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PRIVATE EQUITY FUNDS IN NORWAY Activity report 2018 (Seed – Venture – Buyout)

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Page 1: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

PRIVATE EQUITY FUNDS IN NORWAY

Activity report

2018(Seed – Venture – Buyout)

Page 2: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

ABOUT THE ACTIVITY REPORT 2018

2

Norwegian private

equity funds

The Activity Report 2018 is developed for the Norwegian Venture Capital & Private Equity Association (NVCA) by Menon

Economics and PEREP Analytics during the spring 2019. The figures are collected quarterly and directly from the private equity

firm.

Foreign private equity funds

with investments in Norway

Foreign private equity

funds with advisory

teams located in Norway

The survey covers activities in

Investments and divestments at cost in portfolio companies located in

Norway

Investments and divestments

at cost in portfolio companies

located in Norway and abroad

Fundraising activity in

Norwegian private equity

firms

Page 3: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

This report gives an overview over all PE-activity related to Norway

NVCA uses a different definition of private equity firms than Invest Europe.

This definition differs from the Invest Europe definition, which defines a private equity firm on the basis of where the advisory team responsible for

the investment and divestment is located.

In addition all investments and divestments from the early stage funds backed with 50/50 public funding are categorized as seed activity.

The advantage of the NVCA definition is that the investment and divestment activity is compatible with the fundraising statistics. In addition, the

NVCA definition is in line with what is commonly perceived as the Norwegian private equity industry.

Due to the discrepancy in definition the Invest Europe and NVCA statistics are not completely compatible.

ABOUT THE ACTIVITY REPORT 2018

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 3

Two examples of how the NVCA’s definition applies to the statistics:

1. Investments made from the Swedish office of a Norwegian headquartered PE firm would be defined as

Norwegian

2. Investments made from the Norwegian office of a Swedish headquartered PE firm would be regarded

as an investment made by a foreign private equity fund.

NVCA defines a «Norwegian

private equity firm» as a firm with

headquarters located in Norway.

Page 4: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Buyout segments – definitions

• Small cap: Transaction value less than 500 million NOK

• Mid cap: Transaction value between 500 and 1 500 million NOK

• Large cap: Transaction value larger than 1 500 million NOK

When looking at the different buyout segments we look exclusively at initial investments in Norwegian enterprises.

ABOUT THE ACTIVITY REPORT 2018

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 4

Page 5: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Industry statistics

• Norwegian PE funds invested a total of NOK 8.1 billion in 2018, a reduction of about 900 million from 2017. Despite the reduction the last two years, the level of investment is still higher than any year pre 2015.

• Large single deals characterize the statistics from year to year, measured in number of investments the level is relatively stable. Number of investments in 2018 was 239, a slight decrease from 260 in 2017. The last five years the number of investments has remained remarkably stable in the interval of 227 to 262.

• Norwegian PE funds invested NOK 4.8 billion in Norwegian companies, which is a reduction of just under 900 million from 2017. Investments in foreign companies remained stable at almost 3.3 billion 2017. The reduction in the total amount invested were primarily because of the decrease in investments in Norwegian firms.

• Norwegian venture funds invested NOK 2.3 billion in 2018, an increase of almost 150 million from 2017. Only one previous year has shown higher levels of investments from Norwegian venture funds, namely in 2016.

MAIN OBSERVATIONS 2018

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 5

Page 6: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Market statistics

• Almost 17 billion were invested in Norwegian companies, just down about 1.8 billion from the historically high level in 2017. Out of 18 billions invested in Norwegian companies, 4,8 came from Norwegian PE firms.

• Despite a reduction of 900 million invested in Norwegian companies by Norwegian PE firms, 4.8 billion invested is still higher than any level recorded before 2016.

• 72 percent of the amount invested in Norwegian companies where invested by foreign buyout funds. In terms of number of investments in Norwegian companies, three out of four investments were made by Norwegian PE firms.

• Investments in the Norwegian venture market amounted to about 700 millions in 2018, down 169 millions from 2017. In the seed market the amount invested were 252 millions, which are at the highest level since 2009. For the first time in a decade the level of seed investments were over a quarter billion.

• Investments in the Norwegian market are mainly channelled to the IT industry, business services and the oil and gas industry. In particular, there is an increasing trend in the IT industry, which increased by over 1.75 billions from the already record high level in 2017. The falling trend of investments in the petroleum industry continues, with a sharp decline from 2.6 billion in 2017 to 900 million in 2018.

