|
|
With data on more than 1,200 European private equity firms, the 2013 statistics cover 90 per cent of the €555 billion in capital under management in the European market. Fundraising more than doubled from 2012 to €53.6 billion. This was driven by a change in the profile of the funds raised, with 12 buyout funds each raising in excess of €1 billion, representing 66 per cent of total fundraising.
The industry attracted significant levels of overseas capital into Europe accounting for around half of the funds raised (€26.2 billion). The contribution from North American investors increased from 24 per cent in 2012 to 36 per cent. Pension funds and fund of funds accounted for more than half of the €53.6 billion total funds raised. Pension funds were the source of almost 40 per cent of funds. Other major sources include fund of funds (16 per cent), sovereign wealth funds (11 per cent) and insurance companies (11 per cent).
Venture capital accounted for 8 per cent of total fundraising. The €4 billion raised represents an increase of 4 per cent on 2012. Government agencies’ contribution remained stable at 38 per cent. Family offices and private individuals contributed 23 per cent and fund of funds 12 per cent. Overall investment by private equity into European companies remained stable in 2013 at €35.7 billion in more than 5,000 European businesses. Of these, more than 40 per cent were backed for the first time. Of the total €35.7 billion, venture capital investment accounted for €3.4 billion, in more than 3,000 companies. The amount invested increased by 5% and the number of venture-backed companies remained stable since the previous year.
A total of 2,290 European companies were divested or sold (exited) by private equity fund managers in 2013, representing former equity investments of €33.2 billion. The number of companies exited increased by almost 10 per cent and the amount divested at cost increased by 54 per cent. The most prominent exit routes were trade sales (27 per cent), sale to another private equity firm (26 per cent) and sale of quoted equity (14 per cent). Almost 40 per cent of the divested companies followed these exit routes. The strength of public markets in 2013 was reflected by the steep increase in divestments by flotation (IPO). This exit route increased more than seven times by amount (€2.2 billion) and almost four times by number of companies (23). EVCA Chief Executive Dörte Höppner said: "Private equity has confirmed its place at the heart of the European growth story, supporting over 5,000 companies and bringing life back to the IPO market."