place will ensure we continue to be regarded as voluntary guidelines, codes and mandatory the source of industry best practice, including legislation that practitioners face on a daily basis. practical guidelines and support tools that are proportionate, adaptable and flexible. In recent years, the industry has had to adapt to and comply with international regulations, 2019 HIGHLIGHTS such as the Alternative Investment Fund Managers Directive. These are often Designated 11 action points to finetune supplemented by domestic laws and codes of Invest Europe’s Industry Excellence conduct recommended, or even imposed, by materials and commenced delivery regulators. In addition, several national private equity and venture capital associations and towards objectives international non-profit organisations produce guidelines, while sophisticated institutional 2020/21 PRIORITIES investors formulate their own sets of norms. Continue to re-shape and tailor existing All of these together place a significant burden industry guidance based on the principles on private equity and venture capital firms to of flexibility and proportionality operate on a local level, regardless of their size, form and resources. We believe there is a place Publish Invest Europe’s first practical and for professional standards at the heart of Invest hands-on guide to climate change Europe, but we also recognise the need to match individual members’ needs and capacities. As a result, last year we initiated an extensive and in-depth review of the association’s Industry Excellence function. Annual Report 2019/2020 25
Training 2019 HIGHLIGHTS Overview “Educating members Informing and educating members about best Established new training course on practice and the latest regulation is a cornerstone about best practice of Invest Europe’s service to members. secondaries transactions as part of We constantly refine the focus of our training extensive training programme and the latest regulation courses to meet members’ needs and always is a core service at look for ways to improve delivery of our service. 2020/21 PRIORITIES Invest Europe’s training programme is designed Develop new channels for training, Invest Europe. to cater for all industry participants, from new including e-learning and virtual training entrants to seasoned professionals. It includes courses We are accelerating early career level courses, including a Foundation development of virtual in Finance & Administration or a Foundation Enhance Invest Europe training How we operate for VC Investment Professionals, as well as programme with tailored courses and e-learning options specialised courses, such as Fundraising & for members Investor Relations and Negotiations. In 2019, to expand access to we added Fund Secondaries Transactions, taking our programme to 12 courses. We held two training for all.” Fund Secondaries courses in 2019, both of TIME TO TRAINING LEARN Elena Vasileva which were well-attended.
Training Manager All our training includes real-life case studies Course Programme and is taught by market experts, ensuring that 2020 the education is both practical and professional.
Invest Europe has also listened to member What we do requests to take training courses to where they are based and work. We held 16 different training PROFESSIONAL DEVELOPMENT FOR PRIVATE EQUITY sessions in 2019 in four different locations PRACTITIONERS – Brussels, Frankfurt, London and Luxembourg. In light of the COVID-19 pandemic, we took the decision to postpone and reschedule all training courses between March and the end of June. We intend to restart training when restrictions are lifted and it is safe to do so. However, we are committed to delivering training and education to our members throughout the crisis and beyond, and are accelerating development of Financials online options, including e-learning and virtual training courses that will ensure continued and expanded access for all members. 16 340 13% training courses attendees from 30 countries increase in participants 26 Invest Europe Annual Report 2019/2020
Finance & administration
Invest Europe is committed to delivering As a non-profit association, Invest Europe is first-class services to members. In order nonetheless committed to delivering healthy “Invest Europe delivers to achieve that goal, we must employ top finances and value for money for members. first-class services to professionals and ensure that our systems Expenses on projects, including the European and processes are of the highest standard. Data Cooperative (EDC), were in line with budgets for 2019, while revenues from members by recruiting It was a year of change at Invest Europe sponsorship and events exceeded expectations, as a number of key staff moved on to new top professionals and underlining the strength of our brand and the opportunities and we recruited new professionals quality of our events as they continue to and promoted from within to fill senior roles ensuring that the attract attendees and