ANNUAL REPORT 2020 Annual Report Annual 2020 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 01
Invest Europe is the association representing “Invest Europe is focused Europe’s private equity, venture capital and on delivering what infrastructure sectors, as well as their investors. members need – effective public advocacy, trusted Our members take a long-term approach to investing in CONTENTS research and insights, privately held companies, from start-ups to established SECTION 1: strong reputation businesses. They inject not only capital but dynamism, innovation OVERVIEW and expertise. This commitment helps deliver strong and sustainable Chair’s message 04 management and growth, resulting in healthy returns for Europe’s leading pension funds Chief Executive’s report 05 stakeholder education, and insurers, to the benefit of the millions of European citizens who SECTION 2: HOW WE OPERATE and unrivalled network- depend on them. Governance structure 08 building opportunities.” Invest Europe aims to make a constructive contribution to policy SECTION 3: Eric de Montgolfier Chief Executive Officer affecting private capital investment in Europe. We provide information WHAT WE DO Read Eric’s report on page 05 to the public on our members’ role in the economy. Our research Political advocacy 16 provides the most authoritative data on trends and developments Industry Data & Research 18 OUR MEMBERS GP Members in our industry. Communication 20
Conferences & events 22 Buyout 161 VC 153 Invest Europe is the guardian of the industry’s professional standards, Industry excellence & training 24 Total demanding accountability, good governance and transparency from Finance & administration 26 314 our members. SECTION 4: FINANCIALS Invest Europe is a non-profit organisation with 25 employees in Financial report 30 LP Members
Brussels, Belgium. Financial statements 31 Inst. Investor 82 Fund of Funds 65 Auditor’s report 34 For more information please visit www.investeurope.eu Total 147
Associate Members
Law Firm Consulting /Advising Total Accounting /Audit 98 Placement Agent 3rd Party Fund Admin Other 02 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 03
SECTION 1 Overview
Chair’s message 04 Chief Executive’s report 05 11 04 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 05
CHAIR’S MESSAGE CHIEF EXECUTIVE’S REPORT Providing cornerstone support Positioning European private equity for the European economy for the opportunities ahead
As I write this, COVID-19 continues to take a devastating human toll across Europe. 2020 presented enormous challenges in the way we live, as well as the way we work. The economic effects of the pandemic will be felt long after the health crisis has subsided. Across the continent, European citizens and companies had to change their actions and behaviour radically.
There will be challenges ahead, but the European The publication of Private Equity at Work by Invest Europe adapted quickly to the evolving That alignment, combined with the full extent of private equity industry is performing strongly Invest Europe last year demonstrated European requirements created by the pandemic. We created our experience, will be called upon as the European and supporting businesses throughout these private equity’s contribution to employment and resources for members and portfolio company Union and countries around the continent turn testing times. job creation – an important element of the “S” in CEOs on managing businesses through challenging their attention away from managing the crisis to ESG. This research will be expanded, refined and times. We increased the number and quality of rebuilding following the pandemic. Paused regulatory In the first half of 2020, portfolio protection was complemented by similar studies covering other our policy calls. Our flagship Investors’ Forum and objectives, including the Alternative Investment Fund a top priority as firms ensured that companies indicators of ESG performance Venture Capital Forum went virtual, as did our Managers Directive review, are now back on the had the liquidity to manage through the immediate in the near future. training, as we intensified our drive to support, table. As European private equity’s voice in Brussels, Thierry Baudon crisis. In the second half, as progress towards vaccines Eric de Montgolfier inform and educate members. we will have a central role in shaping our industry’s Chair accelerated, investment activity rebounded. 2020 Private equity firms themselves will have to measure Chief Executive Officer response and the eventual regulation. data shows that European private equity investments their contribution to society in more detail. They We also looked outwards at the face European amounted to €88bn, the second highest ever figure will need robust KPIs measuring impact on diversity private equity presents to the world. Invest Europe’s Brexit will continue to create challenges and after the 2019 record! It goes to show how flexible, and inclusion, environment and climate, as well as data and research examined private equity’s uncertainty for members across Europe. Our role responsive and accountable this industry can be. governance and transparency. There are increasing contribution to the economy in areas such as will be to ensure that any regulatory changes in calls for measures to be harmonised. I am confident jobs and returns. We took our messages wider, either the UK or the EU do not impede our members Those very qualities are part of the reason behind that our industry can rise to the challenge and make communicating new examples of the industry’s or their portfolio companies from carrying out their private equity’s strong growth. Another is the proven its impact on society transparent and measurable. benefits for people, businesses and investors. business across borders. ability to deliver returns. Since inception, European “Having helped our You can read more about all our activities in this buyouts have returned a net IRR of 15.00% versus The short term will bring challenges, however, and Attention on ESG topics will intensify, as Europe’s “European private members weather Annual Report. 5.84% for the MSCI Europe index, with growth and not only those related to COVID-19. There may be green agenda is accelerated by the need for equity is flexible, venture capital also clearly beating listed equity changes to trade policies, access to talent and access the impact of the At the same time, we remained focused on delivering sustainable investment that drives the economic responsive and indices, according to new Invest Europe data on to capital because of Brexit. Rising protectionism in pandemic, our what our members need longer term – effective recovery. On the one hand, following the creation performance. As a result, European private equity sectors deemed to be of high national interest may public advocacy, education for stakeholders about of the Sustainable Finance Disclosure Regulation, accountable capital under management has increased strongly raise barriers to private equity investment. And the work is looking the industry and improved reputation management, there will be new responsibilities for the private – the very qualities and steadily. In addition, we released a new study end of government financial support risks creating forward at helping and better networking opportunities combined with equity industry. But on the other, there will be a on capital under management and dry powder solvency issues for many businesses. Again, our information sharing – and how, as the association for multitude of opportunities. needed to help (for members only) underlining how our industry industry’s adaptability will stand us in good stead. them seize the all the European private equity industry, Invest The past year has shown us the importance of can support more businesses and jobs. Europe can achieve that. European On a personal note, it has been a great pleasure opportunities being prepared for any eventuality. There will almost companies to With increased scale and success, comes a higher to serve as Chair of Invest Europe during these Europe’s recovery In the course of 2020, we defined a new strategy certainly be more volatility and disruption. The steps profile. That visibility will invite closer scrutiny last two years. This was not only a period of acute with clear objectives and began implementing taken at Invest Europe are creating an association succeed.” and accountability. Regulators’ expectations, as worldwide disruption for economies and societies, will bring.” measures to increase our influence and create an that reflects the complex environment in which well as those of society at large, will increase. but also a period of intense rejuvenation for Invest association that better serves members. The team we operate, and they could not have taken place At the same time, the