The Italian private equityand venture capital market
Carlo MammolaAlternative Investment Forum - London 13th March 2006
Private equity marketPrivate equity market
Expansion / Expansion /
ReplacementReplacement
Buy OutBuy Out
Seed / Start upSeed / Start upVentureVentureCapitalCapital
PrivatePrivateEquityEquity
Early stageEarly stage
Later stageLater stage
Distressed / turnaround
AIFI membersAIFI members
1522 24
28 30 30 31 30 32 33 34
4955 58
73
86
77 79 82
92
0
10
20
30
40
50
60
70
80
90
100
'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 2001 2002 2003 2004 2005
Investment activity by number and amountInvestment activity by number and amount
140
944
1.773
2.968
2.185
2.626
3.034
1.480
1.205
248336301489390
269
646
-
500
1.000
1.500
2.000
2.500
3.000
3.500
1998 1999 2000 2001 2002 2003 2004 1st sem2005
Number Amount (Euro mln)
Fonte: Aifi/PwC
Amount invested in different European countriesAmount invested in different European countries
5.227
3.766
1.480
1.9671.6591.622
19.086
-
5.000
10.000
15.000
20.000
2000 2001 2002 2003 2004
Italy France Spain Germany Netherlands Sweden UK
Fonte: EVCA, 2005
Number of investments in different European countriesNumber of investments in different European countries
1.956
1.477
248475592
697
2.783
-
800
1.600
2.400
3.200
2000 2001 2002 2003 2004
Italy France Spain Germany Netherlands Sweden UK
Fonte: EVCA, 2005
Europe: % on GDP ( country of management) in 2004Europe: % on GDP ( country of management) in 2004
Fonte: EVCA, 2005
35% 39%53%
46%
16% 19% 20% 17%
34%35%
36%38%
46%52% 51% 51%
13% 4%
3% 10%
13%11% 10%
6%
18% 21%8% 6%
25%18% 19%
26%
0%
20%
40%
60%
80%
100%
1998 1999 2000 2001 2002 2003 2004 1 st sem
2005
Early stage Expansion Replacement Buy out
Stage distribution of investments in ItalyStage distribution of investments in Italy
Fonte: Aifi/PwC
16%8%
18% 13%2% 2% 2% 1%
36%
22%
33%34%
31%19%
31%
14%
14%
5%
3% 6%
8%
4%
6%
3%
34%
65%
46% 47%59%
74%62%
82%
0%
20%
40%
60%
80%
100%
1998 1999 2000 2001 2002 2003 2004 1 st sem
2005
Early stage Expansion Replacement Buy out
Stage distribution of amount invested in ItalyStage distribution of amount invested in Italy
Fonte: Aifi/PwC
38%
27%
14%
9%7%
5%
39%
13%
6%9%
5%
28%
0%
10%
20%
30%
40%
0-19 20-99 100-199 200-499 500-999 > 1,000
2004 1st Sem 05
% distribution (number) by target companies employees% distribution (number) by target companies employees
Fonte: Aifi/PwC
22%
27%
31%
36%
51%
51%
30%
15%
11%
5%
11%
46%
7%
12%
18%
23%
0% 20% 40% 60%
1 st sem 2005
2004
2003
2002
2001
2000
1999
1998
Number Amount
% of investments in high tech companies by number and amount in % of investments in high tech companies by number and amount in ItalyItaly
Fonte: Aifi/PwC
Divestment activity by number and amount (at cost) in ItalyDivestment activity by number and amount (at cost) in Italy
129170 186
149 143
222
13775
333
578
465
909
589
868
647
333
0
200
400
600
800
1.000
1998 1999 2000 2001 2002 2003 2004 1 st sem2005
Number Amount (Euro mln)
Fonte: Aifi/PwC
63%46%
58% 55% 52% 52%36%
44%
7%
8%
10%3%
18%10%
11%
19%
12%
12%
11%
8%
3%5%
10%
15%
9%
3%
5%
13%
18%13%
23%
5%
9%
31%16% 21%
9%20% 20% 17%
0%
20%
40%
60%
80%
100%
1998 1999 2000 2001 2002 2003 2004 1 st sem
2005
Trade sale Sale to VC - Fin. Inst. IPO - Sale post IPO Write off Other
% distribution of divestments by number in Italy% distribution of divestments by number in Italy
Fonte: Aifi/PwC
14.480
9.535
-
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
Eur
o m
ln
Total funds under management at 30th of June 2005*Portfolio at cost at 30th of June 2005*
Funds available*
4.945
* Pan-European funds and captive investors not included.
Funds under management in ItalyFunds under management in Italy
Fonte: Aifi/PwC
Annual fund raising activity in Italy (Euro Mln)Annual fund raising activity in Italy (Euro Mln)
1.051
2.207
2.925
1.8751.996 1.937
1.663
526
-
500
1.000
1.500
2.000
2.500
3.000
3.500
1998 1999 2000 2001 2002 2003 2004 1 st sem2005
* Pan-European funds not included.
Fonte: Aifi/PwC
24%
21%
15% 14%
8%6%
4%
0%
8%
40%
20%
3%
12%
4%
0,1%2%
19%
0,1%0%
10%
20%
30%
40%
Banks PensionFunds
Fund ofFunds
CorporateInvestors
InsuranceComp.
PrivateInvestors
Public Sector Endowments Other
2004 1st Sem 05
% distribution by sources of new funds raised by Italian funds% distribution by sources of new funds raised by Italian funds
Fonte: Aifi/PwC
Italy: Economic impact on buy-out target companies (1998-Italy: Economic impact on buy-out target companies (1998-2000)2000)
Fonte: INSEAD - LIUC, 2001
1,0%
4,8%
7,6%
1,60%
22,70%
11,70%
2,0%
-1,5%
3,8%
-5% 0% 5% 10% 15% 20% 25% 30%
Pre buy-out Post buy-out Benchmark Mediobanca
∆ Turnover
∆ EBIT
∆ Employees
Europe: economic impact on venture backed companies Europe: economic impact on venture backed companies (1995-2001)(1995-2001)
Fonte: EVCA, 2002
71,0%
50,0%
69,0%
73,0%
15,0%
40,0%
18,0%
12,0%
11,0%
14,0%
13,0%
12,0%
0% 20% 40% 60% 80%
Increase Stability Decrease
Employees
R&S
Exports
Investments
AIFIAIFI
AIFI is the Italian Private Equity and Venture Capital Association
AIFI’s main activities are:
•Institutional and lobbying activities
•Research
•Training programmes
•Networking
To carry out these activities AIFI relies on Technical Committees:
•Corporate Governance
•High tech
•Tax& Legal
•Relationship with Institutional Investors
BA Capital Partners Europe (BACPE) is a European private equity partnership managing over €1.5 billion of private equity capital on behalf of Bank of America. Active in the European market since 1996, BACPE focuses on buyouts of industry leading growth companies operating in the following broad industry sectors: industrial growth, business services, and consumer products and services.
In brief
•Over €1.0 billion invested to date
•Between €25 million and €125 million invested in companies with an enterprise value of
between €50 million and €500 million
•European network with presence in UK, Italy, France and the Nordic region
•A team with a deep industry knowledge of target sectors in the UK, French, Italian and
Nordic markets.
An introduction to BA Capital Partners EuropeAn introduction to BA Capital Partners Europe
Selected past investmentsSelected past investments
Target industry Consumer products and services
Target industry Business services
Target industry Industrial growth
GRUPPO
ALFATHERM
The Italian private equityand venture capital market
Carlo MammolaAlternative Investment Forum - London 13th March 2006