Performance of EBRD Private Equity Funds Portfolio to 31st … · 2013-03-19 · EBRD in Private Equity EBRD’s portfolio of funds: 20 years of investing in the asset class • 137

Performance of EBRD Private Equity

Funds Portfolio to 31st December 2011

Portfolio Overview

EBRD in Private Equity

EBRD’s portfolio of funds: 20 years of investing in the asset class

• 137 funds

• 92 fund managers*

• EUR 3.0 billion in commitments (USD 3.7 billion) to funds

with capital of EUR 15.0 billion (USD 19.0 billion)

• 1,199 underlying investments, up to 70% exited.

Largest PE Fund investment program dedicated to the region

• Current portfolio of 85 active funds managed by 62** fund

managers for EUR 2.3 billion in commitments (with funds

capital of EUR 13.0 billion).

* Excludes 14 managed donor funds, ** Excludes 6 managed donor funds

Note: EBRD tracked portfolio only, to end 2011, excludes real estate funds, excludes 3 funds signed but not yet disbursed

Note: The number of underlying investments exclude regional investments, and opt-outs

© EBRD 2013, all rights reserved 3

EBRD Commitments by Vintage


Note: Vintages prior to 2011 refer to signing year whereas 2011 vintage refers to year of first disbursement.

Note: The 2010 vintage shows one less fund than it did in the 2010 presentation – this relates to a backdated reallocation.

Note: Volumes are based on EBRD commitments at latest fund closing.

2

4

11

12

6

11 11

7

6

4 4 4 4

5

9

13

5

6

8

5

0

2

4

6

8

10

12

14

0

50

100

150

200

250

300

350

400

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

Fu

nd

s

EU

R M

illio

n

Vintage Year

CEE Russia/CIS SEE Number of Funds

Fund Raising vs. Investment


Note: Vintages prior to 2011 refer signing date whereas post 2011 vintages refer to date of first disbursement. By signing date the 2011 total is approximately €300m

30%

23%

34%

59%

74%

28% 24%

22%

27%

20%

35%

29%

14% 14% 14% 13%

11%

20%

26% 28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

500

1,000

1,500

2,000

2,500

3,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% o

f T

ota

l F

un

d C

ap

ital

EU

R M

illio

n

Vintage Year

Fund Capital Gross Investment Cost EBRD Share of Fund Capital

Gross Commitment by Fund Strategy

Other include: Distressed/Turnaround funds, funds of funds, mezzanine and infrastructure funds


9

112

12

7

1

10

100

1000

0

2,000

4,000

6,000

8,000

10,000

12,000

Buyout Growth /Expansion

Other Seed / Start-up

Co

mm

itm

en

ts (

EU

R M

illi

on

)

Fund Size EBRD Commitment Number of Funds

8

73

9

5

1

10

100

0

1,000

2,000

3,000

4,000

5,000

6,000



Co

mm

itm

en

ts (

EU

R M

illi

on

)

CSE Region

1

39

3

2

1

10

100

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000



Co

mm

itm

en

ts (

EU

R M

illi

on

)

Russia/CIS Region

EBRD Portfolio

EBRD Commitment by Fund Size


EBRD Portfolio CSE Region

Russia/CIS Region

22

43

45

17

9

4

0

5

10

15

20

25

30

35

40

45

50

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0-20 20-50 50-150 150-300 300-500 500+

Co

mm

itm

en

ts (

EU

R M

illio

n)

Fund Size (EUR Million)

Total Fund Capital EBRD Capital Number of Funds

17

26

32

11

6 3

0

5

10

15

20

25

30

35

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0-20 20-50 50-150 150-300 300-500 500+

Co

mm

itm

en

ts (

EU

R M

illio

ns)

EUR Million

5

17

13

6

3

1

0

2

4

6

8

10

12

14

16

18

0

200

400

600

800

1,000

1,200

1,400

1,600

0-20 20-50 50-150 150-300 300-500 500+

Co

mm

itm

en

ts (

EU

R M

illio

ns)