pandemic has intensified Europe, as you will see from the initiatives detailed was strengthened and reshaped to improve the without the diligent support of, and sage steer from, concerns about rising inequality, increasing debt in this Annual Report. I would like to thank the entire delivery of high-quality services. We made new our Chair, Thierry Baudon – whom I would like to levels and geo-political tensions, among other team under Eric de Montgolfier’s leadership for its hires and promoted from within to build capabilities profoundly thank. These steps will enable us to issues. It has also accelerated changes, including outstanding performance in 2020, responding to the across public affairs, research and communications, help the industry to navigate the challenges ahead, digital transformation, and supply chain shifts with impact of the pandemic and laying the foundations while also improving our training function. shape the rules that govern European private equity increased on and near shoring. for continued success. Invest Europe is uniquely for years to come, and position our members to We integrated the European Private Equity positioned and focused to support and promote take advantage of the investments that Europe’s The proof of the industry’s ability to adapt to Roundtable fully as the Global Private Equity European private equity as never before. recovery will bring. change can be seen in the mainstream adoption Platform, putting all platforms representing the mid- of Environment, Social and Governance (ESG) market, venture capital, limited partners and now considerations. European private equity firms global buyouts all on the same footing. This strategic have overwhelmingly moved from treating ESG move recognises the alignment of our objectives and as a compliance issue to recognising its importance activities on central topics, such as regulation. to society and its role in value creation. 06 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 07
SECTION 2 How we operate
22 Governance structure 08 08 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 09
Governance structure
Invest Europe is the voice of investors in privately-held companies in Europe. BOARD OF DIRECTORS 20201
The industry that we represent includes private equity, venture capital and Chair Thierry Baudon Mid Europa Partners
infrastructure as well as long-term investors such as pension funds and Chair-elect Anne Fossemalle European Bank for insurance companies. Reconstruction and Development (EBRD) Vice-chairs Thierry Baudon Mid Europa Partners Anne Fossemalle European Bank for Invest Europe is committed to representing the Reconstruction and Development (EBRD) GOVERNANCE STRUCTURE Therése Lennehag EQT THIERRY BAUDON ANNE FOSSEMALLE interests of each segment of our membership CHAIR & PAST-CHAIR & VICE-CHAIR CHAIR-ELECT & VICE-CHAIR fully and fairly. To achieve this, members are Ekaterina Smirnyagina Capricorn Partners MID MARKET PLATFORM LIMITED PARTNERS PLATFORM organised into four Platforms dedicated to Invest Europe Members Tom Allen Advent International supporting a specific member group – Venture Chief Executive Geoffrey Bailhache Blackstone Capital, Mid-Market, Global Private Equity Officer Max Bautin IQ Capital Partners and Limited Partners firms. Jean Bourcereau Ventech The Platforms are led by a Council composed Dörte Höppner Riverside Europe Partners BOARD OF DIRECTORS of industry practitioners, elected by the Henry Jackson OpCapita Maximum 3 members from each platform + Chair of the Board + Past-Chair (guest) membership. The Platform Chair is elected Elias Korosis Hermes GPE from members of the Council and is ultimately Christina Pamberg Alcyon Holding responsible for ensuring that the Platform VC COUNCIL MM COUNCIL GPE COUNCIL LP COUNCIL (15 members) (15 members) (13 members) (15 members) Treasurer Max Römer Quadriga Capital THERÉSE LENNEHAG EKATERINA SMIRNYAGINA best represents its sector and membership. VICE-CHAIR VICE-CHAIR Each Platform also puts forward a representative (guest) GLOBAL PRIVATE EQUITY PLATFORM VENTURE CAPITAL PLATFORM to the Public Affairs Executive and the three Committees: the Professional Standards Venture Capital Mid-Market Global Private Limited Partners Committee, Legal and Regulatory Committee Platform Platform Equity Platform Platform and Tax Committee. The Platforms are overseen by the Invest Europe Board of Directors. All segments of our membership are equally represented PLATFORM WORKING GROUPS on the Board of Directors. Ad-hoc working groups for special platform projects
In addition, Invest Europe’s Platforms steer PLATFORM ROUNDTABLES a number of Platform Working Groups, Represent members of certain sub-segments also composed of industry practitioners of one or more platforms and reporting to the Platforms and Board of Directors.
Finally, there are several Platform COMMITTEES Roundtables representing certain Professional Public Affairs Legal and Regulatory Tax sub-segments of one or more platforms. Standards Committee Executive Committee Committee
Representative Communications Group Advisory Group
Notes 1. Composition as of 31 December 2020 10 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 11
Governance structure continued
Four platform groups GOVERNANCE STRUCTURE GOVERNANCE STRUCTURE Members are organised into four Platforms dedicated to supporting a specific member group – Venture Capital, Venture Capital Mid-Market Global Private Limited Partners PLATFORM ROUNDTABLES1 PLATFORM WORKING GROUPS1 Platform Platform Equity Platform Platform Mid-market, Global Private Equity and Limited Partners. PLATFORM ROUNDTABLES PLATFORM WORKING GROUPS – Represent members of certain sub-segments of one or – Platform Working Groups are ad-hoc groups set up to manage more Platforms. special projects for the Platforms and are coordinated by – Invest Europe’s Platform Roundtables are cross-Platform initiatives the association. VENTURE CAPITAL PLATFORM COUNCIL1 MID-MARKET PLATFORM COUNCIL1 which are open to members from all segments. – Platform Councils may set up working groups at any time. Invest Europe Ekaterina Smirnyagina Capricorn Partners Invest Europe Thierry Baudon Mid Europa Partners – Each Platform is supported by sub-groups which deal with Vice-chair Vice-chair specific industry sectors.
Members Ingrid Teigland Akay Hadean Ventures Members Catherine Brossard Cerberus Capital Management Max Bautin IQ Capital Partners Dörte Höppner Riverside Europe Partners Jean Bourcereau Ventech Henry Jackson OpCapita Single Family Office (SFO) Roundtable PLATFORM WORKING GROUP Dina Chaya NeoMed Management Martin Kõdar Baltcap The SFO Roundtable represents the interests of the SFO community Anna Daviau Nauta Capital Juha Peltola Vaaka Partners within Invest Europe. It works to attract new SFO members and Central and Eastern European Taskforce Janke Dittmer Gilde Healthcare Partners Dariusz Pietrzak Enterprise Investors provides networking opportunities. This taskforce undertakes initiatives specifically aimed at the development and promotion of private equity and venture capital in the Christian Ehrenborg Ingka GreenTech part of Fabien Prévost Omnes Capital Chair Christina Pamberg Alcyon Holding Ingka Investments Max Römer Quadriga Capital Central and Eastern Europe (CEE) region. Among its accomplishments Hakan Goker Merck Ventures Michele Semenzato Wise SGR is its annual Central and Eastern Europe private equity statistics report. Corporate Venture Capital (CVC) Roundtable Christoph Jung HV Capital George Swirski Abris Capital Partners Chair Bill Watson Value 4 Capital Nenad Marovac DN Capital Frans Tieleman Eurazeo The CVC Roundtable gives a voice to the increasingly influential Patrick Polak Newion Partners Nino Tronchetti Provera Ambienta SGR corporate venture capital community. Its membership includes leading companies who are active in Europe and it has strong ties with similar Pauline Roux Elaia Partners Kristof Vande Capelle Gimv COMMITTEES1 Rainer Strohmenger Wellington Partners networks in other countries. Radboud Vlaar Finch Capital Chair Christian Ehrenborg Ingka GreenTech part of Ingka Investments Professional Public Affairs Legal and Regulatory Tax Standards Committee Executive Committee Committee Growth Capital Roundtable GLOBAL PRIVATE EQUITY PLATFORM COUNCIL1 LIMITED PARTNERS PLATFORM COUNCIL1 The Growth Capital Roundtable provides a platform for Invest Europe Representative Communication Invest Europe Therése Lennehag EQT Invest Europe Anne Fossemalle European Bank for Reconstruction members that are growth capital investors. The Roundtable facilitates Group Advisory Group Vice-chair Vice–chair and Development (EBRD) the discussion and sharing of best practices among its members and seeks to promote growth capital as an asset class to institutional Members Jonas Agesand Warburg Pincus International Members Jean-Philippe Burcklen European