Transcript Equity Funds Strategy

EBRD Portfolio of Private Equity Funds in
Central and Eastern Europe
and the CIS
Anne Hutton
Equity Funds Team, EBRD
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EBRD in Private Equity Funds

EBRD’s portfolio of funds: over 15 years of investing in the
asset class
 125 funds (34% liquidated)
 81 fund managers
 EUR 2.68 billion in commitments (USD 3.26 billion) to
funds with capital of EUR 13.54 billion (USD 17.01 billion)
 1,116 underlying investments, up to 70% exited.

Largest PE Fund investment program dedicated to the
region*
Note: EBRD tracked portfolio only to end December 2009, excludes real estate funds
* Russia, CIS and CSE, Turkey
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Fund Raising vs Investments
3,000
70%
Commitments Raised by Year
Annual Investments
62%
60%
EBRD Commitments as % of total Commitments
2,500
54%
50%
49%
EUR Millions
2,000
14%
40%
40%
1,500
30%
31%
13%
24%
27%
1,000
23%
24%
22%
30%
9%
22%
20%
14%
500
14%
0
10%
0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Note: EBRD tracked portfolio only to December 2009, CSE and CIS
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Investor by Type – Trends
100%
90%
17.98%
31.22%
80%
8.62%
Banks and Insurance
70%
16.44%
60%
3.14%
Corporate Investors
Fund of Funds
50%
40%
IFI and Govt
29.37%
10%
49.93%
Others
30%
20%
Pension Funds
13.30%
14.30%
15.70%
1992-2008
2009
0%
Note: CIS and CSE. Includes EBRD (in IFI/Govt), excludes Property Funds
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EBRD Net Horizon Returns: All Funds
USD
EUR
Returns as at
December 31 2009
One
Year
Three
Years
Five
Years
Ten
Years
Since
Inception
EBRD Private Equity Portfolio*
6.4%
5.2%
25.0%
16.9%
12.3%
Cambridge Emerging Markets
Venture Capital & Private Equity
Index**
8.3%
3.5%
20.6%
15.0%
N/A
EBRD Private Equity Portfolio*
3.6%
2.4%
27.4%
11.8%
9.7%
EVCA, All Private Equity**
7.7%
-3.9%
6.5%
5.2%
8.9%
Source: Cambridge Associates, EVCA/Thomson Reuters, Bloomberg and EBRD
* EBRD tracked portfolio pooled end-to-end return, net of fees, expenses, donor grants and carried interest. Excludes property funds, and
includes liquidated partnerships.
** Pooled end-to-end return, net of fees, expenses, and carried interest. “The "Since Inception" figure represents the net pooled IRR since
inception for funds formed between 1980 and 2009.
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Gross Snapshot: All Funds
>1,100 companies, up to 70% exited
14,000
12,000
EUR Millions

Fully Realised (Including WO)
Partially Realised
Unrealised
10,000
Overall 1.59x 17.4%
8,000
6,000
4,000
2,000
EUR 2,870m
EUR 382m
FR 2.23x 20.5%
PR 2.6x 23.3%
EUR 3,851m
EUR 6,406m
UR 1.01x 0.62%
EUR 986m
EUR 3,906m
0
Investments at Cost
EUR 7,103m
Total Value
EUR 11,298m
Note: Excluding underlying investments of funds in which the EBRD sold on its interest.
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Gross Snapshot: Agribusiness
218 companies, 80% exited
1,500
Fully Realised (Including WO)
1,300
Partially Realised
Unrealised
1,100
,
EUR
ns
Millio

900
Overall 1.50x
EUR 1,056m
700
EUR 635m
FR 1.66x
500
PR 1.35x
300
EUR 49m
EUR 36m
100
UR 1.08x
EUR 229m
EUR 247m
-100
Investments at Cost
EUR 900m
Total Value
EUR 1,352m
Note: Since inception, to end 2009
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Exits by Sub-Sectors: Agribusiness
By Investment Cost
Primary
13%
Manufacturing &
Packaging
16%
Food retail
18%
By Exit Proceeds
Beverage
23%
Manufacturing &
Packaging
13%
Food
processing
30%
Food retail
22%
Primary
12%
Beverage
30%
Food
processing
23%
Note: since inception to end 2009
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Money Multiples and Holding Period:
Agribusiness
300
Investment Cost
Total Investment Value
TVPI FR
Average Holding Period
6.0
250
5.0
200
4.0
150
3.0
100
Multiple
EUR Millions
7.0
2.0
50
1.0
/P
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* primary sub-sectors
Note: Average Holding Period and TVPI calculation includes only fully realised deals
Note: Preliminary data to end 2009
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Type of Equity Funds: EBRD Portfolio

Standard private equity funds
– regional or country focussed
– generalist or sector specific

Donor funding – channelled through:
– TC e.g. EBRD managed accounts.
– Equity windows e.g. EU EBRD Equity SME Finance programme
– Equity windows e.g. GEFF structure
– Central body e.g. SEAF

Insured vehicle / wraparound guarantee

Debt supported – OPIC
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compiled by the EBRD, we do not guarantee its accuracy or
completeness. We accept no liability in relation to use of this
information. Copyright 2009 European Bank for Reconstruction and
Development. All rights reserved.
www.ebrd.com
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