Upload
chun
View
41
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Competitive Advantage through Private Equity and Venture Capital Financing. Dr. Jürgen Marchart AVCO – Austrian Private Equity and Venture Capital Organisation 28 th March 2014. Agenda. What is AVCO? What is Private Equity/Venture Capital? Austrian Private Equity Industry - PowerPoint PPT Presentation
Citation preview
Competitive Advantage through Private Equity and Venture Capital Financing
Dr. Jürgen Marchart
AVCO – Austrian Private Equityand Venture Capital Organisation
28th March 2014
1. What is AVCO?
2. What is Private Equity/Venture Capital?
3. Austrian Private Equity Industry
4. Competitive Advantage
5. Framework Conditions
Agenda
AVCO – Austrian Private Equity und Venture Capital Organisation is …
• …the umbrella organisation of the Austrian Venture Capital industry
• Represents 80% of the Austrian Venture Capital market
• AVCO’s mission is:
What is AVCO?
Mission
• Information and know-how services, to raise awareness for benefits of VC
• Networking, fostering the co-operation of all VC players
• Lobbying, to improve framework conditions
• Co-operation with EVCA, nVCAs, EC,…
Organisation
• AVCO is a non-profit association
• Financed by membership fee, sponsoring, projects
Mission of AVCO
• Fund location and legal framework conditionso Representation of PE/VC industry in nationalen and European legal framework discussionso Working groups, know-how generation and information of AVCO Memberso Interface to other national umbrella organisations and EVCA
• Deals/Transactionso Matching platformso Co-operation with potential targets (portfolio companies, ...)
• Investors o Co-operation with potential investors o Information generation und dissemination about the Austrian PE/VC industry
• Co-Investmentso Creation of matching platformso Investment cases, success stories, …
AVCO Services I
• Marketing and visability of the know-how and the services of AVCO Memberso visability for know-how and services of AVCO Members to members of the PE/VC Communityo Generation of projects/business
• Educationo PE/VC trainings and seminars o Know-how transfer to young employees of AVCO Memberso Development of an education certificate
• Informationo Newslettero News & changes at members
AVCO Services II
• PR (image of the branche)o Public relationo Image building for activities of the PE/VC industry o Active communication of topicso Communication of positive effects of PE/VC for Austriao Awareness building
• Networkso Network platformso Matching platformso Active community, matching of the players
• Lobbyingo Competent and independent information und know-how providero Active discussion with representatives of the governmento Active creation and further development of PE/VC in Austria
AVCO Services III
AVCO Members – PE/VC
AVCO Members – Service Providers
1. What is AVCO?
2. What is Private Equity/Venture Capital?
3. Austrian Private Equity Industry
4. Competitive Advantage
5. Framework Conditions
Agenda
Financing Instruments
intensity
financing-risksuccess participation
property interests
governance
shareholder loan subordinated loan
unsecured loanscredit & loan
debt mezzanine
equity
silent participations
Financing Mix – Over Time
Seed Start-up First-Stage Second-Stage Third-stage IPO
Bösenkapital
Fremdkapital
Cash-Flow
Private Equity
Privatvermögen /Föderungen
Stock Equity
Debt Equity
Cash Flow
Private Equity
Funding/ FFF
Private Equity provides equity capital to enterprises not quoted on a stock market.
Private Equity can be used to • develop new products and technologies• to expand working capital• to make acquisitions or to strengthen a company’s balance sheet. • to resolve ownership and management issues - a succession in family-owned
companies• to buy out or buy in of a business by experienced managers
What is Private Equity?
Venture capital is, strictly speaking, a subset of private equity and refers to equity investments made for
• the launch
• early development or
• expansion of a business.
(Definition of EVCA – European Private Equity and Venture Capital Association)
What is Venture Capital?
“Every day, each of you benefits from Private Equity. Your morning starts with a Latte at Starbucks, you carry your internet research at work via Google or Yahoo!, you talk to family and clients around the globe over Skype and eat a quick lunch snack at Nordsee or Burger King. You order books and CDs from Amazon.com and your kids liaise with their friends over MySpace.com and U-Tube on their Compaq computer powered by Intel. You shop for Tommy Hilfinger, Jimmy Choo, Tumi bags and suitcases, Bally, Tag Heuer etc. in the evening. Your doctor recommends you products from Actelion and Genentech or Amgen and you work out at Fitness First or Holmes Place and you finish your day off buying tickets over Ebay, drinking a beer at Punch and watching TV on Cablecom or Sky.”(Javier Echarri, former EVCA Secretary-General)
One Day with PE/VC?
