ANNUAL REPORT 2017/2018 ANNUAL REPORT 2017/2018 REPORT ANNUAL Invest Europe Annual Report 2017/2018

Invest Europe is the association representing Europe’s , 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

SECTION 1: SECTION 2: SECTION 3: SECTION 4: OVERVIEW HOW WE OPERATE WHAT WE DO FINANCIALS Chair’s overview 04 Governance structure 08 Industry excellence 16 Financial report 30 Chief Executive’s report 05 Political advocacy 18 Financial statements 31 Communications 20 Auditor’s report 34 Data & research 22 Conferences & events 24 Finance & administration 26 Annual Report 2017/2018 01 Overview HIGHLIGHTS “Invest Europe’s efforts deliver positive changes to European Updated professional policies, and demonstrate standards enhance the value of private equity credibility with policymakers to investors globally.”

Michael Collins Chief Executive Officer How we operate Read Michael’s report on page 05

Extensive preparations underway for review of the AIFMD What we do

Increased scale and recognition of Invest Week Financials

Expanded reach of pan-European database among fund managers 02 Invest Europe Annual Report 2017/20182017/2018

SECTION 1 OVERVIEW

Chair’s overview 04 Chief Executive’s report 05 11 AnnualAnnual ReportReport 2017/2018 03 Overview How we operate What we do 11 Financials 04 Invest Europe Annual Report 2017/2018

Chair’s overview Making real progress together

Alignment of interests is a central tenet of private equity. It is also at the core of how Invest Europe operates, enabling the association to make progress on behalf of all its members.

It has been my pleasure to chair Invest Europe We are well placed to participate in these discussions. over the past year, working closely with Michael Invest Europe’s professional standards put Collins and the entire Invest Europe team, as well as environmental, social and governance (ESG) at the representatives of many other member firms through heart of all fundraising and investment decisions, and the Board of Directors, Platform Councils and the we promote the highest levels of transparency before association’s other bodies. I thank them all for their investors and regulators on ESG topics. There is still contribution on behalf of the association. a long way to go. But we will work to engage with sustainable finance policy proposals, so they can Marta Jankovic, APG I have seen first-hand that all segments of Invest achieve the desired outcomes and reduce potential Asset Management Europe’s membership believe in private equity as an for any negative consequences for private equity. Chair asset class, and celebrate the industry’s successes. They are also aligned in the belief that we must We are also pushing forward with our own initiatives continue to push our industry to achieve the best that will help the industry understand and address possible performance while respecting the highest sustainability issues. For instance, we are devising standards of conduct and transparency, as this can guidance and risk assessment measures for members result in tangible improvements in the operating on climate change, and we are looking at ways to environment for private equity in Europe. incorporate ESG measurement metrics into the European Data Cooperative database. And of course, It was in this spirit that all members, including investors “Invest Europe we continue to educate private equity professionals and private equity fund managers, collaborated to and promote responsible investment through our is building an produce the 2018 Professional Standards Handbook training and events. It is essential that all our members and revised Investor Reporting Guidelines. Their efforts influential role for embrace an ESG approach to investing and follow resulted in the most robust and up-to-date set of best practice. private equity in standards possible. We made significant amendments important debates with regards to the latest interpretations of the There are many other measures that we fight for just that will benefit the Alternative Investment Fund Managers Directive as vigorously. Following successes with initiatives and (AIFMD), the use of credit facilities, risk management regulatory reforms for venture capital and start-ups, whole industry.” and measurement and of course responsible investment. we are engaged with plans to make sure that growing companies can access capital in Europe to scale-up The review of the AIFMD will be one of the most and become global successes. important topics for the industry over the coming years. Invest Europe has been making extensive Our positive actions and experience give us a voice preparations for these negotiations, laying that few other industries or associations enjoy in groundwork with policymakers and preparing Europe. Invest Europe has an opportunity to shape research that will give us a strong hand when those many of the debates affecting our industry and the discussions start. economy in Europe, as well as globally. Investors and private equity managers are coming together We have been equally focused on current European – with a shared vision, and we are optimistic that their and indeed global – debates. During the last 12 months, commitment to professional standards and the the European Commission has accelerated its work to pursuit of responsible investment practices will also create a structure for sustainable finance in Europe. result in positive benefits for the whole industry, its Policymakers understand that, if we are to meet global stakeholders and the broader society. climate change goals, there is no time to waste in driving Europe towards a sustainable, low-carbon economy. Annual Report 2017/2018 05

Chief Executive’s report Earning a seat at Europe’s highest tables

It has been a good year for European private equity. Fundraising reached a new post-crisis high of €92bn Overview in 2017, while investment activity grew to the second highest amount on record, as fund managers invested into businesses of all sizes, shaping them into market leaders.

Invest Europe plays its part in the industry’s success. This rigorous set of professional standards is not only Whether that’s by facilitating new relationships an important document for investors, who know that an between fund managers and investors at our events, Invest Europe member will abide by our code of conduct, or by campaigning with policymakers for a favourable but it also carries real weight with external stakeholders. operating environment for private equity. These efforts In our dealings with policymakers, some of whom would are contributing to notable developments that we’ve like ever-tougher regulation on our industry, our data and witnessed over the past year. For example, investors our professional standards provide credibility, opening from Asia made their highest contribution to European the door for constructive discussions with stakeholders. How we operate Michael Collins private equity to date with a 15% share – a sign that our Importantly, it demonstrates that the industry has the Chief Executive Officer annual Investors’ Seminar to build bridges to LPs in that appetite and capacity to hold itself to account. part of the world is bearing fruit. Indeed, Invest Europe’s Today, we prepare to welcome a new Invest Europe Chair initiatives in various fields can take years to come to from the Venture Capital Platform. I would like to take fruition – such as the development of the European this opportunity to thank our outgoing Chair, APG Asset Data Cooperative and the launch of the Commission’s Management’s Marta Jankovic, for her efforts on behalf pan-European venture capital funds-of-funds – but the of our LP and GP members over the past 12 months. positive impacts will persist well into the future. With Europe’s ever-expanding commitment to The creation and maintenance of the European Data sustainable finance, we have benefited from her “European private Cooperative means we can now provide even more experience and institutional LP perspective. What we do equity’s high robust and authoritative industry data to inform our The Invest Europe team looks forward to working with discussions with those policymakers and support our the Chair Elect, Nenad Marovac from DN Capital, who professional arguments. Meanwhile, the second annual Invest Week brings his experience and expertise on European venture standards provide helped us reach policymakers directly in Brussels capital. The sector has had a successful year with strong and illustrate the practical benefits of private equity fundraising and investment figures. For the first time in credibility, opening investment, with a focus on sustainable finance topics. 2017, European venture funds raised on average almost the door for We constantly strive to improve our data, events and €100m at final closing, almost double the average of constructive promotional activities to achieve greater impact. ten years ago. Our public affairs efforts yielded results In this constantly evolving and complex regulatory and after eight years of campaigning, with the Commission discussions with stakeholder environment, we continue to do our utmost announcing a number of Capital Markets Union policymakers at to ensure that our members are prepared for all the measures to encourage more investor capital into VC, Financials the highest levels.” challenges ahead. particularly through the formal launch of ‘VentureEU’, Over the past 12 months, the European Commission its new venture capital funds-of-funds initiative. has been intently focused on creating a framework for Following the Invest Europe Council elections in March, sustainable finance. Through Invest Europe’s ongoing I would like to thank the outgoing members of our work with its GP and LP members, we have been able Platform Councils for all of their valuable contributions. to demonstrate the industry’s commitment to ESG. One And we welcome the members elected for this new clear example of this is Invest Europe’s Professional three-year term. Invest Europe thrives on the input of its Standards Handbook, a substantial piece of work members. It’s our GP, LP and associate members, across which we published in April, following a comprehensive all of our Councils, Roundtables, Working Groups and review by our Professional Standards Committee. The beyond, working in collaboration, who help pave the way publication demonstrates our members’ commitment to for more good years ahead, in which all segments of the developing up-to-date professional standards reflecting private equity industry can flourish. today’s market and setting a high bar for best practice in operations and conduct. 06 InvestInvest EuropeEurope Annual ReportReport 2017/20182017/2018 22 AnnualAnnual Report Report 2017/20182017/2018 07 Overview SECTION 2

HOW WE How we operate OPERATE What we do Financials 22 Governance structure 08 08 Invest Europe Annual Report 2017/2018

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 companies.

