EBRD Private Equity Funds Portfolio to 31 December 2012 · Set return benchmarks and report widely on ... Pharma & Medical 9.3% ... Turkmenistan, Uzbekistan**, Ukraine and Mongolia

EBRD Private Equity Funds Portfolio to 31 December 2012

Contents

1. Introduction

2. Funds Portfolio

3. EBRD Net Returns & Performance

4. Performance and Composition of Underlying Portfolio

5. LP Data

6. General Information

© European Bank for Reconstruction and Development 2014 2

Introduction


Why does EBRD invest in Private Equity?

4

Efficiently deploy equity capital to companies

Provide co-investment facilities (debt, mezzanine and equity)

Maintain existing relationships with successful fund managers and support sustainable flow of

funding

Provide active supervision and set high standards on integrity, processes and ESG

Foster sustainable investments and strong returns

Build a sustainable private equity industry in the region

Share extensive in-house experience of macro, equity sector and country issues with fund

managers and institutional investors

Support the establishment of first time and innovative funds

Set return benchmarks and report widely on the regional performances through

conferences and industry associations

Continue to cooperate with other IFIs to mobilise institutional investors into the region

© European Bank for Reconstruction and Development 2014

Private Equity Penetration


0.6

02%

0.5

30%

0.3

73%

0.3

69%

0.3

52%

0.3

12%

0.2

60%

0.2

58%

0.2

47%

0.2

44%

0.2

26%

0.2

11%

0.1

90%

0.1

59%

0.1

53%

0.1

37%

0.1

37%

0.1

25%

0.1

09%

0.1

03%

0.0

86%

0.0

84%

0.0

82%

0.0

73%

0.0

69%

0.0

33%

0.0

23%

0.0

20%

0.0

18%

0.0

17%

0.0

14%

0.0

10%

Source: EVCA/PEREP_Analytics

Private Equity Investment as a Percentage of GDP by Country

Key Facts about EBRD’s work in Private Equity


• Most Active private equity fund investor in Central and South-East Europe (CSE) and the

Commonwealth of Independent States (CIS).

• Covering a wide spectrum of fund sizes and investment strategies; regional and country-specific

funds, generalist and sector-specific funds.

Historic Activity:

• 20 years investing in the asset class with EUR 3.4 billion commitments to 147 funds with total

capital of EUR 18.2 billion.

• Around 60% of funds (by number) are first time funds.

• Supporting 83 fund managers.

• Over 850 fully exited underlying investees in the funds’ portfolio.

Current Portfolio:

• Current portfolio of 96 active funds managed by 62 fund managers with EUR 2.7 billion in

commitments with total capital of EUR 16.1 billion.

• Around 45% of active funds (by number) are first time funds.

• Over 400 unrealised underlying investees in the funds’ portfolio.