EUR Million

Fund Investment and Exit Activity by Year


EBRD Portfolio CSE Region

Russia/CIS Region

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

Tra

nsacti

on

s

Investments Exits (excl. WOs) Write-Offs

0

10

20

30

40

50

60

70

80

90

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

Tra

nsacti

on

s

0

5

10

15

20

25

30

35

40

45

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

Tra

ns

acti

on

s

0

1

2

3

4

5

6

7

8

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

Years

0

1

2

3

4

5

6

7

8

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

Years

0

1

2

3

4

5

6

7

8

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

Years

Holding Period by Investment Vintage

Note: EBRD tracked portfolio only as of end 2011

Note: Vintages have been limited to 2007 to provide meaningful data

Average Holding Period: 5.3 yrs Average Holding Period: 5.2 yrs Average Holding Period: 5.6 yrs


EBRD Portfolio CSE Region Russia/CIS Region

EBRD

Returns


EBRD Net Horizon Returns: All Funds

Source: Cambridge Associates, EVCA/Thomson Reuters, Bloomberg and EBRD

* EBRD tracked portfolio pooled end-to-end return, net of fees, expenses, donor grants and carried interest. Excludes property funds, and includes liquidated partnerships.

** Pooled end-to-end return, net of fees, expenses, and carried interest. “The "Since Inception" figure represents the net pooled IRR since inception for funds formed between

1980 and 2011. Includes Russia. Inception is consistent with 31.12.1992


Returns as at

December 31 2011

Three

Years

Five

Years

Ten

Years

Fifteen

Years

Since

Inception**

EBRD Private Equity Portfolio* ($) 7.22% 6.32% 20.92% 11.87% 11.77%

Cambridge Global Emerging Markets PE & VC

Index 18.50% 10.12% 11.23% 7.96% N/A

Cambridge Emerging Asia PE & VC Index 21.29% 11.42% 11.38% 8.39%

N/A

MSCI Asia Index 19.87% 2.87% 12.49% 3.04%

N/A

EBRD Private Equity Portfolio* (€) 10.21% 7.23% 14.04% 10.17% 10.05%

EVCA, All Private Equity (€) 7.50% 1.55% 5.62% N/A 9.23%

EBRD Net Horizon IRRs by Region

Returns as at

December 31 2011

Three

Years

Five

Years

Ten

Years

Since

Inception**

USD EBRD Private Equity

Portfolio - All 7.22% 6.32% 20.92% 11.77%

CSE -3.74% 1.48% 15.14% 8.85%

Russia/CIS 23.54% 11.7% 26.99% 14.98%

CSE/Survivors* -1.01% 3.99% 16.75% 11.99%

Russia/CIS Survivors* 24.34% 11.98% 26.89% 20.16%

EUR EBRD Private Equity

Portfolio - All 10.21% 7.23% 14.04% 10.05%

CSE -1.11% 2.58% 9.69% 7.77%

Russia/CIS 27.17% 12.35% 18.62% 12.50%

CSE Survivors* 1.44% 4.67% 11.18% 10.69%

Russia/CIS Survivors* 27.90% 12.69% 20.48% 17.59%

*Note: See “Definitions” page

**Inception differs over criteria and region


Net Returns by Vintage


Note: TVPI is defined as the ratio of Total Value (fair value plus distributions) to Paid-In Capital

Note: DPI is defined as the ratio of Distributions to Paid-In Capital

Note: Data to 2010

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mu

ltip

les

EUR TVPI EUR DPI

4,367 5,247

475

1,459 3,056

6,542

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Investment CostEUR 7,899m

Investment ValueEUR 13,248m

EU

R M

illi

on

Fully Realised

Partially Realised

Unrealised

4,531 5,255

817

2,610

3,466

7,105

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Investment CostEUR 8,814m

Investment ValueEUR 14,970m

EU

R M

illi

on

Fully Realised

Partially Realised

Unrealised

Gross Snapshot

Note: EBRD tracked portfolio only; Data as of end 2011

FR 2.17x

20.17%

PR 3.07x

26.45%

UR 1.20x

6.68%


All 1.70x

17.73%

FR 2.05x

19.65%

PR 3.20x

25.55%

UR 1.16x

5.19%

2011 2010

FR 1.72x

17.83%

Evolution of Returns

Note: Number of Investees reflect unrealised investments including partially realised; EBRD tracked portfolio only.