partners. (see box on new appointments). It was also a association operates to year of practical challenges arising from the COVID-19 outbreak, which resulted in restrictions RENEWING INVEST the highest standards.” on movement and new social distancing EUROPE’S LEADERSHIP Katia Rabinovitch requirements. Following the departure of the previous CEO, the board of directors launched the Finance & Administration Director In March, Invest Europe took the decision to process of recruiting a successor. The extensive, temporarily shut the office in Brussels until international search resulted in the appointment further notice and move to a remote working in November of Eric de Montgolfier, a seasoned set-up for staff. We took advantage of previously private equity professional with over three having migrated critical systems to the cloud decades in senior mid-market roles, including to make the transition. We ensured secure IT investment origination and management, infrastructure and equipped our team with all as well as fundraising and investor relations. the hardware and software they needed to perform their roles in complete confidence. In addition, the board also commenced a Additionally, employees’ office phone numbers search for a new Public Affairs Director. were automatically redirected to alternative This wide-reaching process, finalised by the lines to ensure full continuity of our service new CEO, led to the appointment of Martin to members. Bresson, a highly experienced public affairs professional with in-depth knowledge of During the year, we also prepared for European financial services. Martin joined practical changes at a legal level in Belgium. the association in January 2020. Meanwhile, The merging of the laws governing for-profit in April 2020, we recruited Eric Drosin, a companies and non-profit associations into a former journalist and expert in corporate new code took place at the start of January and association communications, as 2020. It brings associations into line with Communications Director. companies, particularly with regard to rules for incorporation, management, accounting, During 2019, Invest Europe also promoted dissolution and liquidation. The practical impact Julien Krantz to the role of Research Director on the association will be limited. However, and took that team to full strength with we have kept track of our obligations and will the appointment of a new Data & Research be making the necessary changes to our legal Manager in 2020. We also made a number of structure as appropriate and when needed. new hires to maintain our capability to deliver market-leading conferences and events. Annual Report 2019/2020 27
2019 HIGHLIGHTS Overview KEY FIGURES Secured recruitment of new CEO to oversee the strategic direction of Invest Europe Hired experienced Public Affairs Director, as well as new Communications Director full time nationalities Promoted internally to fill Research equivalents in Invest Europe Director role 21 10 How we operate 2019/20 PRIORITIES Establish remote working capabilities for all staff in response to restrictions stemming from COVID-19 outbreak to % languages 67 female ensure seamless delivery of full services spoken to members 13 Foster cross-functional projects to reach wider member audience 33% What we do €5.7m male membership revenues in 2019 €1.7m events, training and sponsorship revenues
in 2019 Financials 28 Invest Europe Annual Report 2019/20202019/2020 44 AnnualAnnual ReportReport 2019/2020 29
SECTION 4 Overview FINANCIALS How we operate What we do Financials
Financial report 30 Financial statements 31 44 Auditor’s report 34 30 Invest Europe Annual Report 2019/2020
Financial report
Profit and Loss HISTORIC EVOLUTION (¤m) SUMMARY OF SIGNIFICANT Operating expenses reached €6,911,848 in 2019, ACCOUNTING POLICIES 14% higher than 2018’s total of €6,082,581. Revenue Fixed assets Operating revenues increased by 3% to reach € Actual Budget Fixed assets are stated at cost less €7,507,523 in 2019, compared with €7,293,130 10 accumulated depreciation. Depreciation is in 2018. 9 8 provided over the estimated useful lives of
The 2019 net operating profit before exceptional 7 8.79 assets using the straight-line method. 7.94 7.51 7.29 6 7.38 7.17 7.29 7.16
results was €595,676. This was primarily due to 7.22 7.03 Cash or cash equivalent the unused contingency for membership fees 5 cancellation of €260,000, and revenues for 4 Cash and cash equivalent are carried at 3 registration and sponsorship from events and nominal value. 2 training that exceeded budget expectations. 1 Receivables
Projects initiated in 2018 were finalised in 2019 11 12 13 14 15 16 17 18 19 20 Receivables are carried at nominal value. for a total cost of €82,700, below the anticipated Year Provisions are made for all receivables 2019 budget level. during the year if no explicit confirmation Expenses or certainty about payment is available. The 2019 net accounting profit was €462,224. € Actual Budget Provisions Balance Sheet 10 Provisions are recognised for probable The balance sheet total was €7,508,310 on 9 8 obligations when a reliable estimate of the December 31, 2019. 7 8.59 amount can be made. 8.20 6 7.75 7.33 7.28