Funds Portfolio


Equity Funds Commitments by Fund Vintage

Year


Fund Investment Activity by Region & Vintage Year

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 2012

No

. of

Fun

ds

EUR

Mill

ion

s

CEE/SEE Russia/CIS SEMED Number of Funds

EBRD net funds portfolio as at 31/12/2012

SEMED includes: Tunisia, Morocco, Egypt and Jordan

Equity Funds Active Portfolio by Region and

Fund Size


EBRD net funds portfolio as at 31/12/2012


EBRD Fund Commitments by Region and Fund Size

CEE/SEE

Russia/CIS

SEMED

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Capital Commited

0-100m

100-200m

200-300m

300m+

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Capital Committed

EBRD Net Returns & Performance



EBRD Equity Funds Portfolio

Net Horizon IRRs vs. Benchmarks

Three Years Five Years Ten Years Since Inception

EUR EBRD Private Equity Portfolio - All 9.5% 2.2% 18.9% 9.7%

Cambridge Western Europe Private

Equity & Venture Capital Index (EUR) 13.9% 3.7% 13.6% N/A


Equity Only Index 14.0% 3.8% 14.7% N/A

MSCI Europe Index (EUR) 6.2% -2.3% 5.9% N/A

USD EBRD Private Equity Portfolio - All 6.7% 0.2% 23.6% 11.4%

Cambridge Global ex U.S. Private Equity

& Venture Capital Index 10.8% 2.8% 14.0% N/A


Equity & Venture Capital Index (USD) 10.8% 1.5% 15.8% N/A


Equity Only Index 14.0% 3.7% 14.7% N/A

MSCI Emerging Markets Index 5.0% -0.6% 16.9% N/A

Net Horizon IRRs by Currency

Source: EBRD Net Funds Portfolio, Cambridge Associates, as of 31/12/2012

Performance and Composition of Underlying Portfolio


Underlying Investments by Country


EBRD underlying investments portfolio as of 31/12/2012

*Georgia formally withdrew from the CIS effective 17 August 2009


Russian Federation 34.8%

Rest CIS 9.1%

Poland 17.9%

Romania 7.8%

Czech Republic

7.0%

Turkey 6.7%

Rest CSE 16.5%

SEMED 0.2%

Bulgaria, 4.6%

Hungary, 3.4%

Lithuania, 2.4%

Serbia, 1.2%

Croatia, 1.1%

Estonia, 1.1%

Latvia, 0.9%

Slovak Republic, 0.8%

Albania, 0.6%

Slovenia, 0.2%

Kosovo, 0.1%

Bosnia and Herzegovina, 0.1%

Ukraine, 5.7%

Kazakhstan, 3.0%

Azerbaijan, 0.1%

Georgia*, 0.1%

Mongolia, 0.1%

Kyrgyz Republic, 0.1%

Active Investments in Underlying Portfolio by Country

Underlying Investments by Sector


Active Investments in Underlying Portfolio by Sector

Services 27.4%

ICT 24.1%

Wholesale & Retail 11.2%

Pharma & Medical

9.3%

Consumer 9.0%

Primary & Energy 6.6%

Manufacturing 5.4%

Construction 5.1%

Agriculture & Forestry 2.0%

EBRD underlying investments portfolio as of 31/12/2012

Investment Activity of EBRD Supported Funds


Investments by Vintage Year by Exit Status

EBRD underlying investments portfolio as at 31/12/2012

1

20

37

44

62

88

109

100

122

90

44 40

45

55

50

70

64

41 43

60

74

0

20

40

60

80

100

120

140

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

No

. In

vestm

en

ts b

y V

inta

ge Y

ear

Unrealised

Partly Realised

Fully Realised

Exit Activity of EBRD Supported Funds


Number of Exits and Mean Cash Proceeds by Exit Year


0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

0

20

40

60

80

100

120

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

TV

PI

Nu

mb

er

of

Exit

s

Pooled TVPI of Exits (excl. Write-Offs)

Number of Write-Offs

Number of Exits (excl. Write-Offs)

Gross Snapshot of all Investees


Gross Snapshot of Investees by Exit Status

Unrealised EUR 5.6bn

Unrealised EUR 6.9bn

Partly Realised EUR 0.8bn

Partly Realised EUR 3.0bn

Fully Realised EUR 3.8bn

Fully Realised EUR 7.4bn

0

2

4

6

8

10

12

14

16

18

20

Investment at Cost EUR 10.3bn Investment Value EUR 17.3bn

EU

R B

illio

ns

All Investees

Money Multiple: 1.7x; IRR: 17.41%

Fully Realised Investees


Partly Realised Investees


Unrealised Investees



LP Data


Composition of Investor Base in EBRD funds by

Origin


Geographical Origin of LPs in EBRD Funds

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1992-2000 2001-2007 2008-2011 2012

USA

Other

Middle East

Europe

Asia

Composition of Investor Base in EBRD Funds

by Investor Type


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1992-2000 2001-2007 2008-2011 2012

Sovereign Wealth Fund

Private Individual / Trust

Pension Fund

NA/Other

International Financial Institution

Insurance Company

GP/Sponsor Commitment

Government Agency

Fund of Funds

Corporate Investor

Capital Markets

Bank

Academic Institution / Endowment / Foundation

Types of Investors in EBRD Supported Funds

General Information


3TS

€30 million

EBRD commitment

May 2013

Select Equity Funds Signed in 2012/2013


Avallon MBO Fund

€27 million

EBRD commitment

December 2012

Capital North Africa

Venture Fund

€20 million

EBRD commitment

May 2013

Earlybird Digital East

Fund

$35 million

EBRD commitment

November 2013

21 Concordia

€30 million

EBRD commitment

September 2013

Almaz Capital Russia

Fund

$50 million

EBRD commitment

May 2013

Capman Russia Fund II

$50 million

EBRD commitment

March 2013

Mid Europa Fund IV

€80 million

EBRD commitment

September 2013

Mediterannia

€20 million

EBRD commitment

September 2013

Maghreb Private Equity

Fund III

€20 million

EBRD commitment

September 2012

• Largest available sample of PE performance in Central and South

Eastern Europe (CEE/SEE), Russia and the Commonwealth of

Independent States (CIS)

• Tracks all “gross” investments made by EBRD invested funds as

well as “net” returns to EBRD (“tracked portfolio”)

• Obligatory reporting by fund managers

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

reporting

23

General Information

© European Bank or Reconstruction and Development 2014 23

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

• SEMED Countries – Egypt, Jordan, Morocco, Tunisia

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

**There are no underlying investments in these countries as of 31/12/2012. † Formally withdrew from the CIS effective 17 August 2009

24 © European Bank for Reconstruction and Development 2014 24

Copyright 2014 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 2014 European Bank for Reconstruction and

Development. All rights reserved.

© European Bank for Reconstruction and Development 2013 25 © European Bank for Reconstruction and Development 2014 25

Documents

EBRD Private Equity Funds Portfolio to 31 December 2012 · Set return benchmarks and report widely on ... Pharma & Medical 9.3% ... Turkmenistan, Uzbekistan**, Ukraine and Mongolia