Invest Europe is committed to representing GOVERNANCE STRUCTURE the interests of each segment of our membership fully and fairly. To achieve this, members are organised into four Platforms Invest Europe Invest Europe dedicated to supporting a specific member Chief Executive Secretariat group – Limited Partners, Venture Capital, Officer Advisory Groups Mid-market and Large . 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 LP COUNCIL MM COUNCIL EPER/LBO ultimately responsible for ensuring that VC COUNCIL (15 members) (15 members) (15 members) COUNCIL the Platform best represents its sector (10 members) and membership. Each Platform also puts forward a representative to the Public Venture Capital Limited Partners Mid-Market European PE Affairs Executive. Platform Platform Platform Roundtable/Large Buyout Platform The Platforms are overseen by the Invest Europe Board of Directors. All segments of our membership are equally represented on the Board of Directors. PLATFORM GROUPS In addition, Invest Europe’s Platforms steer Ad hoc working groups for special platform projects a number of Platform Groups, also composed ROUNDTABLES of industry practitioners and reporting to the Represent members of certain sub-segments Platforms and Board of Directors. of one or more platform Finally, there are several Roundtables representing certain sub-segments of one or more platforms. CROSS PLATFORM GROUPS Professional Public Affairs Tax, Legal and Representative Standards Executive Regulatory Group Committee Public Affairs Committee Body of Shapes industry strategic decision Supports Public representatives guidelines and making body Affairs and the PAE of all European working practices national trade associations Annual Report 2017/2018 09

BOARD OF DIRECTORS 2017/2018 Overview

Chair Marta Jankovic APG Asset Management

Past-Chair Gerry Murphy Blackstone

Chair-Elect* Nenad Marovac DN Capital

Treasurer Christian Strain Summit Partners

Vice-Chairs Anne Fossemalle EBRD Rory Macmillan The Carlyle Group MARTA JANKOVIC NENAD MAROVAC CHAIR CHAIR-ELECT & VENTURE CAPITAL Nenad Marovac DN Capital PLATFORM VICE CHAIR Max Römer Quadriga Capital How we operate

Members Michael Lee Syngenta Ventures David Lindstrom MetLife Investments Vanessa Maydon Cinven Fabien Prévost Omnes Capital Mark Roijakkers Blue Sky Group

GERRY MURPHY MAX RÖMER PAST-CHAIR MID-MARKET PLATFORM VICE-CHAIR What we do

RORY MACMILLAN ANNE FOSSEMALLE LARGE BUYOUT PLATFORM LIMITED PARTNERS PLATFORM VICE-CHAIR VICE-CHAIR Financials

CHRISTIAN STRAIN TREASURER

* The Chair-Elect is the Chair for the following year and is chosen amongst the members of the Board of Directors. 10 Invest Europe Annual Report 2017/2018

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 EBRD Invest Europe Max Römer Quadriga Capital Vice–Chair Vice-Chair

Members George Anson HarbourVest Partners Members Rikkert Beerekamp Avedon Capital Partners Jesse de Klerk RobecoSAM Private Equity Catherine Brossard Cerberus Capital Lori Hall-Kimm CPPIB Christian Couturier Astorg Partners John Holloway EIF Investment Fund Manuel Hertweck Capiton Marta Jankovic APG Asset Management Henry Jackson OpCapita Rune Jepsen QIC Martin Ködar Baltcap Michael Lindauer Allianz Capital Partners Jose Maria Muñoz MCH Private Equity Investments David Lindstrom Metlife Investments Juha Peltola Vaaka Partners Christina Pamberg Alcyon Holding Fabien Prévost Omnes Capital Marc Roijakkers Blue Sky Group Christian Strain Summit Partners Klaus Bjorn Rühne ATP PEP Nino Tronchetti Provera Ambienta Helen Steers Pantheon William Watson Value4Capital Claus Stenbaek Keyhaven Capital Partners Ralph Wyss Gilde Buy Out Partners Angela Willetts Capital Dynamics

VENTURE CAPITAL PLATFORM COUNCIL1 EUROPEAN PRIVATE EQUITY/ LARGE BUYOUT PLATFORM COUNCIL1 Invest Europe Nenad Marovac DN Capital (UK) Vice-Chair Vice-Chair Rory Macmillan The Carlyle Group

Members Max Bautin, IQ Capital Partners Members Tom Allen Advent International Christian Ehrenborg IKEA GreenTech Geoffrey Bailhache Blackstone Anne Glover Amadeus Capital Partners Ludo Bammens Kohlberg Kravis Roberts Hakan Goker Merck Ventures Christoper Crozier Permira Advisers Christoph Jung Holtzbrinck Ventures Therése Lennehag EQT Partners Michael Lee Syngenta Ventures Vanessa Maydon Cinven Jari Mieskonen Conor Venture Partners Gerry Murphy Blackstone Cem Sertoglu Earlybird Klas Tikkanen Nordic Capital Ekatarina Smirnyagina Capricorn Venture Partners Rainer Strohmenger Wellington Partners Jan Westerhues Robert Bosch Venture Capital

Permanent Gitte Bedford Robert Bosch Venture Capital Guests: Alain Parthoens Vesalius BioCap Jan-Gisbert Schultze Acton Capital Partners

Notes 1. Composition as at 31 March 2018 Annual Report 2017/2018 11 Overview

GOVERNANCE STRUCTURE ROUNDTABLES1

Represent members of certain sub-segments of one or more platforms. PLATFORM GROUPS Invest Europe’s Roundtables are cross-Platform initiatives which are open to members from all segments. – Platform working groups are ad-hoc groups set up to manage special projects for the platforms. Single (SFO) Roundtable – Platform councils may set up working groups at any time. The SFO Roundtable represents the interests of the SFO community within How we operate – Working groups are coordinated by the association. Invest Europe. It works to attract new SFO members and provides networking opportunities. Chair Christina Pamberg Alcyon Holding ROUNDTABLES Corporate Venture Capital (CVC) Roundtable – Represent members of certain sub-segments of one or more platform. 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, such as the US National Venture Capital Association’s Corporate Venture Group. PLATFORM WORKING GROUPS Chair Jan Westerhues Robert Bosch Venture Capital Each platform is supported by sub-groups which deal with specific industry sectors. Roundtable The Growth Capital Roundtable provides a platform for Invest Europe members What we do that are growth capital investors. The Roundtable facilitates the discussion and MID-MARKET PLATFORM GROUP sharing of best practices among its members and seeks to promote growth capital as an asset class to institutional investors. Central and Eastern European Taskforce Chair Christian Strain Summit Partners This taskforce undertakes initiatives specifically aimed at the development and promotion of private equity and venture capital in the Central and Eastern Europe (CEE) region. Among its accomplishments is its annual Central and Responsible Investment Roundtable Eastern Europe private equity statistics report. The Responsible Investment Roundtable aims to promote responsible Chair Robert Manz Enterprise Investors investment practices and the consideration of ESG issues within the Invest Europe membership and broader private equity and venture capital community. Chair Maaike van der Schoot AlpInvest Partners