• The number of divestments were halved in 2018 compared to 2017, primarily driven by a reduction in the buyout stage.

MAIN OBSERVATIONS 2018

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 6

Page 7: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

FUNDRAISING IN 2018 – NORWEGIAN PRIVATE EQUITY FUNDS

7

Seed

490 mill. NOK

(51 mill EUR)

Venture

1 233 mill. NOK

(129 mill. EUR)

Buyout

2 825 mill NOK

(294 mill. EUR)

First Seed

Viking Venture

Idekapital Fund I

EV Private Equity

Verdane Edda

Total fundraising 2018 – NOK 4 548 mill. (474 mill EUR )

Page 8: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Overall:

• Norwegian PE firms invested 8 097 mill. NOK (EUR 843 mill.) in Norwegian and foreign portfolio companies- 4 812 mill. NOK (EUR 501 mill.) in Norwegian enterprises

- 3 285 mill. NOK (EUR 342 mill.) in foreign enterprises

• Seed: - 268 mill. NOK (EUR 28 mill.) invested. Up from 212 mill. NOK (EUR 23 mill.) in 2017.

• Venture:- 2 335 mill. NOK (EUR 243 mill.) invested. Up from 2 193 mill. NOK (EUR 235 mill.) in 2017.

• Buyout: - 5 494 mill. NOK (EUR 573 mill.) invested. Down from 6 590 mill. NOK (EUR 707 mill.) in 2017.

INVESTMENTS (INITIAL AND FOLLOW UP) BY NORWEGIAN PE FIRMS 2018 (INDUSTRY STATISTICS)

8

Page 9: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Overall:

• 16 959 mill. NOK (EUR 1 767 mill.) invested in Norwegian enterprises by both Norwegian and foreign PE firms- Norwegian PE firms invested 4 812 mill. NOK (EUR 501 mill.)

- Foreign PE firms invested 12 147 mill. NOK (EUR 1 266 mill.)

• Seed: - 252 mill. NOK (EUR 26 mill.) invested. Up from mill. 183 NOK (EUR 20 mill) in 2017.

• Venture: - 695 mill. NOK (EUR 72 mill.) invested. Down from 864 mill. NOK (EUR 93 mill) in 2017.

• Buyout: - 16 012 mill. NOK (EUR 1 669 mill.) invested. Down from 17 683 mill. NOK (EUR 1 896 mill.) in 2017.

INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN COMPANIES BY NORWEGIAN AND FOREIGN PE FIRMS 2018 (MARKET STATISTICS)

9

Page 10: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

• Divestments in Norwegian and foreign enterprises by Norwegian PE firms- 31 divestments by Norwegian PE firms. Down from 43 in 2017.

- 5 divestments within the seed stage. Up from 3 in 2017.

- 12 divestments within the venture stage. Down from 15 in 2017.

- 14 divestments within the buyout stage. Down from 25 in 2017.

- 6 out of 31 divestments were sales to trade buyers.

• Divestments in Norwegian enterprises by Norwegian and foreign PE firms- 21 divestments in Norwegian enterprises. Down from 42 in 2017.

- 2 divestments within the seed stage. Down from 3 in 2017.

- 2 divestments within the venture stage. Down from 7 in 2017.

- 17 divestments within the buyout stage. Down from 32 in 2017.

- 4 out of 21 divestments were sales to trade buyers.

DIVESTMENTS (EXITS) 2018

1 0

Page 11: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Appendix

Graphs and charts:

Fundraising

Investments

Divestments

Page 12: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

FUNDRAISING

Page 13: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

1 3

COMMITTED CAPITAL PER YEAR FROM 2001-2018

1 481

5 273

1 465

5 2423 984

14 002

4 831

15 257

924

4 017

11 344

2 005

6 008

15 040

889

21 992

1 253

4 548

200320022001 2004 2005 2006 20142007 20112008 20152009 2010 2012 2013 2016 2017 2018

Figure 1: New committed capital per year from 2001-2018 (million NOK)

Page 14: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

INVESTMENTS

Page 15: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Norwegian PE firms’ investments in Norwegian and foreign enterprises

(Industry statistics)

Page 16: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

INDUSTRY STATISTICS: NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AN D FOLLOW UP)

