2015 European

Private Equity Activity

Statistics on Fundraising,
Investments & Divestments
Disclaimer
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2015 European Private Equity Activity

Introduction

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equity, venture capital and infrastructure sectors, as well as
their investors.
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privately held companies, from start-ups to established firms.

in privately-held They inject not only capital but dynamism, innovation and
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> For more information please visit www.investeurope.eu

2015 European Private Equity Activity 1

 Overview - All Private Equity - Fundraising, Investments & Divestments
2000–2015 - Industry statistics - Amount

With data on more than 1,200 European private equity firms, the 2015 statistics
cover 91% of the €564bn in capital under management in Europe.
120 112
€ billion

100

80 80
80 72 71 73

60 55 54
48 47 47 48 48 47
40 43 42 42 40 41
35 37 38 38 35
40 33 31
28 28 27 29 27 30 27
24 25 22 25 22
20 19 20
20 13 14 14 12
9 11

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Funds raised Investments Divestments
Invest Europe statistics explained: This graph shows ‘industry statistics’ capturing activity by private equity firms’ European offices. In the following
presentation most statistics on investments and divestments are reported as ‘market statistics’. These capture activity based on the location of portfolio
companies in Europe. This data is available from 2007.

Source: Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
2015 European Private Equity Activity 2
What’s inside?

Executive Summary 4

1. FUNDRAISING 2. INVESTMENTS 3. DIVESTMENTS

Fundraising statistics explained 5 Investments statistics explained 24 Divestments statistics explained 58
Glossary 6 Glossary 26 Glossary 60
At a glance 7 At a glance 27 At a glance 61
Incremental fundraising By investment stage 28 By initial investment stage 62
By fund stage focus 8 Annual trends 29 By exit route 63
Concentration of capital 10 Quarterly trends 32 By sector 67
By region of management 11 By geography 36 By region 70
Investors by type 12 Investments as % of GDP
Investors by geography 18 Location of the PE firm 41
Location of the portfolio company 46
Final closing By sector 50 Acknowledgements 71
By fund stage focus 21 Initial / follow-on 53 About_PEREP Analytics &
73
Concentration of capital 23 By portfolio company size 54 Invest Europe Research

2015 European Private Equity Activity 3

Executive summary
1FUNDRAISING
In 2015 total fundraising reached €47.6bn
nearly matching the level of 2014. The
number of funds raised (274) decreased by
15% compared to 2014, but is still above the
levels of 2012 and 2013.
European private equity and venture capital
raised in the past three years was 70% more
than between the years 2010 and 2012.
In 2015, 40% of institutional investors came
from outside Europe. Pension funds provided
nearly a quarter of the capital raised. Funds
of funds contributed 18%, followed by
government agencies (14%), sovereign wealth
funds (13%), Family offices and private
individuals (12%).
Venture capital fundraising increased by
8% to €5.3bn - the highest level since 2008.
Early and later stage focused funds
particularly increased.
Buyout fundraising reduced by 7% to €33.6bn.
The total amount raised by funds above €1bn
grew by 13%. Funds that raised €500m to €1bn
reduced by 44%.
With €2.9bn raised, growth fundraising
exceeded the 2014 level, which was already
the highest reported since 2011.
2015 European Private Equity Activity
2 INVESTMENTS
The total amount of equity investment
in European companies increased by 14%
to €47.4bn. The number of companies
decreased by 11% to nearly 5,000.
86% of them are SMEs.
Over a third of the total amount invested
in European companies was attributed to
cross-border investments.
Venture capital investment increased by 5% to
€3.8bn. The amount invested was greater
across all stages, led by seed investments
with an increase of 18%. Close to 2,800
companies received investments, a reduction
of 12%, which indicates a trend towards larger
financing rounds.
Buyout investment increased by 16% to
€36.3bn into a stable number of companies at
over 900. In terms of amount, large and mega
buyout activity picked up while
mid-market investments remained stable.
Growth investment increased 11% to €6.5bn,
reaching their highest level since 2008.
The number of companies with growth
investments reduced by 13% to just over
1,100.
3 DIVESTMENTS
Almost 2,500 European companies were
exited in 2015, representing former equity
investments (divestments at cost) of
€40.5bn. This amount matches the level
of 2014, which was until then the highest
reported exit volume to date for European
private equity.
The most prominent exit routes by amount
were trade sale (29%), sale to another private
equity firm (27%) and sale of quoted equity
(17%). Four out of ten companies followed
these exit routes.
As in 2014, public markets supported the sale
of quoted equity on flotation (IPO) for 50
companies. Exits from already listed
companies in the form of sale of quoted
equity increased by almost 80% to €6.7bn,
by amount divested at cost.
Exits from venture capital investments by
equity amount at cost increased by 10%
to €2.1bn. Buyout related exits at cost
remained stable at €34bn. For former growth
investments the total amount divested at cost
increased by 40% to €3.2bn.
4
1. FUNDRAISING
Fundraising statistics explained
Direct private equity investment funds that primarily focus on
investments in Europe are monitored.
Funds raised are recorded in the country of the advisory team
that is raising/managing the fund (‘industry statistics’).
The funds included in the statistics are: private equity funds
making direct private equity investments, mezzanine private
equity funds, co-investment funds and rescue/turnaround funds.
The following funds are excluded from the statistics:
infrastructure funds, real estate funds, distressed debt funds,
primary funds of funds, secondary funds of funds.
Glossary
Fund stage focus
Balanced fund: A venture capital fund focused on
both early-stage and development, with no particular
concentration on either.
Buyout fund: A fund whose strategy is predominantly
to acquire controlling stakes in established
companies.
Early-stage fund: A venture capital fund focused
on investing in companies in their primary
development stage.
Generalist fund: A fund with either a stated focus of
investing in all stages of venture capital and private
equity investment, or with a broad area of investment
activity.
Growth fund: Funds whose strategy is to invest in
relatively mature companies that are looking for
capital to expand or restructure operations.
Later-stage fund: A venture capital fund focused on
investing in later-stage companies in need of
expansion capital.
Mezzanine fund: A fund that provides (generally
subordinated) debt to facilitate the financing of
buyouts, frequently alongside a right to some of the
equity upside.
2015 European Private Equity Activity
Types of investors
Corporate investor: Corporations that deliver non-
financial products and services.
Endowment: An institution that is bestowed money
(and possibly other assets) via a donation with the
stipulation to invest it and use the gains for specific
objectives so that the principal remains intact.
Family office: An office that provides investment
management and other financial services to one or
several families.
Foundations: A non-profit organisation through which
private wealth is contributed and distributed for
public or charitable purposes.
Fund of funds: A private equity fund that primarily
takes equity positions in other funds.
Government agencies: Country, regional,
governmental and European agencies or institutions
for innovation and development (including structures
such as the EBRD or EIF).
Other asset manager: Financial institutions (other
than bank, endowment, family office, foundation,
insurance company or pension fund) managing a pool
of capital by investing it across asset classes to
generate financial returns.
Pension funds: A pension fund that is regulated under
private or public sector law.
Sovereign wealth funds: State-owned investment fund
managing a pool of money derived from a country’s
reserves.
Note: Fundraising amounts include capital gains
except when reporting fundraising by type of
investors. In the following presentation, unclassified
figures concerning the type of investors have been
extrapolated. More comprehensive data is available
here: www.investeurope.eu/research/
Independent and captive funds
Captive funds: Funds that are 100% owned by the
parent organisation.
Independent funds: Semi-captive funds (those in
which the parent owns less than 100%) as well as
wholly independent funds.
6
 2015 Fundraising at a glance

