PRIVATE EQUITY PERFORMANCE BENCHMARKS FVCA SPRING SEMINAR, RUKA, FINLAND DAVID BERNARD 23 APRIL 2009
INTRODUCING THOMSON REUTERS We provide intelligent information to the world’s businesses and professionals, giving our customers a competitive advantage. Professional Division $5. 5 billion 23, 100 employees Markets Division $7. 9 billion 27, 200 employees Legal Tax & Accounting Scientific Healthcare Investment & Advisory Sales & Trading Enterprise Media $3. 5 B $0. 9 B $0. 6 B $0. 5 B $2. 4 B $3. 8 B $1. 3 B $0. 5 B “We make legal systems work better” “We reduce complexity and make compliance easier” “We accelerate research, discovery and innovation” “We improve health through information and insights” We power the world’s markets 2008 Revenues 2
Thomson. ONE. com The premier source for comprehensive information for private equity professionals • Private equity investments, fund raising, portfolio company profiles, firm profiles, limited partners – Uncovering companies that may be ripe for a merger, acquisition or divestiture – Identifying potential investors likely to support follow-on rounds – Using coverage lists enabling you to monitor market and competitor activity • • • Transaction details for PE investments, M&A, equity issues, bonds and loans Company financials for public and private companies, globally Real-time broker research from 1400 banks and independent research firms Broker estimates News from Reuters, PE Hub, EVCJ, PE Week, Venture Capital Journal, Acquisitions Monthly, Buyouts – tagged to the database • And much more 3
THOMSON REUTERS’ PRIVATE EQUITY PERFORMANCE DATABASE • Maintained by Thomson Reuters (formerly known as Thomson Venture Economics) since 1988, online since 1991 • Available online in Thomson ONE and Venture. Xpert, where you can define your own performance sample (by country, vintage, size, focus, etc. ) • 1971 US funds formed 1969 -2008, in partnership with NVCA • 1310 European funds formed 1979 -2008, in partnership with EVCA • 191 Canadian funds formed 1981 -2008, in partnership with CVCA • 140 Asia-Pacific funds formed 1980 -2008 • 82 funds of funds • Thomson Reuters has long-standing relationships with national and regional Private Equity and Venture Capital Associations worldwide 4
5
SOURCES • ~50% from GPs upon request from LPs who contract our benchmarking services • ~50% from GPs who need data for their own benchmarking and fund raising needs • Since we get data from LPs in addition to GPs there is not a consistent or significant self reporting bias • We calculate IRR ourselves (we do not use self-reported IRRs) based on the underlying cashflows, and we verify against general partner financial reports to LPs • We treat confidentiality very carefully – all data reported is strictly anonymous 6
PRINCIPAL MEASURES • • • Cumulative IRR Since Inception Cumulative Realisation Multiples Time Weighted Return Investment Horizon Return Monthly Cash Flows Public Market Comparables – Index method 7
EUROPEAN PRIVATE EQUITY CUMULATIVE IRR BY VINTAGE YEAR AS OF 31 -DEC-08 J-curve effect? Source: Thomson Reuters / EVCA 8
US PRIVATE EQUITY CUMULATIVE IRR BY VINTAGE YEAR AS OF 31 -DEC-08 Source: Thomson Reuters / NVCA 9
EUROPEAN PRIVATE EQUITY FUNDS FORMED 1980 -2008 NET RETURNS SINCEPTION AS OF 31 -DEC-2008 Stage Number Pooled IRR Average DPI IRR Standard Deviation Early Stage 346 -1. 2% 0. 42 23. 1% Balanced 201 3. 3% 0. 51 28. 6% Development 219 8. 7% 0. 83 29. 2% All Venture Funds 761 3. 1% 0. 54 26. 6% Buy-outs 0 -$250 m* 263 12. 3% 1. 16 27. 7% Buy-outs $250 m-$500 m 63 17. 9% 1. 24 26. 8% Buy-outs $500 m-$1 bn 48 18. 2% 1. 19 27. 9% Buy-outs $1 bn+ 50 10. 3% 0. 72 24. 8% All Buy-Out Funds 425 13. 6% 0. 88 27. 4% Generalist 120 9. 1% 1. 02 18. 9% 1310 10. 0% 0. 85 26. 7% All Private Equity Funds * fund size Source: Thomson Reuters / EVCA 10
