Private Equity & Venture Capital Forum Argentina

July 1st, 2016

Cate AmbrosePresident & Executive Director

New York

October 7, 2011

LAVCA Overview

Mission To spur regional economic growth by advancing venture capital and private equityinvestment through programs of research, networking, investor education, the promotion of best investment practices, and the advocacy of sound public policy.

Members LAVCA’s membership is comprised of over 170 firms which control assets in excess of US$60 billion, directed at capitalizing and growing Latin American businesses.

Some of the best known global and regional fund managers are members of LAVCA:

LatAm PE: Historical Fundraising

Source: VELA

LatAm PE: First Wave of Deals

Midway

Mandeville Cable Partners

WestSphereEquity

Mamonal

Aguaytia

Techmar

Current PE/VC Players in LatAm

International Firms

Country FocusBrazil

Country FocusEx-BrazilRegional

Focus

Local Firms

2015 Fundraising Trends

After a record 2014, fundraising for LatAm-focused PE/VC funds continued its momentum, with 46 firms reporting 52 partial or final closings for an aggregate US$7.2b.

© 2016 LAVCA Industry Data

LatAm PE/VC Fundraising(US$ billion, 2008-2015)

2015 LatAm PE/VC Fundraising

© 2016 LAVCA Industry Data

Geographic Focus of Funds Raised

(2015, in US$ million)

2015 Investment Trends

© 2016 LAVCA Industry Data

LatAm PE/VC Investments(US$ billion, 2008-2015)

With US$6.5b deployed through 310 deals, LatAm PE/VC activity remained on par with 2014. Fewer large-cap deals and currency devaluation affecting major LatAm economies explained the 18% decrease y-o-y in amount invested.

2015 LatAm PE/VC Investments

Investments by Sector (in % of US$, 2015)

© 2016 LAVCA Industry Data

Investments by Country (in % of US$, 2015)

Key Sector Trends:

• Large deals made Oil & Gas and Healthcare/Life Sciences the first and second most popular sectors by amount invested.

• IT was the third most important sector by amount invested and the first one by number of deals (44% of total).

• “Other” includes Real Estate, Telecommunications, Media & Entertainment, among other sectors.

Key Country Trends:

• Large deals made Brazil and Mexico the first and second most popular countries by amount invested.

• Brazil and Mexico also dominated PE/VC activity (48% and 28% of total # of deals).

• “Other” includes Argentina, Nicaragua, among other countries.

PE/VC Investments by Country 2008-2015

Other countries: 122 Deals/ $2,848m

Mexico

296 Deals

$6,680m

Brazil

902 Deals

$33,613m

Chile

133 Deals

$3,163m

Peru

95 Deals

$1,687m

Colombia

151 Deals

$3,828m

Argentina

114 Deals

$857m

© 2016 LAVCA Industry DataTotal LatAm PE/VC Deals: 1,813 Deals/ $52,675m

Argentina: PE/VC Investments by Sector

PE/VC Investments by Sector (in % of US$, 2008-2015)

© 2016 LAVCA Industry Data

Key Sector Trends:

• Agribusiness is the most important sector by amount invested and the second most popular by number of deals (10% of total).

• IT is the second most important sector by amount invested and the first one by number of deals (67% of total).

• “Other” includes Business Services, Automotive, Media & Entertainment, among other sectors.

Total PE/VC Deals: 114 Deals/ $857m

Argentina: Highlighted PE/VC Deals

IT/Technology

Agribusiness

Financial Services

Energy

Grupo Dolphin

Argentina: PE/VC-Backed Exits

IT/Technology

Energy

© 2016 LAVCA Industry Data

Electricity Utilities Portfolio(EDEN, EDESA, EDELAR, EDESAL)

Consumer/Retail

Argentina: Strategic Positioning

© 2016 LAVCA Industry Data

Highly educated workforce

Niche technology sector

Globally competitive

Abundant natural resources

Startups Launched by Argentines in USA

LAVCA Scorecard

Countries are ranked based on the following indicators

• Laws on VC/PE fund formation and operation

• Tax treatment of VC/PE funds and investments

• Protection of minority shareholder rights

• Restrictions on local institutional investors

• Protection of intellectual property rights

• Bankruptcy regulation

• Capital market development and feasibility of local exits

• Registration/reserve requirements on inward investments

• Corporate governance requirements

• Strength of the judicial system

• Perceived corruption

• Use of international accounting standards

• Entrepreneurship

© 2016 LAVCA Industry Data

LAVCA Scorecard – 2015/2016 Ranking

Overall score – 0-100 where 100=best environment

© 2016 LAVCA Industry Data

Argentina Overall Score = 40

• Protection of minority shareholder rights• Protection of intellectual property rights• Bankruptcy regulation• Capital markets development and feasibility of exits• Corporate governance requirements• Strength of judicial system

• Entrepreneurship

• Tax treatment of VC/PE funds and investments• Registration/reserve requirements on inward investments• Perceived corruption

LAVCA Scorecard – 2015/2016 Ranking

• Laws on VC/PE fund formation and operation• Restrictions on local institutional investors0

1

2

3

4• Use of international accounting standards

© 2016 LAVCA Industry Data

Thank You!

New York Headquarters589 Eighth Avenue,

18th floor New York,NY 10018

Tel: 1.646.315.6735Fax: 1.646.349.1047

Cate Ambrosea

President & Executive Director

Latin American Private Equity & Venture Capital Associationcambrose@lavca.org

www.lavca.org