• In 2015 total fundraising reached €47.6bn, nearly matching the level of 2014. The number of
funds raised (274) reduced by 15% compared to 2014, but is still above the level of 2012 and Incremental amounts raised during the year (€ billion)
2013. European private equity and venture capital raised in the past three years (2013-2015)
was 70% more than in the years 2010-2012. 54.4
• Pension funds provided nearly a quarter of funds raised from institutional investors. Funds of
funds contributed 18%, followed by government agencies (14%), sovereign wealth funds (13%), 3.3
Family offices and private individuals (12%) and insurance companies (9%). Institutional 1.1 48.0 47.6
investors outside Europe contributed 40% to the annual fundraising for Europe, matching 2014.
• Venture capital reached with €5.3bn its highest level since 2008, following an 8% increase over 4.0
the previous year. Fundraising for early-stage focused funds increased by 13% to €2.7bn, while 41.6 5.8
later stage fundraising nearly tripled to €870m. Government agencies contributed 31% of the 2.8
funds raised, below the levels of 2010 to 2012, in which regularly more than one third was 2.9
attributed to this source. Other major sources were fund of funds (23%), corporate investors 5.1
(14%) and family offices and private individuals (12%). North American institutional investors
contributed 11%. 4.4
• Buyout fundraising decreased by 7% to €33.6bn representing more than 70% of all fundraising.
Pension funds remained the largest institutional investor (25%) in European buyout funds,
followed by funds of funds & other asset managers (18%) and sovereign wealth funds (15%).
North American institutional investors contributed more than a quarter. While the amount 24.6 45.4
raised by funds above €1bn increased by 13%, the total amount raised by funds between
€500m to €1bn reduced by 44%. 3.4 36.3
33.6
• Growth funds with €2.9bn raised exceeded the 2014 level, which was previously the highest 0.5
reported since 2011. The 38 growth funds raised capital mostly from government agencies 26.9
and family offices & private individuals.

All Private Venture 16.7

2015 Buyout(1) Growth(1)
Equity Capital(1)

Incremental - Amounts raised €47.6bn €5.3bn €33.6bn €2.9bn

Incremental – No. of funds 274 98 90 38 5.3

5.2 3.9 4.6 4.9
Final closings - Cumulative
€50.4bn €4.3bn €40.5bn €1.0bn
amount since inception 2011 2012 2013 2014 2015
Final closings - No. of funds 129 40 50 13 Venture Capital Buyout Growth Other (2) Total
Source: Invest Europe / PEREP_Analytics Source: Invest Europe / PEREP_Analytics
Note: (1) relates to fund focus Note: (2) Other includes Mezzanine and Generalist funds

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 7

 Funds raised by fund stage focus
2011–2015 - Incremental amount raised during the year

Legend
50

€ billion
45
Balanced 45
Later-stage
6 Early-stage
40
€ billion

5.3 36
5.2
4.9 35 34
5 4.6
4.4
1.8 30
3.9 27
4 2.2
2.3 3.7
25
2.6
1.5 0.9 2.9 2.8
3 2.8 20
17
1.0 0.3 2.3 2.2
0.2 2.1 2.1
15
2 0.3
1.8 1.7
1.5
1.3 10
2.7 1.1
2.2 2.4
1 2.0
1.7 0.5 5

0 0
Venture Capital Growth Mezzanine Generalist Buyout

2011 2012 2013 2014 2015

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 8
 Funds raised by fund stage focus
2011–2015 - Number of funds that reached first, intermediate or final closing during the year

Legend

Balanced
160 152 Later-stage 160
Early-stage

140 129 140

58 117
120 113 120
39
98
100 100 93
90
46
46 84
10 81
20
80 35 80 73

11 60
9 57
60 6 60
49
38 40 38
40 74
80 32 31 40
60 58 57
18 19
20 12 14 20
9 10 10

0 0
Venture Capital Growth Mezzanine Generalist Buyout

2011 2012 2013 2014 2015

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 9
 All Private Equity - Concentration of capital
2011–2015 – Incremental fundraising by amount bracket per fund during the year

70% Number
% total amount of annual fundraising

of
12
funds
60%

50% 8 11

11
40% 4

30%

37
20%
216 25
42 12
203 20 44
269 14 4 35
10% 8 31 6
4 5 12 237 197

0%
2011 2012 2013 2014 2015

< €100m €100m - €250m €250m - €500m €500m - €1bn > €1bn
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 10
 All Private Equity – Funds raised by region of management
2011-2015 - Incremental amount raised during the year

60
€ billion

0.4
0.9
50 0.4 0.4
9.4
2.3 2.1
0.8
40 1.8 7.0 10.5 11.9
8.6 1.9
6.2
30 7.8
8.5 0.5 5.9
0.6 2.8
20 4.3 5.1
1.8 34.8
2.5
22.7 22.5
10
17.7
14.0

0
2011 2012 2013 2014 2015

UK & Ireland DACH Nordics France & Benelux Southern Europe CEE

Source: Invest Europe / PEREP_Analytics

DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 11
 All Private Equity - Funds raised by region of management and investor type
2015 - Incremental amount raised during the year

100% 3%
0%
4% 0% 0%
1% 10% 10%
15% 10%
90% 21% 3% 0% Sovereign wealth funds

Pension funds
80% 12% 17%
Insurance companies
70% 29%
21%
48% Government agencies
68% 27%
60%
3% 28% Fund of funds & Other asset managers

50% 11% 13% Family offices & Private individuals

3% Corporate investors
40% 18% 9%
15% Capital markets
30% 20%
1%
16% Banks
8% 39%
20% 14% 0% 18%
8% 1% Academic inst. / Endowments /
2% 0% 8% Foundations
2% 10%
10% 2% 6% 4%
4% 0%
11% 3%
5% 7% 2% 0% 6%
0% 1% 4% 0%
0% 0%
UK & Ireland DACH Nordics France & Southern CEE
Benelux Europe
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 12
Funds raised by type of investor
2015 - Incremental amount raised during the year - % of amount
All Private Equity funds Venture Capital funds
0% 0%
2% 8% 1%
13% 5% 2% 0% 14%
4% 7%
5%
7%
11% 9% Academic institutions
274 funds 98 funds Banks
207 firms 12% 3% 82 firms 4%
22% Capital markets
12%
Corporate investors
14% Endowments and foundations
5% 31%
9% Family offices
Fund of funds
Buyout funds Growth funds* Government agencies
2%
1%
1% 0% Insurance companies
0%2%
15%
7%
1% 11% Other asset managers
4%
3% Pension funds
4% 7%
Private individuals
90 funds 38 funds
Endowments and
Banks
Capital markets
Corporate investors
foundations
Sovereign wealth funds
77 firms 26 firms
Private 2.7%
individuals
Family
1.2%
2.0% offices
14% 3.7%
Fund
5.1% 3.6% of funds
25% 11.5%
Government agencies
Pension funds 5.9%
8% Insurance
Other companies
asset managers
10% 82% 37.4% 10.8%
3% 4.7%
* Due to the comparatively small number of funds raised and extrapolation
of missing data it is recommended to take a longer term perspective to
Source: Invest Europe / PEREP_Analytics identify the investor structure in this market segment