Infrastructure Roundtable Financials The Infrastructure Roundtable provides a forum for our infrastructure members to address the policy issues affecting their operations and to collect data on their investment activities to inform future communications. Chair Alain Rauscher Antin Infrastructure Partners

Turnaround Roundtable The Turnaround Roundtable aims to raise awareness of the role of these specialised investors and promote the asset class to institutional investors. Co-Chair Henry Jackson OpCapita Co-Chair Catherine Brossard Cerberus

Notes 1. Composition as at 31 March 2018 12 Invest Europe Annual Report 2017/2018

Governance structure continued

GOVERNANCE STRUCTURE PUBLIC AFFAIRS EXECUTIVE (PAE)1 The PAE is the leading decision-making body for Invest Europe’s political advocacy CROSS-PLATFORM GROUPS work on those EU files that have a direct impact on all market segments of the European private equity industry. Professional Public Affairs Tax, Legal and Representative Standards Executive Regulatory Group Chair Marta Jankovic APG Asset Management Committee Public Affairs Committee Body of Invest Europe Chair Shapes industry strategic decision Supports public representatives guidelines making body affairs and the PAE of all European Members Anne Glover Amadeus Capital Partners and working national trade practices associations Representing the Invest Europe Venture Capital Platform Caroline Crowley OpCapita Representing the Invest Europe Mid-Market Platform Roderick Macmillan The Carlyle Group Representing the Invest Europe Large Buyout Platform PROFESSIONAL STANDARDS COMMITTEE (PSC)1 Sebastian Ippisch Allianz Capital Partners The PSC ensures that Invest Europe is at the forefront of creating and maintaining Representing the Invest Europe Limited Partners Platform strong professional conduct guidelines and working practices for the industry in Michael Collins Europe. The Committee makes direct recommendations to the Invest Europe Board Representing Invest Europe about the strategy, policy and practicalities relating to professional standards and Tim Hames responsible investment. Representing the BVCA (British Private Equity and Venture Capital Association) Chair Simon Powell Advent International Ulrike Hinrichs Members Hélène Falchier CNP Assurances Representing the BVK Daniel Gregor Allianz Capital Partners (German Private Equity and Venture Capital Association) Neil Harding 3i Group plc Paul Perpère Erwann Le Ligné Eurazeo PME Representing France Invest Jonathan M. Martin KPMG (formerly Association des investisseurs pour la croissance) John Renkema APG Asset Management Phil Bartram Travers Smith Max Römer Quadriga Capital Representing the Invest Europe Tax, Legal and Maaike van der Schoot AlpInvest Partners Regulatory Committee Sabine Vermassen Capricorn Venture Partners William Watson Value4Capital Guests Gerry Murphy Blackstone Simon Witney Debevoise & Plimpton Invest Europe Immediate Past-Chair Nenad Marovac DN Capital Invest Europe Chair-Elect Patricia Volhard Debevoise & Plimpton Representing the Invest Europe Financial Services and Regulatory Working Group

Notes 1. Composition as at 31 March 2018 Annual Report 2017/2018 13

TAX, LEGAL & REGULATORY COMMITTEE (TLRC)1 REPRESENTATIVE GROUP1 The TLRC deals with tax, legal and regulatory matters affecting the European private The Representative Group consists of members of all of Europe’s national trade equity, venture capital and infrastructure industry. Cooperating closely with the associations. It discusses industry issues at both national and European level. national associations, the Committee provides expert advice, legal argumentation and concrete evidence to Invest Europe and its members, and guides Invest Europe’s Evgeny Angelov, Bulgarian Kristiina Koort, Estonian wider public and regulatory affairs activities by supporting the PAE. It helps to craft Private Equity and Venture Private Equity and Venture Overview and provides input for Invest Europe position papers and responses to relevant Capital Association (BVCA) Capital Association (EstVCA) EU level consultations with an impact on, or of relevance to, the industry. Irina Anghel, South Eastern Europe’s George Kourtis, Hellenic Private Equity Association (SEEPEA) Venture Capital Association Chair Phil Bartram Travers Smith Paulo Caetano, Associação Sarah-Jane Larkin, Irish Venture Vice-Chair Gilles Dusemon Arendt & Medernach Portuguesa de Capital de Risco Capital Association (IVCA) e Desenvolvimento (APCRI) Mirna Marovic, Croatian Private Equity Platform Hugo Lauque Ardian Michael Collins, Invest Europe and Venture Capital Association (CVCA) Representatives Benedikt Sudbrock Acton Capital Partners Isabella de Feudis, Swedish Anita Matisone, Latvian Private Equity Lionel Bergeron Siparex Private Equity & Venture and Venture Capital Association (LVCA) Jay Modrall Norton Rose Fulbright Capital Association (SVCA) Tjarda Molenaar, Regional Ana Sofia Batista Abreu Advogados Pierre Demaerel, Belgian Nederlandse Vereniging van Representatives Bernard Peeters Tiberghien Venture Capital & Private Participatiemaatschappijen (NVP) How we operate Carl Johan Zimdahl Mannheimer Swartling Equity Association (BVA) Barbara Nowakowska, Polish Christian Schatz Flick Gocke Schaumburg Rikke Eckhoff Høvding, Norwegian Private Equity and Venture Ed Hall Goodwin Procter Venture Capital & Private Equity Capital Association (PSIK) Edouard Chapellier Linklaters Association (NVCA) Maurice Pedergnana, Swiss Ewa Grzejszczyk Deloitte Advisory Anna Gervasoni, Italian Private Private Equity & Corporate Fabio Brunelli Di Tanno e Associati Equity, Venture Capital and Private Finance Association (SECA) Felix Haldner Partners Group Debt Association (AIFI) Isabel Rodríguez King & Wood Mallesons Paul Perpère, France Invest Jakob Mosegaard Larsen Mazanti-Andersen Korsø Jensen Tim Hames, British Private Equity (formerly Association des investisseurs Jyrki Tähtinen Borenius Attorneys Ltd & Venture Capital Association (BVCA) pour la croissance) Marco de Lignie Loyens & Loeff Ulrike Hinrichs, German Private Equity Zuzana Picková, Czech Private Equity Patricia Volhard Debevoise & Plimpton and Venture Capital Association (BVK) and Venture Capital Association (CVCA) Philippe Trolez Omnes Capital Ivan Jakúbek, Slovak Venture Capital Ibolya Pintér, Hungarian What we do Robin Painter Proskauer and Private Equity Association Venture Capital and Private Tim Hugues PwC (SLOVCA) Equity Association (HVCA) Guests Ashkan Karimi Antin Infrastructure Partners Paul Junck, Luxembourg Private Equity Pia Santavirta, Finnish Venture & Venture Capital Association (LPEA) Capital and Private Equity Henriette Kinnunen, Danish Association (FVCA) Venture Capital and Private Sabina Sinicien, Lithuanian Equity Association (DVCA) Private Equity and Venture Rudolf Kinsky, Austrian Private Capital Association (LT VCA) Equity and Venture Capital José Zudaire, Asociación Española Organisation (AVCO) de Capital, Crecimiento e Inversión (ASCRI) Financials