PE & VC – More than Money
PE/VC as Financing-ToolPE/VC as Asset class
Performance
Capital
Fundraising Investment
Investment plus Information, Coaching, Management Know-how
EX
IT
Profit
SME
Growth support , Innovation …
Fund
FundmanagementInvestor
Institutional investors like Pension funds, Insurances, Banks
Captial Call Concept
1. What is AVCO?
2. What is Private Equity/Venture Capital?
3. Austrian Private Equity Industry
4. Competitive Advantage
5. Framework Conditions
Agenda
PEREP_Analytics™: (Private Equity Research Exchange Platform)Private Equity non-commercial pan-European private equity database
Industry statistic: PE/VC activities of PE/VC funds located in Austria(Fundraising / Investments / Exits at national and international SME).
Market statistic: PE/VC activities at SME located in Austria(Investments / Exits of national and international funds).
European PE/VC Industry – Statistics
Industry statistic – Austrian Funds: PE/VC activities of PE/VC funds located in Austria(Fundraising / Investments / Exits at national and international SME).
Market statistic – Austrian Companies: PE/VC activities at SME located in Austria(Investments / Exits of national and international funds).
Source: EVCA PEREP_Analytics | AVCO (May 2013)
2012
Fundraising
Investments
Deinvestments
Austrian Funds
AustrianCompanies
Incl. funds located in Austria, investing in Austria and abroad
Private Equity & Venture Capital in Austria
173 Mio. -31%
115 Mio. -7% 261 Mio. -19%
83 Mio. -76% 182 Mio. -37%
21
Investments 2012GDP share: PE & VCFunds in Europe
Private Equity & Venture Capital in Europe
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2012GDP share: PE & VCAustrian Companies
Private Equity & Venture Capital in Europe
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2012GDP share: VC onlyAustrian Funds
Private Equity & Venture Capital in Europe
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2012GDP share: VC onlyAustrian Companies
Private Equity & Venture Capital in Europa
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 1999 - 2012Development: PE & VCAustrian Funds
Private Equity & Venture Capital in Austria
in Mio. €
in Mio. € 2011 2012Seed 7 9
Start-up 6 10Later stage venture 11 6
Growth 21 20Rescue/turnarournd 4 2Replacment capital 12 1
Buyout 63 67
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 1995 - 2012Development Austria vs. Europe: PE & VCAustrian Funds
PE/VC Investments Austira vs. Europe
in Mio. €
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2007 - 2012Development: PE & VCAustrian Companies
Private Equity & Venture Capital in Austria
around € 590 Mio.
in Mio. €
around € 500 Mio.
Communication Dealaround € 180 Mio.
Statistics since
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 1999 - 2012Development: VC shareAustrian Funds
Private Equity & Venture Capital in Austria
in Mio. €
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2011 / 2012Branches: PE & VCAustrian Funds
Private Equity & Venture Capital in Austria
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2011 / 2012Branches: PE & VCAustrian Companies
Private Equity & Venture Capital in Austria
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2011 / 2012Life Cycle phases: PE & VCAustrian Funds
Private Equity & Venture Capital in Austria
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2011 / 2012Life Cycle phases: PE & VCAustrian Companies
Private Equity & Venture Capital in Austria
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Investments 2012Flow: PE & VC
in Austrian Companies:261,3
€ 115,4 Mio. Investmentsmade by Austrian Funds
32,9
82,5
178,7
€ 261,3 Mio. Investmentsin Austrian Companies
0,084 %GDP share
0,037 %GDP share
von österr.Fonds: 115,4
abroad
Private Equity & Venture Capital in Austria
in Mio. €
Germany
17,2 Mio.Czech Republic
11,5 Mio.Switzerland
2,1 Mio.Hungary
1,6 Mio,Liechtenstein
0,3 Mio.
