Preqin Special Report: Private Equity in Germany

Content Includes: Preqin Special Report: Private Equity in Germany

Fundraising November 2016

Germany-focused funds closed in H1 2016 secured an aggregate €1.8bn.

Funds in Market

Germany-focused funds in market are seeking record levels of capital.

Investors

Germany-based investors allocate, on average, €535mn to private equity.

Deals

Private equity-backed buyout deal value hit €5bn in H1 2016.

Performance

Detailed performance data for Germany- and Western Europe-focused funds.

alternative assets. intelligent data. Download the data pack: Preqin Special Report: Private Equity in Germany www.preqin.com/PEGER16

In Numbers: Private Equity in Germany

$ €1.8bn €1bn 187 Aggregate capital secured Size of the largest Germany- Number of Germany-based private by Germany-focused funds focused fund ever closed: equity investors profiled on Preqin’s closed in H1 2016. European Recovery Programme-EIF Private Equity Online. Dachfonds.

€3.2bn €5.0bn €793mn Current allocation to private Aggregate value of private equity- Aggregate value of venture capital equity of Germany-based backed buyout deals in Germany in deals in Germany in H1 2016. public pension fund, Bayerische H1 2016. Versorgungskammer.

Contents

Fundraising 3 Funds in Market 4 Institutional Investors 5 Buyout Deals 8 Venture Capital Deals 9 Performance 10

All rights reserved. The entire contents of Preqin Special Report: Private Equity in Germany, November 2016 are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, without the express prior written approval of Preqin Ltd. The information presented in Preqin Special Report: Private Equity in Germany, November 2016 is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then he should seek an independent ﬁ nancial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following its use of Preqin Special Report: Private Equity in Germany, November 2016. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to conﬁ rm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Special Report: Private Equity in Germany, November 2016 are accurate, reliable, up-to-date or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Preqin Special Report: Private Equity in Germany, November 2016 or for any expense or other loss alleged to have arisen in any way with a reader’s use of this publication.

Fundraising

Fig. 1: Annual Germany-Focused Private Equity Fig. 2: Annual Europe-Focused Private Equity Fundraising Fundraising, 2003 - H1 2016 (Excluding Germany-Focused Funds), 2003 - H1 2016

30 300 27 248 254 246 25 250

20 20 200 192 181 177 176 165 153 158 153 14 14 15 150 132 12 12 128 10 10 10 10 10 8 8 100 82 82 89 67 75 60 58 64 57 5 5 44 49 5 3.3 50 2.3 2.7 24 27 29 30 1.6 1.3 1.7 1.8 1.2 1.1 0.7 0.9 0.3 1.0 1.2 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016 2016 Year of Final Close Year of Final Close No. of Funds Closed Aggregate Capital Raised (€bn) No. of Funds Closed Aggregate Capital Raised (€bn)

Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 3: 10 Largest Germany-Focused Private Equity Funds Closed, 2003 - H1 2016

Final Close Year of Fund Firm Fund Type Size (mn) Final Close European Recovery Programme-EIF Dachfonds European Investment Fund 1,000 EUR Fund of Funds 2004 SwanCap Opportunities Fund SwanCap Partners 1,200 USD Direct Secondaries 2014 Waterland Private Equity Fund IV Waterland 816 EUR Buyout 2008 Capvis Equity IV CapVis Equity Partners 720 EUR Buyout 2014 Capvis Equity III CapVis Equity Partners 601 EUR Buyout 2008 EIF Growth Facility European Investment Fund 500 EUR Fund of Funds 2016 Ventizz Capital Fund IV Vorndran Mannheims Capital 455 EUR Growth 2008 Capiton V Capiton 440 EUR Buyout 2014 Botts Capital Partners II Botts & Co. 300 GBP Buyout 2003 Paragon Partners II Paragon Partners 412 EUR Buyout 2014

Source: Preqin Private Equity Online

Data Source:

Preqin’s Private Equity Online contains detailed information on 215 Germany-focused private equity funds as well as a further 3,886 Europe-focused funds.

Proﬁ les include information on target, interim and ﬁ nal close sizes; fund type; investment focus; predecessor funds and much more.

For more information, please visit:

www.preqin.com/privateequity

Funds in Market

Fig. 5: Europe-Focused Funds (Excluding Germany- Fig. 4: Germany-Focused Funds in Market over Time, Focused Funds) in Market over Time, January 2008 - January 2008 - October 2016 October 2016

16 350 313 14 303 14 300 267 12 12 257 261 12 1111 11 250 221 10 211 215 213 10 200 191 88 8 6 150 6 100 102 100 87 4 3.4 76 71 73 70 77 2.4 2.0 50 42 45 2 1.1 1.4 1.4 0.9 0.5 0.6 0.8 0 0

Jan-08

Jan-09

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Jan-16

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Oct-16

No. of Funds Raising Aggregate Capital Targeted (€bn) No. of Funds Raising Aggregate Capital Targeted (€bn)

Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 6: 10 Largest Germany-Focused Private Equity Funds in Market (As at October 2016)