Notes 1. Composition as at 31 March 2018 14 InvestInvest EuropeEurope Annual ReportReport 2017/20182017/2018

SECTION 3 WHAT WE DO

Industry excellence 16 Political advocacy 18 Communications 20 Data & research 22 Conferences & events 24 Finance & administration 26 3 AnnualAnnual Report Report 2017/20182017/2018 15 Overview How we operate What we do 3Financials 16 Invest Europe Annual Report 2017/20182017/208

Industry excellence

Invest Europe is the guardian of the Invest Europe’s work to ensure the highest At the same time, Invest Europe overhauled European private equity industry’s operational standards never stops. We the Investor Reporting Guidelines to ensure constantly review our guidance to keep it the highest standards of transparency. professional standards. We enable up to date with international best practice In addition to changes to illustrate current our members to work at the cutting and to reflect the ever changing operational market best practice, we responded to edge of operational best practice and regulatory environment in which our member demands for tailored guidance in such fields as fund management, members operate globally – including new for specific industry segments – including legislation and amendments to existing rules. venture capital, , secondary transparency and ESG. funds and infrastructure. We compared To this end, one of Invest Europe’s most our guidelines with those of the Institutional To spread adoption of the highest important initiatives of the past year was to Limited Partners Association (ILPA) to update the Professional Standards Handbook ethical and working standards, ensure compatibility and provide consistency and Investor Reporting Guidelines for 2018. Invest Europe offers a wide range at a global level for investors and fund Our efforts concentrated on bringing this managers alike. of training courses. These help valuable resource up to date in key areas that private equity professionals at are both essential for the industry and topical Cooperating closely every level to hone their skills, for stakeholders at large. Finding ways to work more effectively improve their knowledge and make As such, we provided clarity to members on behalf of members is central to Invest new contacts in the industry. about dealing with harassment, and in Europe’s mission. This is why our industry particular sexual harassment, in the workplace. excellence and public affairs activities We shed more light on members’ responsibilities are moving closer together as we seek to with regard to the availability and use of credit influence crucial regulation that can have finance, such as bridge facilities at fund level, a practical impact on how our members by improving transparency and disclosure operate. On the one hand, our professional about their use and impact on returns. standards efforts are increasingly influenced We outlined practical risk measurement and by our understanding of current (and risk management measures for both general constantly changing) regulation, as well partners and limited partners. We fine-tuned as forthcoming rules. And on the other, the wording on responsible investment to our commitment to industry best practice bring it right up to date with investor and can help illuminate our discussions with policymakers’ priorities. And the text was policymakers, and shape the stance we take amended to reflect the latest interpretation when protecting our members’ interests. of and amendments to the Alternative Investment Fund Managers Directive (AIFMD). One area in which this has been notable over the past 12 months is our response and 3,000 commitment to ESG. The increasing focus on sustainable finance at a political level in copies of the Professional Standards Handbook downloaded in 2017 Brussels provides Invest Europe with the perfect opportunity to position private equity as a responsible industry, which can play a key role in helping the EU reach its goals.

11foundation and specialised training courses offered Annual Report 2017/2018 17

At the same time, the responsible investment 2017/18 HIGHLIGHTS 2018/19 PRIORITIES Overview standards we promote in private equity have formed the basis for Invest Europe’s response Comprehensive update of Professional Strengthen internal cooperation to the High Level Expert Group’s report and Standards Handbook for 2018 to and coordination with public affairs to the European Commission’s Action Plan on reflect current best practice and industry demonstrate private equity’s high ethical sustainable finance, earning us credibility development in fields such as ESG and standards in Europe and how the industry in high-level discussions with policymakers. risk measurement, and to take account can contribute to EU plans in the field of With the G20 also considering ways to of changes in the regulatory and sustainable finance mobilise capital for responsible investment, political climate Constantly assess and update industry our leadership role and global outlook is all the more important. Invest Europe continues Updated Investor Reporting Guidelines guidance to reflect best practice to work closely with international bodies with new guidance for specific private standards globally How we operate equity segments; ensured guidelines including PRI to prepare the industry for Work closely with institutions initiatives at a global level. complement other global standards including PRI to drive forward responsible Training Strengthened use of Professional investment agenda Standards Handbook material in training Enhance training with courses and Bringing the industry up to date with courses for consistent application of options designed for specific segments regulation and best practice through tailored best practice training programmes is central to Invest of Invest Europe membership Europe’s industry excellence commitment. Enhanced coverage of ESG issues in Further the link between professional Over the past year, we have enhanced the training courses to reflect importance use of the Professional Standards Handbook standards publications and training of topic to investors and policymakers What we do as a tool to educate and inform course Continue to investigate options participants, drawing on our high standards for delivering e-learning resources across a broad range of topics, including ESG, diversity and gender equality in private equity. to members 1 Our two-day responsible investment training event continues to be unique and popular, TIME TO LEARN while we added a second fund structuring course to the calendar on the back of Course increased demand. Invest Europe continues Programme 2018 Brussels, to look at ways to expand the programme with Belgium

new training courses for different segments Financials of the membership. We are also investigating the potential for e-learning modules on PROFESSIONAL DEVELOPMENT + FOR PRIVATE EQUITY over 250 attendees PRACTITIONERS 250 essential aspects of private equity. from 35 countries at training courses 2-3

Left to right: [Our staff and students work through the course plan; Students learning the basics and Foundation make bonds with colleagues from around the world; courses for Two students get a focused training session.] junior staff of up to 2 years in the industry

FOUNDATION FOR SUPPORT STAFF Overview: FOUNDATION FOR VENTURE CAPITAL Executive assistants and offi INVESTMENT PROFESSIONALS managers are introduced to key industry ce FOUNDATION IN FINANCE Overview: & ADMINISTRATION defi nitions and to the investment cycle via a Junior investment professionals are introduced to best practices during the Overview: “ Sound expertise combination of lecture and a bespoke game. Middle and back offi ce personnel full investment cycle by industry experts. (fund controllers, accountants) are and experience Key topics: What is private equity and introduced to key topics of interest. venture capital, partnership set up, portfolio Key topics: Fund structuring, fund of the presenters. building, building of a deal, value-adding marketing, deals & deal structuring, Key topics: Accounting for private equity, Quality participants. stage, exit stage and raising of a next fund. valuation, exits, fi rm management, fund structuring, valuations, reporting from Fun atmosphere – sharing IP rights, corporate venturing. an investor point of view, performance Frequency of course: Twice a year, May/ from an investor point of view, professional spirit. Very professional June and November Frequency of course: Twice a year, June and November standards and AIFMD update. impression overall. Size: 15 Size: 15-18 Frequency of course: The dinner was a nice Audience: Support staff who has recently Once a year, October Audience: Investment team members who Size: 15-18 and useful initiative.” joined the fi rm (up to 2 years). recently joined the fi Audience: Cost: Invest Europe Members €1315 + VAT; rm (up to 1 year). Finance team members who Caroline Bergaud recently joined the fi Fundraising course participant Non-members €1870 + VAT. Cost: Invest Europe Members €2065 + VAT; rm (up to 2 years) Non-members €2970 + VAT. Cost: Invest Europe Members €2085 + VAT; Non-members €2990 + VAT; “ Very informative, to the point, provides useful and practical knowledge.” Begona Aguilera Fundraising course participant 18 Invest Europe Annual Report 2017/2018