Investment Fund investors. PROFESSIONAL STANDARDS COMMITTEE (PSC)1 Tom Allen Advent International Jesse de Klerk Stafford Capital Partners Chair Christian Strain Summit Partners Geoffrey Bailhache Blackstone Louis Flamand MetLife Investments The PSC ensures that Invest Europe is at the forefront of creating Ludo Bammens Kohlberg Kravis Roberts & Co David Hobson GIC Infrastructure Roundtable and maintaining strong professional conduct guidelines and working Filippo Cardini TowerBrook Capital Rune Jepsen QIC The Infrastructure Roundtable provides a forum for our infrastructure practices for the industry in Europe. The Committee makes direct Clare Copeland The Carlyle Group Elias Korosis Hermes GPE members to address the policy issues affecting their operations recommendations to the Invest Europe Board about the strategy, policy Christopher Crozier Permira Advisers Sofie Kulp-Tag Skandia and to collect data on their investment activities to inform future and practicalities relating to industry guides and standards, including Bart Gombert Bain Capital Europe Merrick McKay Aberdeen Standard Investments communications. responsible investment and investor reporting. The PSC relies on Richard Howell PAI Christina Pamberg Alcyon Holding the input and expertise of its two sub-committees: the Invest Europe Carsten Huwendiek CVC Philipp Patschkowski NB Alternatives Advisers Chair Alain Rauscher Antin Infrastructure Partners Responsible Investment Roundtable and the Invest Europe Working Henrik Johansson Nordic Capital Mauro Pfister Capital Dynamics Group on Accounting Standards, Valuation and Reporting. Vanessa Maydon Cinven Marc Roijakkers Blue Sky Group Turnaround & Operational Improvement Roundtable Robert Schlachter LGT Capital Partners The Turnaround Roundtable aims to raise awareness of the role of Chair John Renkema APG Asset Management Stephen Ziff Coller Capital these specialised investors and promote the asset class to institutional investors. Vice-chair Martin Kõdar BaltCap Co-chair Henry Jackson OpCapita Platform Representatives Martin Kõdar BaltCap Co-chair Catherine Brossard Cerberus Capital Management Marc Roijakkers Blue Sky Group Sabine Vermassen Capricorn Partners Members Daniel Gregor Allianz Capital Partners Erwann Le Ligné 2 Eurazeo Tony Lissaman 3i Group Notes Ryan McNelley 3 Duff & Phelps 1. Composition as of 31 December 2020 Karen Sands 4 Hermes GPE 2. Vice-chair, Responsible Investment Roundtable 5 3. Chair, Accounting Standards, Valuation & Reporting Working Group Maaike van der Schoot AlpInvest Partners Notes 4. Vice-chair, Accounting Standards, Valuation & Reporting Working Group Simon Witney Travers Smith 1. Composition as of 31 December 2020 5. Chair, Responsible Investment Roundtable 12 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 13
Governance structure continued
PUBLIC AFFAIRS EXECUTIVE (PAE)1 LEGAL AND REGULATORY COMMITTEE1 REPRESENTATIVE GROUP1 COMMUNICATION ADVISORY GROUP (CAG)1
The PAE is the leading decision-making body for Invest Europe’s political The Legal and Regulatory Committee deals with legal and regulatory The Representative Group consists of representatives from all of The Communication Advisory Group (CAG) deals with reputation advocacy work on those EU files that have a direct impact on all market matters affecting European private equity, venture capital and Europe’s national private equity and venture capital associations. management and communication-related issues affecting European segments of the European private equity industry. infrastructure. Cooperating closely with the national associations, the It discusses industry and policy issues at both national and private equity and venture capital. The CAG pools knowledge and Committee provides expert advice, in-depth argumentation and concrete European level. information. and collectively works to expand and deepen the Chair Thierry Baudon Mid Europa Partners evidence to Invest Europe and its members, and advises Invest Europe’s understanding and perception of private equity in Europe amongst key Invest Europe Chair wider public affairs activities by supporting the PAE. Evgeny Angelov Bulgarian Tjarda Molenaar stakeholders, including the media. Private Equity and Venture Nederlandse Vereniging van Platform Armance Bordes Sofinnova Partners Chair Gilles Dusemon Arendt & Medernach Capital Association (BVCA) Participatiemaatschappijen (NVP) Chair Vanessa Maydon Cinven Representatives Representing the Invest Europe Venture Capital Platform Irina Anghel-Enescu Romanian Michael Moore British Private Martin Sjölund Summa Equity Vice-chair Ed Hall Goodwin Procter Vice-chair Stephanie Fraser HarbourVest Partners Representing the Invest Europe Mid-Market Platform Private Equity Association Equity and Venture Capital Platform Lionel Bergeron Siparex (ROPEA) Association (BVCA) Members Ludo Bammens Kohlberg Kravis Roberts & Co Partners (KKR) Clare Copeland The Carlyle Group Representatives Babett Carrier Cinven Ingrid Beyer Hadean Ventures Representing the Invest Europe Global Private Equity Simon Powell Advent International Paulo Caetano Associação Barbara Nowakowska Polish Nick Board CVC Advisers Limited Platform Benedikt Sudbrock Acton Capital Portuguesa de Capital de Risco Private Equity and Venture Ed Bridges FTI Consulting Sebastian Ippisch Allianz Capital Partners David Thompson Aberdeen Standard Investments e de Desenvolvimento (APCRI) Capital Association (PSIK) Virginie Christnacht Eurazeo Representing the Invest Europe Limited Partners Platform Isabella de Feudis Swedish Maurice Pedergnana Swiss Coralie Cornet Argos Wityu Regional Ana Sofia Batista Abreu Advogados Tom Eckersley Hg Private Equity & Venture Private Equity & Corporate Representatives Stephanie Biggs Travers Smith Julie Foster Warburg Pincus International Regional Eric de Montgolfier Véronique De Hemmer Gudme Clifford Chance Capital Association (SVCA) Finance Association (SECA) Jason Ghassemi Cerberus Capital Management Representatives Representing Invest Europe Fabian Euhus SMP Pierre Demaerel Belgian Stéphane Pesch Luxembourg Christoffer Gundersen Argentum Fondsinvesteringer Kees Groffen De Brauw Blackstone Westbroek Carsten Huwendiek CVC Capital Partners Michael Moore Venture Capital & Private Private Equity and Venture Capital Charles-Antoine Leunen Linklaters Bryce Keane Atomico Partners Representing the BVCA Equity Association (BVA) Association (LPEA) Jörg Menzer Menzer & Bachmann - Noerr Fiona Kehily NB Alternatives Advisers (British Private Equity & Venture Capital Association) Jakob Mosegaard Larsen Mazanti-Andersen Korsø Alexis Dupont France Invest Zuzana Picková Czech Private Andrew Kenny Carlyle Ulrike Hinrichs Jensen Equity and Venture Capital Tor Krusell Altor Equity Partners AB Anna Gervasoni Italian Private Representing the BVK Isabel Rodríguez King & Wood Mallesons Association (CVCA) Stephen Lewis Blackstone (German Private Equity and Venture Capital Association) Enzo Schiavello Legance Equity, Venture Capital and Private Steve McCool Canada Pension Plan Investment Board Jyrki Tähtinen Borenius Attorneys Debt Association (AIFI) Ibolya Pintér Hungarian Amanda McCrystal Pantheon Ventures Alexis Dupont Patricia Taylor William Fry Venture Capital and Private Ingibjörg Meyer-Myklestad Argentum Asset Management Representing France Invest Ulrike Hinrichs German Private Philippe Trolez Omnes Capital Equity Association (HVCA) James Murray Bridgepoint Equity and Venture Capital Patricia Volhard Debevoise & Plimpton Nina Nornholm EQT Partners AB Carl Johan Zimdahl Mannheimer Swartling Association (BVK) Gerda Sakalauskaité Lithuanian Matthieu Roussellier PAI Partners Committee Gilles Dusemon Arendt & Medernach Private Equity and Venture Capital Representatives Representing the Invest Europe Legal and Regulatory Eleni Kolofotia Hellenic Katarina Sallerfors APAX Partners Guest Wendy Ng Antin Infrastructure Partners Association (LT VCA) Committee Venture Capital Association Ninja Struye de Swielande Lakestar Advisors (HVCA) Pia Santavirta Finnish Venture Nina Suter Permira Advisers Marco de Lignie Loyens & Loeff Eleanor Warnock Atomico Partners Capital Association (FVCA) Representing the Invest Europe Tax Committee TAX COMMITTEE1 Ján Kutan Slovak Venture Capital and Private Equity Association Henrik Sass Larsen Aktive Ejere The Tax Committee deals with tax matters affecting European private (SLOVCA) Guests Patricia Volhard Debevoise & Plimpton Thomas Tiroch Austrian Private Representing the Invest Europe Financial Services equity, venture capital and infrastructure. Cooperating closely with Sarah-Jane Larkin Irish Venture Equity and Venture Capital and Regulatory Working Group the national associations, the Committee provides information, expert Capital Association (IVCA) Organisation (AVCO) Phil Bartram Travers Smith evidence and advice to Invest Europe and its members, and advises Representing the Invest Europe Financial Services Invest Europe’s wider public affairs activities by supporting the PAE. Kadri Lindpere Estonian Ellen Amalie Vold Norwegian and Regulatory Working Group Private Equity and Venture Venture Capital & Private Equity Chair Marco de Lignie Loyens & Loeff Capital Association (EstVCA) Association (NVCA) Vice-chair Édouard Chapellier Linklaters Mirna Marovic Croatian Private José Zudaire Asociación Española Equity and Venture Capital de Capital, Crecimiento e Inversión Platform Andrew Collier Advent International Association (CVCA) (ASCRI) Representatives Clare Copeland The Carlyle Group Richard Thomson PwC Anita Matisone Latvian Private Thijs van Dongen European Investment Fund Equity and Venture Capital Association (LVCA) Regional Mikko Alakare Castrén & Snellman Attorneys Representatives Angelo Bonissoni CBA Studio Legale e Tributario Alexandra Courela Abreu Advogados Ewa Grzejszczyk Deloitte Tim Hughes PwC Patrick Mischo Allen & Overy John Murphy PwC Daniel Noe Harboe PwC Rodrigo Ogea Baker McKenzie Christian Schatz Flick Gocke Schaumburg Per Stenbeck EY Nick Van Gils EY Dieter Wirth PwC