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 13

 All Private Equity - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount
40%
Academic inst. / Endowments / Foundations
35% Banks

30% 40% Capital markets

35%
30% Corporate investors
25% 25%
20% Family offices & Private individuals
20% 15%
10% Fund of funds & Other asset managers
5%
15% 0% Government agencies
Insurance companies
10%
Pension funds
5%
Sovereign wealth funds
0%
2011 2012 2013 2014 2015

60 54.2
48.0 47.5
€ billion

41.1
40
24.5
New funds raised
20 (excluding capital gains)

0
2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 14
 Venture Capital - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount
40%
Academic inst. / Endowments / Foundations
35% Banks

30% 40% Capital markets

35%
30% Corporate investors
25% 25%
20% Family offices & Private individuals
20% 15%
10% Fund of funds & Other asset managers
5%
15% 0% Government agencies
Insurance companies
10%
Pension funds
5%
Sovereign wealth funds
0%
2011 2012 2013 2014 2015

10
€ billion

5.2 4.9 5.3

4.6
5 3.9 New funds raised
(excluding capital gains)
0
2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 15
 Buyout - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount
45%
Academic inst. / Endowments / Foundations
40% Banks
35% 40% Capital markets
35%
30% 30% Corporate investors
25%
25% 20% Family offices & Private individuals
15%
10% Fund of funds & Other asset managers
20% 5%
0% Government agencies
15%
Insurance companies
10%
Pension funds
5% Sovereign wealth funds
0%
2011 2012 2013 2014 2015

50 45.3
€ billion

36.3
40 33.5
26.9
30
16.7 New funds raised
20
(excluding capital gains)
10
0
2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 16
 Growth - Funds raised by type of investor
2011–2015 - Incremental amount raised during the year - % of total amount*
70%
Academic inst. / Endowments / Foundations

60% Banks

40% Capital markets

50% 35%
30% Corporate investors
25%
40% 20% Family offices & Private individuals
15%
10% Fund of funds & Other asset managers
30% 5%
0% Government agencies
20% Insurance companies
Pension funds
10%
Sovereign wealth funds
0%
2011 2012 2013 2014 2015

6
€ billion

4.4
4 2.9
2.8
New funds raised
2 1.1 (excluding capital gains)
0.5

0 * Due to the comparatively small number of funds raised

and extrapolation of missing data it is recommended to
2011 2012 2013 2014 2015 take a longer term perspective to identify the investor
Source: Invest Europe / PEREP_Analytics structure in this market segment

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 17

All Private Equity - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount

North America 8.8%

(7.8%)
20.9%
(27.7%)

12.4%
(9.3%)
9.4%
(10.7%) 0.4%
22.4% (0.8%)
(23.5%)

Rest of world
3.0% 1.5% Australia
(2.4%) (2.2%) Asia
15.5%
Unclassified Europe (10.5%)
5.8%
(5.1%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 18
Venture Capital - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount

North America 3.3%

(5.8%)
11.0%
(10.5%)

20.1%
(7.8%)
10.5%
(20.2%) 2.2%
32.7% (2.9%)
(41.6%)

Rest of world
0.3% 1.1% Australia
(0.2%) (5.7%) Asia
0.2%
Unclassified Europe (0.2%)
18.6%
(5.1%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 19
Buyout - Fundraising geographic breakdown
2015 (2014) - Source of funds - % of total amount

North America 11.4%

(8.7%)
25.5%
(33.5%)

11.8%
(9.5%)
8.0%
(9.4%) 0.0%
14.6% (0.0%)
(15.6%)

Rest of world
4.3% 1.4% Australia
(2.9%) (1.6%) Asia
17.9%
Unclassified Europe (13.0%)
5.1%
(5.9%)
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 20
 Final closing - Funds raised by fund stage focus
2011–2015 - Final closing during the year - Amount(1)
50 49

€ billion
€ billion

Legend
5
Balanced
45
Later-stage 4.3 40
Early-stage 40
4 3.8
1.3
35
3.2 3.3
30 28
2.9 2.8
3
1.1 25
0.9
1.2 2.1
1.4
0.2 20 18
2 1.7
1.7 15
1.5 1.6
0.3 1.4 1.4 15
0.3
1.0 1.0
1 1.0
0.1
2.0 2.1 0.9
0.8 10
0.7 0.8
1.4 0.5
1.1 5
0.5
0 0
Venture Capital Growth Mezzanine Generalist Buyout

2011 2012 2013 2014 2015

Source: Invest Europe / PEREP_Analytics
Note: (1) The total amount raised by funds that reached a final closing in the year. Amounts from previous incremental fundraising rounds and years are aggregated to the final amount.
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 21
 Final closing - Funds raised by fund stage focus
2011–2015 - Final closing during the year - Number of funds(1)

Legend

Balanced
60 Later-stage 60
Early-stage

50 50 50
50 50
46
43 43
13 40 41
40 40
25
32 18 4
13 27 30
26
30 24 30
14 5 20
4
20 9 20
14 14
33 13 13
6 11
22
10 21 7
6 10
16 5 5
12 4
3

0 0
Venture Capital Growth Mezzanine Generalist Buyout

2011 2012 2013 2014 2015

Source: Invest Europe / PEREP_Analytics
Note: (1) The number of funds that reached a final closing in the year. Each fund is captured only once, when the full amount has been raised.
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 22
 Final closing - All Private Equity - Concentration of capital
2011–2015 - Final closing during the year - Amount(1) & Number of funds(2)
90%
Number
% total amount of annual fundraising

of
80% funds
12
70% 13

60%

50%
3 7
5
40%

30%
37
20% 7
18 10
10
17 31
4 7
10% 13 27 7
77 66 4 23 13
62 79 65
0%
2011 2012 2013 2014 2015
< €100m €100m - €250m €250m - €500m €500m - €1bn > €1bn
Source: Invest Europe / PEREP_Analytics
Note: (1) The total amount raised by funds that reached a final closing in the year. Amounts from previous incremental fundraising rounds and years are aggregated to the final amount.
(2) The number of funds that reached a final closing in the year. Each fund is captured only once, when the full amount has been raised.