Political advocacy

In the past 12 months, long-running With European policymakers highly focused “Our efforts on endeavours by Invest Europe have crystallised on sustainable finance, we are also positioning into tangible achievements, including the Invest Europe and private equity to be a key regulatory debates €2 bn-plus VentureEU funds-of-funds voice in that debate, drawing on European programme (opposite page) and amendments private equity’s leadership role in creating impacting private to the European Venture Capital Fund and maintaining high standards of ESG Regulation (EuVECA). Changes to the latter and responsible investment. Following the equity have recently should enable more fund managers to European Commission’s Action Plan on secured positive qualify for the EuVECA voluntary marketing Financing Sustainable Growth in March 2018, passport, ultimately driving a higher level more concrete proposals emerged in May. developments for of cross-border fundraising. While generally supportive of this work- stream, we continue to stress the need for Following these successes, we will continue to the industry. We will flexibility and a certain level of discretion, work actively on other measures, such as the in recognition of the diverse nature of the continue to make the European Commission’s Start-up and Scaleup industry. As this agenda moves forward, we Initiative, that aim to boost our industry will look for initiatives that can benefit private case on other ongoing and help growing businesses to scale-up equity, while remaining vigilant against any and develop. initiatives.” unintended consequences that can hamper Anna Lekston As the regulatory agenda advances, other the industry. initiatives are coming to the fore. In preparation Head of Public Affairs Over the last year, Invest Europe also continued for the review of the Alternative Investment to petition EU policymakers for solutions Fund Managers Directive (AIFMD), which that will avoid any cliff edge and enable our was scheduled to start in July 2017, we members to operate freely following Brexit. commissioned research into the effects of We called for an appropriate transition period the current legislation on private equity, its and for the European Investment Fund to investors and the economy (opposite page). continue investing in UK based venture capital While the review of the AIFMD has been funds. Although much uncertainty remains delayed until late 2019 or early 2020, in around the terms of the UK’s exit from the March the Commission launched the so- EU, we are helping our members with calls, called Omnibus proposal on facilitating the webinars and publications that will inform and cross-border distribution of investment prepare the industry for the changes ahead. funds through targeted amendments to the AIFMD and UCITS (Undertakings for Collective Investment in Transferable Securities) Directives, as well as the EuVECA Regulation. In principle, the intention to remove barriers to cross-border fundraising is positive for private equity. However, the proposal is insufficiently tailored to the asset class and contains some unhelpful elements for the industry, including the definition of premarketing. We will continue to engage with policymakers to minimise the potential for negative consequences. Annual Report 2017/2018 19

40 13 7 meetings with policymakers, consultations contributed to produced 7 member Guides including key EU officials and position papers prepared and Q&A documents

2017/18 HIGHLIGHTS Overview 2018/19 PRIORITIES VentureEU Ensured positive result from EuVECA Continue preparatory work for the In April, the European Commission review that will allow more members AIFMD review, including participation in launched VentureEU, a new venture capital to benefit from its voluntary marketing external studies such as KPMG review funding programme that will create six passport of existing regulation pan-European funds of funds, seeded with €410m of European money. Secured the launch of six new Engage with policymakers to positively pan-European VC fund of funds This initiative was initially announced in influence the Omnibus proposal for 2015, as part of the Commission’s Capital vehicles with €2.1bn fundraising target cross-border fund marketing Markets Union action plan. However, the Delivered impact assessment on effects scope and scale of the project is larger Continue engagement with the How we operate of the AIFMD to inform EU policymakers than previously thought, incorporating six Commission to secure appropriate ahead of forthcoming review managers – four of whom are Invest Europe risk weight for insurers’ investments members. The intention is to mobilise Secured a commitment from the in private equity under Solvency II private investment into venture capital Commission to tackle barriers to funds and generate up to €6.5bn of total Monitor negotiations on the review of cross-border distribution of funds investment in entrepreneurial businesses. the European Supervisory Authorities Maintained private equity’s access and the prudential treatment of to tax treaty benefits under global OECD investment firms RESEARCH ON AIFMD IMPACTS BEPS standards Demonstrate private equity’s Invest Europe commissioned an impact assessment into the effects of the current

Secured withdrawal of European leadership position in ESG, and shape What we do regulation on private equity, its investors Commission’s proposal on banking emerging framework for sustainable and the economy to prepare the ground for structural reform which would have investment in Europe the European Commission’s comprehensive prevented certain banks from investing Work towards proposals that can review of the AIFMD, which will be of in private equity central importance to the industry. further enhance venture capital Produced seven member guides and investment through European The research concluded that the AIFMD has delivered minor benefits at a high Q&A documents, including KID – PRIPS Commission’s Start-up and price. Concretely, it has made marketing (marketing to retail investors), MiFID Scale-up Initiative more difficult, slower and more costly; application and Brexit Shape international regulators’ work increased managers’ operating costs; and restricted the investable universe of non-

on financial stability issues, in particular Financials EU funds for EU investors – although it the development of consistent has not materially altered investors’ measures of leverage desire to invest in private equity. Prepare for new European Parliament While these conclusions did not come as and Commission with briefing notes any great surprise to the industry and and materials to highlight positive support what were previously anecdotal observations, the evidence has already impact of private equity proven vital. It has helped inform our engagement with policymakers regarding the Commission’s proposal on cross-border distribution of funds, and has shaped our response to the study carried out by KPMG. 20 Invest Europe Annual Report 2017/2018

Communications

Invest Europe’s communications team Europe – and European private equity “Invest Europe has improves key stakeholders’ understanding – as a leading proponent of ESG and of private equity and venture capital by responsible investment and a respected pulling power with promoting the industry’s benefits. As well as and balanced voice on the topic. encouraging more investment into the asset Our thought leadership is communicated European policymakers class in Europe, we actively manage private via opinion pieces by Invest Europe equity’s reputation with policymakers and representatives in the private equity press, and opinion formers, key opinion formers. in leading European policy outlets, on our giving us a strong and The broad scope of our communications website and via social media. Giving our voice respected voice on a work requires a nuanced approach, as the airtime it deserves requires significant our audiences have diverse needs and time and effort to reach the right ears. expectations. Likewise, our membership broad range of topics Over the last year we have witnessed a step is broad, covering industry segments with change in the impact of our media relations relating to European different priorities. For this reason, we have work. We are reaching senior journalists and tailored programmes designed to achieve editor-level staff at key international media, Investment.” maximum impact. reflecting a high degree of respect for our Lynn Nicholson One such initiative in 2017 was the Global opinions and the pulling power of the debates Communications Director Investment Decision Makers Survey for we lead. which we commissioned Ipsos MORI. Timed Indeed, creating a pull factor to draw these to coincide with our second annual Invest disparate audiences towards Invest Europe’s Week in Brussels, it focused on the drivers communications channels is a priority. and disincentives for investment in Europe. Last year, we completed a full review of the As a result, it provided policymakers with association’s digital strategy. This lays the high-level insights into international investors’ foundations to create new interactive touch views on the continent. points, more personalised content and The survey revealed Europe’s reputation improved information sharing, which will as a global leader in sustainable investment. enhance the experience for our members In recent years, we have positioned Invest and global stakeholders.