IN NORWEGIAN AND FOREIGN COMPANIES

1 6

4 666

3 4392 806

3 734

2 5343 482

3 971

2 768

4 637

5 945 5 6994 812

1 533

1 736

1 081

1 790

962

1 385

2 3353 846

4 205

5 958

3 297

3 285

201020092007 2008 2013

5 175

2011

4 867

2012 20172014 2015 2016 2018

6 199

3 887

5 524

11 903

3 496

6 3056 613

8 842 8 996

8 097

Foreign company

Norwegian company

Figure 2: Total amount invested by Norwegian PE firms (million NOK)

Page 17: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

INDUSTRY STATISTICS: NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AN D FOLLOW UP) IN NORWEGIAN AND FOREIGN COMPANIES

1 7

251

196

255282 288 283

222186

146182 174

148

87

117

9273

106

47

78

52

81

80 8691

2015 20182009

238

2007 20122008

330

201420112010 2013

347

2016 2017

338

313

355

394

300

227

262 260239

Norwegian company

Foreign company

Figure 3: Number of investments by Norwegian PE firms

Page 18: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

1 8

Figure 4: Amount invested by phase (million NOK)

NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AND FOLLOW UP) BY PHASE

3 630 3 211 2 431

3 657

2 223

3 576

5 381 5 313

7 154

9 131

6 590 5 494

2 294

1 552

1 197

1 618

994

1 123

769 1 137

1 512

2 646

2 193

2 335

413

274

249

20082007 2018

259

2009 2010

280

2011

168

2012

156

2013

163

5 175

2014

3 496

2015 2017

126

2016

268

212

6 199

3 887

6 305

5 524

4 867

6 613

8 097

8 842

11 903

8 996

176

Seed

Venture

Buyout

Page 19: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

1 9

Figure 5: Number of investments by phase

NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AND FOLLOW UP)

BY PHASE

41 43 47 48 59 54 57 55 60 63 73 52

217171

195 189

217

163 142103 97

140 117111

81

99

107 122

129

115

106

82 71

6073

79

2009 20132007 2008 20142010 20122011 2015 2016 2017 2018

Buyout

Venture

Seed

Page 20: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 0

Figure 6: Buyout - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

3 153 2 763

1 613

2 686

1 318

2 4283 318 3 644

4 205

6 129

2 964

4 271

478447

818

971

904

1 148

2 063 1 669

2 949

3 001

3 627 1 223

20122007 2014201120102008 20162009 2013 2015 2017 2018

Follow up

Initial

Page 21: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 1

Figure 7: Number of initial and follow up buyout investments

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

32

2319 20 22 21 22

31

23 2327

36

920 28 28

3733

3524 37 40

46

16

2007 2008 2014 20182009 20132010 20122011 2015 2016 2017

Follow up

Initial

Page 22: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 2

Figure 8: Venture - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

1 347

619 580

917

329 420 313527

411

1 718

1 176

1 526

947

933

617

701

665702

455

6101 100

929

1 017

809

2012

2 294

2014

1 123

20132007 2009 20112008 2010 2015 2016 2017 2018

1 552

1 197

1 618

994

769

1 137

1 512

2 646

2 193

2 335Follow up Initial

Page 23: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 3

Figure 9: Number of initial and follow up venture investments

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

101

36 4156

38 2919 25 21

4739 41

116

135

154 133179

134

123

7876

93

78 70

20082007 2009 20152010 2011 20132012 2014 2016 2017 2018

Initial

Follow up

Page 24: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 4

Figure 10: Seed - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

236192

82 7842 33 29

6990

65 85

189

38

221

177 171 238

135 127

9586

62

127

79

163

2013

212

280

2014

168

20162007

259

20092008 2010 2011 2012 2015 2017 2018

274 268

413

249

156176

126

Follow up

Initial

Page 25: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 5

Figure 11: Number of initial and follow up seed investments

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

65

37

2132

13 9 13 915 15 21

47

1662

86

90116

106 93

73 5645

52

32

2007 20102008 20182009 20132011 2012 2014 2015 20172016

Initial

Follow up

Page 26: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 6

Figure 12 a): Norwegian PE firms investments by sector and phase in 2018 (million NOK)