2015 European Private Equity Activity 23

2. INVESTMENTS
Investments statistics explained
Industry statistics are an aggregation of figures according to
the country of the private equity firm’s office in charge of the
investment. At European level, this relates to investments made
by European private equity firms regardless of the location of
the portfolio company.
Market statistics are an aggregation of figures according to the
location of the portfolio company. At European level, this
relates to investments in European companies regardless of the
location of the private equity firm.
Equity value: The amount of capital invested to acquire shares
in an enterprise. The equity value includes equity, quasi-equity,
mezzanine, unsecured debt and secured debt provided by the
private equity firm.
The funds included in the statistics are: private equity funds
making direct private equity investments, mezzanine private
equity funds, co-investment funds and rescue/turnaround funds.
The following funds are excluded from the statistics:
infrastructure funds, real estate funds, distressed debt funds,
primary funds of funds, secondary funds of funds.
Market versus industry statistics

Market statistics
CC A+B+C

DD A
Industry statistics
A+B+D
A Domestic investments in European countries

B Cross-border investments within Europe

C Non-European private equity firms investing in

portfolio companies in Europe

D European private equity firms investing in

portfolio companies outside Europe
Glossary
Venture capital
Seed: Financing provided to research, assess and
develop an initial concept before a business has
reached the start-up phase.
Start-up: Financing provided to companies for product
development and initial marketing. Companies may
be in the process of being set up or may have been in
business for a short time, but have not sold their
product commercially.
Later-stage financing: Financing provided for the
expansion of an operating company, which may or
may not be breaking even or trading profitably. Later-
stage venture tends to finance companies already
backed by venture capital firms.
2015 European Private Equity Activity
Growth
A type of private equity investment – most often a
minority investment but not necessarily – in relatively
mature companies that are looking for capital to
expand operations, restructure operations or enter
new markets.
Buyout
Financing provided to acquire a company. It may use
a significant amount of borrowed money to meet the
cost of acquisition.
Rescue / Turnaround
Financing made available to an existing business,
which has experienced trading difficulties, with a
view to re-establishing prosperity.
Replacement capital
The purchase of a minority stake of existing shares in
a company from another private equity firm or from
another shareholder or shareholders.
26
 2015 Investments at a glance

• The total amount of equity investments in European companies increased by 14% to €47.4bn. Investments – Market statistics – Amount & No. of companies
The related number of companies reduced by 11% to almost 5,000. 86% of them are SMEs.
3,237
• Over a third of the total amount invested in European companies was attributed to cross-border 3,055
investments. This was the case for all private equity as well as venture capital investments. 2,965 2,981
2,836
• Venture capital investments increased by 5% to €3.8bn. The amount invested increased across
all stages led by seed investments with an increase of 18%. Later-stage venture increased by 47.4
5% and start-up investments by 4%. The reduction in number of companies by 12% to 2,836 44.9
indicates a trend towards larger financing rounds across all stages. Most capital was 41.8
concentrated in life sciences (34%), computer & consumer electronics (20%) and 6.5
communications (19%) sectors. 5.2 36.8 36.3
• Buyout investments increased by 16% to €36.3bn into a stable number of companies at 944. 5.8 36.3
In terms of amount, large and mega buyouts increased, while mid-market investments remained
34.5
4.0 3.6
stable. More than 60% of buyout investments concentrated in companies active in business 31.3
& industrial products (18%), consumer goods & retail (15%), financial services (12%) and life 28.1 28.0 1,272
sciences (11%). 1,122 1,108
1,066
• Growth investments increased 11% to €6.5bn, reaching their highest level since 2008. 932
The number of companies receiving growth investments reduced by 13% to 1,108. Investments
concentrated in the sectors of communication(17%), energy & environment (14%), consumer
goods & retail (13%) and computer & consumer electronics (12%). 881 896 951 944
839

All Private Venture 3.7 3.2 3.4 3.6 3.8

2015 - Market statistics Buyout(1) Growth(1)
Equity Capital(1)
2011 2012 2013 2014 2015
Amount €47.4bn €3.8bn €36.3bn €6.5bn
No. of companies: Amount (€bn):
No. of companies 4,971 2,836 944 1,108 Venture Capital Venture Capital
Buyout Buyout
No. of firms 1,028 589 427 400
Growth Growth
No. of funds 1,656 930 572 582 Other(2)
Total
Source: Invest Europe / PEREP_Analytics Source: Invest Europe / PEREP_Analytics
Note: (1) relates to the investment stage of the portfolio company Note: (2) Other includes Rescue/Turnaround and Replacement capital

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 27

Investments by stage
2015 - Market statistics - % of Amount & Number of companies

% of Amount Start-up % of Number of companies

Seed Later-stage
4.2% Seed
0.2% venture Buyout
8.5%
3.5% 18.6%
Growth
capital
13.6% Replacement
capital
Rescue/ 1.6%
Turnaround
Rescue/
0.5%
Turnaround
Replacement
0.9% Start-up
capital
1.2% 35.8%

Growth
capital
Buyout 21.9%
76.6%

Later-stage
venture
12.7%
Venture Capital €3.8bn Venture Capital 2,836 Companies
Buyout €36.3bn Buyout 944 Companies
Growth €6.5bn Growth 1,108 Companies

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 28
 Investments by stage
2011–2015 - Market statistics - Amount
40

€ billion
7
€ billion

35
6
30

5
25
3.8
4 3.7 3.6
0.2
3.4
0.1
0.1 20
3.2
0.1 36.3
0.1 6.5 34.5
3 5.8 31.3
2.0 15
1.8 5.2 1.9 28.1 28.0
1.8
1.8
2 4.0
10
3.6

1 1.7 5
1.5 1.6 1.7
1.3 1.1
1.0 1.0 0.8
0.5 0.6
0.3 0.3 0.2 0.3
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital Buyout

Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 29
 Investments by stage
2011–2015 - Market statistics - Number of companies

4,000

3,237
3,500
3,055
2,965 2,981
2,836
3,000 470
359 413
392
431
2,500
1,000
2,000
1,679 1,796 1,948
1,833

1,500 1,812

500 951 944

1,000 881 896 839

1,272
1,066 1,122
500 939 932 843 885 853 644
1,108

76 117 62 104 58 89 80
103 65 48
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital Buyout

Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 30
 Buyout – Investments by equity bracket
2011–2015 - Market statistics - Amount & Number of companies
60 886 900

