Transcript Thunderbird Global Private Equity Investing Conference

Thunderbird School of Global Management:
Global Private Equity Investing Conference
Media Panel Overview
Glendale, Arizona, April 4, 2008
Aggregate Fundraising Has Been Rebounding
Commitments to Communications/Media Funds,
1990 - 2007, in MN USD
US Buyout
EU Buyout
US Venture Capital
EU Venture Capital
Other
45.000
40.000
35.000
30.000
25.000
20.000
15.000
10.000
5.000
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source: VentureXpert
Copyright © 2008
1
Aggregate Investing Has Become More Consistent
Investments in Communications/Media Companies,
1990 - 2007, in MN USD
US Buyout
EU Buyout
US Venture Capital
EU Venture Capital
Other
45.000
40.000
35.000
30.000
25.000
20.000
15.000
Univision
USD 13.5 BN
10.000
5.000
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source: VentureXpert
Copyright © 2008
2
Venture Investing in Particular Has Been Consistent …
Venture Capital Investments by Industry,
Q1 2001 - Q3 2007, in MN USD
US
EU
20.000
20.000
15.000
15.000
10.000
10.000
5.000
5.000
0
2001
2002
2003
2004
2005
2006
2007
0
2001
Other
Information Technology
Healthcare
Business/Consumer/Retail
Communications/Networks
Media/Content/Info.
2002
2003
2004
2005
2006
2007
Source: Dow Jones VentureOne, Ernst & Young
Copyright © 2008
3
… While Buyout Investing Has Been More Opportunistic
Buyout Investments by Industry,
Q1 2001 - Q4 2007, in MN USD
US
EU
20.000
20.000
15.000
15.000
10.000
10.000
5.000
5.000
0
2001
2002
2003
2004
2005
2006
2007
0
2001
Information Technology
Healthcare
Non-High Tech/Industrial
Communications/Networks
Media/Content/Info.
2002
2003
2004
2005
2006
2007
Source: VentureXpert
Copyright © 2008
4
Performance Has Shown Material Volatility Differences …
Continuous Quarterly Returns (Time Weighted Performance), Pooled Cash Flows and
Net Asset Values, 2000 - September 30, 2007
20%
Average return per annum
All BO EU
All VC US
Comm./Media BO US
15%
Comm./Media VC US
Comm./Media BO EU
All BO US
Nasdaq
S&P
500
MSCI Europe
10%
All VC EU
Comm./Media VC
EU
5%
0%
0%
5%
10%
15%
20%
25%
30%
Volatility per annum
Source: Datastream, VentureXpert
Copyright © 2008
5
… Until the Bubble Is Excluded
Continuous Quarterly Returns (Time Weighted Performance), Pooled Cash Flows and
Net Asset Values, 2000 - September 30, 2007
Average return per annum
20%
15%
All BO EU
All BO US
10%
Comm./Media BO US
Comm./Media BO EU
MSCI Europe
5%
S&P 500
Nasdaq
Comm./Media VC US
All VC US
0%
0%
5%
10%
15%
20%
25%
30%
All VC EU
Comm./Media VC EU
-5%
Volatility per annum
Source: Datastream, VentureXpert
Copyright © 2008
6
Media Industry Is One of Largest Segments of US Economy
• Media is projected to remain the 4th largest economic sector in 2011 and become the 3rd fastest growing
in the next five years
• Media will represent 7.1% share of the economy in 2011, up from 6.7% in 2006
Economic Sectors Ranked by Size and Growth
2011 Spending
Spending
2006 - 2011
CAGR
(USD BN)
Rank
CAGR %
Rank
Services
4,270
1
5.9
6
Finance, Insurance & Real Estate
3,539
2
5.9
7
State & Local
1,440
3
5.9
8
Media
1,222
4
6.7
3
Retail Trade
1,106
5
6.1
4
Wholesale Trade
959
6
4.7
12
Durable Goods
951
7
1.5
15
Construction
816
8
5.4
10
Federal
696
9
6.9
2
Nondurable Goods
678
10
1.8
14
Transportation
460
11
5.5
9
Electric, Gas & Sanitary Services
328
12
6
5
Mining
320
13
5.3
11
Telephone & Telegraph
292
14
3.6
13
Agriculture, Forestry & Fishing
186
15
9.3
1
Economic Sector
Nominal GDP
17,263
5.4
Source: Veronis Suhler Stevenson, VSS
Communications Industry Forecast 2007
Source: VSS Communications Industry Forecast 2007
Copyright © 2008
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Media Industry Segments Ranked by Five-Year Growth
2001 – 2006
CAGR %
2006 – 2011
CAGR %
Pure-Play Internet & Mobile Services
10.25
14.68
Branded Entertainment
13.72
13.92
Out-of-Home Media
8.32
12.96
Educational & Training Media & Svcs
5.22
8.18
Cable, Satellite & RBOC Television Svcs
10.85
7.59
Professional & Business Information Svcs
7.00
7.65
Direct Marketing
6.45
6.31
Business-to-Business Media
2.47
5.98
Broadcast & Satellite Radio
3.43
5.22
Entertainment Media
3.93
5.16
Consumer Books
3.64
3.73
Broadcast Television
4.65
3.03
Consumer Magazines
2.56
2.60
Yellow Pages
1.23
1.87
Newspaper Publishing
1.83
1.31
SEGMENT
CHG in Trend
Green = Percent change greater than half GDP
Red = Percent change less than half GDP
Source: Veronis Suhler Stevenson
Copyright © 2008
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Contact
In Germany
In the United States of America
von Braun & Schreiber Private Equity Partners GmbH
Promenadeplatz 12 • D - 80333 Munich • Germany
Tel: +49 (0) 89 - 28 69 52 0 • Fax: +49 (0) 89 - 28 69 52 10
Email: [email protected]
Emmeram von Braun – Partner
Gottfried Schreiber – Partner
von Braun & Schreiber Private
Equity Partners (US) LLC
19570 Trails End Terrace • Jupiter, FL 33458 • USA
Tel: +1 (561) 744 - 5321 • Fax: +1 (561) 744 - 5335
Email: [email protected]
Timothy J. Reynolds – Partner