Notes Guest Timur Celik Antin Infrastructure Partners Notes 1. Composition as of 31 December 2020 1. Composition as of 31 December 2020 14 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 15
SECTION 3 What we do
Political advocacy 16 Industry Data & Research 18 Communication 20 Conferences & events 22 Industry excellence & training 24 Finance & administration 26 3 16 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 17
Political advocacy
2020 was initially due to be the year of the We set up seven Task Forces to respond to Highlights 2020 2021 priorities first initiatives of the European Commission’s mammoth consultations on the reviews of 29 2019-2024 legislative agenda. But from the Alternative Investment Fund Managers • Pushed for the right EU emergency • Ensure well-functioning and March it became clear that, as for many Directive (AIFMD) and the European Long- response and support for businesses relevant fund management rules, consultation responses businesses across the globe, the Commission Term Investment Funds framework (ELTIF). impacted by COVID-19 limiting the intrusive impact of would turn its attention away from expected On investor regulation, we engaged with and comment letters to • Substantially influenced the content modifications made to the AIFMD plans to focus on COVID-19 mitigation efforts. EIOPA and the European Commission to EU and international successfully influence the criteria determining of the Capital Markets Union agenda • Place industry at the centre of For months, our focus as a team was to access to the preferential long-term equity • Regularly informed our members the policy debate on EU recovery, policymakers ensure that policymakers were aware of category ahead of the Solvency II review – pushing for rules that incentivise Martin Bresson the impact of the crisis on our industry, in the midst of the COVID crisis launching two new Task Forces to prepare private equity investments in Public Affairs Director and so be able to take decisions that would through dedicated member guides for the upcoming regulatory effort. We also businesses make it easier for our members and their and uniquely comprehensive commented on consultations including those portfolio companies to continue operating. resource libraries • Engage with stakeholders on for the Capital Markets Union, leverage limits, 9 We engaged with policymakers on a wide issues arising from Brexit, state aid, insolvency rules, KID PRIIPS, the • Shaped the outcome of EIOPA’s advice range of topics, from the scope of state aid “We are successfully non-financial reporting directive and, last but on Solvency II and guided members including cross-border activities policy calls on hot topics measures to valuation rules. Meanwhile, we by no means least, the renewable sustainable on investor reporting issues and delegation structures building Invest sought to provide our members with relevant (with a 3X increase in finance strategy. • Intervene in the upcoming Europe’s position as and detailed information on the various • Made extensive preparatory work on number of participants) COVID measures that were introduced in In that ever-growing shopping list of EU reviews of regulatory initiatives, legislative initiatives that impact the key interlocutor all Member States. To accomplish this, we legislative actions, sustainable finance engaging with MEPs, attachés and investors’ ability to commit capital organised more dedicated policy calls and is a critical item. To face the climate Commission officials to private equity, including the for the industry crisis, regulators have launched the reviews of ELTIF, MiFID, produced more tailored briefings than during • Built a sector-wide coalition and the last ten years. most fundamental overhaul of EU fund Solvency II and CRD/CRR and the foremost ensured postponement of the DAC-6 11 management regulation since the AIFMD was As the dust of the first lockdown settled, • Enhance actions on the broad set up a decade ago. With the support of our application deadlines relevant partner we engaged with EU lawmakers on the taxation agenda, ensuring that committees, we represented the views of our • Published seven key major guides on thought leadership pieces scope of the recovery plans and called for members before EU lawmakers, ensuring that funds’ contribution to economic for policymakers, equity to be a major part of the support COVID-19 measures, ESG, the specificities of our industry are accounted growth is recognised by programmes. Meanwhile, we looked at the cross-border distribution of funds, as we seek to achieve for in the legislative debate. Meanwhile, we key stakeholders measures taken, as a direct result of COVID, Brexit, Foreign Direct Investments, provided guidance and support to members maximum impact for to further scrutinise, and in some cases limit, Solvency II and DAC-6 who face the application of the first rules to be foreign direct investments. We enhanced introduced, notably the Sustainable Finance our advocacy efforts.’’ the capabilities of our Tax Committee to Disclosure Regulation (SFDR). face the inevitable upcoming pressure on tax structures. Finally, we intervened in Finally, one must not forget that 2020 also the policy debates around the legislative marked the last year during which the UK “quick-fixes”, introduced to make it easier for was operating under EU law. As a European
investors to support businesses, obtaining association, in the broadest sense of the word, confirmation from the European Commission we continued to defend the importance of that investor categorisation should be international cross-border flows of capital, reconsidered in the upcoming MiFID review. while giving our members the risk mitigation tools to act, even in the case of a very But, while front and centre, COVID-related narrowly avoided no-deal Brexit. You can efforts should not mask the intense work expect Brexit to remain an important part of we undertook to prepare for the dark clouds the agenda, as it will impact upcoming reviews accumulating on the legislative horizon. and continue to lead to uncertainties we will Regulatory initiatives are shaped long before BREXIT have to mitigate. Technical and legal implications for private equity and venture capital proposals emerge – and 2020 marked the beginning of a legislative marathon that will Thought leadership, direct advocacy and stretch until at least 2023. member guidance will remain the top three priorities for our team in the coming months as we face the bumpy road ahead. 18 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 19
Industry Data & Research