Number of companies
€ billion
15 816 800
50 50 700

Number of companies
673 700
€ billion

45 40 621 621 600 622

12 550 574 547 600
9 493 500
40 30 574 438 570 8
24 7 378 8
900 400
86 8 327 5 5

Number of companies
20 500
816 35 18 800
8 238 7 268 7 263 300 8
8 16 200
10 700
11 13 13
30 6 2 128 100
50574 296215 2
6 8 2 600 33 3 33 4 6
27 4 32 3 400
0550 30 185 4 547 16
5 18 11 10 0 10
9 25 493 8 327 500
38 20078 2008 2009 2010 2011 20127 2013
7 378 8 400 7 298 300
20 8 327 57 268 5 269 277
18 8 16
238 7 268 7 263 300
16 200 15 15
15 11 1313 13 13 200
6 5 2 128 100
0 29 2
6 8 2 33 3 33 4 27 4 32 3
0 18 10 4 16 18 11 10 0 Small (<€15m) - Amount
2008 2009 2010 2011 2012 2013 100
5 Mid-market (€15m - €150m) - Amount
31 43
33 27 33
4 18 4 11 3 10 4 12 4 18
0 Large (€150m - €300m) - Amount 0
2011 2012 2013 Mega (> €300m) - Amount
2014 2015
Small (<€15m) - Amount Small (<€15m) - No. of companies
Mid-market (€15m - €150m) - Amount Mid-market (€15m - €150m) - No. of companies
Large (€150m - €300m) - Amount Large (€150m - €300m) - No. of companies
Mega (> €300m) - Amount Mega (> €300m) - No. of companies
Small (<€15m)
Source: Invest Europe / PEREP_Analytics - No. of companies
2015 European Private Equity Activity (€15m - €150m) - No. of companies
Mid-market FUNDRAISING INVESTMENTS DIVESTMENTS 31
Large (€150m - €300m) - No. of companies
Mega (> €300m) - No. of companies
 Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Amount

12
€ billion

10

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Venture Capital Buyout Growth

Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 32
 Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Number of companies

1,200

1,000

800

600

400

200

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Venture Capital Buyout Growth

Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 33
 Venture Capital - Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Amount

0.7
€ billion

0.6

0.5

0.4

0.3

0.2

0.1

0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Seed Start-up Later-stage venture

Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 34
 Venture Capital - Investments by stage
Quarterly trend Q1 2011 – Q4 2015 - Market statistics - Number of companies

800

700

600

500

400

300

200

100

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Seed Start-up Later-stage venture

Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 35
All Private Equity - Geographical investment flows
2015 - Industry vs. Market statistics - Amount

Market statistics
are an aggregation of figures according to
€3.3bn the location of the portfolio company.
Non-European private At European level, this relates to
investments in European companies
equity firms investing
regardless of the location of the private
in portfolio companies equity firm.
in Europe

€13.1bn
€3.2bn
European private
equity firms investing Cross-border
in portfolio companies investments
outside Europe within Europe

Industry statistics €31.0bn

Europe includes:
are an aggregation of figures according Austria, Baltic countries (Estonia, Latvia,
to the country of the private equity Lithuania), Belgium, Bulgaria, Czech Republic,
firm’s office in charge of the Denmark, Finland, France, Germany, Greece,
investment. Domestic investments
Hungary, Ireland, Italy, Luxembourg,
At European level, this relates to in European countries Netherlands, Norway, Other CEE (Bosnia-
investments made by European private Herzegovina, Croatia, Macedonia, Montenegro,
equity firms regardless of the location Serbia, Slovenia, Slovakia), Poland, Portugal,
of the portfolio company. Romania, Spain, Sweden, Switzerland, Ukraine,
United Kingdom
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 36
Venture Capital - Geographical investment flows
2015 - Industry vs. Market statistics - Amount

Market statistics
are an aggregation of figures according to
€313m the location of the portfolio company.
Non-European private At European level, this relates to
investments in European companies
equity firms investing
regardless of the location of the private
in portfolio companies equity firm.
in Europe

€994m
€495m
European private
equity firms investing Cross-border
in portfolio companies investments
outside Europe within Europe

Industry statistics €2,499m

Europe includes:
are an aggregation of figures according Austria, Baltic countries (Estonia, Latvia,
to the country of the private equity Lithuania), Belgium, Bulgaria, Czech Republic,
firm’s office in charge of the Denmark, Finland, France, Germany, Greece,
investment. Domestic investments
Hungary, Ireland, Italy, Luxembourg,
At European level, this relates to in European countries Netherlands, Norway, Other CEE (Bosnia-
investments made by European private Herzegovina, Croatia, Macedonia, Montenegro,
equity firms regardless of the location Serbia, Slovenia, Slovakia), Poland, Portugal,
of the portfolio company. Romania, Spain, Sweden, Switzerland, Ukraine,
United Kingdom
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 37
 All Private Equity - Investments by region
2015 - Industry vs. Market statistics - Amount
Industry statistics Market statistics
CEE CEE
3% 3%
Nordics Nordics
14% UK & Ireland 13% UK & Ireland
25%
27%

Southern Europe Southern

10% Europe
9%

DACH
DACH 19%
19%
France & Benelux France &
28% Benelux
29%
Source: Invest Europe / PEREP_Analytics
DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 38
 Investments by stage and regions
2015 - Market statistics - Amount
12
2.5

€ billion
€ billion

10.2
9.9
10
2.0

8
1.5
6.5
1.2
2.4
0.1 6
0.9 0.9
1.0 4.7
0.0 0.0
1.6 0.7
0.4 4 3.7
0.5
0.5 1.0 0.4
0.3 0.0 0.8
0.5 0.0 0.2 2
0.5 1.2
0.4 0.2 0.4 0.0 0.1
0.0 0.2 0.1 0.2
0.1 0.1 0.1 0.2 0.1 0.0 0.1 0.2 0.0
0.1 0.0 0.0 0.0
0.0
UK & Ireland France & Benelux DACH Southern Europe Nordics CEE
0
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital

Venture Capital Buyout

Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 39
 Investments by stage and regions
2015 - Market statistics - Number of companies
1,000 936

900
244
800

700

578 598
600 45
33

500
545
400
400 343
368
455 300
278
300
14
224 222 190
455
36 200
200 175 362
59 144
129
100
142 100
100 187 165
127 38
97 105 35 107
6 8 14 18 18 11 74 5 7 0
48 65 5 40 47 1 0
0
UK & Ireland France & Benelux DACH Southern Europe Nordics CEE
Later-stage venture Start-up Seed Growth Rescue/Turnaround Replacement capital
Buyout
Venture Capital
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 40
 All Private Equity - Investments as % of European GDP
2000–2015 - Industry statistics: Location of the PE firm

0.60%
%of GDP

0.55%
0.53%

0.50%

0.40%
0.40% 0.39%

0.35%
0.33%
0.32% 0.32%
0.30%
0.30% 0.28%
0.26% 0.26% 0.26%
0.25%
0.23%

0.19%
0.20%

0.10%

0.00%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: : IMF, World Economic Outlook Database (GDP) / Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / PEREP_Analytics (2007-2015)
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 41
 All Private Equity - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm

1.000%
% of GDP

0.799%

0.900%

0.800%

0.700%

0.600%
0.437%

0.433%

0.500%
0.388%

0.332%

0.302%

0.400%
0.257%

0.247%

0.198%
0.300%

0.187%

0.176%

0.142%

0.108%

0.107%

0.097%
0.200%

0.084%

0.075%

0.071%

0.050%

0.036%

0.032%

0.031%

0.026%

0.015%

0.008%

0.000%
0.100%

0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 42
 Venture Capital - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm

0.140%
% of GDP

0.109%

0.120%

0.100%
0.079%

0.080%
0.047%

0.047%

0.060%
0.041%

0.039%

0.034%

0.034%

0.033%

0.032%

0.026%

0.025%

0.025%
0.040%

0.023%

0.022%

0.015%

0.010%

0.008%

0.007%

0.005%

0.005%
0.020%

0.002%

0.002%

0.002%

0.001%

0.000%
0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 43
 Buyout - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm
0.800%
% of GDP

0.677%

0.700%

0.600%

0.500%
0.322%

0.314%

0.400%
0.313%

0.233%

0.300%
0.208%

0.179%

0.155%

0.153%

0.149%

0.137%
0.200%

0.087%

0.062%

0.062%

0.060%

0.033%

0.030%

0.029%

0.024%

0.023%
0.100%

0.013%

0.008%

0.005%

0.001%

0.000%

0.000%
0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 44
 Growth - Investments as % of GDP
2015 - Industry statistics: Location of the PE firm

0.120%
% of GDP

0.098%

0.100%
0.084%

0.080%

0.080%
0.058%

0.060%
0.039%

0.040%
0.027%

0.024%

0.020%

0.019%

0.018%

0.018%

0.017%

0.016%

0.015%

0.014%

0.014%

0.013%

0.011%

0.008%
0.020%

0.005%

0.005%

0.004%

0.001%

0.000%

0.000%

0.000%
0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 45
 All Private Equity - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company
1.254%

1.400%
% of GDP

1.200%

1.000%

0.800%
0.633%

0.497%

0.496%

0.478%

0.453%

0.600%
0.381%

0.376%

0.337%

0.322%

0.305%

0.302%
0.400%

0.218%

0.215%

0.188%

0.155%

0.146%

0.142%

0.141%

0.125%

0.119%

0.090%

0.085%

0.064%
0.200%

0.021%

0.008%
0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 46
 Venture Capital - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company

0.060%
% of GDP

0.051%

0.044%

0.050%
0.037%

0.035%

0.040% 0.033%

0.033%

0.033%

0.031%

0.029%

0.028%

0.025%

0.024%

0.024%
0.030%

0.023%

0.016%

0.015%

0.014%
0.020%

0.010%

0.005%

0.005%

0.004%
0.010%

0.003%

0.002%

0.001%

0.001%

0.000%
0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 47
 Buyout - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company

1.400%
% of GDP

1.198%

1.200%

1.000%

0.800%
0.542%

0.600%
0.407%

0.389%

0.380%

0.310%

0.300%

0.300%

0.251%
0.400%

0.236%

0.232%

0.219%

0.164%

0.160%

0.151%

0.142%

0.139%

0.108%

0.103%

0.088%

0.087%

0.050%
0.200%

0.028%

0.013%

0.002%

0.001%
0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 48
 Growth - Investments as % of GDP
2015 - Market statistics: Location of the portfolio company

0.160%
% of GDP

0.137%

0.140%

0.120%
0.087%

0.086%

0.100%
0.072%

0.080%
0.059%

0.056%

0.051%

0.046%
0.060%

0.041%

0.038%

0.035%

0.028%

0.025%

0.023%
0.040%

0.019%

0.017%

0.016%

0.015%

0.014%

0.014%

0.011%

0.011%

0.005%

0.005%
0.020%

0.001%

0.000%
0.000%

2015 2011-2015 Annual Average

Source: IMF, World Economic Outlook Database (GDP) / Invest Europe / PEREP_Analytics
Note: *Other CEE consists of Ex-Yugoslavia and Slovakia
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 49
 All Private Equity - Investments by sector
2015 - Market statistics - % of Amount & Number of companies

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

15.8%
Business & industrial products 12.4%
14.0%
Consumer goods & retail 10.2%
12.2%
Life sciences 16.2%
11.2%
Computer & consumer electronics 19.1%
10.0%
Financial services 2.2%
9.0%
Consumer services 5.5%
7.3%
Business & industrial services 10.0%
7.2%
Communications 12.2%
5.4%
Energy and environment 5.5%
2.4%
Transportation 1.7%
1.9%
Agriculture 0.7% Amount
1.8%
Chemicals and materials 1.8% Number of companies
1.1%
Construction 1.3%
0.6%
Real estate 0.4%
0.1%
Unclassified 0.9%

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 50
 Investments by sector
2011-2015 - Market statistics - Amount
All Private Equity Venture Capital
50 4

€ billion
€ billion

45 3.5
40 3
Transportation
35
30 Real estate
2.5
25 2
Life sciences
20 1.5
15 Financial services
1
10 Energy and environment
5 0.5
Consumer services
0 0
2011 2012 2013 2014 2015 Consumer goods & retail 2011 2012 2013 2014 2015

Buyout Construction Growth

Computer & consumer electronics
40 7

€ billion
€ billion

35 Communications
6
30 Chemicals and materials
5
25 Business & industrial services
4
20 Business & industrial products
3
15
Agriculture
10 2
5 1
2008 2009 2010 2011 2012 2013
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 51
 Investments by sector
2011-2015 - Market statistics - Number of companies
All Private Equity Venture Capital
6,000
3,500
5,000 3,000
Transportation
4,000 2,500
Real estate
2,000
3,000 Life sciences
1,500
2,000 Financial services
1,000
1,000 Energy and environment
500
Consumer services
0 0
2011 2012 2013 2014 2015 Consumer goods & retail 2011 2012 2013 2014 2015

Buyout Construction Growth

Computer & consumer electronics
1,000 1,400
Communications
1,200
800 Chemicals and materials
1,000
600 Business & industrial services
800
Business & industrial products
400 600
Agriculture
400
200
200
2008 2009 2010 2011 2012 2013
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 52
All Private Equity - Initial / Follow-on investments
2015 - Market statistics - % of Number of companies

54% 56% 54% 55%

58%

Follow-on investment
for the company

Initial investment for

the company
60% 59% 61%
57% 56% Initial investment for
46% 44% 42%
46% 45% the private equity firm

2011 2012 2013 2014 2015

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 53
 Investments by portfolio company size
2015 - Market statistics - % of Number of companies
0.9% 0.1% 0.1%
All Private Equity 3.5% 1.1% Venture Capital 0.4% 0.2%
3.6% SME: 85.9% 3.1% SME: 98.7%
5.8%
1.8%

Full-time equivalent 26.4%

3.7% 0.9%
9.8% 3.6%
4.5% staff by interval
48.5%
2.5% 0 - 19
20 - 99
9.1% SME
100 - 199
44.1% 68.8%
200 - 249
25.9%
250 - 499
500 - 999
3.5% 6.2% 3.0% 1.4%
Buyout 14.1%
SME: 54.7% 1000 - 4999 Growth 5.7% SME: 81.9%
5000 + 7.9%
31.6% 22.2% 35.0%
2.8%

11.1%

15.8%

16.6%
21.1%
5.1% 28.3%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 54
 Venture Capital - Investments by portfolio company size
2015 - Market statistics - Amount & Number of companies

2,000 2,500

companies
Number of
1,843
€ million

Amount invested Number of companies

1,800
1,600 2,000
1,400 1,318

1,200 1,500
1,000
800 1,000
600
400 342 500
200 94 133
54 1 19
0 0
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +

