EVCA Q1 2002 investment figs

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No surprises were contained in the publication of European Venture Capital and Private Equity Association’s first publication of quarterly disbursement data: new investment rates were low, follow-on investments in support of existing portfolio companies were high (30 per cent) and by far the largest divestment category by number were write-offs. See tables 1, 2, 3 and 4 below for a detailed summary.

EVCA is producing the quarterly figures in response to EU calls for greater transparency and in order to achieve this objective it has partnered with Thomson Venture Economics, publisher of European Venture Capital Journal, and PricewaterhouseCoopers.

Table 1: European private equity raised by source

Independent funds raised by year/ euro3,228.2m/ 78.7%

Amount raised by captives/ euro839.8m/ 20.5%

Subtotal new funds raised/ euro4,068.0m/ 99.2%

Realised capital gains/ euro33.8m/ 0.8%

Total funds raised/ euro4,101.8m/ 100%

Source: EVCA/ Thomson Venture Economics/ PricewaterhouseCoopers

Table 2: European private equity investment

Investment type/ Amount euro(m)/ %/ No of investments/ %/ No of companies/ %

New investment/ 1,024.6/ 70/ 482/ 35.3/ 376/ 33.8

Follow-on investment/ 1,024.6/ 30/ 884/ 64.7/ 737/ 66.2

Total/ 3,411.7/ 100/ 1,366/ 100/ 1,113/ 100

Source: EVCA/ Thomson Venture Economics/ PricewaterhouseCoopers

Table 3: Stage distribution of investment

Stage/ Amount euro(m)/ %/ No of investments/ %/ No of companies/ %

Seed/ 32.1/ 0.9/ 28/ 2.0/ 28/ 2.5

Start-up/ 385.0/ 11.3/ 401/ 29.1/ 395/ 35.5

Expansion/ 994.0/ 29.1/ 640/ 47.1/ 535/ 48.0

Replacement capital/ 70.9/ 2.1/ 29/ 2.1/ 28/ 2.5

Buyout/ 1,929.7/ 56.6/ 268/ 19.7/ 127/ 11.4

Total/ 3,411.7/ 100/ 1,366/ 100/ 1,113/ 100

Source: EVCA/ Thomson Venture Economics/ PricewaterhouseCoopers

Table 4: Divestment at cost

Type of divestment/ Amount euro(m)/ %/ No of divestments/ %/ No of companies/ %

Divestment at trade sale/ 234.2/ 24.1/ 68/ 12.8/ 63/ 14.1

Divestment by flotation (IPO)/ 8.5/ 0.9/ 12/ 2.3/ 6/ 1.3

Sale of quoted equity/ 103.5/ 10.7/ 75/ 14.1/ 60/ 13.4

Divestment by write-off/ 160.4/ 16.5/ 130/ 24.4/ 106/ 23.7

Other/ 463.7/ 47.8/ 247/ 46.4/ 212/ 47.4

Total/ 970.3/ 100/ 532/ 100/ 447/ 100

Source: EVCA/ Thomson Venture Economics/ PricewaterhouseCoopers