MEDIA RELATIONS DIGITAL COMMUNICATIONS MEMBER COMMUNICATIONS PUBLISHING +1,500 50,000 90 31% 15 10 interactions with media website visitors per month emails to open rate publications blogs members aimed at our 27,600 range of stakeholders 480 +33% pieces of global scale media coverage Twitter followers 2017

7,947 +17% Linkedin followers 2017 Annual Report 2017/2018 21

2017/18 HIGHLIGHTS Overview INVEST WEEK Invest Europe’s positive industry narrative Invest Europe built on the success of representatives of European Union reached a potential audience of several the inaugural Invest Week with a second institutions, regulators and governments, hundred million through national and series of events of greater scale and including European Commission vice-president international media ambition in November 2017. The agenda Jyrki Katainen and Olivier Guersent, the ranged from funding for start-ups, female Commissions’ director-general for Financial Social media activity ranked in the top entrepreneurship, financial regulation Stability, Financial Services and Capital 1% of ‘European Trade and Professional and sustainability, across a wide variety of Markets Union. Associations’ (Source: Cambre Associates) formats, including dinner debates, breakfast The programme expanded beyond Brussels, seminars, roundtables and events in the Continued our work to increase with well-attended events held in Paris,

European Parliament itself. The events How we operate Berlin and Tallinn. And we strengthened the awareness and understanding of supported many of our key messages and support of key institutions and partners. the value of private capital to Europe’s campaigns, and furthered our aim to be Both the European Bank for Reconstruction a respected thought leader on issues that economy through 15 publications, as and Development (EBRD) and the European transcend private equity and matter to well as social media, the website, blogs, Investment Fund (EIF) held their own events a wide audience. presentations and case studies under the Invest Week banner. We also had the support of the Estonian Presidency of Surpassed expectations for attendances We received support from 35 organisations and welcomed almost 1,500 attendees to the Council of Ministers, an important and at Invest Week, reflecting event’s impact events, a 45% increase on the first year. high-profile seal of approval for Invest with policymakers, press and other Of those attendees, some 240 were Europe’s work. stakeholders Created tailored campaigns for different What we do stakeholder audiences to maximise impact 1493 attendees 81 MEPs and Commission representatives of communications strategies investment sector-related organisations held events of were 324 organisations attended 35 official supporters 2018/19 PRIORITIES attendees or speakers from EU Deliver a greatly improved digital 238 bodies, regulators and governments 33 journalists proposition which better meets our key audiences’ needs

Create more targeted and personalised Financials content as well as interactive touch points for membership Adapt and put in place a post-Brexit media relations strategy, which will include dedicated French and German market approaches Develop and deliver a communications Dominique Riquet MEP, Chairman of the Long-term Jyrki Katainen, European Commission Vice President for plan aimed at educating incoming Investment Intergroup, opens our event at the Jobs, Growth and Investment speaking at our Investment European Parliament and Commission European Parliament. and Innovation Roundtable. officials about our industry and its needs 22 Invest Europe Annual Report 2017/2018

Data & research

Data is a resource that not only allows Invest Eastern Europe Statistics for 2016. It also “Data enables us to Europe to track European private equity provides invaluable data for public affairs, activity year after year, it also enables us to events, communications and international illustrate the positive illustrate the contribution that the industry outreach activities. Our data was used to help makes to companies and investors as well make positive advances in Europe, including contribution that as the economy at large. Ensuring that arguing for a venture capital fund of funds research is comprehensive and authoritative programme, and to promote private equity private equity makes is therefore of utmost importance. abroad at the Investors’ Seminar in Asia. Leveraging our resources in this way can to companies, investors, Following the 2016 launch of the European effectively enhance fundraising in Europe Data Cooperative (EDC) – the landmark and the economy.” and facilitate the flow of more capital into pan-European data initiative – one of our private equity. Cornelius Mueller priorities was to increase its adoption by Research Director fund managers across the continent. From In addition to regular reports and statistical over 800 managers who input their activity information for Invest Europe’s work, we are into the database in 2016, we saw more regularly called on to satisfy the data needs than 900 use the EDC in 2017. Such high of individual members. In the past year, we adoption rates ensure that our data set is provided research support on a range of more complete than ever, while using one topics, such as identifying the most active database to collect information (as opposed regions, developments in mid-market private to numerous national databases) delivers equity, cross-border investment analysis, greater consistency and quality. first- time funds and their LPs, and venture capital investments in the life science sector. There have been other benefits. We now have greater flexibility to produce more Ensuring that the EDC operates effectively timely reports. For instance, we produced requires considerable behind-the-scenes robust first half activity data based on a large activity. Invest Europe provided the operational cross-section of managers who are used to resources, including IT infrastructure, as well submitting data biannually. During the year, the expertise needed to run the database. we released a brochure to inform private Given the growing volume of data that we equity managers about the EDC and the are producing and the growing demand from value it creates for the industry in order to members and other stakeholders for specific increase the number of users even further. data we have increased the size of the team with the appointment of Ariane Mortelmans, The statistics we collected via the database research officer. formed the backbone of the 2017 Private Equity Activity report and our Central and 900 250,000 fund managers used EDC to input activity data transactions since 2007 registered on database Annual Report 2017/2018 23

2017/18 HIGHLIGHTS Overview 2018/19 PRIORITIES MEASURING OUR IMPACT Increased number of managers Increase fund manager adoption Having successfully launched and inputting data into EDC to over 900 of EDC through ongoing promotion established the EDC as the reference thanks to promotional efforts, including for European private equity data, and education explanatory brochure on the benefits Invest Europe has been investigating of the database Investigate and develop practical ways to extend its impact and potential. means of collecting performance, The next frontier will be collecting data Publication of 2017 European Private economic impact and ESG data via EDC on performance, economic impact and Equity Activity report using EDC data the influence of ESG. Work on data collection initiatives that for second time Already we have seen how information

can support Invest Europe’s policy How we operate Released first half 2017 figures on we collect and present can be used and promotional efforts private equity activity to members based to cast the industry in a positive light. For instance, we combined information on EDC’s enhanced data collection about the number of PRI signatories capabilities among Invest Europe’s membership Produced exclusive data to with data from the EDC to produce support Invest Europe public affairs, insights about the impact of ESG for Chair Marta Jankovic’s address at the communications and events activities Investors’ Forum. Expanded Data & Research team We recognise that for such initiatives to to handle increased flow internal be of use to the industry, they must be What we do data requests and member enquires led by members. So we are working with numbering some 30 data requests members via our representative bodies, per month including the Responsible Investment Roundtable, to define the remit of potential new data modules. We are seeking to define metrics that are practical and achievable for the industry, and that add true value for our members.

