Performance of EBRD Private Equity Funds’ Portfolio 2003 ... · funds in the EBRD portfolio z Institutional Quality Funds (IQs)– identified based on criteria established by Cambridge

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


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


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


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


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


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


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 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


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


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


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



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%


9


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


10


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


Total Value$3,075m



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


11


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


Total Value$2,740m



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


12


Investments at Cost by RegionInvestments at Cost by Region

SEE13%

Russia/CIS28%

CEE59%

13


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


Investments at Cost by SectorInvestments at Cost by Sector

TIM28%

Service17%

Wholesale & Retail7%

Construction5% Food & Beverage

16%

Manufacturing12%

Primary & Energy11%

Other4%

15


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


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


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


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


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


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.

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Performance of EBRD Private Equity Funds’ Portfolio 2003 ... · funds in the EBRD portfolio z Institutional Quality Funds (IQs)– identified based on criteria established by Cambridge