performance of ebrd private equity funds’ portfolio 2003 ... · funds in the ebrd portfolio z...
TRANSCRIPT
EBRD 2004, all rights reserved
Performance of EBRD Private Performance of EBRD Private Equity Funds’ PortfolioEquity Funds’ Portfolio
2003 year end data2003 year end data
EBRD 2004, all rights reserved
Table Of ContentsTable Of Contents
EBRD classifications
General information on equity markets
Investors’ data
Overview of EBRD’s portfolio: EBRD commitments,IRRs and TVPIs
Gross cashflows
Portfolio Snapshots (total portfolio. split into region, fund classifications)
Investments at cost by region, by country of largest region, by sector
Investments and exits by vintage and by region
Unrealised investments by region
EBRD 2004, all rights reserved
Classification of EBRD Equity FundsClassification of EBRD Equity Funds
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. There are 18 such funds in the EBRD portfolio
Institutional Quality Funds (IQs) – identified based on criteria established by Cambridge Associates. These, inter alia, include quality and private equity experience of institutional investors in the fund, proportion of private vs. public funding, fund size relative to the size of the vintage in a given geographical region, as well as the availability of verifiable current and past performance data. There are 40 such funds in the EBRD portfolio
Survivor Funds – funds managed by managers who have or are expected to raise a follow-on fund. There are 36 such funds in the EBRD portfolio
CEE Funds – funds operating in or investments made in the following countries: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia
SEE Funds – funds operating in or investments made in the following countries: Albania, Bosnia & Herzegovina, Bulgaria, Kosovo, Macedonia, Romania, Serbia & Montenegro
Russia & CIS Funds – funds operating in or investments made in the following countries: Azerbaijan, Georgia, Kazakhstan, Moldova, Russia, Turkmenistan, and Ukraine
1
EBRD 2004, all rights reserved
Scale of Private Equity Investments in the Scale of Private Equity Investments in the Region PE Investments as % of GDPRegion PE Investments as % of GDP
Private equity investments are well below Western levels (based on 2003 data) Source: EVCA/PriceWaterhouseCoopers
0.01 0.02 0.02 0.05 0.05 0.070.12
0.18 0.200.29
0.38
0.85
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
Slov
akia
Gre
ece
Cze
ch
Rep
ublic
Hun
gary
Aus
tria
Pola
nd
Ger
man
y
Spai
n
USA
Euro
pe
Swed
en UK
% o
f GD
P
2
EBRD 2004, all rights reserved
Estimated Size of CEE/SEE/CIS PE Estimated Size of CEE/SEE/CIS PE MarketMarket**
EBRD investee funds represent over a third of estimated market and close to half of known funds
0
2
4
6
8
10
12
14
16
EBRD Committed EBRD Funds’Committed Capital
Including Non-EBRDFunds Estimated
Capital
Plus 20% & EBRD Direct= Estimated Private Equity
Market
USD
Bill
ion
$1.65 bn
$5.32 bn
approx. $11 bn
approx. $15 bn
* Cumulative commitments raised for the region since 1990, including property funds
3
EBRD 2004, all rights reserved
Investors in EBRD Funds by RegionInvestors in EBRD Funds by Region
Note: excludes coinvestment on EBRD Sponsored Funds., excludes property funds
Total pie including EBRD = USD 4.9 billion
Other5%
Europe31%
USA32%
EBRD32%
4
EBRD 2004, all rights reserved
Investor Type by Investment RegionInvestor Type by Investment Region
5
0
20
40
60
80
100
CEE Russia/CIS SEE
OtherInsurance CoCorporatePension FundsBanksFunds of FundsIFI and GovtEBRD
EBRD 2004, all rights reserved
EBRD Commitments to Funds Over TimeEBRD Commitments to Funds Over Time
IQ
EBRD Sponsored (Non IQ)
Other Non IQ
USD
Mill
ion
0
50
100
150
200
250
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
6
EBRD 2004, all rights reserved
IRRs and TVPI by Fund ClassificationIRRs and TVPI by Fund Classification
1.53x16.8%1.40x12.7%1.33x10.4%GROSS: All
2.16x28.7%1.79x21.0%1.62x17.4%GROSS: Fully
Realised & Written-off
2.96x36.5%2.65x32.2%2.45x30.2%GROSS: Fully Realised
TVPIIRRTVPIIRRTVPIIRR
SurvivorInstitutional QualityAll FundsUSD
7
EBRD 2004, all rights reserved
Portfolio Snapshot:Portfolio Snapshot:All FundsAll Funds
USD
Mill
ion
$628m
$1,541m$329m$207m
$329m$1,611m
$1,826m
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Investments at Cost$2,775m
Total Value$3,704m
Fully Realised (FR/FR) Written Off (FR/WO)
Partly Realised (PR) Unrealised (UR)
Overall TVPI 1.33x, 10.4%
UR TVPI 1.13x, 4.1 %
PR TVPI 1.59x, 11.8%
FR&WO 1.62x, 17.4%
FR FR TVPI 2.45x, 30.2%
