A THOROUGH UNDERSTANDING OF PRIVATE EQUITY

RETOUR SOMMAIRE

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2010

INDUSTRY OVERVIEW

Figure 17: Breakdown of funds raised by type of investors in Europe, 2008

Academic Institutions 0.2%

Banks 6.7% Capital Markets 1.6%

Corporate Investors 2.9%

Unknown 17.5%

Endowments and Foundations 4.5%

Family Offices 4.2%

Private Individuals 4.9%

Fund of Funds 14.4%

Pension Funds 25.1%

Government Agencies 4.9%

Insurance Companies 6.6%

Other Asset Managers 6.4%

Source: EVCA & PEREP analytics, 2009

The following graphs show private equity fund raising and investments in Europe across the main centres of activity:

Figure 18: Private equity fund raising and investments in Europe

Fund raising (in € billion)

2008 fund raising

-21%

45 38 30 23 15

36.9

France 26%

+27%

29.1

-47%

United Kingdom 58%

5.7 2.4 3.0 2.3 -57% -25%

Germany 5%

10.0 12.7

5.3 2.8

( in € billion)

8 0

Italy 5%

Spain 6%

2007 2008 France

2007 2008 Germany

2007 2008 Italy

2007 2008 Spain

2007 2008 UK

-37%

Investments (in € billion)

2008 investments

39,8

( in € billion) 40 30 20 10 0

France 20%

-20%

25,2

-5%

+30%

United Kingdom 49%

-32%

12,6 10,0

Germany 14%

7,5 7,1 4,2 5,5 4,4 3,0

Italy 11%

2007 2008 France

2007 2008 Germany

2007 2008 Italy

2007 2008 Spain

2007 2008 UK

Spain 6%

Source: Grant Thornton, 2009

The United Kingdom remains the largest European country for private equity activity with E 29.1 billion funds raised and E 25.2 billion invested in 2008.

In 2008, France experienced an exceptional fund raising of E 12.7 billion with a 27% increase compared to the previous year, thanks to a few significant deals. At the same time, the other European markets were hit by a strong decline in fund raising, especially Germany with a 57% decrease compared to the previous year. France was finally hit later by the economic downturn, recording an 88% decrease in fund raising in the first half of 2009 28 compared to the same period in 2008.

page 32 | A thorough understanding of PE

28 Source: AFIC statistics, September 2009