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Exits 1999 - 2012Development: PE & VCAustrian Funds
Private Equity & Venture Capital in Austria
in Mio. €
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Exits 2007 - 2012Development: PE & VCAustrian Companies
in Mio. €
Private Equity & Venture Capital in Austria
Statistics since
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Exits 2011 / 2012Exit Route: PE & VCAustrian Funds
Private Equity & Venture Capital in Austria
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Exits 2011 / 2012Exit Route: PE & VCAustrian Companies
Private Equity & Venture Capital in Austria
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Fundraising 1999 - 2012Development / Sources: PE & VCAustrian Funds
Private Equity & Venture Capital in Austria
in Mio. €
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Fundraising 2011 / 2012Sources: PE & VCAustrian Funds
Private Equity & Venture Capital in Austria
2011 2012in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
Fundraising 1999 - 2012Sources: PE & VC – Share Government AgenciesAustrian Funds
Private Equity & Venture Capital in Austria
in %
Source: EVCA PEREP_Analytics | AVCO (May 2013)
1. What is AVCO?
2. What is Private Equity/Venture Capital?
3. Austrian Private Equity Industry
4. Competitive Advantage
5. Framework Conditions
Agenda
PE & VC – Intelligent Money
Financing Function: no alternative finance sources available for specific project
Selection Function: limited financial resources are allocated to projects with highest profit-potential at high risks
Added Value: („smart money“) input of active investors is not only money, but also management know-how, networking, consulting, …
PE & VC Investment Phases
Pre-Seed Stage
Business Angel Investment
Business Angel
Early Stage Expansion Stage Later Stage
ManagementBuy-out/Buy-in(MBO, MBI)
Bridge Financing(Pre-IPO)
TurnaroundFinancing
Seed Financing Start-up Financing First Stage
Financing
Second Stage Financing
Third StageFinancing
Venture Capital Private Equity
PE & VC – The Process
Analyse &
Valuation
Preliminary Offer
Stop or Go
LOI
Closing
Supervisory Board
ContractNegotiat
ions
Due Diligence
Business Due DiligenceLegal Due Diligence
Financial Due Diligence
Post Due DiligencePre Due Diligence
Effects of PE/VC on Company Development
36.6%
46.5%
8.5%
5.6%2.8%
company would not exist (any longer)without PE/VC
favourable impact on developmentdue to PE/VC
no impact on developmentdue to PE/VC
unfavourable developmentdue to PE/VC
otherN = 71
PE/VC financed companies show:
70 % higher turnover
50 % higher employment
Effects of PE/VC on Company Development
1. What is AVCO?
2. What is Private Equity/Venture Capital?
3. Austrian Private Equity Industry
4. Competitive Advantage
5. Framework Conditions
Agenda
Tax & Legal Situation Austria
Fund Structures Structure Permanent Establishment
Domestic Transparency
Non-Domestic Transparency
Undue Restrictions
Mittelstandsfinanzierungsgesellschaft (MiFiG) No No No Yes Taxation at a fund level
VAT on management fees Capital Gains Tax Withholding Tax Stamp Duties or Transaction Taxes Anti-abuse Rules Payment Reclaim Stamp Transaction
Yes No 25% 25% Yes No Yes Taxation at a company level
Company Tax Rate Special Tax Regime for SMEs Related party loans interest deduction
Unrelated party loans interest deduction
25% No Yes Yes Taxation of employees
Income Tax Social security Capital Gains Tax on Stock Options Special Tax Regimes Min. Max. Min. Max. Min. Max.
0% 50% 40% €53,280 25% 25% 50% No Fiscal Incentives Limited
Partners Fund Management
Business R&D Expenditure
R&D Capital Expenditure
Contracting Researchers
Technology Transfer
Cooperative External Research
Innovative Spin-out
Young companies
No No Yes No No No No No Yes
Legal Framework Conditions
• AIFMD implementation, adoption necessary
• Future national PE/VC regulation for sub-threshold area is depend on AIFMD implementation
• MiFiG ended 2013
• IGG / ”MifiG new” is under discussion
Status Quo in Austria
AVCO Community
• 16 Fund Members represent the relevant players in the market
• Service Provider are well educated and highly experienced with PE/VC
• Austrian SME landscape provides an attractive pipeline for portfolio companies
• Austrian investors seek for investment opportunities abroad and/or Austria, and for syndication partners
Status Quo in Austria
Jürgen MarchartManaging Director
[email protected] T +43 1 526 38 05
F +43 1 526 38 05-6552
AVCO Austrian Private Equity and
Venture Capital Organisationwww.avco.at
Contact