765 INVESTMENTS
203 exited investments, 345 including write offs
8
EBRD 2004, all rights reserved
Portfolio Snapshot: CEE and SEEPortfolio Snapshot: CEE and SEE
$438.6m
$1,079.5m$241.0m$114.3m
$176.1m$1,201.2m
$1,337.4m
0
500
1,000
1,500
2,000
2,500
3,000
Investments at Cost$1,995.1 m
Total Value$2,597.2 m
Fully Realised (FR/FR) Written Off (FR/WO)
Partly Realised (PR) Unrealised (UR)
USD
Mill
ion
532 INVESTMENTS Overall TVPI 1.30x, 9.8%
UR TVPI 1.11x, 3.6%
PR TVPI 1.54x, 11.0%
FR&WO 1.59x, 17.2%
FR FR TVPI 2.46x, 29.4%
148 exited investments, 231 including write offs
9
EBRD 2004, all rights reserved
Portfolio Snapshot: Russia & CISPortfolio Snapshot: Russia & CIS
$189.7m
$461.8m$88.3m$92.4m
$153.3m$409.5m
$489.0m
$2.9m
0
200
400
600
800
1,000
1,200
Investments at Cost$779.8m
Total Value$1,107.0m
Fully Realised (FR/FR) Written Off (FR/WO)Partly Realised (PR) Unrealised (UR)
USD
Mill
ion Overall TVPI 1.42x, 11.8%
UR TVPI 1.19x, 5.3%
PR TVPI 1.66x, 12.9%
FR&WO 1.67x, 17.7%
FR FR TVPI 2.43x, 32.2%
233 INVESTMENTS
55 exited investments, 114 including write offs
10
EBRD 2004, all rights reserved
Portfolio Snapshot Portfolio Snapshot –– IQ Funds:IQ Funds:Total PortfolioTotal Portfolio
$533m
$1,413m$258m$156m
$261m$1,245m
$1,398m
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Investments at Cost$2,192m
Total Value$3,075m
Fully Realised (FR/FR) Written Off (FR/WO)
Partly Realised (PR) Unrealised (UR)
UR: 1.1x, 3.9% IRR
PR: 1.7x, 12% IRR
FR & WO: 1.8x, 21% IRR
Overall TVPI: 1.4x, 12.7% IRR
FR & FR: 2.7x, 32.2% IRR
417 COMPANIES
USD
Mill
ion
127 exited investments, 200 including write offs
11
EBRD 2004, all rights reserved
Portfolio Snapshot Portfolio Snapshot –– Survivors:Survivors:Total PortfolioTotal Portfolio
$415m
$1,231m$154m$130m
$218m$1,097m
$1,289m
0
500
1,000
1,500
2,000
2,500
3,000
Investments at Cost$1,796m
Total Value$2,740m
Fully Realised (FR/FR) Written Off (FR/WO)
Partly Realised (PR) Unrealised (UR)
UR: 1.2x, 5.5% IRR
PR: 1.7x, 11.7% IRR
FR & WO: 2.2x, 28.7% IRR
Overall TVPI: 1.5x, 16.8% IRR
FR & FR: 3x, 36.5% IRR
343 COMPANIES
USD
Mill
ion
98 exited investments, 148 including write offs
12
EBRD 2004, all rights reserved
Investments at Cost by RegionInvestments at Cost by Region
SEE13%
Russia/CIS28%
CEE59%
13
EBRD 2004, all rights reserved
Investments at Cost by Country:Investments at Cost by Country:CEE and SEECEE and SEE
Baltics5%
Czech & Slovak Republics
15%
Other SEE6%
Romania13%
Hungary19%
Poland42%
14
EBRD 2004, all rights reserved
Investments at Cost by SectorInvestments at Cost by Sector
TIM28%
Service17%
Wholesale & Retail7%
Construction5% Food & Beverage
16%
Manufacturing12%
Primary & Energy11%
Other4%
15
EBRD 2004, all rights reserved
Funds’ Gross Cash Flows: Funds’ Gross Cash Flows: Total PortfolioTotal Portfolio
0
50
100
150
200
250
300
350
400
450
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Annual Investments (Cash Out)
Annual Proceeds (Cash In)
USD
Mill
ion
16
EBRD 2004, all rights reserved
Investments and Exits by VintageInvestments and Exits by Vintage
0
50
100
150
200
250
300
350
400
450
500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Investments at Cost
Exits at Cost
Exits at Value
USD
Mill
ion
Note: Exits at cost and exits at value do not include partially realised investments
17
EBRD 2004, all rights reserved
Investments and Exits by Vintage:Investments and Exits by Vintage:CEE and SEECEE and SEE
0
50
100
150
200
250
300
350
400
450
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
USD
Mill
ion
Investments at CostExits at Cost Exits at Value
* Note: Exits at cost and exits at value do not include partially realised investments
18
EBRD 2004, all rights reserved
Investments and Exits by Vintage:Investments and Exits by Vintage:Russia & CISRussia & CIS
0
20
40
60
80
100
120
140
160
1992-94 1995 1996 1997 1998 1999 2000 2001 2002 2003
USD
Mill
ion
Investments at CostExits at CostExits at Value
* Note: Exits at cost and exits at value do not include partially realised investments
19
EBRD 2004, all rights reserved
Unrealised Portfolio by RegionUnrealised Portfolio by Region
203 INVESTMENTS
64 INVESTMENTS
0
200
400
600
800
1,000
1,200
CEE Russia/CIS SEE
USD
Mill
ion
Investment Cost
Investment Value
99 INVESTMENTS
20
EBRD 2004, all rights reserved
Copyright 2004 EBRD. All rights reservedCopyright 2004 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 use of this information. Copyright 2004 European
Bank for Reconstruction and Development. All rights reserved.