The cash position increased to €6,659,552 on 7.05 6.87 6.89
5 6.44 Liabilities December 31, 2019, compared with €5,803,170 6.25 4 on December 31, 2018. Trade payables and payroll liabilities are 3 carried at nominal value. The net accounting profit resulted in increased 2 reserves from €5,278,415 to €5,740,641. 1 Revenue recognition 11 12 13 14 15 16 17 18 19 20 Budget 2020 Revenue is recognised to the extent that it Year is probable that the economic benefits will For 2020, Invest Europe proposes a balanced flow to the company and the revenue can budget before exceptional projects. Reserves be reliably measured. With respect to the The health crisis caused by COVID-19 will € Actual Budget rendering of services, revenue is recognised have a material impact on the finances of the 10 by reference to the stage of completion. 9 Association. The extent of this impact is difficult 8 to assess at this time. Given cash reserves 7 accumulated over past years, there is no 6 immediate concern for the year to come. 5
4 5.74 5.28 The Board will closely monitor Invest Europe’s 3 4.93 4.23 3.65 financial situation throughout the year. 3.49 2 3.35 3.33 3.16 2.97 1
11 12 13 14 15 16 17 18 19 20 Year Annual Report 2019/2020 31
Financial statements
PROFIT AND LOSS (¤) Overview ACTUAL 2019 BUDGET 2019 ACTUAL 2018 Membership 1 5,680,630 5,374,000 5,497,968 Events 1,240,355 1,125,000 1,139,583 Training 476,950 391,208 543,419 Service fees 60,000 60,000 60,000 Bank interest and miscellaneous 1,599 3,000 6,145 Other revenue 47,989 34,000 46,015 Total Revenue 7,507,523 6,987,208 7,293,130 How we operate Personnel costs 2 3,216,199 3,001,000 2,785,403 Professional services 1,998,078 1,935,418 1,569,236 Housing costs 297,871 288,500 272,769 Accommodation events 322,632 353,530 343,061 Travel and representation 379,361 390,288 328,534 Communications 45,894 50,620 54,214 Printing and audio-visuals 140,550 151,960 160,685 Various office costs 3 349,153 524,542 336,212 What we do Finance costs 39,391 22,500 38,735 Provision for doubtful debtors 4 67,812 155,000 101,811 Provisions/other costs 54,906 113,850 91,919 Total Expenses 6,911,848 6,987,208 6,082,581 NET OPERATING RESULTS 595,676 0 1,210,549 Projects from previous year completed in current year 82,700 125,000 68,785 Project funded by Invest Europe General Reserves 5 50,751 280,000 96,547 Total exceptional expenses 133,451 405,000 165,332 Financials NET RESULT 462,224 -405,000 1,045,217
Notes 1. Contingency of €0.3m for UK membership fees cancellation as a consequence of Brexit, not used in 2019 2. Impact of team transition in 2019 3. Contingency of €0.2m in expenses has not been used 4. Less bad debtors than budgeted 5. The Employment Data Collection project started in 2019 and will be finalized in 2020 32 Invest Europe Annual Report 2019/2020
Financial statements continued
PROFIT AND LOSS (¤)
BUDGET 2020 ACTUAL 2019 Membership 1 5,651,000 5,680,630 Events 1,210,000 1,240,355 Training 441,437 476,950 Service fees 60,000 60,000 Bank interest and miscellaneous 1,000 1,599 Other revenue 20,000 47,989 Total Revenue 7, 383,4 37 7,507,523 Personnel costs 2 3,726,000 3,216,199 Professional services 1,721,020 1,998,078 Housing costs 295,500 297,871 Accommodation events 341,550 322,632 Travel and representation 435,658 379,361 Communications 47, 305 45,894 Printing and audio-visuals 172,420 140,550 Various office costs 359,134 349,153 Finance costs 26,500 39,391 Provision for doubtful debtors 155,000 67,812 Provisions/other costs 103,350 54,906 Total Expenses 7, 383,4 37 6,911,848 NET OPERATING RESULTS 0 595,676 Projects from previous year completed in current year 0 82,700 Project funded by Invest Europe General Reserves 3 815,000 50,751 Total exceptional expenses 815,000 133,451 NET RESULT -815,000 462,224
Notes 1. No UK membership fees contingency given contingencies built from 2017 till 2019 for €1.2m and not used 2. Increase explained by management hires and new positions budgeted 3. Several projects will be funded by the Reserves : Employment data collection project, LP outreach data collection project, Development of a suite of e-learning courses, Media relations / rebuttal content and AIFMD II support Annual Report 2019/2020 33
ASSETS (¤) Overview 31 DEC 2018 31 DEC 2019 FIXED ASSETS At cost, less depreciation 7,887 7, 313 FINANCIAL ASSETS Shares in EDC GmbH (33%) 8,329 8,329 CURRENT ASSETS Receivables 116,065 179,752 Deposits and prepayments 1 70,810 67,552 How we operate VAT 36,320 61,593 Deferred charges 2 455,409 524,219 Accrued income 4,961 0 Cash at bank 3 5,803,170 6,659,552 TOTAL CURRENT ASSETS 6,486,735 7,492,668 TOTAL ASSETS 6,502,952 7,508,310
LIABILITIES (¤)