Despite all the disruption of 2020, Invest Thanks to our new and extensive existing Highlights 2020 2021 priorities Europe accelerated and expanded cutting- projects, Invest Europe’s Research team 1,400+ edge research and data work to empower our continued to improve the level of services • Accelerated and expanded our • Publish new analyses that are advocacy efforts and provide our members to our members while providing high- cutting-edge research and data relevant for Invest Europe members, European venture capital with essential information on the industry. quality and robust data to support the gathering work including reports on transaction communications and public affairs teams in and private equity firms Over the course of last year, the research value and European capital under their work. In that sense, we honoured our • Launched Private Equity at Work, team added several strings to its bow. management and dry powder covered by EDC in 2019 mandate to serve both immediate member the first ever report underlining Our brand new performance benchmarking demands and long-term industry objectives. the industry’s key role in employment • Publish second Private Equity report demonstrated European private Julien Krantz and job creation in Europe at Work report, expanding data equity returns relative to public markets In 2021, we aim to build on our ground- capture based on a larger Research Director using a public market equivalent breaking reports to provide even more • Released new performance number of fund managers methodology. We also collaborated with evidence of private equity’s contribution to benchmark report demonstrating consultancy firm Arthur D. Little on a new the European economy and society. As with European private equity returns • Foster further collaboration 86% market sentiment survey which combined the swift launch of the interactive COVID-19 outperformance relative to with our external partners “We aim to extend the views of GPs and LPs and assessed the resource library in March 2020, we aim to public markets including ADL, the European of €782bn European capital impact of COVID-19 on the industry. support our members in their understanding • Increased understanding of Investment Fund, Atomico under management tracked Invest Europe’s sphere of the key issues impacting the private equity Even more importantly, 2020 saw the private equity returns metrics and academics and venture capital industry today. of influence by culmination of more than a year of data with the publication of an • Initiate the collection of ESG providing trusted data collection and analysis for our first ever in-depth study on public market metrics to capture the progress report underlining the industry’s key role Our publications equivalent methodologies of the industry on social and and informed analysis in employment and job creation, entitled environmental impact “Private Equity at Work”. In this report, Private Equity at Work report • Collaborated with Arthur D. Little 38 and demonstrating Invest Europe proudly demonstrated that The Performance of on a market sentiment survey, • Continue expansion of data our industry is not just part of the European Euopean Private Equity report taking the pulse of GPs and LPs coverage to more European countries private equity’s economy, but a cornerstone of it, employing in the context of the impact of managers and continue to some 10.5 million people at portfolio Capital Under Management COVID-19 on private equity improve the EDC platform positive impact companies – 4.5% of the total European & Dry Powder 2019 report on the European workforce – while creating jobs five times faster than average for European companies economy and society.” as a whole. While developing and launching these new RESEARCH
Investing in Europe: data reports, Invest Europe continued to Private Equity activity 2019 The Performance of European provide the most authoritative source of data RESEARCH
Investing in Europe Private Equity Activity H1 2020 Private Equity on private equity and venture capital activity RESEARCH Private Equity Benchmark Report 2019 Benchmarking at Work in Europe. Our flagship publication “Investing Public & Private Markets Employment & job creation across Europe with the Public Market in Europe: Private Equity Activity 2019” Equivalent (PME)
captured the fundraisings, investments, Report on methodologies and divestments of more than 1,400 fund managers across Europe and gave a clear
overview of the state of our industry. October 2020
Meanwhile, our Central and Eastern Europe September 2020 statistics report provided a detailed overview October 2020 of the activity in the region. Moreover, with our semi-annual data collection exercise, we produced a concise-yet-detailed snapshot of 10,000+ 423 activity during the first half of 2020. downloads of our Activity reference documents Data reports in 2020 assembled for the COVID-19 resource library 20 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 21
Communication
It’s a long-standing truism that people can’t Our support for Invest Europe’s events Highlights 2020 2021 priorities solely relate to numbers, they need a story. and training team in communicating their 12 incredible transition from the physical to the • Reshaped Invest Europe’s • Deepen and expand member This is true of the private equity industry, virtual was mirrored by our close interactions one that has long prided itself on unmatched communication strategy to maximise communications to deliver with the public affairs team, through event publications aimed at our performance, long-term investments, the impact of existing resources, greater value for members presence and participation, media outreach full range of stakeholders personal and financial commitments and focusing on thought leadership and engaging with key stakeholders online. • Reshape communications value generation across Europe. The need to increase visibility and strengthen strategy to maximise impact to develop and activate a communications And last, but by no means least, our our voice of existing resources strategy that can represent, and work membership will also observe our new Eric Drosin • Developed and activated a new, • Develop thought leadership for, Invest Europe’s entire ecosystem of communication strategy at work across our positive narrative that works for all Communication Director members was our big deliverable of 2020. member communications and platforms, positioning to increase Invest members, based on performance +140,000 Built into it was an ambition to be nothing whether that be our must-read weekly Europe’s visibility and strengthen and the industry’s social and economic short of than the preeminent thought leader newsletter – launched in April 2020, and over our voice on relevant topics unique website users contribution for our industry. an uninterrupted year in circulation by the • Enhance digital communications in 2020 time you read this – the recent relaunch of an • Reached a potential audience of several “We make the case You can see our achievements in our online strategy to broaden our reach action-oriented Communications Advisory presence and performance (where our hundred million worldwide through and reinforce our messages for why European Group or the communication around EPER’s engagement levels are regularly five times over 800 interactions with journalists integration into our association. private equity and the norm). You can also identify its workings and 200 media articles secured venture capital in how we now consistently collaborate with Here’s to doing more, together. • Deepened and expanded member Daily & our research colleagues. We created a new communications, delivering essential has a critical role narrative, design and promotion for our and timely information to members, weekly leading-edge data and insights in the ground- including the weekly newsletter breaking “Private Equity at Work” report. to play in Europe’s and an interactive COVID-19 library member newsletters This report demonstrates how data supports economy and society, a higher narrative, designed to promote a • Enhanced digital communications and actively manage better understanding about the industry and online presence, reinforcing our and its contribution to growth, jobs and message, reaching new stakeholders Social media engagement the industry’s the economy. and achieving engagement levels reputation amongst five times above the norm 0.74% 2.78% • Worked across Invest Europe to Twitter 2020 LinkedIn 2020 key stakeholders, produce essential publications, (2.5x the Twitter (5.6x the LinkedIn including the media.” including Private Equity at Work, average of 0.3%) average of 0.5%) #GoodStories digital initiative increasing awareness and understanding of private capital’s
September 2020 Launched in the wake of the COVID-19 pandemic, Invest Europe’s value to Europe’s economy
Private Equity #GoodStories digital initiative has been recognised no less than four times at Work
for its digital excellence in the fifth edition of the Cambre Associates European Employment 2018 Employment — The facts RESEARCH Private equity is a cornerstone of 4.5% the European economy present 10.5 million of Europe’s total 234 million Associations Digital Report 2020, a respected publication which identifies worked in private equity workforce in every region and every major European employees Source: Eurostat business sector across the continent. backed companies in 2018 Private Equity From technology and life sciences Employment by type of private equity firm innovative practices, emerging trends and digital champions. start-ups to manufacturing small and medium-sized enterprises (SMEs) and large consumer-focused at Work multinationals, private equity and venture capital backed companies support millions of high-value jobs Employment & job creation across Europe driving prosperity and growth in the process. Private equity supports 10.5 million jobs in Europe, making it a major employer in most industry sectors.