Full-time equivalent staff by interval

SMEs
Amount invested Number of companies
SME % 93% 99%

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 55
 Buyout - Investments by portfolio company size
2015 - Market statistics - Amount & Number of companies
€ billion

14 250

companies
Number of
12.9
Amount invested
12
200
10

150
8
6.6
6 5.3
100
4.2
3.8
4
2.5 50
2
0.4 0.7
0 0
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +

Full-time equivalent staff by interval

SMEs
Amount invested Number of companies
SME % 20% 55%

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 56
 Growth - Investments by portfolio company size
2015 - Market statistics - Amount & Number of companies

1.8 450
€ billion

companies
Number of
Amount invested
1.6 1.5 400

1.4 350

1.2 300
0.9 1.0
1.0 0.9 250

0.8 200
0.6 0.6
0.6 0.5 150

0.4 0.3 100

0.2 50

0.0 0
0 - 19 20 - 99 100 - 199 200 - 249 250 - 499 500 - 999 1000 - 4999 5000 +

Full-time equivalent staff by interval

SMEs
Amount invested Number of companies
SME % 52% 82%

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 57
3. DIVESTMENTS
Divestments statistics explained
Industry statistics are an aggregation of figures according to
the country of the private equity firm’s office in charge of the
divestment. At European level, this relates to divestments
made by European private equity firms regardless of the
location of the portfolio company.

Market statistics are an aggregation of figures according to

the location of the portfolio company. At European level, this
relates to divestments of European companies regardless of
the location of the private equity firm.

Divestment amounts (including write-offs) are recorded at cost

(i.e. the total amount divested is equal to the total amount
invested before).

The funds included in the statistics are: private equity funds

making direct private equity investments, mezzanine private
equity funds, co-investment funds and rescue/turnaround
funds.

The following funds are excluded from the statistics:

infrastructure funds, real estate funds, distressed debt funds,
primary funds of funds, secondary funds of funds.
Market versus industry statistics

Market statistics
CC A+B+C

DD A
Industry statistics
A+B+D
A Domestic divestments in European countries

B Cross-border divestments within Europe

C Non-European private equity firms divesting

portfolio companies in Europe

D European private equity firms divesting

portfolio companies outside Europe
Glossary
Initial public offering (IPO): The sale or distribution of
a company’s shares to the public for the first time by
listing the company on the stock exchange.
Repayment of principal loans: If a private equity firm
provided loans or purchased preference shares in the
company at the time of the investment, then their
repayment according to the amortisation schedule
represents a decrease of the financial claim of the
firm into the company, and hence a divestment.
Repayment of silent partnership: A silent partnership
is a type of mezzanine financing instrument. It is
similar to a long-term bank loan but, in contrast to a
loan, a silent partnership is subject to a subordination
clause, so that in the event of insolvency all other
creditors are paid before the silent partner. The
company has to repay the partnership and has to pay
interest and possibly a profit-related compensation.
The subordination clause gives the capital the status
of equity despite its loan character. This financing
instrument is frequently used in Germany.
Sale of quoted equity: The sale of quoted shares only
if connected to a former private equity investment,
e.g. sale of quoted shares after a lock-up period.
2015 European Private Equity Activity
Sale to another private equity firm: The sale of
company shares to another direct private equity firm.
Sale to financial institution: The sale of company
shares to banks, insurance companies, pension funds,
endowments, foundations and other asset managers
other than private equity firms.
Trade sale: The sale of company shares to industrial
investors.
Write-off: The total or partial write-down of a
portfolio company’s value to zero or a symbolic
amount (sale for a nominal amount) with the
consequent exit from the company or reduction of
the shares owned. The value of the investment is
eliminated and the return to investors is a full or
partial loss.
60
 2015 Divestments at a glance

• Almost 2,500 European companies were exited in 2015, representing former equity investments Divestments – Market statistics – % total amount divested at cost
(divestments at cost) of €40.5bn. This amount matches the level of 2014, which was until then
the highest reported exit volume to date for European private equity.
• The most prominent exit routes by amount were trade sale (29%), sale to another private Sale to
equity firm (27%) and public offering (23%). Over 40% of all the divested companies followed management
these exit routes. 2%
Repayment of
• Public markets supported again sale of quoted equity on flotation (IPO) for 50 companies. principal loans Other means
Exits from already listed companies in the form of sale of quoted equity increased by almost 4% 1%
80% to €6.7bn, by amount divested at cost. Write-off
• Exits from venture capital investments represented 40% of all divested companies, remaining 4%
at over 1,000 companies and accounting for 5% of the amount divested at cost. The equity
amount divested increased by 10% to €2.1bn. Trade sale, write-off, sale of quoted equity or on Sale to financial Trade sale
flotation (IPO), and sale to another private equity firm were the most prominent exit routes. institution 29%
• Buyout divestments’ share was 84% of the equity amount at cost and 32% by number of 10%
companies. The amount divested remained stable at €34bn and number of companies almost
800. Sale to another private equity firm, trade sale, and sale of quoted equity or on flotation
(IPO) were the most prominent exit routes.
• Growth divestments represented 8% of equity amount at cost and 27% by number of companies.
The amount divested increased by 40% to €3.2bn and the number of companies increased by
9% to 660. Trade sale, sale to another private equity firm and write-off were the most
prominent exit routes.

All Private Venture

2015 - Market statistics Buyout(1) Growth(1)
Equity Capital(1)
Divestments – Amount €40.5bn €2.1bn €34.3bn €3.2bn
Divestments – No. Companies 2,487 1,005 797 660 Public offering
23%
Number of Firms 640 297 321 162 Sale to another
private equity
Number of Funds 1,123 531 531 230 firm
27%
Source: Invest Europe / PEREP_Analytics Source: Invest Europe / PEREP_Analytics
Note: (1) relates to the investment stage of the portfolio company

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 61

 Divestments at cost – Venture Capital / Buyout / Growth
2011–2015 - Market statistics - Amount & Number of companies

45 1,200

Number of companies
€ billion

40
2.1
1.9 1,000
3.2
35 2.3
2.2
30 1.9 800
2.4
2.3
25
600
20 1.9
1.1
33.4 34.3
15 29.1 400
24.8
10 18.3
200
5

0 0
2011 2012 2013 2014 2015

Buyout - Amount divested Growth - Amount divested Venture Capital - Amount divested
Buyout - Number of companies Growth - Number of companies Venture Capital - Number of companies

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 62
 Divestments at cost by exit route – Venture Capital / Buyout / Growth
2015 - Market Statistics - % of Amount

11% 0%
1%
27%

Buyout
1% 1%
5% 28% €34.3bn 5%
4%
8% 7%
10%
33%
4%
3% Venture Capital 3% 18% Growth
2%
50% 0%
€2.1bn €3.2bn
Trade sale
31%
14% 1%
Initial public offering
4.7% 4.1%
Sale of quoted equity
2%
4.4%
Write-off 5% 10%
9%
36.7%
Repayment of silent partnerships
5%
16.8% 2%
Repayment of principal loans