Final Close Fund Firm Fund Type Fund Status Size (mn) Rocket Internet Capital Partners Fund Rocket Internet 1,000 EUR Expansion/Late Stage First Close Asia-Germany Industrial Promotion Capital Fund I AGIC Group 1,000 USD Growth First Close Equita Fonds 5 HQ Equita 400 EUR Buyout Raising LEA Partners I LEA Partners 180 EUR Buyout First Close Allistro Capital Fund 21-1 Allistro Capital 150 EUR Buyout Raising Finatem IV Finatem 150 EUR Buyout First Close Pinova Capital Fund II Pinova Capital 150 EUR Balanced Second Close Cross II Cross Equity Partners 150 CHF Buyout First Close Beyond Capital Partners Fund I Beyond Capital Partners 120 EUR Buyout Raising Target Partners Fund III Target Partners 120 EUR Venture Capital Raising

Source: Preqin Private Equity Online

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Institutional Investors

€535mn €608mn Average current allocation to private Average target allocation to private equity of Germany-based institutional equity of Germany-based institutional investors. investors.

Fig. 7: Breakdown of Europe-Based Institutional Investors Fig. 8: Breakdown of Germany-Based Institutional in Private Equity by Location Investors in Private Equity by Investor Type

Insurance Company UK Family Office 17% Switzerland 17% 15% 26% Private Sector Pension Fund Germany

3% France 6% PE Fund of Funds Manager 4% 15% Netherlands Corporate Investor 4% 7% Italy Bank/Investment Bank 5% 14% Spain 8% 12% Investment Company 7% Denmark 10% 10% Asset Manager 8% 12% Norway

Other Other

Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 9: 10 Largest Germany-Based Institutional Investors by Current Allocation to Private Equity

Assets under Current Allocation Target Allocation Investor Type Management (€bn) to PE (€bn) to PE (€bn) Allianz Capital Partners Private Equity Fund of Funds Manager 6.5 6.5 - Golding Capital Partners Private Equity Fund of Funds Manager 4.9 4.5 - Bayerische Versorgungskammer Public Pension Fund 70.0 3.2 3.5 Talanx Asset Management Asset Manager 122.7 2.8 - Feri Trust Asset Manager 29.0 2.8 - MEAG Munich Ergo Asset Asset Manager 262.0 2.6 2.6 Management Munich Private Equity Partners Private Equity Fund of Funds Manager 2.3 2.3 2.3 DEG Government Agency 7.8 2.1 2.1 Siemens Financial Services Bank 27.3 2.0 - Swift Capital Partners Private Equity Fund of Funds Manager 1.4 1.4 1.4

Source: Preqin Private Equity Online

Data Source:

Preqin’s Private Equity Online contains detailed information on 187 Germany-based private equity investors and a further 1,441 Europe-based investors. Proﬁ les include information on current and target allocations, assets under management, investment preferences, future plans and much more.

For more information, please visit: www.preqin.com/privateequity

Investor Analyst: The True Perspective ...gain a new perspective.

Leveraging Preqin’s detailed investor data, Investor Analyst allows you to generate custom visual reports comparing an investor’s allocations, preferences and investment plans against a tailor-made peer group: www.preqin.com/investoranalyst alternative assets. intelligent data. Download the data pack: Preqin Special Report: Private Equity in Germany www.preqin.com/PEGER16

Buyout Deals

Fig. 10: Number and Aggregate Value of Private Equity- Backed Buyout Deals in Germany, Fig. 11: Proportion of Number of European Private Equity- 2007 - H1 2016 Backed Buyout Deals by Location, 2007 - H1 2016

140 25 100% 90% 120 Aggregate Deal Value (€bn) 20 80% 100 70% 15 60% 80 50% 60 10 40% No. of Deals 40 30%

5 of No. Deals Proportion 20% 20 10%

0 0 0% 200720082009201020112012201320142015H1

H1 2016

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016 France Germany Italy Netherlands Sweden UK Other No. of Deals Aggregate Deal Value (€ bn) Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 12: Proportion of Aggregate Value of European Fig. 13: Proportion of Number of Private Equity-Backed Private Equity-Backed Buyout Deals by Location, Buyout Deals in Germany by Industry, 2007 - H1 2016 2007 - H1 2016

100% 100% Other 90% 90% Telecoms, Media & 80% 80% Communications 70% 70% Information Technology 60% 60% Industrials 50% 50% 40% Healthcare 40% 30% 30% Food & Agriculture 20%

10% of No. Deals Proportion 20% Energy & Utilities Proportion of Aggregate Deal Value of Aggregate Proportion 0% 10% Consumer Discretionary 200720082009201020112012201320142015H1 0% 2016 Business Services

2007 2008 2009 2010 2011 2012 2013 2014 France Germany Netherlands Switzerland 2015 Spain UK Other

H1 2016 H1 Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 14: Five Largest Private Equity-Backed Buyout Deals in Germany, 2015 - H1 2016