31 DEC 2018 31 DEC 2019 What we do GENERAL RESERVES Opening balance 4,233,198 5,278,415 Attribution of profit (+)/loss (-) 1,045,217 462,225 Closing balance 5,278,415 5,740,641 PROVISIONS 9,948 11,335 CURRENT LIABILITIES Suppliers 4 299,932 467,615 Financials VAT 16,232 22,947 Payroll accruals 5 5 67,974 928,738 Deferred income 6 322,452 333,034 Capital contribution to leasehold improvement 7 8,000 4,000 TOTAL CURRENT LIABILITIES 1,214,589 1,756,334 TOTAL LIABILITIES 6,502,952 7,508,310
Notes 1. “Deposits and prepayments” include as of 31 December 2019 the provision Q4 of social charges (€59k) 2. “Deferred charges” include (i.) 2020 events accommodation deposits and deferred charges as subscriptions 2020, rent Q1/2020 and other charges 2020 3. Higher Cash balance as of 31 December 2019 vs. 2018 explained by profit 2019 and Transition Bonus 2019 paid in January 2020 4. Main variance 2019 vs. 2018 explained by different payment dates year-on-year of various events suppliers (Venture Capital Forum and Investors Forum) 5. Payroll accruals as of 31 December 2019 include (i.) vacation pay accrual, (ii.) Transition Bonus 2019 and (iii.) Invest Europe Bonus 2019 according to CCT90 The variance year-on-year is mainly explained by the Transition Bonus 2019 6. Deferred income as of 31 December 2019 includes services (Investors Forum, Training and Membership fees 2020) invoiced in 2019 to be delivered in 2020 7. Landlord capital contribution for the amount of €36k related to the office move and amortised on the period of the lease (9 years) since 2012 34 Invest Europe Annual Report 2019/2020
Auditor’s report
Invest Europe AISBL/IVZW ocument subtitle erdana eading / single
Invest Europe AISBL/IVZW | 31 December 2019
Statutory auditor’s report to the general meeting of members of Invest Europe AISBL/IVZW for the year ended 31 December 2019 - Annual accounts
In the context of the statutory audit of the annual accounts of Invest Europe AISBL/IVZW (the “association”), we hereby submit our statutory audit report. This report includes our report on the annual accounts and the other legal and regulatory requirements. These parts should be considered as integral to the report.
We were appointed in our capacity as statutory auditor by the general meeting of members of 18 June 2019, in accordance with the proposal of the board of directors (“bestuursorgaan” / “organe d’administration”). Our mandate will expire on the date of the general meeting of members deliberating on the annual accounts for the year ending 31 December 2021. We have performed the statutory audit of the annual accounts of Invest Europe AISBL/IVZW for 7 consecutive periods.
Report on the annual accounts
Unqualified opinion
We have audited the annual accounts of the association, which comprises the balance sheet as at Invest Europe AISBL/IVZW 31 December 2019 and the income statement for the year then ended, as well as the explanatory notes. The Statutory auditor’s report to the general meeting of members for the year ended ecember nnual accounts annual accounts show total assets of 7 508 (000) EUR and the income statement shows a positive result for the he original te t of this report is in rench year ended of 462 (000) EUR.
Deloitte Bedrijfsrevisoren / Reviseurs d’Entreprises In our opinion, the annual accounts give a true and fair view of the association’s net equity and financial position as of 31 December 2019 and of its results for the year then ended, in accordance with the financial reporting framework applicable in Belgium.
Basis for the unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISA), as applicable in Belgium. In addition, we have applied the International Standards on Auditing approved by the IAASB applicable to the current financial year, but not yet approved at national level. Our responsibilities under those standards are further described in the “Responsibilities of the statutory auditor for the audit of the annual accounts” section of our report. We have complied with all ethical requirements relevant to the statutory audit of the annual accounts in Belgium, including those regarding independence.
We have obtained from the board of directors and the association’s officials the explanations and information necessary for performing our audit.
We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the board of directors for the preparation of the annual accounts
The board of directors is responsible for the preparation and fair presentation of the annual accounts in accordance with the financial reporting framework applicable in Belgium and for such internal control as the board of directors determines is necessary to enable the preparation of the annual accounts that are free from material misstatement, whether due to fraud or error.
In preparing the annual accounts, the board of directors is responsible for assessing the association’s ability to continue as a going concern, disclosing, as applicable, matters to be considered for going concern and using the going concern basis of accounting unless the board of directors either intends to liquidate the association or to cease operations, or has no realistic alternative but to do so.