INVESTMENTS (INITIAL AND FOLLOW UP) BY SECTOR AND PHASE BY NORWEGIAN PE FIRMS

12 7934 5

6 16102

1126

33

543239

415145

3

1995

695

1320499

400

233

Retail

/consumer

services and

products

Financial

services

66

0

021

00 92

Life scienceBusiness

related

services

and industry

services

5894

Chemicals

and materials

25

Other energy

sources

60

1916

032

Business

related

products

and industry

products

0

Fishery and

aquaculture

50

224

Cleantech

21

IT

65

Petroleum Construction

0

481

1385

1045

664

56 37

2109

Venture

Buyout

Seed

Page 27: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 7

Figure 12 b): Number of investments by sector and phase in 2018 (million NOK)

NUMBER OF INVESTMENTS BY SECTOR AND PHASE BY NORWEGIAN PE FIRMS

45

2110 7

126 3 1

27

21

12

6 5

11

86

6 8 1 1

3

IT Business

related

products

and industry

products

Life science Fishery and

aquaculture

0

75

Petroleum

2

2

02

Retail

/consumer

services and

products

3

4

Financial

services

Chemicals

and materials

0

8

Other energy

sources

9

0

Cleantech

030

3

Business

related

services

and industry

services

33

0

Construction

5

1

42

2016 16

9 9

2

Buyout

Seed

Venture

Page 28: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Investments in Norwegian enterprises by Norwegian

and foreign PE firms(Market statistics)

Page 29: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

2 9

Figure 13: Total amount invested in Norwegian companies (million NOK)

MARKET STATISTICS: INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN COMPANIES

4 6663 439 2 806

3 7342 534

3 482 3 9712 768

4 6375 945 5 699 4 812

4 6525 966

3 462

8 994

5 059 3 903

9 013

16 269

9 487

3 115

13 030

12 147

20162007 201320112008 2009

9 318

20142010 2012 2015 2017 2018

9 405

6 267

12 727

7 593 7 385

12 984

19 037 18 729

14 124

9 060

16 959Foreign PE firm

Norwegian PE firm

Page 30: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

3 0

Figure 14: Total number of investments in Norwegian companies

MARKET STATISTICS: INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN COMPANIES

252

196

257282 290 285

226188

147183 175

149

29

47

50

44 3685

61

60

56

4685

48

2010 201320082007 2009 2011 2012

248

2014

243

2015 2016 2017 2018

281

307326 326

370

287

203

229

260

197

Foreign PE firm

Norwegian PE firm

Page 31: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

3 1

Figure 15: Amount invested in Norwegian companies by phase (million NOK)

INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN ENTERPRISES BY PHASE

7 1448 030

5 028

11 303

6 607 6 407

12 428

18 081

13 536

8 129

17 68316 0121 922

1 082

976

1 175

743 807

816

835

864

695

292

263

249

243 170

147

140

142

183

252

96252

2012 20172007

446

2008 2009 20132010 2011

409

2014 2015 2016 2018

Buyout

Venture

Seed

Page 32: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

3 2

Figure 16: Number of investments in Norwegian companies by phase

INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN ENTERPRISES BY PHASE

41 51 61 58 63

10681 68 53 62 70

42

162102

139 146 139

149

103101

83

110121

56

78

90

107122 124

115

103

79

67

57

69

99

20122007 2010 20132008 2009 201520142011 2016 2017 2018

Buyout

Venture

Seed

Page 33: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

3 3

Figure 17: Buyout - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

6 5555 684

3 581

9 737

5 532 5 297

10 449

17 126

10 271

4 793

7 241

14 0882 346

1 447

1 566

1 075 1 110

1 979

955

3 264

3 337

10 442

1 923

2009 2010

17 683

2007

588

20132008 20172011 2012

8 030

2014 2015 2016 2018

7 144

5 028

11 303

6 607 6 407

12 428

16 012

18 081

13 536

8 129

Initial

Follow up

Page 34: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

3 4

Figure 18: Number of initial and follow up buyout investments

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

3226

17 21 25 26 2936

20 2026 21

9 25 44 3536

75

5129

3341

43

21

20132007 20122008 20112009 2010 20182014 2015 2016 2017

Follow up

Initial

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3 5

Figure 19: Venture - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

1 109

721584

757

252 236109

303

83

315 339454

814

361

391

418

491 571

299

513

363

520 525 241

2014 201520082007 20112009 20132010 20162012 2017 2018

1 922

1 082

807

976

1 175

743

409

816

446

835 864

695

Follow up

Initial

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3 6

Figure 20: Number of initial and follow up venture investments

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

86

31 29

50

20 2614 15

8

28 27 24

76

68

108

96

119123

87 85

74

8294

32

201320112007 2008 201220102009 2014

110

2015 2016 2017 2018

162

99

137

146139

149

101 100

82

121

56

Follow up

Initial

Page 37: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

3 7

Figure 21: Seed - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

214

11086 78

34 3521

45 5734

56

173

38

182

177171

209

135

12695

84

62

127

79

96

292

2014

142

2007

263

20132008 2009 2010 2011 2012 20162015 2017 2018

252 252249

147

243

170

140

183

Follow up

Initial

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3 8

Figure 22: Number of initial and follow up seed investments

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

61

3522

32

10 9 9 612 12 17

58

1655 85

90

114106

92

7355

44

52

31

201420102007 2008 20122009 2011 2013 2015 2016 2017 2018

Follow up

Initial

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3 9

INVESTMENTS IN NORWEGIAN ENTERPRISES BY SECTOR AND PHASE IN 2018(MILLION NOK)

Buyout Venture Seed Total

Follow-up Initial Total Follow-up Initial Total Follow-up Initial Total

Business related products and industry products 1961 1961 4 65 69 11 2 12 2042

Business related services and industry services 188 2272 2460 2460

Chemicals and materials 21 10 30 8 8 16 46

Cleantech 764 764 3 3 6 770

Construction 3 3 10 11 21 23

Financial services 407 407 0 10 10 15 15 433

Fishery and aquaculture 16 60 76 5 5 81

IT 515 8768 9283 167 313 480 19 77 96 9860

Life science 12 29 40 12 58 69 110

Other energy sources 9 25 34 34

Petroleum 788 61 849 15 9 24 8 24 32 906

Retail /consumer services and products 174 174 8 8 16 3 1 4 194

Total 1923 14088 16012 241 454 695 79 173 252 16959

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4 0

NUMBER OF INVESTMENTS IN NORWEGIAN ENTERPRISES BY SECTOR AND PHASE IN 2018

Buyout Venture Seed Total

Follow-up Initial Total Follow-up Initial Total Follow-up Initial Total

Business related products and industry products 4 4 1 5 6 3 2 5 15

Business related services and industry services 8 2 10 10

Chemicals and materials 3 1 4 2 2 4 8

Cleantech 2 2 1 2 3 5

Construction 1 1 1 1 2 3

Financial services 7 7 1 1 2 3 3 12

Fishery and aquaculture 1 1 2 1 1 3

IT 1 6 7 13 9 22 11 15 26 55

Life science 3 4 7 6 27 33 40

Other energy sources 1 1 2 2

Petroleum 3 2 5 7 1 8 3 9 12 25

Retail /consumer services and products 2 2 2 2 4 2 1 3 9

Total 21 21 42 32 24 56 31 58 89 187

Page 41: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Figure 23: Investments in the IT sector

IT

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 4 1

2 644

927 946

4 621

1 651

2 731

595

5 926 6 123

1 593

8 103

9 860

0

10

20

30

40

50

60

70

80

90

100

110

120

1.000

0

2.000

3.000

4.000

10.000

8.000

5.000

6.000

7.000

9.000

2011 20122007 2008 2009 2010 2013 2014 2015 2016 2017 2018

Million NOK, l.a.

Number, r.a.

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Figure 24: Initial and follow up investments in petroleum

PETROLEUM

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 4 2

1 788

2 639

484 499 298

3 011

2 051

3 720

906

0

5

10

15

20

25

30

35

40

45

50

55

60

1.000

2.500

0

500

2.000

1.500

3.000

3.500

4.000

2009 20152007 2008 2010 2011 2012 2013 20172014 2016 2018

1 191

3 212

2 616

Million NOK, l.a.

Number, r.a.

Page 43: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Figure 25: Initial and follow up investments in business related services

BUSINESS RELATED SERVICES

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 4 3

375 467

176

860

316

1 096

1 783 1 546

621

3 752

2 460

0

5

10

15

20

25

30

3.500

2.000

0

3.000

2.500

1.500

500

1.000

4.000

201620152007 2008 20112009 2010 2012 2013 2014 2017 2018

1 611

Million NOK, l.a.

Number, r.a.

