Sociedade de Capital de Risco, SA
Caixa Capital is the Private Equity/Venture Capital industry leader and part of Portugal’s largest financial group.
• State owned • Portugal’s largest financial group (Banking & Insurance)• Long-term debt risk rating of AA- by Fitch, Aa2 by Moody’s and A+ by S&P
• Investment banking arm• Ranked “Best Investment Bank in Portugal” by Euromoney (2007 and 2008)
• The CGD Group’s Private Equity/Venture Capital (PE/VC) arm• Industry leader with Assets under Management of € 515 million and 36 portfolio
companies
Source: 2007 CMVM (Portuguese Securities and Exchange Commission) Report (latest available as of September 2009)
Market Position
Sociedade de Capital de Risco, SA
Sociedade de Capital de Risco, SA
Providing necessary capital and financing to support strategic initiatives aimed at creating competitive advantages in participated companies.
Core Business 2009 Future
Caixa Desenvolvimento• Generalist SPV
• Net assets: € 29 million
CGD Group Fund
• Generalist Fund
• Net assets: € 340 million
Renewable Energies Fund• Renewable Energies Fund
• Net assets: €53 million
Caixa Empreender+ VC Fund• Innovation and Entrepreneurship
• Net assets: € 25 million
Caixa Mezzanine PE Fund• SMEs
• Net assets: € 100 million
Fund of PE/VC Funds
Golden Assets
Clean Tech…
Private Equity Venture Capital Mezzanine New Initiatives
• Sponsor entrepreneurship, M&A, growth and internationalisation
• Expanding offering and presence in complementary business segments
• Target of € 1 billion Assets under Management in the medium term
Corporate Strategy
Promotion of competitive advantages
Corporate Strategy
Sociedade de Capital de Risco, SA
Executive Board Board of Directors Investment Committee
Deal Teams Portfolio Team
• Alcides Aguiar (Chairman)• Vasco d’Orey• + Members of the Executive Board
• Faria de Oliveira (CGD Chairman)• Francisco Bandeira (CGD V. Pres.)• Jorge Tomé (CGD Board Member)• + Members of the Board of Directors
• Alfredo Antas Teles (CEO)• José Manuel Carrilho• José Furtado
• Carlos Cruz • Hugo Silva
Support Services
Governance structure consists of 3 levels with clearly defined responsibilities for each functional area.
• Walter Palma• Pedro Rangel
Private Equity Venture Capital Mezzanine
Governance Structure
Sociedade de Capital de Risco, SA
Fund Portfolio
CGD (100%)CGD (100%)CaixaBI (91%)
FEI CG En.Renov. (9%)CGD (100%)Fund Participants
Up to 20%Up to 30%Up to 25%Up to 25%Equity Component
CGD Group FundRenewable Energy
FundCaixa
Empreender+ VC Fund
Caixa Mezzanine PE Fund
Focus
• All sectors• Expansion and
business development
Renewable energy producers
Early stage investments
• Medium-sized enterprizes
• Growth
Launch Date 1995 2005 March 2009 June 2009
Capital 340 M€ 50M€ 25M€ 100 M€
Avg. Investment Amount
> 10M€ > 5M€ 50k€ - 1M€ 3M€ - 5M€
Avg. Holding Period
4 - 6 years 4- 8 years 3 – 5 years 5 – 7 years
Sociedade de Capital de Risco, SA
The Caixa Empreender+ VC Fund is dedicated towards financing emerging and recently created businesses (early stage investments), with a particular emphasis on knowledge-based and applied technology companies.
Capital
Term
Fund Participants
Investment Policy
€ 25 million
10 years
Currently 100% held by Caixa Geral Depósitos, but with the possibility of being opened up to other investors
Investment Amount : 20k€ - 1M€
Holding Period : 3-5 years
Equity Component : up to 30%
Investment Selection Criteria:
• Portuguese origin
• Global reach
• Satisfaction of a clear market need in an original and innovative manner
• Motivated and competent management team
Fund Overview
Sociedade de Capital de Risco, SA
Origination Investment Monitoring Exit
• Caixa Empreender+ Challenge
• Business Angel Side-car
• Corporate Venturing Partnering
• Specialized Funds
• Individual investments
• Investment syndicates
• Investments in specialized funds
“Coaching & Control”:
• Management reporting systems
• Interim executives / Controller
• Partnerships w/ BA’s
• Specialized Funds
• Trade Sale / M&A
• IPO
• MBO
• Liquidation
Activities
Sociedade de Capital de Risco, SA
Seed Start-up Follow-on
Early Stage Investment Phases
Caixa Empreender+ Challenge
Corporate Venturing Partners
Specialized Funds
Business Angels Side-CarOrigination
Sources
Deal Flow
Sociedade de Capital de Risco, SA
• Public Agencies (ex. INPI, AdI, IAPMEI)
• Technology Tranfer Accelerators (ex. Cotec)
• Business Angel Networks (FNABA, APBA)
• Universities
• Other VC Operators
• Corporate Venturing Units (ex. Critical Software)
Strategic Partnerships
Sociedade de Capital de Risco, SA
The Caixa Empreender+ Challenge
Objectives
• Promote the regular flow of investment opportunities in an efficient and effective manner;
• Stimulate the entrepreneurial spirit of young entrepreneurs and qualified managers, through the provision of start-up and development capital at reasonable terms;
• Strengthen the CGD Group’s institutional presence within innovation and entrepreneurship community.
Sociedade de Capital de Risco, SA
The Caixa Empreender+ Challenge
GO
NOGO
10 days + 20 days + 90 – 120 days
Opportunity Screening and Investment Process
Proposal Gathering Opportunity Screening Due Diligence and Deal Structuring
Gathering of project summary proposals from CE+ mini-site
Pre-screening byCaixa Capital’s analyst team
Reply letter to promotor(s)
communicating CxCap’s decision
Presentation of detailed business plan
Due diligenceMOU
Submission of investment proposal
INVESTMENT DECISION
Sociedade de Capital de Risco, SA
Origin
0
5
10
15
20
25
30
35
40
CE+ Challenge Spontaneous Referenced Co-Investment
# of
pro
ject
s
13
Total =100 projects (2009)
Current Status
31
22
34
13
Sociedade de Capital de Risco, SA
Status
0
10
20
30
40
50
60
70
Not accepted Opportunities Under analysis To be realized Realized
# of
pro
ject
s
69
1410
5 2
Current Status
Sociedade de Capital de Risco, SA
15
Current Status
Sector Distribution of Projects under Analysis
Agricultural/Food5%
Retail9%
Manufacturing3%Services
25%
IT/Communications32%
Financial3%
Cleantech15%
Biotech/Health11%