89% Financials of industry’s €640bn of covered by 2017 Private Equity Activity report 250,000 +1,000 transactions since 2007 registered on database downloads per month of Annual Private Equity Activity report & data tables 24 Invest Europe Annual Report 2017/2018

Conferences & events

delegate has always been high and we limit from and share experiences with their peers. “Making our events the number of service providers to ensure In addition, we once again teamed up with that the event remains truly focused on INSEAD for the Single Family Office Day a success depends building those LP-GP relationships. As part ahead of the Investors’ Forum, this time to of this effort, we have a robust due diligence discuss the theme of impact investing. greatly on ensuring process for applications and our strict criteria This format enables us to tackle important lead to more high-quality delegates. topics in depth, in a way that recognises a quality mix of the specific needs of family offices. It is a similar story at the Venture Capital attendees. All our event Forum, held in October in Stockholm. Furthermore, our reach and influence extends delegates are people Over four years, the event has seen a far beyond Europe. At the Investors’ Seminar four-fold increase in the number of investors in Tokyo and Seoul in December, we hosted you will want to meet.” in attendance to 58 in 2017. This in part a record number of one-to-one meetings, reflects the growing strength of Europe’s VC reflecting the event’s role in bringing Asian Michael Collins ecosystem, as well as the event’s preeminent investors together with European managers. Chief Executive Officer status as a gathering place for the industry With Asian investment in European private in Europe. The participation of high-quality equity rising there is good reason to believe investors encourages more fund managers that our strategy – the provision of high- to participate in our events, and in turn to quality and informative content about join our association. the full range of European opportunities – is delivering. We also achieved considerable success by rolling out our LP-GP rotating dinner at the Providing not only the environment but also VC Forum. The format has been incredibly the space and technology for Invest Europe successful at Investors’ Forum and is proving members to network successfully is essential. popular with VC delegates as a means of At Investors’ Forum, we increased provision making contact with investors. of meeting areas following feedback from attendees. Delegates have embraced our We matched our focus on quality of delegate dedicated app which allows them to access with an equal vision for quality of content. attendance lists, arrange meetings and book On top of our VC Forum programme, we held networking pods at the conference. an Innovation Showcase in Stockholm which enabled our delegates to meet entrepreneurs Networking opportunities Bringing investors and fund managers and understand the start-up scene in the city. together to meet, discuss hot topics, and Such additional activities not only add value We understand the importance of providing ultimately do business, is at the heart of all to our conferences and can draw in more opportunities for industry participants to Invest Europe’s conferences and networking investors, but they also show support meet in small-scale settings as well as large. events. They enjoy a strong reputation within for the local venture capital ecosystems Our standalone member networking events the industry not only for quality content, but across Europe. enable fund managers and investors to meet also for the camaraderie and the collegiate each other in their own countries and cities Providing support through tailored content atmosphere they promote. Making all our in more informal settings. extends across all our events. At the CFO events a success depends greatly on ensuring Forum in Lisbon, for example, we delivered a quality mix of attendees. Over the past year, our Chair’s Dinners a programme that gave operations continued to be a popular date in the calendar. Investor’s Forum, our flagship conference professionals practical insights into some We held four dinners in Frankfurt, London, in Geneva in March, remains the only major of the key challenges the industry is facing. Luxembourg and Paris. Our event in London private equity gathering where limited Ensuring that CFOs, COOs and senior finance proved particularly popular, reflecting our partners and general partners are admitted executives are in the audience maximises commitment to UK members following the in a strict one-to-one ratio. The standard of the opportunities for participants to learn Brexit vote, and those members’ desire Annual Report 2017/2018 25

to be an active part of our pan-European association. The number of attendees at the KEY EVENTS February 2018 dinner increased significantly to 110 from 75 the previous year. We are re-launching our VC After Work networking events as a result of member demand and rising interest in the venture capital segment in Europe. Reaching members with targeted and relevant events is essential to Invest Europe, and we continue to assess ways of improving our service. In addition to our own events, we promote Overview those from like-minded associations and organisations we support, such as Level 20 which advocates to increase the number of senior women in private equity.

2017/18 HIGHLIGHTS Ensured higher quality attendee at Investors’ Forum Investors’ Forum through improved due diligence processes Geneva 2016

Record level of 1-to-1 meetings How we operate CFO Forum Investors’ Forum VC Forum at Investors’ Seminar in Seoul and 2018 Lisbon: 2018 Geneva: 2017 Stockholm: Tokyo as event became landmark 115 delegates 368 delegates 211 delegates for Asian investors Increased investor participation in VC Forum to one-third of total audience Added value to programmes with initiatives including Innovation Showcase at VC Forum in Stockholm What we do Delivered successful Chair Dinners, including near 50% increase in attendance at London dinner 6cities visited with member networking events

2018/19 PRIORITIES Continue to drive higher quality of delegates at Investors’ Forum through strict delegate criteria

Investors’ Forum Financials Ensure more and higher quality Geneva 2016 investor participation at VC Forum

Expand member events programme Investors’ with targeted networking opportunities Seminar Asia for specific member segments 2017 Tokyo & Seoul: Introduce more examples of specific 100 local investors work by Invest Europe for operations professionals at CFO Forum 26 Invest Europe Annual Report 2017/2018

Finance & administration

Delivering top-quality services to Invest Better systems are also better prepared for “We have invested in Europe members requires best-in-class new regulation. In May, the European Union’s systems and structures. Although Invest new data protection laws came into force, technology to save Europe is in itself a relatively small requiring organisations large and small to organisation, with 21 employees based in protect user data, and allow individuals to resources and offer Brussels, we recognise that we serve a request or withdraw their personal data on very significant industry that controls over demand. We made extensive arrangements better service to Invest €640bn of assets in Europe and indirectly to be prepared for GDPR when it launched. Europe members.” employs approximately eight million people. We take our responsibilities very seriously Our members expect the most efficient and ensure that member data is used properly Katia Rabinovitch and reliable processes so we have invested by Invest Europe, as well as our sponsors Finance and Administration Director in making their interactions with the and other partners when it comes to events. association better. We further enhanced security by moving our servers to a new off-site data centre. Over the last year, we completed the automation of our accounting, payroll and Our improvements have come through HR systems, digitising all processes and investment in technology. We will continue to consigning paper systems to the past. invest in IT to further enhance our services. Everything from invoices for payment to Over the coming year, we will be reviewing holiday requests now go through the system, systems to identify areas where we can find straight to the relevant people for approval. greater efficiency, save resources and offer a better service. In addition, we have automated our member-facing event registration and 2017/18 HIGHLIGHTS payment processes. In practical terms, this means that members can sign up for Fully digitised accounting and payroll conferences and events online, and pay to improve efficiency and save Invest for themselves and colleagues via secure Europe resources payment systems. This means less time and effort spent by Invest Europe employees Completed preparations for GDPR, tracking and following up on invoices and ensuring the association’s full compliance payments, ultimately saving resources with new data protection rules and delivering better value to members. Moved IT servers to new data centre to improve security Hired new staff for Data & Research and Member Events teams Annual Report 2017/2018 27 Overview REPRESENTATIVE BODY KEY FIGURES Invest Europe seeks to echo the diversity of Europe in its make-up. For an organisation based in Brussels, we represent nine nationalities and speak 11 languages. This diversity adds to our credibility and helps us make nationalities full time connections not only with European in Invest Europe equivalents Union bodies but also with national 9 21 stakeholders across Europe.

While it can be challenging to recruit How we operate staff within the relatively small pool of Brussels, Invest Europe’s employees are highly qualified and experienced. Many have different but complementary skills, qualifications and experience, allowing them to service many different functions languages Accounting and HR within our organisation. 11 spoken IT fully dematerialized Invest Europe also takes the issue of gender diversity very seriously. In our senior management team, three of five What we do key roles are held by women, while across the organisation the mix of male and female employees is well balanced.