1 Annual Report 2019/2020 35 Overview
Invest Europe AISBL/IVZW | De e er
Responsibilities of the statutory auditor for the audit of the annual accounts
ur o je tives are to o tain reasona le assuran e a out hether the annual a ounts as a hole are free fro material misstatement, whether due to fraud or error, and to issue a statutory auditor’s report that includes our opinion Reasona le assuran e is a hi h level of assuran e ut is not a uarantee that an audit ondu ted in a ordan e ith S ill al ays dete t a aterial isstate ent hen it e ists isstate ents an arise fro fraud or error and are onsidered aterial if individually or in the a re ate they ould reasona ly e e pe ted to influen e the e ono i de isions of users ta en on the asis of these annual a ounts How we operate Durin the perfor an e of our audit e o ply ith the le al re ulatory and nor ative fra e or as appli a le to the audit of annual a ounts in Bel iu he s ope of the audit does not o prise any assuran e re ardin the future via ility of the asso iation nor re ardin the effi ien y or effe tiveness de onstrated y the oard of dire tors in the ay that the association’s usiness has een ondu ted or ill e ondu ted
s part of an audit in a ordan e ith S e e er ise professional jud ent and aintain professional s epti is throu hout the audit e also
identify and assess the ris s of aterial isstate ent of the annual a ounts hether due to fraud or error desi n and perfor audit pro edures responsive to those ris s and o tain audit eviden e that is suffi ient and appropriate to provide a asis for our opinion he ris of not dete tin a aterial isstate ent resultin fro fraud is hi her than for one resultin fro an error as fraud ay involve ollusion for ery intentional o issions isrepresentations or the override of internal ontrol
o tain an understandin of internal ontrol relevant to the audit in order to desi n audit pro edures that are appropriate in the ir u stan es ut not for the purpose of e pressin an opinion on the effe tiveness of the association’s internal ontrol
evaluate the appropriateness of a ountin poli ies used and the reasona leness of a ountin esti ates What we do and related dis losures ade y the oard of dire tors
on lude on the appropriateness of the use of the oin on ern asis of a ountin y the oard of dire tors and ased on the audit eviden e o tained hether a aterial un ertainty e ists related to events or onditions that ay ast si nifi ant dou t on the association’s a ility to ontinue as a oin on ern f we conclude that a material uncertainty exists, we are required to draw attention in our statutory auditor’s report to the related dis losures in the annual a ounts or if su h dis losures are inade uate to odify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our statutory auditor’s report o ever future events or onditions ay ause the asso iation to ease to ontinue as a oin on ern
evaluate the overall presentation stru ture and ontent of the annual a ounts and hether the annual a ounts represent the underlyin transa tions and events in a anner that a hieves fair presentation
e o uni ate ith the oard of dire tors re ardin a on st other atters the planned s ope and ti in of the audit and si nifi ant audit findin s in ludin any si nifi ant defi ien ies in internal ontrol that e identify durin our audit Financials
36 Invest Europe Annual Report 2019/2020
Auditor’s report continued
Invest Europe AISBL/IVZW | ecember
Other legal and regulatory requirements
Responsibilities of the board of directors
he board of directors is responsible for maintainin the association’s accountin records in compliance with the le al and re ulatory requirements applicable in el ium, as well as for the association’s compliance with the law of une , the ode of companies and associations and the association’s articles of association.
Responsibilities of the statutory auditor
s part of our mandate and in accordance with the el ian standard complementary to the nternational tandards on uditin as applicable in el ium, our responsibility is to verify, in all material respects, compliance with certain obli ations referred to in the law of une , the ode of companies and associations and the articles of association, as well as to report on these matters.
Statements regarding independence
Our audit firm and our networ have not performed any prohibited services and our audit firm has remained independent from the association durin the performance of our mandate.
Other statements
ithout pre udice to certain formal aspects of minor importance, the accountin records are maintained in accordance with the le al and re ulatory requirements applicable in el ium.
e do not have to report any transactions underta en or decisions ta en which may be in violation of the association’s articles of association, the law of une or, as from anuary , the ode of companies and associations.
aventem, pril
The statutory auditor
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises CVBA/SCRL epresented by n lique itru no
eloitte edri fsrevisoren Réviseurs d’Entreprises o peratieve vennootschap met beper te aanspra eli heid oci t coop rative responsabilit limit e e istered Office ateway buildin , uchthaven russel ationaal , aventem . . russel ruxelles
ember of eloitte ouche ohmatsu imited Annual Report 2019/2020 Invest Europe Bastion Tower T +32 2 715 00 20 Place du Champ de Mars 5 F +32 2 725 07 04 B-1050 Brussels, Belgium [email protected] www.investeurope.eu