22,659 backed by companies in Europe private equity in 2018 across all industry sectors and all regions
+ + Others* Venture backed 70 11 130 Growth backed 558,984 jobs Buyout backed jobs 14,500 jobs 419,271 2,094,198 of which were SMEs employing 7,409,723 initiatives countries posts on Twitter 874,481 people
#CAMBRETALKSDIGITAL Note * Others includes Rescue/Turnaround and Replacement capital Employment data is based on an extrapolation of a sample EUROPEAN and LinkedIn of 5,788 portfolio companies ASSOCIATIONS DIGITAL REPORT
September 2020 22 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 23
Conferences & events
2020 got off to a flying start with our largest data and insights, top-level speakers, combined Highlights 2020 2021 priorities Investors’ Forum – Virtual ever Chair’s dinner in London, where more with opportunities for delegates to share their than 120 guests enjoyed an evening of experiences in dealing with COVID-19, and • Ensured seamless transition • Continue to deliver conferences discussion and networking in the elegant anticipate future trends and consequences in rom physical to virtual conferences that focus on the latest industry setting of the National Gallery. Little did we the coming years. Small-scale roundtables, 268 for the 2020 Investors’ Forum data, LP/GP exchange and imagine then what the remainder of the year held under Chatham House rules, created and Venture Capital Forum, networking opportunities delegates held in store for us all, or that our London a rare opportunity to discuss topics frankly bringing together LPs and GPs event would be the last opportunity of the among peers • Adapt formats in virtual setting for three days of online debate year to meet in person. for highest value and impact In a year marked by turbulence and an and discussion, as well as the for delegates Patricia Delaney When health and safety risks became clear absence of contact with peers, Invest release of new data Venture Capital Forum – Virtual Membership, Events & Training Director and travel restrictions were imposed, we Europe’s virtual conferences were highly • Return to in-person events • Hosted the largest ever Chair’s quickly made the strategic decision to ensure appreciated for creating a setting for LPs and as soon as conditions permit continued access for members to the industry GPs to connect and exchange experiences. dinner in London, attended by more than 120 guests 157 insights, LP/GP engagement and development LP attendance exceeded that of GPs and in February “We will continue opportunities that our annual conferences connections between delegates continued for delegates provide. The severity of the impact of many weeks following the conference days. to adapt to changing COVID-19 and the potential consequences for Although none of us welcomed the many member firms made the need to hear circumstances, challenges of this past year, the from industry experts, examine the latest data circumstances of the pandemic forced us all and engage with peers all the more important. ensuring that to adapt and innovate rapidly, accelerating Member firms were also faced with the reality 120+ our development of virtual events. The members have that in-person networking opportunities experience of this challenging year has evaporated, yet LPs and GPs still needed to guests at the allowed us to see when a virtual setting opportunities connect and network. can be valuable and where in-person events last Chair’s dinner to learn, debate In early March, given the full impact of are essential. We understand that it in London the pandemic and three weeks before is possible to be effective in sharing and connect.” the scheduled date, we announced the information and even engaging in live postponement of our annual Investors’ discussion in a virtual setting. But this year Forum in Geneva to October, before has also highlighted the irreplaceable value ultimately taking the decision to host it of in-person networking opportunities that as a virtual conference. Faced with the Invest Europe conferences create. organisation of our Venture Capital Forum We all look forward to a return to meeting also as a virtual conference, we took in person at events as soon as possible. In advantage of the unusual circumstances the meantime, we will continue to adapt to to host the two conferences back-to-back, the changing restrictions, hosting adapted creating an overlap between the events that virtual events, with a clear goal of returning brought the audience of over 400 investors to physical conferences as soon as health and and fund managers together for a number safety conditions permit. of key sessions. What a great day that will be! We were determined to ensure the high quality of content for which Invest Europe conferences are renowned. Each forum delivered a programme that included the latest industry 24 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 25
Industry excellence & training
Invest Europe strives to develop initiatives Highlights 2020 Although it presented a number of that are forward-looking, adequate and suited challenges, the onset of the COVID-19 Highlights 2020 to the needs and capabilities of our diverse pandemic also presented opportunities • Increasingly positioned Invest Europe • Successfully converted all our membership as well as reflecting the high for change. In training, this resulted in as a key interlocutor with the European practitioner-led training programmes degree of professionalism the industry aspires institutions on EU Sustainable Finance an acceleration of our plans for remote to and stakeholders expect. learning options to ensure members’ to virtual, carefully adapting content, • Pushed the development of the needs for continued training were met. timing and structure to maintain One of the priorities was the continued content for the first Invest Europe Climate quality and facilitate interactivity implementation of the Invest Europe Change Guide over the finishing line; the By June, all our practitioner-led training Professional Standards Action Plan, aimed Guide will be launched in mid-March 2021 programmes had moved to a virtual format, • Reached a wider audience and more Erika Blanckaert Elena Vasileva members through the new online at enhancing and tailoring our standards • Completed four of 11 action points with content, timing and format adapted Senior Public Affairs Manager and guides, based on the principles of Training Manager to the new setting, enabling us to run training format, exceeding expected within the Professional Standards proportionality, flexibility and adaptability. 13 courses throughout the year. participant numbers for online Action Plan, and made good progress courses “Invest Europe is Four of the 11 actions were delivered in 2020 on all other points “Invest Europe is The new structure was carefully designed and defining progress was made on two others, • Established a special working group to create opportunities for participants to with all initiatives to be delivered within the of leading GPs, LPs and advisers collaborate, exchange information and share 2021 priorities committed to being agreed timeframe. Together, these actions will continuing to ideas throughout each programme. to develop succinct guidance for culminate in a revised Professional Standards • Expand training offering to add new at the forefront of the members on how to apply new innovate and expand The virtual format made our training Handbook, to be published later in 2021. topics and areas of expertise sustainability agenda, ESG disclosure rules training activities, programmes accessible to a wider audience Invest Europe also finalised the content and participant numbers actually exceeded • Increase access to training through shaping the debate for its very first Climate Change Guide with new courses our expectations – a clear sign that there is a online courses and launch of (CCG) – a new web-based guide, published 2021 priorities need and demand for this level of training. e-learning hub and developing in March 2021. The CCG provides practical planned, as well as support to members at the beginning of their • Publish a series of Climate Change cutting-edge guidance climate change journey who seek to start Guides, with versions for Beginners, the addition to help members stay integrating climate change considerations Intermediates and Experts of an on-demand Training into their investment processes. The plan is • Publish a fully revised Professional on top of the rapidly to publish an “Intermediate” and an “Expert” Standards Handbook e-learning hub.” version before the end of 2021, providing • Develop a comprehensive sustainable evolving regulatory more advanced and sophisticated guidance finance strategy and continue to shape for members who have already gained environment.” the policy debate, demonstrating the 13 experience in addressing climate change. role our industry can play in helping Another key related workstream is the EU’s set sustainability goals training courses Sustainable Finance agenda. We responded • Continue to support our members on to a range of public consultations, covering new EU sustainability rules, in particular 7 issues such as the review of the Non-Financial in the field of ESG disclosures Reporting Directive and the new Sustainable • Continuously broaden the scope 286 28 consultation responses Finance Disclosure Regulation. We positioned and comment letters, Invest Europe as a key interlocutor in the of our professional standards to debate and offered practical guidance to ensure that the industry remains at participants countries directly related to members on the new regulatory framework the forefront of professional conduct bold sustainability they will need to operate in. & ESG disclosures Inevitably, the global COVID-19 crisis has also led to challenges for fund managers in providing their investors with timely and 346 useful information about the performance and financial condition of underlying investments. members participated Following the IPEV Board’s Special Valuation on the IPEV Board’s Guidance in March 2020, Invest Europe Special Covid-19 Valuation organised a webinar to address the remaining uncertainty and to offer members further Guidance Member insights on how the guidelines could be followed. Policy Call 26 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 27