309 Investees

81 Funds

312 Investees

84 Funds

331 Investees

88 Funds

353 Investees

90 Funds

5.95%

7.67%

11.51%

12.47%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2008 2009 2010 2011

EU

R M

illi

on

Carrying Value Gross IRR of Investees in Active Funds Portfolio

Portfolio Breakdown


Gross Investments by Country by Investment

Cost

Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and

Herzegovina and Kosovo, Slovak Republic

Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine

Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan

Baltic countries include: Latvia, Lithuania and Estonia


Russian Federation

32.8%

Poland 21.3%

Romania 8.5%

Czech Republic 7.0%

Hungary 6.0%

Bulgaria 5.1%

Others 7.0%

Baltics 4.5%

Western CIS & Caucasus

4.5%

Central Asia 3.4%

Since Inception to End 2011

Russian Federation

24.6%

Poland 24.5%

Hungary 12.6%

Czech Republic 11.8%

Ukraine 9.2%

Turkey 5.2%

Romania 2.5%

Latvia 2.2%

Croatia 2.1%

Lithuania 1.7%

Bulgaria 1.4%

Slovenia 0.9%

Azerbaijan 0.6%

Kazakhstan 0.5%

2011

Russian Federation

48.8%

Turkey 11.7%

Romania 11.5%

Ukraine 11.2%

Poland 8.6%

Czech Republic 3.9%

Croatia 2.6%

Estonia 1.3%

Hungary 0.5%

2010


Gross Investments by Country by Investment

Value


Russian Federation

38.4%

Poland 19.6%

Czech Republic 8.5%

Romania 8.4%

Hungary 4.7%

Bulgaria 3.8%

Others 4.7%

Baltics 2.5%


3.5% Central

Asia 5.9%


Russian Federation

33.8%

Poland 22.1%

Hungary 10.2%


9.4%

Czech Republic 8.1%

Others 7.8%

Baltics 3.9%

Romania 2.3%

Bulgaria 1.8%

Central Asia 0.6%

2011

Russian Federation

59.1%

Turkey 10.9%

Ukraine 9.2%

Poland 6.9%

Romania 6.0%

Czech Republic 3.5%

Croatia 2.9% Estonia

0.9% Hungary

0.7%

2010

Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and

Herzegovina and Kosovo

Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine

Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan

Baltic countries include: Latvia, Lithuania and Estonia


Gross Investments by Sector by Investment

Cost


Services 28.2%

TIM 25.8%

Wholesale & Retail 9.2%

Consumer 8.8%

Pharma & Medical

8.1%

Primary & Energy 6.3%

Construction 6.0%

Manufacturing 5.6%

Agriculture & Forestry

2.2%


Services 37.2%

Consumer 17.6% Pharma &

Medical 14.8%



TIM 6.5%

Construction 2.8% Manufacturing

0.8%

2011

Services 44.6%

Pharma & Medical 15.8%


13.9%

TIM 12.5%

Manufacturing 5.6%

Construction 2.1%



Consumer 1.7%

2010


Gross Investments by Sector by Investment

Value


TIM 36.7%

Services 25.8%

Consumer 7.8%


Pharma & Medical

6.1%


Manufacturing 5.1%

Construction 3.8%


1.5%


Services 37.2%

Consumer 16.8% Pharma &

Medical 15.0%



TIM 7.3%

Construction 2.9% Manufacturing

0.9%

2011

Services 48.1%


13.6%

TIM 12.8%

Pharma & Medical 12.1%

Manufacturing 6.0%

Construction 2.9%


Consumer 1.9%


2010


Fund Strategy Evolution (by Investment Cost)

Note: EBRD tracked portfolio only; Data as of end 2011.

Note: As measured by investment cost


0

100

200

300

400

500

600

700

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EUR

Mill

ion

Expansion Other Buyout Seed

Note: EBRD tracked portfolio only; Data as of end 2011.

