Post on 31-Jul-2020
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© EBRD 2009, all rights reserved
Impact of the Financial CrisisImpact of the Financial Crisis
Evolution of Private Equity Activity Evolution of Private Equity Activity in EBRD Regionin EBRD Region
January 2007 January 2007 -- June 2009June 2009
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© EBRD 2009, all rights reserved
Methodology
• This presentation focuses on the impact of the global financial crisis on private equity activity in the EBRD region
• The time horizon spans from January 2007 through June 2009 (30 months)
• Dynamics of key private equity indicators is calculated as an index (assuming 1H 2007 as 100%); percentage changes accompanying graphs reflect period-on-period evolution of an indicator
• Where actual numbers are used for representation, EUR is the base currency
• Calculations are based on fund closing dates, rather than vintage year
• For absolute figures of private equity activity in 2007-2008, please refer to our earlier performance presentations
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© EBRD 2009, all rights reserved
EBRD in Private Equity
EBRD’s portfolio of funds: over 15 years of investing in the asset class
119 funds
79 fund managers
EUR 2.52 billion in commitments (USD 3.03 billion) to funds with capital of EUR 12.98 billion (USD 16.22 billion )
Over 1,000 underlying investments, up to 70% exited
Largest PE Fund investment program dedicated to the region*
* EBRD tracked portfolio only, data to June 2009
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© EBRD 2009, all rights reserved
EBRD Database
Best available sample of PE performance in central and south east Europe (CSE) and Russia and CIS
Tracks all “gross” investments made by a basket of EBRD invested funds as well as “net” returns to EBRD (“tracked portfolio”)
Measured in EUR Obligatory reporting by fund managers, scrutinised by EBRD
– Reflects comprehensive performance– No “survivor bias” resulting from only best fund managers
reporting
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© EBRD 2009, all rights reserved
Fundraising and Investment Trendsfor EBRD tracked portfolio
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© EBRD 2009, all rights reserved
Fundraising vs Investments: EBRD Region
Note: EBRD tracked portfolio only
16.3%
5.49%
22.7%
22.4%
11.4%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
EUR
Mill
ions
0%
5%
10%
15%
20%
25%
30%
Commitments raised by period
Investments in a given period
EBRD commitments as % of total commitments
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© EBRD 2009, all rights reserved
Fundraising vs Investments in CSE
24.4%
20%
22.7%
4.6%
16.8%
-
200
400
600
800
1,000
1,200
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
EUR
Mill
ions
0%
5%
10%
15%
20%
25%
30%Commitments raised by period Investments in a given periodEBRD commitments as % of total commitments
Note: EBRD tracked portfolio only
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© EBRD 2009, all rights reserved
Fundraising vs Investments in Russia/CIS
Note: EBRD tracked portfolio only
5.2%
24.5%22.7%
14.2%15.5%
-
200
400
600
800
1,000
1,200
1,400
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
EUR
Mill
ions
0%
5%
10%
15%
20%
25%
30%Commitments raised by period
Investments in a given period
EBRD commitments as % of totalcommitments
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© EBRD 2009, all rights reserved
Fundraising by Fund Investment Stage, EBRD Region
Note: based on EUR amount of commitments, EBRD tracked portfolio only
9.0%
84.5%
83.9%
73.5%
15.5%
100.0% 100.0%
7.1%
26.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
Buyout Growth / Expansion Other
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© EBRD 2009, all rights reserved
Fundraising by Fund Investment Type, EBRD Region
Note: based on EUR amount of commitments; EBRD tracked portfolio only
7.5%14.5%
6.0%
4.5%
14.4%
86.8%
71.1%
94.0%88.1%
11.9%2.6%
1.2%
97.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
Mezzanine Other Venture Capital Private Equity
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© EBRD 2009, all rights reserved
New EBRD Commitments by Fund Investment Stage: Regional Perspective, 2007 – 1H 2009
Note: EBRD tracked portfolio only
100%
19.5%
53.7%
26.8%
89.5%
10.5%
SEE
Russia/CISCEE
Buyout
Other
Growth / Expansion
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© EBRD 2009, all rights reserved
Evolution of New Investments and Exits in EBRD region (by number of transactions)
Note: EBRD tracked portfolio only
60
25
45
17
10
239
42
20
0
10
20
30
40
50
60
70
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
Num
ber o
f Tra
nsac
tions
New Investments Exits
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© EBRD 2009, all rights reserved
Evolution of New Investments vs Exits(by variation over previous period)
Note: based on EUR amounts; EBRD tracked portfolio only
-72.17%
-28.35%
-64.92%
61.31%
30.97%
-35.48%
0.19%
-64.89%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
Exits New Investments
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© EBRD 2009, all rights reserved
Evolution of New Investments: Regional Breakdown (by variation over previous period)
Note: based on EUR amounts; EBRD tracked portfolio only
-69.9%
-61.34%
-13.85%
133.32%
-10.31%
-36.79%9.18%
-49.71%
53.45%
-63.03%
608.78%
0%
50%
100%
150%
200%
250%