Investment Deal Deal Size Primary Portfolio Company Deal Status Investor(s) Bought from/Exiting Company Type Date (mn) Industry CVC Capital Partners, Consumer Douglas Holding Buyout Jun-15 2,800 EUR Announced Advent International zManagement Discretionary synlab Holding Buyout Jun-15 1,750 EUR Completed Cinven BC Partners Healthcare GmbH Celerity Partners, Gryphon Investors, SynteractHCR Buyout May-16 1,500 USD Completed Amulet Capital Partners Healthcare Ticonderoga Private Equity Bilﬁ nger HSG Facility Buyout Jun-16 1,200 EUR Announced EQT Bilﬁ nger Berger AG Infrastructure Management GmbH Ascensia Diabetes Add-on Jun-15 1,020 EUR Completed KKR, Panasonic Healthcare Bayer AG Healthcare Care Source: Preqin Private Equity Online

Venture Capital Deals

Fig. 15: Number and Aggregate Value of Venture Fig. 16: Proportion of Number of European Venture Capital Deals* in Germany, 2007 - H1 2016 Capital Deals* by Location, 2007 - H1 2016

350 2,500 100% 90% 300 Aggregate Deal Value (€mn) 2,000 80% 250 70%

1,500 60% 200 50% 150 1,000 40% No. of Deals 100 30%

500 of No. Deals Proportion 20% 50 10%

0 0 0% 200720082009201020112012201320142015H1

H1 2016

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016 No. of Deals Aggregate Deal Value (€ mn) UK Germany France Spain Sweden Netherlands Other Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 17: Proportion of Aggregate Value of European Fig. 18: Proportion of Number of Venture Capital Deals* Venture Capital Deals* by Location, 2007 - H1 2016 in Germany by Industry, 2007 - H1 2016

100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% Proportion of No. Deals Proportion 20% 10% 0% 10%

Proportion of Aggregate Deal Value of Aggregate Proportion 200720082009201020112012201320142015H1 0% 2016 200720082009201020112012201320142015H1 Internet Software & Related Healthcare 2016 Telecoms Other IT Cleantech UK Germany France Switzerland Netherlands Spain Other Industrials Consumer Discretionary Other Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 19: Five Largest Venture Capital Deals* in Germany, 2015 - H1 2016

Deal Deal Size Portfolio Company Stage Investor(s) Industry Date (mn) Unspecifi ed Delivery Hero Feb-15 496 EUR Rocket Internet Internet Round Unspecifi ed Auxmoney GmbH Oct-15 150 EUR Transamerica Ventures Internet Round Unspecifi ed Home24 Jun-15 120 EUR Baillie Gifford, Rocket Internet Internet Round Auto1 Group Series D/Round 4 Apr-15 118 USD DN Capital, DST Global, Mutschler Ventures, Piton Capital Transportation Baillie Gifford, Bill & Melinda Gates Foundation, Chartwave Limited, Unspecifi ed CureVac Nov-15 110 USD Coppel Family, dievini Hopp BioTech holding GmbH & Co. KG, Elma Pharmaceuticals Round Investments Ltd, NorthView Ventures, Sigma Group Source: Preqin Private Equity Online

*Excluding add-ons, venture debt, secondary stock purchases, mergers & grants

Performance

Fig. 20: Median Called-up, Distributed and Residual Fig. 21: Median Net IRR and Quartile Boundaries by Value Ratios by Vintage Year: Germany- and Western Vintage Year: Germany- and Western Europe-Focused Europe-Focused Private Equity* Funds Private Equity* Funds

200% 35% 180% 30% 160% 140% 25% Top Quartile IRR 120% Boundary 100% 20% Median Net IRR 80% 60% 15% 40% Bottom Quartile 10% IRR Boundary

20% Net IRR since Inception 0% 5%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0% Vintage Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Distributed to Paid-in Capital Residual Value to Paid-in Capital 2013 Called-up to Committed Capital Vintage Year Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 22: Median Multiple and Quartile Boundaries by Vintage Year: Germany- and Western Europe-Focused Fig. 23: PrEQIn Private Equity Quarterly Index: Germany- Private Equity* Funds and Western Europe-Focused Private Equity* Funds

2.5 250

2.0 200

Top Quartile Multiple Boundary 1.5 150 Median Multiple

1.0 100 Index Return Net Multiple (X) Bottom Quartile Multiple Boundary 0.5 50 (Rebased to 100 as of 31-Dec-2005)

0.0 0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Jun-06

Jun-07

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Dec-14 Vintage Year Dec-15 Source: Preqin Private Equity Online Source: Preqin Private Equity Online

*Private equity comprises private equity, real estate, infrastructure and private debt (excl. direct lending).

Data Source:

Preqin’s Private Equity Online is the industry’s most extensive source of net-to-LP private equity fund performance, with full metrics for over 8,300 named vehicles.

Constantly updated by our team of dedicated researchers using data gathered from both investors and fund managers themselves, it represents the most comprehensive and transparent source of performance data available today, with global coverage and all key ﬁ nancial metrics included.

For more information, please visit: www.preqin.com/privateequity

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November 2016

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