1.6% 2.1% Sale to another private equity firm

0.3% Sale to financial institution
4.7%
Sale to management
24.4%
Source: Invest Europe / PEREP_Analytics Other means

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 63

 Divestments at cost by exit route – Venture Capital / Buyout / Growth
2015 - Market Statistics - % of Number of companies

3%
10%

6% 29%

Buyout
1% 1%
7%
797 Companies 3% 11%
3% 7% 1%
24% 4%
24%
6% 8% 3%
6%
8% 4%
Venture Capital 11% 3% 8% Growth 12%
1%
1,005 Companies 7% 660 Companies
Trade sale
Initial public offering
20%
4.7% 4.1%
Sale of quoted equity
4.4%
23% Write-off
36.7%
46%
Repayment of silent partnerships
16.8%
Repayment of principal loans

1.6% 2.1% Sale to another private equity firm

0.3% Sale to financial institution
4.7%
Sale to management
24.4%
Source: Invest Europe / PEREP_Analytics Other means

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 64

 All Private Equity - Divestments at cost by exit route
2011–2015 – Market statistics - Amount at cost

12
€ billion

10

0
2011 2012 2013 2014 2015

Trade sale Initial public offering Sale of quoted equity

Write-off Repayment of silent partnerships Repayment of principal loans
Sale to another private equity firm Sale to financial institution Sale to management
Other means
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 65
 All Private Equity - Divestments at cost by exit route
2011–2015 - Market statistics - Number of companies

600

500

400

300

200

100

0
2011 2012 2013 2014 2015
Trade sale Initial public offering Sale of quoted equity
Write-off Repayment of silent partnerships Repayment of principal loans
Sale to another private equity firm Sale to financial institution Sale to management
Other means

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 66
 All Private Equity - Divestments at cost by sector
2015 - Market statistics - Amount & Number of companies (excluding write-offs)

8 450

Number of companies exited

€ billion

7.1
7 400
Amount at cost
350
6
5.0 Number of companies exited 300
5 4.5
4.3
250
4 3.5 3.4
383 3.1 200
3
295 150
252 2.0 2.0 257
2 237
1.6
186 100
175 1.1
1 52 0.6 50
81 76 67 0.3
13 16
40 0.0 0.0 5
0 0

Source: Invest Europe / PEREP_Analytics

2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 67
Divestments at cost by sector – Venture Capital / Buyout / Growth
2015 - Market statistics - Amount (excluding write-offs)

36%
Life sciences 7%
19%
5%
Consumer goods & retail 16%
19%

21%
Communications 9%
11%

4%
Business & industrial products 10%
14%

1%
Financial services 12%
12%
14%
Computer & consumer electronics 5%
6%
7%
Consumer services 6%
8%

3%
Business & industrial services 9%
9%
7%
Energy & environment 2%
8%
1%
Chemicals & materials 1%
6% Venture Capital
0%
Transportation 2%
4% Buyout
0% Growth
Construction 1%
2%

0%
Agriculture 0%
1%

1%
Real estate 0%
0%
0%
Unclassified 0%
1%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 68
Divestments at cost by sector – Venture Capital / Buyout / Growth
2015 - Market statistics - Number of companies (excluding write-offs)

11%
Business & industrial products 18%
27%
8%
Consumer goods & retail 16%
18%

8%
Business & industrial services 13%
14%
20%
Computer & consumer electronics 7%
8%

19%
Life sciences 5%
8%

5%
Consumer services 9%
11%
14%
Communications 4%
7%

3%
Financial services 2%
6%

5%
Energy & environment 2%
3%

2%
Construction 3%
5% Venture Capital
3%
Chemicals & materials 2%
3% Buyout
1% Growth
Transportation 2%
3%
0%
Agriculture 1%
1%
0%
Real estate 0%
0%
1%
Unclassified 1%
0%
Source: Invest Europe / PEREP_Analytics
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 69
 All Private Equity - Divestments at cost by region
2015 - Industry vs. Market statistics - % of Amount
20
€ billion

17.7
18

16

14
12.6
12
10.8
9.7
10

8 7.5
6.5
6
4.4 4.0
4 3.2 3.0

2 0.9 1.2

-
UK & Ireland DACH Nordics France & Benelux Southern Europe CEE

Industry statistics - Country of the private equity firm Market statistics - Country of portfolio company

Source: Invest Europe / PEREP_Analytics

DACH: Austria, Germany, Switzerland / Southern Europe: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden / CEE: Central Eastern Europe
2015 European Private Equity Activity FUNDRAISING INVESTMENTS DIVESTMENTS 70
ACKNOWLEDGEMENTS
Acknowledgements
We are grateful for the generous support of General Partners representing private
equity and venture capital firms across Europe who provided us with their activity
data. The following comprehensive and verified pan-European statistics would not
be possible without their on-going commitment.

We also thank all the regional and national private equity associations that collect
their activity data via PEREP_Analytics, the pan-European statistics platform.
We thank the following associations for their participation to make PEREP_Analytics
the most comprehensive private equity database on private equity in Europe:

APCRI - Portugal IVCA - Ireland

AVCO - Austria LTVCA - Lithuania

BVA - Belgium NVCA - Norway

BVK - Germany NVP - The Netherlands

CVCA - Croatia PSIK - Poland

CVCA - The Czech Republic SECA - Switzerland

DVCA - Denmark SEEPEA - South Eastern Europe

EstVCA - Estonia SLOVCA - Slovakia

FVCA – Finland SVCA - Sweden

HVCA - Hungary
About PEREP_Analytics and Invest Europe Research

63%
PEREP is a joint Pan-European statistics platform of the following private equity associations:
APCRI - Portugal CVCA - The Czech Republic HVCA - Hungary PSIK - Poland

The coverage rate of all

European private equity AVCO - Austria DVCA - Denmark IVCA - Ireland SECA - Switzerland
firms based on 2,029 eligible
private equity firms

BVA - Belgium EstVCA - Estonia LTVCA - Lithuania SEEPEA - South Eastern Europe

91%
The 2015 annual survey BVK - Germany Invest Europe - Europe NVCA - Norway SLOVCA - Slovakia

covered 91% of the European

market in terms of capital
under management CVCA - Croatia FVCA - Finland NVP - The Netherlands SVCA - Sweden
(base €564bn)

Statistics Manager Knowledge Manager Research Director

Iuliana Furica Monica Biolan Dr Cornelius Mueller

Statistics Team Research Manager

Adriana Andronic Adriana Craciun Dan Magirescu Dina Valah
Ana-Maria Cazacu Cristina Cristea Alexandru Mazilu Julien Krantz
Claudiu Costache Denisa Florea Ioana Turbatu

info@perepanalytics.eu www.perepanalytics.eu research@investeurope.eu www.investeurope.eu

2015 European Private Equity Activity 73

Invest Europe Bastion Tower T +32 2 715 00 20
Place du Champ de Mars 5 www.investeurope.eu
B-1050 Brussels, Belgium