Finance & administration
Like many businesses and organisations Despite the evident challenges of maintaining Highlights 2020 2021 priorities across Europe and beyond, Invest Europe the quality of our work throughout the year, 24 had to contend with restrictions stemming we managed to go further and implement • Reinforced the Invest Europe • Improve working efficiency from COVID-19 that severely impacted the strategic and operational changes that will team with seven new hires and through office move aimed at full-time employees way we operated on a daily basis. In March, make Invest Europe stronger for the future. two internal promotions in 2020 reducing use of space and costs in reaction to rising cases in Belgium, we took During 2020, we strengthened our bench, resulting in full staffing and • Continue to strengthen Invest the decision to shut our office to protect our hiring Eric Drosin, a former journalist and stronger expertise staff and their families, implementing remote corporate and association communication Europe team through targeted 14 working for all our employees. specialist, to lead the communications team • Appointed new Director of appointments in key identified roles in April. His appointment followed the hiring Communication, completing Katia Rabinovitch While these measures changed how we work, • Improve processes and systems nationalities of Martin Bresson to head up public affairs an experienced executive Finance & Administration Director they did not affect the quality of what we do, to engage directly with membership at the start of the year. Not only did we management team or the service provided to members. Prior complete our senior management team, to the pandemic, we had updated our IT • Integrated the member firms but we also promoted from within and systems, migrating much of our workflow of EPER (the European Private recruited externally to fill out our staff 16 to the cloud, thus ensuring that staff could “Throughout this with experienced project managers able Equity Roundtable) fully into Invest work remotely both securely and effectively. to lead and deliver high-quality services. Europe with the creation of the languages challenging year, We equipped our team with all the hardware Global Private Equity Platform we strengthened our and software they needed to work from We achieved other milestones in 2020. home and automatically redirected office In November, we completed the process team and enhanced phones to alternative lines to ensure to integrate European Private Equity seamless continuity. Roundtable (EPER) fully into the association 58% our structure to as the Global Private Equity Platform. EPER becomes Invest Europe’s While Invest Europe employees were able The change was approved unanimously by female to return to the office after the initial ensure the delivery both the Invest Europe and EPER Boards. Global Private Equity Platform lockdown ended, this working flexibility It brings Invest Europe’s 21 large buyout of services of the enabled us to react quickly and shift back The European Private Equity Roundtable (EPER) was fully integrated into Invest firm members legally and practically under to remote working as and when national Europe in 2020, becoming the new Invest Europe Global Private Equity Platform. highest standard the same umbrella as the platforms for our restrictions and staff safety demanded. The shift unites all members under one roof and reinforces Invest Europe position 42% Limited Partners, Venture Capital and Mid- to all members.” as the sole representative of the entire European private equity ecosystem. Nor did the pandemic jeopardise our Market member segments. male financial position. In recent years, Invest It recognises the alignment of objectives and activities for all Invest Europe In doing so, we recognised the alignment Europe has built up a strong balance sheet, members, as well as the benefit of closer co-operation and integration on key of all members on issues, such as regulation, enabling us to weather uncertainty while regulatory topics and other issues important to the private equity industry. and reinforced Invest Europe’s position continuing to invest in the services that as the sole representative for the entire members expect and demand. While the European private equity ecosystem. shift online for our conferences, events, and training did reduce the income generated for the association, cost savings as travels and member events that could not be organized under the pandemic lessening the impact. €5.9m €0.7m membership revenues events, training & sponsorship revenues 28 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 29
SECTION 4 Financials
Financial report 30 Financial statements 31 44 Auditor’s report 34 30 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 31
Financial report Financial statements
PROFIT AND LOSS (¤) Profit and Loss HISTORIC EVOLUTION (¤m) SUMMARY OF SIGNIFICANT ACTUAL 2019 BUDGET 2020 ACTUAL 2020 Operating revenues decreased by 10% to ACCOUNTING POLICIES Membership 1 5,680,630 5,651,000 5,867,007 reach €6,780,417 in 2020, compared with Revenue Fixed assets Events 2 1,232,355 1,202,000 369,965 €7,507,523 in 2019. € Actual Budget Fixed assets are stated at cost less Operating expenses reached €6,438,750 10 Training 476,950 441,437 320,600 9 accumulated depreciation. Depreciation is in 2020, 7% lower than 2019’s total of 8 provided over the estimated useful lives of Sponsorship of publications 8,000 8,000 4,000 €6,911,848. 7 assets using the straight-line method.
7.94 Service fees 60,000 60,000 60,000 6 7.51 7.17 7.29 7.29 7.16 7.22 7.03 The COVID-19 outbreak had a material impact 6.78 6.65 Cash or cash equivalent 5 Bank interest and miscellaneous 1,599 1,000 656 on the finances of the Association although 4 Cash and cash equivalent are carried at the financial equilibrium was not jeopardised 3 nominal value. Other revenue 3 47,989 20,000 158,190 for 2020. This was primarily due to a slight 2 Total Revenue 7,507,523 7, 383,4 37 6,780,417 increase in membership fees, replacement 1 Receivables of live conferences with virtual events, 12 13 14 15 16 17 18 19 20 21 Receivables are carried at nominal value. Personnel costs 3,216,199 3,726,000 3,812,190 successful transformation from on-site to Year Provisions are made for all receivables Professional services 1,998,078 1,721,020 1,396,061 virtual training, and cost reductions resulting during the year if no explicit confirmation from the cancellation of other member Expenses or certainty about payment is available. Housing costs 297,871 295,500 292,355 € events given the pandemic. The 2020 net Actual Budget Provisions Accommodation events 322,632 341,550 114,474 operating profit before exceptional results 10 Provisions are recognised for probable 4 was €341,667. 9 Travel and representation 379,361 435,658 74, 839 8 obligations when a reliable estimate of the Communications 45,894 47, 305 25,758 COVID-19 impacted Invest Europe priorities, 7 amount can be made. 6 7.75 7.33 7.28 7.05 7.02 Printing and audio-visuals 140,550 172,420 124,805 6.89 including the postponement of long-term 6.87 6.65
5 6.44 Liabilities projects to be funded from Invest Europe 6.25 4 Trade payables and payroll liabilities are Various office costs 349,153 359,134 380,142 General Reserves that had a budget of 3 carried at nominal value. €815,000 in 2020. However, two one-off 2 Finance costs 39,391 26,500 43,498 projects were finalised during 2020 and will 1 Revenue recognition Provision for doubtful debtors 67,812 155,000 115,304 enhance Invest Europe’s positioning and its 12 13 14 15 16 17 18 19 20 21 Revenue is recognised to the extent that it Provisions/other costs 54,906 103,350 59,324 services for its members. These were the Year is probable that the economic benefits will employment data collection project and flow to the company and the revenue can Total Expenses 6,911,848 7, 383,4 37 6,438,750 content for media relations and rebuttal Reserves be reliably measured. With respect to the NET OPERATING RESULTS 595,676 0 341,667 purposes. € Actual Budget rendering of services, revenue is recognised 10 by reference to the stage of completion. Projects from previous year completed in current year 82,700 0 0 The 2020 net accounting profit was €127,029. 9 Project funded by Invest Europe General Reserves 5 50,751 815,000 214,638 Balance Sheet 8 7 Total exceptional expenses 133,451 815,000 214,638 The balance sheet total was €7,156,635 on 6 December 31, 2020. 5 NET RESULT 462,224 -815,000 127,029 5.87 5.74
4 5.50 5.28 The cash position decreased to €6,474,845 3 Notes 4.23
3.65 1. Higher membership fees vs. Budget despite COVID-19 crisis 3.49 3.35 2 3.33 on December 31, 2020, compared with 3.16 2. COVID-19 crisis impacting negatively Events. Invest Europe Events have been held virtually instead of onsite 1 €6,659,552 on December 31, 2019. 3. Insurance reimbursement related to costs associated with 2020 events cancellation 12 13 14 15 16 17 18 19 20 21 4. No more travel possible from March 2020 The net accounting profit resulted in Year 5. COVID-19 crisis impacting priorities including long term projects funded by Invest Europe General Reserves increased reserves from €5,740,641 to €5,867,670. Budget 2021 For 2021, Invest Europe proposes a balanced budget before exceptional projects. The health crisis caused by COVID-19 will have an impact on the finances of the Association. The extent of this impact is difficult to assess at this time. Given cash reserves accumulated over past years, there is no immediate concern for the year to come. The Board will closely monitor Invest Europe’s financial situation throughout the year. 32 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 33
Financial statements continued
PROFIT AND LOSS (¤) ASSETS (¤)