US PRIVATE EQUITY FUNDS FORMED 1969 -2008 NET RETURNS SINCEPTION AS OF 31 -DEC-2008 Stage Number Pooled IRR Average DPI Standard Deviation Seed Capital 68 9. 3% 0. 98 33. 7% Early Stage 536 19. 7% 1. 14 60. 1% Balanced 456 13. 6% 1. 17 24. 5% Later Stage 206 13. 3% 1. 17 26. 9% All Venture Funds 1266 15. 3% 1. 15 43. 9% Buy-outs 0 -$250 m* 182 15. 5% 1. 32 22. 2% Buy-outs $250 m-$500 m 116 17. 1% 1. 24 20. 7% 98 11. 8% 1. 05 18. 7% Buy-outs $1 bn+ 138 9. 3% 0. 71 22. 5% All Buy-Out Funds 534 11. 2% 0. 83 21. 7% Generalist 38 9. 4% 0. 63 19. 9% Mezzanine 72 8. 0% 0. 85 9. 8% 1971 12. 6% 0. 91 37. 3% Buy-outs $500 m-$1 bn All Private Equity Funds * fund size Source: Thomson Reuters / NVCA 11
IRR SINCEPTION AND MULTIPLES Sample size Pooled IRR sinception All funds Venture funds Buyout funds Upper quartile Pooled DPI Pooled RVPI Pooled TVPI Finnish funds 127 9. 4% -5. 0% 24. 0% 10. 5% 0. 85 0. 46 1. 32 Nordic funds 220 12. 7% -0. 7% 27. 5% 9. 3% 0. 80 0. 62 1. 42 European funds 1310 10. 0% 3. 1% 13. 6% 9. 8% 0. 85 0. 49 1. 34 US funds 1971 12. 6% 15. 3% 11. 2% 14. 8% 0. 91 0. 51 1. 42 Source: Thomson Reuters Note: Data is continuously updated and is therefore subject to change. Nordic includes Norway, Sweden, Finland Denmark. Calculation in € for European funds, in US$ for US funds, as of 31/12/2008 12
EUROPEAN PRIVATE EQUITY FUNDS FORMED 1980 -2008 NET INVESTMENT HORIZON RETURN AS OF 31 -DEC-2008 1 -year 3 -year 5 -year 10 -year 20 -year Early Stage -16. 2% -2. 2% -0. 4% -2. 6% -1. 2% Balanced -19. 2% 1. 6% 2. 6% 0. 6% 3. 3% Development Stage -17. 9% 0. 3% 4. 2% 4. 1% 8. 9% All Venture Funds -18. 9% -0. 2% 2. 0% 0. 3% 3. 1% Buy-outs 0 -$250 m* -23. 6% 5. 4% 8. 2% 9. 4% 12. 3% Buy-outs $250 m-$500 m -19. 7% 10. 2% 15. 5% 18. 7% 16. 7% Buy-outs $500 m-$1 bn -15. 8% 11. 6% 11. 5% 19. 7% 18. 2% Buy-outs $1 bn+ -31. 3% 3. 9% 13. 1% 10. 4% 10. 3% All Buy-Out Funds -30. 0% 5. 7% 12. 4% 13. 5% -9. 5% 5. 5% 7. 9% 8. 0% 9. 2% -28. 8% 4. 3% 9. 3% 8. 7% 10. 0% Generalist All Private Equity * fund size Source: Thomson Reuters / EVCA 13
US PRIVATE EQUITY FUNDS FORMED 1969 -2008 NET INVESTMENT HORIZON RETURN AS OF 31 -DEC-2008 1 -year 3 -year 5 -year 10 -year 20 -year Seed/Early Stage -20. 6% 1. 7% 36. 0% 21. 8% Balanced -26. 9% 4. 6% 8. 4% 13. 5% 14. 5% -6. 8% 9. 5% 8. 7% 7. 5% 14. 5% All Venture Funds -20. 9% 4. 2% 6. 4% 15. 5% 17. 0% Buy-outs 0 -$250 m* -11. 0% 2. 6% 7. 5% 4. 6% 12. 2% Buy-outs $250 m-$500 m -20. 6% 7. 4% 11. 3% 7. 9% 11. 3% -9. 6% 5. 3% 10. 9% 6. 6% 10. 9% Buy-outs $1 bn+ -24. 9% 1. 1% 7. 6% 5. 5% 8. 7% Buy-Out Funds -23. 9% 2. 2% 8. 4% 5. 9% 9. 8% 6. 6% 3. 5% 4. 2% 4. 8% 7. 5% -23. 6% 3. 4% 7. 9% 11. 9% Later Stage Buy-outs $500 m-$1 bn Mezzanine All Private Equity * fund size Source: Thomson Reuters / NVCA 14
INVESTMENT HORIZON PERFORMANCE 1 -year Finnish funds 3 -year 5 -year 10 -year 20 -year -18. 1% 9. 4% 14. 1% 9. 7% 9. 4% Finnish venture funds (71 funds, € 1. 6 bn) -23. 8% -3. 6% -2. 2% -5. 5% -5. 0% Finnish buyout funds (36 funds, € 2. 8 bn) -13. 2% 15. 1% 21. 6% 26. 4% 24. 0% Nordic funds -24. 6% 10. 0% 9. 5% 13. 6% 12. 7% European funds -28. 8% 4. 3% 9. 3% 8. 7% 10. 0% US funds -23. 6% 3. 4% 7. 9% 11. 9% Source: Thomson Reuters Note: Data is continuously updated and is therefore subject to change. Nordic includes Norway, Sweden, Finland Denmark. Calculation in € for European funds, in US$ for US funds, as of 31/12/2008 15
PRIVATE EQUITY AND PUBLIC MARKET COMPARATORS Net Pooled IRR Since Inception to the End of Each Year *Comparators are Internal Rates of Return (IRR). IRRs for public market indices are calculated by investing the equivalent cash flows that were invested in private equity into the public market index. Then an equivalent IRR is calculated for each index. Source: Thomson Reuters 16
FOR MORE INFORMATION David Bernard Vice-President – Investment Banking & Private Equity david. bernard@thomsonreuters. com +33 6 87 97 87 81 Rosette Tyers Private Equity Research Manager - EMEA Data contributions & surveys rosette. tyers@thomsonreuters. com +44 20 7542 9066 17
Скачать презентацию PRIVATE EQUITY PERFORMANCE BENCHMARKS FVCA SPRING SEMINAR RUKA
3437c308561fa487923b92a0c682696e.ppt