Note: As measured by Exit Proceeds


Fund Strategy Evolution (by Exit Proceeds)

0

100

200

300

400

500

600

700

800

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EUR

Mill

ion

Expansion Other Buyout Seed

LP Data


Investor by Type – Trend


12% 13%

2%

15% 17%

17%

7%

10%

2%

41% 24%

55%

9%

18%

13%

16% 18% 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1992-2000 2001-2008 2009-2011

Vintage Year

Fund of Funds

Other

IFIs &GovernmentAgencies

CorporateInvestor

Banks &Insurance

Pension Fund

Evolution of IFI Contributions

0%

10%

20%

30%

40%

50%

60%

70%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

IFI &

GA

Fu

nd

rais

ing

Co

ntr

ibu

tio

n

Vintage Year

IFI & Ga per year 7 year rolling average


Note: EBRD tracked portfolio, excludes donor funds

* International Financial Organisation & Government Agency

*

Investors by Origin by Vintage Year

Note: EBRD tracked portfolio

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Co

mm

itm

en

t EU

R M

illio

ns

Vintage Year

EBRD USA Other Europe


General Information


2011 PE Investment as a % of GDP

*Baltic Countries include: Estonia, Latvia, Lithuania

**Other CEE Countries include: Croatia, Slovak Republic, Slovenia

Source: EVCA/PEREP Analytics, RVCA and EBRD Estimates


0.8

8%

0.6

8%

0.5

9%

0.4

8%

0.4

8%

0.4

4%

0.3

5%

0.3

3%

0.2

7%

0.2

7%

0.2

6%

0.2

5%

0.2

4%

0.2

2%

0.1

9%

0.1

9%

0.1

9%

0.1

5%

0.1

4%

0.1

1%

0.0

9%

0.0

6%

0.0

5%

0.0

3%

0.0

2%

0.0

1%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

EBRD Database

• Best available sample of PE performance in central and south eastern Europe (CSE), 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 both EUR and USD

• Obligatory reporting by fund managers, analysed by EBRD

• reflects comprehensive performance

• No “survivor bias” resulting from only best fund managers reporting


Definitions

EBRD Sponsored Funds – funds established at EBRD's

initiative in countries where no private sector funding was available for

private equity funds. These funds are supported with significant donor

grants, and EBRD investment represents usually over 90% of fund capital.

Institutional Quality Funds (IQs) – identified based on

criteria established by Cambridge Associates. These include the

characteristics of the investors in the fund, fund size relative to peers, and

availability of data.

Survivor Funds – funds managed by managers who have raised

or are expected to raise follow-on funds.


EBRD Region

• CSE Countries – Albania, Bosnia & Herzegovina, Bulgaria,

Croatia, Estonia, FYR Macedonia, Hungary, Latvia, Lithuania, Kosovo,

Poland, Montenegro, Romania, Slovak Republic, Serbia, Slovenia,

Turkey.

• SEE Countries – Albania, Bosnia & Herzegovina, Bulgaria, FYR

Macedonia, Montenegro, Romania, Serbia

• CEE Countries – Croatia, Hungary, Poland, Slovak Republic,

Slovenia, Czech Republic*

• Baltic States – Latvia, Lithuania, Estonia

• CIS Countries – Armenia**, Azerbaijan, Belarus**, Georgia,

Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation,

Tajikistan**, Turkmenistan, Uzbekistan**, Ukraine and Mongolia.

* Czech Republic ceased to be a country of operation in 2007 but some funds remain exposed to investees in the country.

**There are no fund sub-investments in these countries as of end 2011.


Copyright 2013 EBRD. All rights reserved

This material is for the recipient’s private information. No part of this

document may be reproduced or transmitted in any form or by any

means, including photocopying and recording, without the written

permission of the Bank. Such written permission must also be

obtained before any part of this publication is stored in a retrieval

system of any nature. While the information contained herein was

compiled by the EBRD, we do not guarantee its accuracy or

completeness. We accept no liability in relation to the use of this

information. Copyright 2013 European Bank for Reconstruction and

Development. All rights reserved.


Documents

Performance of EBRD Private Equity Funds Portfolio to 31st … · 2013-03-19 · EBRD in Private Equity EBRD’s portfolio of funds: 20 years of investing in the asset class • 137