A THOROUGH UNDERSTANDING OF PRIVATE EQUITY

RETOUR SOMMAIRE

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2010

INDUSTRY OVERVIEW

Venture

Buyouts and Mezzanine

Private Equity

Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Capital in $m No. Funds Capital in $m No. Funds

Capital in $m No. Funds

2,002.8 5,215.3 3,943.6 8,928.0 9,859.6 11,845.2 19,772.5 29,692.0 55,808.9 105,004.6 39,056.4 9,329.8 11,607.8 19,845,2 28,727.5 31,827.6 35,398.0 27,947.8

42 80 88

5,866.6 11,031.3 16,128.9 20,415.3 26,293.3 29,655.2 41,055.4 61,568.7 53,556.5 75,254.7 49,904.1 24,118.2 31,040.1 50,908.7 97,403.2 147,989.7 205,260.1 177,890.1

27 58 79 98

7,889.4 16,246.6 20,072.5 29,343.3 36,152.9 41,500.4 60,827.9 91,260.7 109,365.4 180,259.3 88,960.5 33,448.0 42,647.9 70,753.9 126,130.7 179,817.3 240,658.1 205,927.9

69

138 167 238 274 261 373 448 604 807 441 294 264 356 414 420 455 389

140 172 162 244 288 451 653 321 206 163 219 235 241 247 210

102

99

129 160 153 154 120 101 137 179 179 208 179 88

1.3

Source: NVCA (National Venture Capital Association - United States), 2009

Source: NVCA (National Venture Capital Association - United States), 2009 The top fund raising stat s for venture capital inv tments in 2008 in the United States remained California, Massachusetts and New York. Much of the fund rais- ing was done by established, often larger, firms. Capital was also successful- ly raised by new funds in promising sectors, such as clean technology, and those with proprietary deal flow prospects 22 . The following pie chart displays the break- down of venture capital investments in the United States by industry sector in 2008. However, in 2008 the US industry was clearly affected by the credit crunch and general economic turmoil as the volume of completed LBOs dropped 40% from 2,097 in 2007 to 1,241 in 2008. The total amount invested through LBOs dropped even more dramatically, from $489.5 billion to $116.5 billion for the same period, due largely to a 75% decline in the amount invested in deals over $2.5 billion 21 . The credit crunch, coupled with the global recession, brought the private equity industry down from its dramatic 2007 heights.

Figure 15: Venture capital investments in 2008 by industry sector in the United States

Telecommunications 6%

Software 17%

Biotechnology 16%

Networking and Equipment 2% Retailing/Distribution 1% Semiconductors 6%

Business Products and Services 2% Computers and Peripherals 1% Consumer Products and Services 2% Electronics/Instrumentation 2%

Financial Services 2% Healthcare Services 1%

Medical Devices and Equipment 12%

Industrial/Energy 16%

Media and Entertainment 7%

Source: NVCA, 2009

IT Services 7%

21 Source: PitchBook Data, Inc., “Economic Turmoil Leads to Record Drop in Private Equity Investment Activity in 2008”, January 2009 22 Source: NVCA, “National Venture Capital association Yearbook 2009”, March 2009

A thorough understanding of PE | page 29