Europe Private Equity Buyout Review FIRST QUARTER 2020 Europe Private Equity Buyouts First Quarter 2020 | Europe Private Equity Buyout Review Europe Private Equity Buyout Deals Intelligence Private Equity Buyout Investment Activity in European Companies EUROPEAN BUYOUT AND RELATED DEALS TOTAL €41.0 BILLION € 120 450 European buyout and related investment reached €41.0 billion across 254 deals during the first quarter of 2020. This represented a 38% decline in volumes but a 268% increase in deal values year-over-year, marking the second strongest first quarter on record, only behind the €44.0 billion transacted in the beginning 400 of 2007. Overall European M&A activity also dropped in 2020, although to a lesser extent, declining by 14% € 100 to 3217 deals, resulting in the share of PE-backed deals declining from 11% to 8% year-over-year. 350 TEN LARGEST ANNOUNCED DEALS ACCOUNT FOR 69% OF DEAL VALUES € 80 300 The top ten deals announced in the quarter totaled €28.4 billion, resulting in a 69% share of all disclosed values. The largest deal, the announced acquisition of thyssenkrupp’s Elevator Technology business by a 250 consortium involving Cinven, Advent International, and RAG-Stiftung, accounted for €17.2 billion, or 42% of € 60 the total. 200 COMPUTER SOFTWARE AND HARWARE COMPANIES SEE 20% SHARE OF TOTAL INVESTMENT Companies within the computer-related sectors saw 53 deals in Q1, causing their share of overall market € 40 150 volumes to climb to 21%, up from 16% throughout all of 2019. Deal values in the sector were also up to 20% with €8.3 billion of investment, up from 13% in 2019. Companies within the consumer-related space saw their 100 share of investment drop steeply from 20% in 2019 to just 2% in the first period of 2020, lower than any € 20 annual portion ever recorded. Despite the decline in disclosed values, their share of deal volumes only 50 dropped slightly, to 15% from 16% in 2019. € 0 0 BUYOUT AND RELATED FUNDRAISING DOWN TO €4.2 BILLION 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 A total of 18 European buyout and related funds recorded closes in the first three months, raising €4.2 billion First Three Months Deal Value (€bil) Rest of Year (€bil) # of Deals, First Three Months in commitments, a 77% decrease year-over-year and the slowest start to a year since 2010. The top fundraise in the period was the €735 million closing of London-based infrastructure investment manager Ancala Partners’ Fund II. KKR’s Global Impact Fund also raised €527 million, bringing total commitments to Private Equity Buyout Deal Volumes (#) by Transaction Type €1.2 billion, and will target ESG-focused businesses across the Americas, Europe, and Asia. 100% EUROPEAN PE-BACKED COMPANIES COMPLETE EXITS VALUED AT €3.2 BILLION European private equity-backed exits totaled €3.2 billion from 60 completed transactions during the first 90% quarter, an 11% decline in values and a 30% decrease in number of exits when compared to Q1 2019 figures, with both measures experiencing their lowest levels since 2009. The top completed exit in the quarter 80% was the €1.7 billion acquisition of London-headquartered Eaton Towers, which develops and manages more than 5700 telecom towers across Africa, by broadcast infrastructure operator American Tower Corporation. 70% The top newly announced transaction for the period was the €782 million majority stake purchase of Spanish insurer Caser by Swiss insurance group Helvetia Insurance. 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 Add-on Acquisition Minority Stake Control Stake Other www.refinitiv.com/dealsintelligence Investments First Quarter 2020 | Europe Private Equity Buyout Review Top Announced European PE Buyout Deals by Deal Value PE Buyout Investment by Nation Deal Value 01/01/2020 - 3/31/2020 01/01/2019 - 3/31/2019 YoY % YoY % Company Name Ann. Date (€mil) Sector Status Nation Nation Value (€mil) # of Deals Value (€mil) # of Deals Chg. (€) Chg. (#) thyssenkrupp Elevator Germany € 17,300.0 26 € 3,435.3 46 404% ▲ -43% ▼ 27/02/20 € 17,200.0 Electronics Equipment Pending Germany Technology business United Kingdom € 16,924.5 122 € 3,647.5 111 364% ▲ 10% ▲ Switzerland € 4,502.5 3 € 438.7 5 926% ▲ -40% ▼ Veeam Software 09/01/20 € 4,502.5 Computer Software Completed Switzerland France € 1,937.7 34 € 1,071.4 133 81% ▲ -74% ▼ Italy € 204.5 19 € 54.7 27 274% ▲ -30% ▼ Viridor 18/03/20 € 4,469.4 Pollution and Recycling Pending United Kingdom Hungary € 55.0 1 - - - ▲ - ▲ Netherlands € 36.6 7 € 998.3 21 -96% ▼ -67% ▼ Global Risk Partners 03/02/20 € 881.2 Financial Services Pending United Kingdom Denmark € 32.6 8 € 0.0 4 - ▲ 100% ▲ Spain € 20.0 7 € 715.1 22 -97% ▼ -68% ▼ Exxelia 22/01/20 € 500.0 Electronics, Other Pending France Sweden € 0.0 11 € 269.5 10 -100% ▼ 10% ▲ Norway € 0.0 5 € 0.0 2 - ▲ 150% ▲ Atnahs Pharma 27/01/20 € 317.7 Pharmaceutical Pending United Kingdom Finland € 0.0 3 € 50.0 2 -100% ▼ 50% ▲ Luxembourg € 0.0 3 € 257.4 3 -100% ▼ 0% - Global Marine Group 30/01/20 € 224.6 Business Services Completed United Kingdom Poland € 0.0 2 € 100.0 4 -100% ▼ -50% ▼ Republic of Ireland € 0.0 2 € 45.3 7 -100% ▼ -71% ▼ EcoVadis 09/01/20 € 180.1 Computer Software Pending France Monaco € 0.0 1 - - - ▲ - ▲ CLS 03/02/20 € 100.0 Satellite Comm Completed France Netrisk 08/01/20 € 55.0 Internet Ecommerce Completed Hungary Most Active Investors - United Kingdom Most Active Investors - France Most Active Investors - Rest of Europe Aggregate Deal Aggregate Deal Aggregate Deal Firm Name Rank # of Deals Values (€mil) Firm Name Rank # of Deals Values (€mil) Firm Name Rank # of Deals Values (€mil) Permira 1 8 € 2,267.6 Bpifrance 1 3 € 50.0 EQT 1 9 € 12,492.4 G Square 2 6 € 2.5 Idinvest Partners 2 2 € 118.1 CVC Capital Partners 2 7 € 1,433.6 Hg 3 6 - Omnes Capital 3 2 € 44.1 Triton 3 3 € 317.7 Apax Partners 4* 5 - Ardian 4* 2 - Evolver Investment Group Ltd 4* 3 - Equistone Partners Europe 4* 5 - Astorg 4* 2 - Mutares 4* 3 - Cinven 6 4 € 17,200.0 Montefiore Investment 6 1 € 850.0 Blue Horizon Corporation 6 2 € 177.5 BC Partners 7* 4 - Activa Capital 7 1 € 65.0 Argos Wityu 7 2 € 54.5 Horizon Capital 7* 4 - Groupe Arnault 8 1 € 50.0 Cobepa 8* 2 - IK Investment Partners 9 3 € 500.0 Litorina 8* 2 - Foresight Group 10 3 € 29.3 Partners Group 8* 2 - LDC 11 3 € 12.1 RAG-Stiftung 11 1 € 17,200.0 Bregal Investments 12* 3 - AlpInvest 12 1 € 1,922.9 CBPE Capital 12* 3 - H2 Equity Partners 13 1 € 276.0 Macquarie Infrastructure and Real Assets 14 2 € 2,611.4 Compagnie Nationale à Portefeuille 14 1 € 100.0 Montagu Private Equity 15 2 € 440.1 Norfund 15 1 € 80.8 TDR Capital 16 2 € 135.8 Signals 16* 1 € 68.1 Comhar Capital 17 2 € 49.7 Target Global 16* 1 € 68.1 BGF 18 2 € 9.0 Team Europe 16* 1 € 68.1 Blisce 19 1 € 50.0 Project A 20* 1 € 32.6 Seed Capital Management 20* 1 € 32.6 Corpfin Capital 22 1 € 20.0 Belgian Invest 23 1 € 11.9 www.refinitiv.com/dealsintelligence Investments First Quarter 2020 | Europe Private Equity Buyout Review Investments by Sector, Number of Deals Investments by Sector, Deal Value 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 Consumer Related Industrial/Energy Computer Software & Hardware Internet Specific Medical/Health Other Consumer Related Industrial/Energy Computer Software & Hardware Internet Specific Medical/Health Other Deal Size Composition of Investments Top Announced PE Deals by European Firms Investing Abroad Deal Company Name Ann. Date Value Sector Status Location 3%1% Cincinnati Bell 13/03/20 € 2,611.4 Telephone Rel. Pending United States 8% Lytx 08/01/20 € 2,267.6 Computer Software Completed United States Outer Ring: Deal Values (€bil) 12% Inner Ring: # of Deals 4% RSA Security 18/02/20 € 1,922.9 Computer Software Pending United States 2% Generate Capital 04/02/20 € 905.6 Energy, Alternative Completed United States ≥ €3 Bil RTI Surgical Holdings OEM 10% 13/01/20 € 440.1 Manufacturing Pending United States €1 < €3 Bil business LIVEKINDLY 11/03/20 € 177.5 Other Completed United States €500 Mil < €1 Bil Turnkey Integrated Systems and Globalization Partners 04/02/20 € 135.8 Completed United States 58% €100 < €500 Mil Solutions < €100 Mil Acorn Group 27/02/20 € 90.9 Financial Services Completed Kenya 18% Yoma Bank 30/01/20 € 80.8 Financial Services Completed Myanmar Bird 27/01/20 € 68.1 Transportation Completed United States 84% JUMO 26/02/20 € 50.6 Internet Ecommerce Completed South Africa Overhaul Group Inc 16/03/20 € 12.8 Computer Software Completed United States www.refinitiv.com/dealsintelligence Fundraising First Quarter 2020 | Europe Private Equity Buyout Review Europe Private Equity Buyout Fundraising Activity Private Equity Buyout Fundraising, Fund Size Composition € 200 45 100% € 180 40 90% € 160 80% 35 € 140 70% 30 € 120 60% 25 € 100 50% 20 € 80 40% 15 € 60 30% 10 € 40 20% € 20 5 10% € 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 First Three Months Fundraising (€bil) Rest of Year (€bil) # of Funds, First Three Months 0 to €100 Mil €100 to €200 Mil €200 to €300 Mil €300 to €500 Mil €500 to €1000 Mil Greater than €1000 Mil PE Buyout Fundraising, by Investment Stage (€bil) Largest PE Buyout Funds Raised in Europe Latest Amount Raised Total Fund Size Fund Name Closing Date (€mil) (€mil) Fund Stage € 449 Ancala Infrastructure Fund II 05/02/20 € 735.0 € 735.0 Buyouts KKR Global Impact Fund 12/02/20 € 526.6 € 1,196.0 Buyouts