Page 44: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Figure 26: Initial and follow up investments in cleantech

CLEANTECH

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 4 4

406 364430

528 517

125192 204

117

770

0

5

10

15

20

25

30

35

40

45

50

0

500

1.500

1.000

20102009 201420082007 2011 20152012 2013 2016 2017 2018

1.414 1.443Million NOK, l.a.

Number, r.a.

Page 45: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Buyout investments by segment (market statistics)

Page 46: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Figure 32: Buyout – investments in Norwegian entreprises by segment (million NOK)

BUYOUT INVESTMENTS BY SEGMENT

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 4 6

1 631 2 576 2 279

6 872

2 910 1 902

6 547

12 309

3 805 2 532 2 355

9 772

2 883

3 109

1 302

507

2 622 3 395

3 902

1 454

3 919

2 261 2 953

1 634

2 041

2 359

3 363

2 547

1 702

1 992

201220082007 2009 20162010 2011 2013 2014 2015 2017

5 684

2018

6 555

3 581

9 737

10 449

5 532 5 297

17 126

10 271

4 793

7 010

13 399

Small cap

Medium cap

Large cap

Page 47: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Figure 33: Buyout – number of investments in Norwegian entreprises by segment

BUYOUT INVESTMENTS BY SEGMENT

1 7 / 0 6 / 2 0 1 9M E N O N E C O N O M I C S 4 7

13

13 4

2

75

2 31 2

3

23

16

1

21 24

22

2

3

17

4 2

28

17

29

15

20

15

20122010 20112007

21

2008 2009 2013 2014 2015 2016

25

2017 2018

25

32

26

17

26

29

36

20 2019

Small cap

Medium cap

Large cap

Page 48: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Divestments

Page 49: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Norwegian PE firms’ divestments

in Norwegian and foreign enterprises

(Industry statistics)

Page 50: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

5 0

Figure 27: Number of divestments by phase

NUMBER OF DIVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES (EXCL. WRITE OFFS) BY NORWEGIAN PE FIRMS

20

7 917 19

2532 28

11

2514

11

5 7

13

11

17 67

5

80

32

19

22

37

30

2925

20

25

15

12

20112007 2012

4

20102008 2018

4

2009 2013 2014 2015

4

2016

3

2017

Buyout

Seed

Venture

Page 51: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

5 1

Figure 28: Number of industrial sales by phase

NUMBER OF INDUSTRIAL SALES OF NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

52 3 3

7

13

18 19 20

6

11

3

2

33

3

7 2

4

32

15

10

11

27 18

17

1111

159

2

2007

1

2008 2009

1

2010 2011 2012 2013

1

20172014 2015 2016

1

1

2018

Buyout

Seed

Venture

Page 52: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

5 2

Figure 29: Number of divestments in 2018 by phase and divestment method

TYPE OF DIVESTMENT METHOD BY NORWEGIAN PE FIRMS - NUMBER OF DIVESTMENTS

2

1

6

1

5

2

1

2

2

1

3

Sale to another

private equity firm

Sale to trade buyers

6

Sale of quoted

equity post flotation

Other IPO - First divestment

following flotation

3

Management/Owner buy-back

8

1

5

3

Buyout

Seed

Venture

Page 53: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

Divestments in Norwegian enterprises by Norwegian and

foreign PE firms(Market statistics)

Page 54: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

5 4

Figure 30: Number of divestments in Norwegian enterprises by phase

NUMBER OF DIVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS (EXCL. WRITE OFFS)

60

15 1318

2621 21

1611 11

7

9

5 7

13

1116

6 18

34

8

11

14

19

39

41 23

17 32

17

4

2007 2008

4

2009 20112010 2012 2013 20182014 2015

4

2016

24

3

2017

76

22

103

28

42

51

44

63

52

32

42

21

Buyout

Seed

Venture

Page 55: PRIVATE EQUITY FUNDS IN NORWAY · at cost in portfolio companies located in Norway and abroad Fundraising activity in Norwegian private equity firms. This report gives an overview

5 5

Figure 31: Number of divestments in Norwegian enterprises in 2018 by phase and divestment method

TYPE OF DIVESTMENT - NUMBER OF NORWEGIAN COMPANIES DIVESTED

1

5

4

1

1 1

4

1

2

Sale to another

private equity firm

IPO - First divestment

following flotation

Sale of quoted

equity post flotation

Management/Owner

buy-back

Sale to trade buyers Other

5

Venture

Buyout

Seed