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
Russia/CIS CEE SEE
-80.72%
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© EBRD 2009, all rights reserved
Evolution of Exits: Regional Breakdown(by variation over previous period)
Note: based on EUR amounts; EBRD tracked portfolio only
-71.43%
86.3%
-94.54% 37.5%
-72.66%
-95.65%
1392.51%
8.21%
-99.13%
16.06%
0%
50%
100%
150%
200%
250%
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
Russia/CIS CEE SEE
195.52%
-77.42%
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New Investments by Stage (by investment cost)
OtherExpansion Buyout Seed/Start-up/Other early stage
41.18% 50.24%
81.03%
55.28%47.01%
15.64%
0.41%0.69%
3.33%2.34%2.85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 1H 2009
Note: EBRD tracked portfolio only
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© EBRD 2009, all rights reserved
New Investments by Sector (by investment cost)
19.73%Services
21.14%TIM
9.94%Consumer,
Wholesale/ Retail
12.62%15.52%17.1%Pharma &Medical
2.33%10.23%4.5%Other
13.83%7.32%Construction
1H 200920082007
41.41%
30.47% 43.89%
20.02%10.27%
19.68%
Note: other sectors include agriculture & forestry, primary & energy, and manufacturing; EBRD tracked portfolio only
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© EBRD 2009, all rights reserved
New Investments by Sector(by number of companies)
19.35%Services
17.14%TIM
Consumer,
Wholesale/ Retail
12.9%10.0%9.76%Pharma &Medical
18.57%13.41%Other
7.14%8.54%Construction
1H 200920082007
30.47%
Note: other sectors include agriculture & forestry, primary & energy, and manufacturing; EBRD tracked portfolio only
26.83%
25.61%
32.86%
15.85% 14.29%
25.81%
12.9%
29.03%
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© EBRD 2009, all rights reserved
Investment Profitability by Exit Type
Note: investment profitability is the difference between exit proceeds and investment cost; EBRD tracked portfolio only.
-100
0
100
200
300
400
500
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009
EUR
Mill
ions
Public Market Trade Sale Write-offs Other MBO
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Returns Data & Trends
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© EBRD 2009, all rights reserved
Gross Snapshot: All Funds (since inception to 1H 2009)
EUR 3,405m EUR 3,116m
EUR 395m EUR 951m
EUR 2,842m
EUR 6,331m
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
EUR
Mill
ions
Fully Realised (Including WO)
Partially RealisedUnrealised
Overall 1.57x 17.19%
FR 2.23x 20.46%
PR 2.41x 23.9%
UR 0.92x -4.3%
Investments at CostEUR 6,641m
Total ValueEUR 10,398m
Note: EBRD tracked portfolio only
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© EBRD 2009, all rights reserved
Summary of Returns, 2007 – 1H 2009
1.5717.19%1.6418.15%2.021.5%Overall0.92-4.3%0.95-2.89%1.5622.94%Unrealised
2.4123.9%2.4627.15%3.7732.29%Partially realised
2.2320.46%2.2820.87%2.1920.29%Fully realised
TVPIIRRTVPIIRRTVPIIRR
1H 200920082007
Note: in EUR, EBRD tracked portfolio only
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© EBRD 2009, all rights reserved
Evolution of Returns
Carrying Value of Portfolio Gross IRR
Note: Number of investees reflect unrealised investments including partially realised; EBRD tracked portfolio only
Number of active funds
4
330 Investees329
Investees307Investees291
Investees
18.15% 17.19%
21.50% 20.93%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Dec-07 Jun-08 Dec-08 Jun-09
EUR
Mill
ions
0%
5%
10%
15%
20%
25%
83 Funds81 Funds81 Funds
79 Funds
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© EBRD 2009, all rights reserved
Geographical Origin of LPs
Note: based on EUR amount of commitments; EBRD tracked portfolio only
23.70%
22.04%
19.44%
45.52%
49.94%
19.71%
12.91%
9.29%
24.40%
17.88%
18.73%
36.44%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2007
2008
1H 2009
USA Europe EBRD Other regions
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© EBRD 2009, all rights reserved
Evolution of Funds Raised by Investor Type, 2007-1H 2009
27.92% 34.87%
11.57%
41.06% 33.26%
22.14%
19.18% 15.29%
61.64%
11.84% 16.58%4.64%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 1H 2009
Others Funds-of-funds and Pension Funds IFIs and Governments Banks and insurance companies
Note: based on EUR amount of commitments; EBRD tracked portfolio only
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© EBRD 2009, all rights reserved
Definitions
• Fund Investment Stage: seed/start-up, growth/expansion, buyout, and other.
• Fund Investment Type: venture capital, private equity, mezzanine, distressed/special situations, and other.
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© EBRD 2009, all rights reserved
EBRD Region
• CEE Countries – Estonia, Czech Republic, Hungary, Latvia, Lithuania, Poland, Slovak Republic, Slovenia
• SEE Countries – Albania, Bosnia & Herzegovina, Bulgaria, Croatia, FYR Macedonia, Kosovo, Montenegro, Romania, Serbia, Turkey
• CIS Countries – Armenia*, Azerbaijan, Belarus*, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Tajikistan*, Turkmenistan, Uzbekistan*, and Ukraine
• CSE Countries – countries included in CEE & SEE lists as shown above
* There are no fund sub-investments in these countries as of end June 2009
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© EBRD 2009, all rights reserved
Copyright 2010 EBRD. All rights reserved
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Development. All rights reserved.