ACTUAL 2020 BUDGET 2021 31 DEC 2019 31 DEC 2020 Membership 1 5,867,007 5,713,000 FIXED ASSETS Events 369,965 415,000 At cost, less depreciation 7, 313 12,830 Training 320,600 414,410 FINANCIAL ASSETS Sponsorship of publications 4,000 28,000 Shares in EDC GmbH (33%) 8,329 8,329 Service fees 60,000 60,000 CURRENT ASSETS Bank interest and miscellaneous 656 0 Receivables 179,752 88,754 Other revenue 158,190 20,000 Deposits and prepayments 1 67,552 54,084 Total Revenue 6,780,417 6,650,410 VAT 61,593 58,768 Personnel costs 3,812,190 3,831,000 Deferred charges 2 524,219 324,705 Professional services 1,396,061 1,487,320 Accrued income 3 0 134,321 Housing costs 292,355 224,000 Cash at bank 6,659,552 6,474,845 Accommodation events 114,474 103,000 TOTAL CURRENT ASSETS 7,492,668 7,1 35,477 Travel and representation 74, 839 100,500 TOTAL ASSETS 7,508,310 7,156,635 Communications 25,758 29,350 LIABILITIES (¤) Printing and audio-visuals 124,805 174,000 Various office costs 380,142 427,240 31 DEC 2019 31 DEC 2020 Finance costs 43,498 46,800 GENERAL RESERVES Provision for doubtful debtors 115,304 175,000 Opening balance 5,278,415 5,740,641 Provisions/other costs 59,324 52,200 Attribution of profit (+)/loss (-) 462,225 127,029 Total Expenses 6,438,750 6,650,410 Closing balance 5,740,641 5,867,670 NET OPERATING RESULTS 341,667 0 PROVISIONS 11,335 11,028 Project funded by Invest Europe General Reserves 2 214,638 370,000 CURRENT LIABILITIES Total exceptional expenses 214,638 370,000 Suppliers 467,615 170,631 NET RESULT 127,029 -370,000 VAT 22,947 0
Notes Payroll accruals 928,738 958,177 1. No membership fees contingency given contingencies built from 2017 till 2019 for 1,2m€ and not used 4 2. Several projects will be funded by the Reserves : Development of e-learning courses, CRM, Marketing material Deferred income 333,034 149,129 and one-off costs related to the Invest Europe office move Capital contribution to leasehold improvement 5 4,000 0 TOTAL CURRENT LIABILITIES 1,756,334 1,277,937 TOTAL LIABILITIES 7,508,310 7,156,635
Notes 1. Deposits and prepayments include as of 31 December 2020 the provision Q4 of social charges (€46K) 2. Deferred charges include 2021 events accommodation deposits (€137K) and deferred charges (€187K) as subscriptions 2021, rent Q1/2021 and other charges 2021 3. Accrued income relate to Insurance reimbursement related to costs associated with Events 2020 cancellation 4. Deferred income : (i.) as of December 2020 included services (Training & Membership fees) invoiced in 2020 to be delivered in 2021, (ii.) sponsorship fees billed in 2020 for publications /events 2021 5. Landlord capital contribution for the amount of €36K on current office (Tour Bastion) and fully amortised as of December 2020 34 Invest Europe Annual Report 2020 Overview How we operate What we do Financials 35
Auditor’s report
DocuSign Envelope ID: 472F0ED7-A36C-4AED-9D5D-CF15F28B4B74
Invest Europe AISBL/IVZW DocuSign Envelope ID: 472F0ED7-A36C-4AED-9D5D-CF15F28B4B74 DocuSign Envelope ID: 472F0ED7-A36C-4AED-9D5D-CF15F28B4B74 ocument subtitle erdana Heading single
Invest Europe AISBL/IVZW | 31 December 2020 Invest Europe AISBL/IVZW | ecember
Responsibilities of the statutory auditor for the audit of the annual accounts Statutory auditor’s report to the shareholders’ meeting of Invest Europe ur ob ectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from AISBL/IVZW for the year ended 31 December 2020 - Annual accounts material misstatement whether due to fraud or error and to issue a statutory auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in In the context of the statutory audit of the annual accounts of Invest Europe AISBL/IVZW (the “company”), we hereby accordance with S will always detect a material misstatement when it exists. isstatements can arise from fraud or submit our statutory audit report. This report includes our report on the annual accounts and the other legal and error and are considered material if individually or in the aggregate they could reasonably be expected to influence regulatory requirements. These parts should be considered as integral to the report. the economic decisions of users ta en on the basis of these annual accounts. We were appointed in our capacity as statutory auditor by the shareholders’ meeting of 18 June 2019, in accordance uring the performance of our audit we comply with the legal regulatory and normative framewor as applicable to with the proposal of the board of directors (“bestuursorgaan” / “organe d’administration”). Our mandate will expire the audit of annual accounts in elgium. he scope of the audit does not comprise any assurance regarding the future on the date of the shareholders’ meeting deliberating on the annual accounts for the year ending 31 Dcember 2021. viability of the company nor regarding the efficiency or effectiveness demonstrated by the board of directors in the We have performed the statutory audit of the annual accounts of Invest Europe AISBL/IVZW for 8 consecutive periods way that the company’s business has been conducted or will be conducted.
Report on the annual accounts s part of an audit in accordance with S we exercise professional udgment and maintain professional s epticism Unqualified opinion throughout the audit. We also
Invest Europe AISBL/IVZW We have audited the annual accounts of the company, which comprises the balance sheet as at 31 December 2020 identify and assess the ris s of material misstatement of the annual accounts whether due to fraud or error Statutory auditor’s report to the shareholders’ meeting for the year and the income statement for the year then ended, as well as the explanatory notes. The annual accounts show total design and perform audit procedures responsive to those ris s and obtain audit evidence that is sufficient and ended ecember nnual accounts assets of 7 157 (000) EUR and the income statement shows a profit for the year ended of 127 (000) EUR. appropriate to provide a basis for our opinion. he ris of not detecting a material misstatement resulting from he original text of this report is in rench
fraud is higher than for one resulting from an error as fraud may involve collusion forgery intentional omissions In our opinion, the annual accounts give a true and fair view of the company’s net equity and financial position as of Deloitte Bedrijfsrevisoren / Reviseurs d’Entreprises misrepresentations or the override of internal control 31 December 2020 and of its results for the year then ended, in accordance with the financial reporting framework applicable in Belgium. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Basis for the unqualified opinion company’s internal control; We conducted our audit in accordance with International Standards on Auditing (ISA), as applicable in Belgium. In evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and addition, we have applied the International Standards on Auditing approved by the IAASB applicable to the current related disclosures made by the board of directors 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 conclude on the appropriateness of the use of the going concern basis of accounting by the board of directors and complied with all ethical requirements relevant to the statutory audit of the annual accounts in Belgium, including based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that those regarding independence. may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our statutory auditor’s report to the related disclosures in We have obtained from the board of directors and the company’s officials the explanations and information necessary the annual accounts or if such disclosures are inadequate to modify our opinion. ur conclusions are based on for performing our audit. the audit evidence obtained up to the date of our statutory auditor’s report. However, future events or conditions We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion. may cause the company to cease to continue as a going concern Responsibilities of the board of directors for the preparation of the annual accounts evaluate the overall presentation structure and content of the annual accounts and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation. 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 We communicate with those charged with governance regarding amongst other matters the planned scope and determines is necessary to enable the preparation of the annual accounts that are free from material misstatement, timing of the audit and significant audit findings including any significant deficiencies in internal control that we whether due to fraud or error. identify during our audit. In preparing the annual accounts, the board of directors is responsible for assessing the company’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 company or to cease operations, or has no realistic alternative but to do so.
1 36 Invest Europe Annual Report 2020
Auditor’s report continued
DocuSign Envelope ID: 472F0ED7-A36C-4AED-9D5D-CF15F28B4B74
Invest Europe AISBL/IVZW | De em er
Other legal and regulatory requirements Responsibilities of the board of directors The board of directors is responsible for maintaining the company’s accounting records in compliance with the legal and regulatory re uirements appli a le in Belgium as ell as for the ompany’s compliance with the Code of companies and associations and the company’s articles of association. Responsibilities of the statutory auditor s part of our mandate and in a ordan e ith the Belgian standard omplementary to the nternational Standards on uditing S as appli a le in Belgium our responsi ility is to verify in all material respe ts omplian e ith ertain o ligations referred to in the ode of ompanies and asso iations and the arti les of asso iation as ell as to report on these matters Statements regarding independence ur audit firm and our net or have not performed any prohi ited servi es and our audit firm has remained independent from the ompany during the performan e of our mandate Other statements ithout prejudi e to ertain formal aspe ts of minor importan e the a ounting re ords are maintained in a ordan e ith the legal and regulatory re uirements appli a le in Belgium e do not have to report any transa tions underta en or de isions ta en hi h may e in violation of the company’s articles of association or the ode of ompanies and asso iations Signed at aventem The statutory auditor
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL Represented y ng li ue itrugno
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL Registered ffi e ate ay uilding u hthaven Brussel ationaal B aventem BE R R Brussel/R Bru elles B BE B BEBB
em er of Deloitte ou he ohmatsu imited
Invest Europe Avenue Louise 81 T +32 2 715 00 20 B-1050 Brussels, Belgium [email protected] investeurope.eu