60%female 40%male Financials

GDPR Compliance Compliance as of May 2018 28 InvestInvest EuropeEurope Annual ReportReport 2017/20182017/2018 44 AnnualAnnual Report Report 2017/20182017/2018 29 Overview SECTION 4

FINANCIALS How we operate What we do Financials

Financial report 30 Financial statements 31 44 Auditor’s report 34 30 Invest Europe Annual Report 2017/2018

Financial report

Profit and Loss HISTORIC EVOLUTION (¤m) SUMMARY OF SIGNIFICANT Operating expenses were €6,332,261 in 2017, ACCOUNTING POLICIES 6% less than 2016’s total of €6,723,373. Fixed assets Revenue Operating revenues decreased by 2% Fixed assets are stated at cost less to reach €7,025,139 in 2017, compared € Actual Budget accumulated depreciation. Depreciation 10 to €7,171,650 in 2016. is provided over the estimated useful lives 9 The 2017 net operating profit before 8 of assets using the straight line method. 7 8.79 8.46

exceptional results was €692,877. This was 7.94 6 7.72 Cash or cash equivalent 7.16 7.17 7.29 7.22 mainly due to the fact that the contingency 7.03

5 6.43 Cash and cash equivalent are carried for membership fees cancellation of €514k 4 at nominal value has not been used. 3 2 Receivables Projects initiated in 2016 have been finalised 1 Receivables are carried at nominal value. in 2017 for a total cost of €111,434, below Provisions are made for all receivables Budget 2017. 09 10 11 12 13 14 15 16 17 18 Year during the year if no explicit confirmation The 2017 net accounting profit was €581,443. or certainty about payment is available. Expenses Balance Sheet Provisions € Actual Budget The balance sheet total was €5,290,202 10 Provisions are recognised for probable as at December 31, 2017. 9 obligations when a reliable estimate of 8 the amount can be made.

The cash position was €4,653,720 as at 7 8.59 8.04 7.75 7.52

6 7.33 Liabilities December 31, 2017 compared to €4,089,912 7.28 6.87 6.89 6.52 as at December 31, 2016. 5 6.44 Trade payables and payroll liabilities 4 are carried at nominal value. Reserves increased from €3,651,754 to 3 €4,223,198 due to net accounting profit. 2 Revenue recognition 1 Budget 2018 Revenue is recognised to the extent that 09 10 11 12 13 14 15 16 17 18 it is probable that the economic benefits For 2018, Invest Europe proposes a balanced Year will flow to the company and the revenue budget before exceptional projects. can be reliably measured. With respect Reserves A contingency of €460k has been set aside to the rendering of services, revenue in case political and market conditions € Actual Budget is recognised by reference to the stage – including those emerging from the UK 10 of completion. decision to leave the EU – lead to a drop 9 in membership or other revenues. 8 7 As in previous years, the Board will closely 6 monitor the financial situation throughout 5 4 the year. 3 4.14 4.23 3.65

2 3.49 3.33 3.35 3.16 2.97 1 2.77 1.82

09 10 11 12 13 14 15 16 17 18 Year Annual Report 2017/2018 31

Financial statements

PROFIT AND LOSS (¤)

ACTUAL 2017 BUDGET 2017 ACTUAL 2016

Membership 1 5,373,876 4,916,000 5,513,291

Events 1,209,662 1,221,830 1,251,034

Sponsoring 337,000 312,000 257,000 Overview

Service fees 60,000 60,000 60,000

Bank interest and miscellaneous 7,047 10,000 17, 320

Other revenue 37,554 35,000 73,004

Total Revenue 7,025,139 6,554,830 7,171,650

Personnel costs 3,125,868 3,013,000 2,984,597

Professional services 1,469,854 1,578,210 1,586,129

Housing costs 281,927 283,000 281,025 How we operate

Accommodation events 309,662 431,600 400,069

Travel and representation 360,344 451,080 501,588

Communications 56,298 57,960 59,700

Printing and audio-visuals 148,946 131,750 165,755

Various office costs 369,74 6 308,630 490,232

Finance costs 27,990 20,000 28,220

Provision for doubtful debtors 100,313 155,000 156,888 What we do Provisions/other costs 81,314 124,600 69,170

Total Expenses 6,332,261 6,554,830 6,723,373

NET OPERATING RESULTS 692,877 0 448,277

Projects from previous year completed in current year 111,434 135,000 147,298

Total exceptional expenses 111,434 135,000 147,298

NET RESULT 581,443 -135,000 300,979

Notes

1. Contingency of 0,5m€ for UK membership fees cancellation as a consequence of Brexit, not used for 2017 Financials 32 Invest Europe Annual Report 2017/2018

Financial statements continued

PROFIT AND LOSS (¤)

BUDGET 2018 ACTUAL 2017

– Membership 5,319,000 5,373,876

– Contingency (460,000) 0

Membership 1 4,859,000 5,373,876

Events 1,207,747 1,209,662

Sponsoring 2 265,000 337,000

Service fees 60,000 60,000

Bank interest and miscellaneous 1,000 7,047

Other revenue 34,000 37,554

Total Revenue 6,426,747 7,025,139

Personnel costs 3,037,000 3,125,868

Professional services 1,522,410 1,469,854

Housing costs 285,500 281,927

Accommodation events 346,162 309,662

Travel and representation 406,274 360,344

Communications 42,120 56,298

Printing and audio-visuals 151,600 148,946

Various office costs 356,081 369,74 6

Finance costs 22,500 27,990

Provision for doubtful debtors 155,000 100,313

Provisions/other costs 102,100 81,314

Total Expenses 6,426,747 6,332,261

NET OPERATING RESULTS 0 692,877

Projects from previous year completed in current year 90,000 111,434

Total exceptional expenses 90,000 111,434

NET RESULT -90,000 581,443

Notes 1. Budget contingency included in Membership fees given Brexit 2. Conservative sponsorship targets given new locations for some events in 2018 Annual Report 2017/2018 33

ASSETS (¤)

31 DEC 2016 31 DEC 2017

FIXED ASSETS

At cost, less depreciation 37,294 26,392

FINANCIAL ASSETS Overview

Shares in EDC GmbH (33%) 8,329 8,329

CURRENT ASSETS

Receivables 126,539 53,917

Deposits and prepayments 8,481 8,277

VAT 46,084 24,206

Deferred charges 1 522,375 513,661

Accrued income 10,450 1,700 How we operate

Cash at bank 2 4,089,912 4,653,720

TOTAL CURRENT ASSETS 4,803,841 5,255,481

TOTAL ASSETS 4,849,464 5,290,202

LIABILITIES (¤)

31 DEC 2016 31 DEC 2017

GENERAL RESERVES What we do Opening balance 3,350,775 3,651,754

Attribution of profit (+)/loss (-) 300,979 581,443

Closing balance 3,651,754 4,233,198

PROVISIONS 7,250 7,992

CURRENT LIABILITIES

Suppliers 471,419 259,689

VAT 17,338 18,492 Financials Payroll accruals 3 370,062 601,424

Deferred income 4 315,640 157,407

Capital contribution to leasehold improvement 5 16,000 12,000

TOTAL CURRENT LIABILITIES 1,190,460 1,049,012

TOTAL LIABILITIES 4,849,464 5,290,202

Notes 1. 2018 events accommodation deposits 2. Cash balance as of 31 Dec. 2017 higher explained by current year profit (impact of not using the membership contingency) 3. Payroll accruals higher in 2017 vs. 2016 explained by various HR provisions 4. Deferred income includes services (Investors’ Forum) invoiced in 2016/2017 to be delivered in 2017/2018 5. 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 2017/2018

Auditor’s report Annual Report 2017/2018 35 Overview How we operate What we do Financials 36 Invest Europe Annual Report 2017/2018

Auditor’s report continued Annual Report 2017/2018 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