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Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
Overview 2o census_brazilian_ind_pevc_2009_g_vcepe
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Overview 2o census_brazilian_ind_pevc_2009_g_vcepe

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Brazilian Private Equity and Venture Capital Industry Second Census_2009

Brazilian Private Equity and Venture Capital Industry Second Census_2009

Published in: Economy & Finance, Business
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  • 1. Brazilian Private Equity and Venture Capital Industry Second Census_2009Prof. Adalberto BrandãoCOO of GVcepeadalberto.brandao@fgv.br Nov/2011Copyright @2011. Fundação Getúlio Vargas - GVcepe
  • 2. The Second Census Project The Second Census Project Gather and interpret data to reflect the reality of the Brazilian PE&VC industry and its impact on the economy. 80% of industry participants surveyed 180 144 PE&VC Managing Surveyed OrganizationsCopyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 2
  • 3. Industry Overview as of December 2009 • US$ 36.1 bn Committed Capital • Main LPs: Pensions 22%, Parent Orgs. Investors 18%, Endowments 10%, GP Orgs 9%, Family Offices 9% • 144 PE&VC Firms General Partners • 258 Investment Vehicles • Est. 1,593 Professionals & Staff • 502 portfolio cos., Dec 09 • 2005-2009 Period: Portfolio Companies • 414 new investments • 103 total exits • 39 IPOsCopyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 3
  • 4. Expansion of the Asset Class Committed Capital allocated to Brazil (US$ Bn). Committed Capital as % of GDP40 2.3% 2.5% 3635 2% 2%30 15% p.a25 27 1.5%20 1.2% 1% 2x15 1%10 13 2x 0.5%5 60 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 The evolution of committed capital is impressive, increasing more than 6 times since 2004 and 2 fold as percentage of GDP.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 4
  • 5. Committed Capital December 2009 (US$ MM) Types Private Govt. Total % Committed Capital Dec. 2008 28,984 Traditional * 27.168 935 28.103 78% Fundraising (Vehicles in US$) 3.093 Corporate Venture ** 350 - 350 1% Fundraising (Vehicles in R$) 2.979 Infrastructure *** 3.955 - 3.955 11% Reductions (Vehicles in US$) -1.531 Real Estate 2.734 - 2.734 8% Reductions (Vehicles in R$) -732 Timber 970 - 970 3% Exchange Rate Effect 3.318 Total 35.177 935 36.112 100% Committed Capital Dec. 09 36.112* Investment vehicles with focus on manufacturing, trade, services, agriculture and traditional businesses.** Subsidiaries of industrial corporations.*** Investment vehicles dedicated exclusively to oil & gas, energy and self defined infrastructure funds.NOTE: Reductions refer to discontinued operations, termination of funds, allocation to Brazil changes and reductions of committed capitalby investors.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry 5
  • 6. Investment and Fundraising (US$ bn.) Estimate of US$ 17.8 bn. of ”Dry Powder” ready to be invested as of December 2009Notes: Fundraising based on sample of 258 investment vehicles by 144 PE&VC Managing Organisations.Investment based on Sample of 394 and 95 Investments made by 144 and 45 PE&VC Managing Organisations in 2005-2008 and 2009 respectively.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 7
  • 7. Investments by Sectors of Economic Activity (US$ MM) 2005-2008 (Includes New and Follow-on Investments) Food and Beverages 24% Various Industries* 14% Civil Construction/Real Estate 13% Retail 12% Financial Services 11% Energy and Oil 4% Education 4% Communication 4% Agribusiness 3% IT and Electronics 3% Pharmaceutical/Medical/Aesthetics 3% Entertainment/Tourism 2% Extractive Industries 2% Infrastructure - other 1% * Various Industries: E.g.: Chemicals, Mechanic, Electric, Metallurgic, Packaging, TeSample 2005-2008: 394 investments by 144 PE&VC Orgs. xtiles.Sample 2009: 95 investments by 45 PE&VC Orgs. ** Various Services: E.g.: Call Center, Consulting.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 8
  • 8. Investments by Sectors of Economic Activity (US$ MM) 2009 (Includes New and Follow-on Investments) Energy and Oil 54% 39% 10% Financial Services 14% 9% Entertainment/Tourism 11% 6% Extractive Industries 8% 5% Transportation and Logistics Services 7% 5% Including all investments Education 6% 3% Agribusiness 4% Excluding one US$ 0.765bn Infrastructure - other 2% investment in energy transmission Various Services** 2% Pharmaceutical/Medical/Aesthetics 1% Food and Beverages 1% Retail 1% * Various Industries: E.g.: Various Industries* 1% Chemicals, Mechanic, Electric, Metallurgic, Packaging, Textile IT and Electronics 1% s. ** Various Services: E.g.: Call Center, Consulting. 1% Sample 2005-2008: 394 investments by 144 PE/VC Orgs. Civil Construction/Real Estate Sample 2009: 95 investments by 45 PE&VC Orgs.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 9
  • 9. Number of Investments by Sectors of Economic Activity 2005-2008 vs. 2009 (Includes New and Follow-on Investments) 15% IT and Electronics 18% Energy and Oil 15% 11% Pharmaceutical/Medical/Aesthetics 14% 8% Agribusiness 11% 7% Various Industries* 9% 6% Various Services** 8% Transportation and Logistics Services 6% Biotechnology 5% 3% 2009 Retail 4% 4% 2005-2008 Financial Services Entertainment/Tourism 4% Civil Construction/Real Estate 4% Education 3% Extractive Industries 2% * Various Industries: E.g.: Food and Beverages 2% Chemicals, Mechanicals, Electric, Metallurgic, Packagin g, Textiles. Infrastructure - other 1% ** Various Services: E.g.: Call Center, Consulting. 1% Sample 2005-2008: 394 investments Communication Sample 2009: 95 investmentsCopyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 10
  • 10. Investments by Stage and Type 2009 Number of Investments Average Ticket (Includes New and Follow-on Investments) (US$ MM) 3% 1% Private Equity Stage Average Ticket 5% Seed/Start-up 0.42 4% 41% Venture Venture Capital 4.4115% Capital Greenfield 46.64 Seed/Start-up Mezzanine 50.22 Distressed 64.37 Greenfield Private Equity 73.41 PIPE 91.77 31% Mezanino Total 39.39 Sample: 95 investments Sample: 77 investments Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 11
  • 11. New Investment Vehicles Raised 50 47 45 40 37 35 31 30 25 19 20 15 11 13 9 10 8 10 7 7 7 7 5 1 3 0 95 and 1997 1999 2001 2003 2005 2007 2009 before 30 to 50 new investment vehicles raised p.a. since 2008, vigorous entry and expansion in the industry.Sample: 215 Investment Vehicles reported by 120 PE/VC Orgs.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 12
  • 12. Portfolio Companies By Sector of Economic Activity 2009 Sector No. of Companies % Cumulative % IT and Electronics 103 20.5% 20.5% Civil Construction/Real Estate 69 13.7% 34.3% Energy and Oil 56 11.2% 45.4% Various Industries 55 11.0% 56.4% Communications 33 6.6% 62.9% Retail 26 5.2% 68.1% Agribusiness 25 5.0% 73.1% Transportation and Logistics Services 20 4.0% 77.1% Food and Beverages 19 3.8% 80.9% Infrastructure - other 19 3.8% 84.7% Financial Services 16 3.2% 87.8% Pharmaceuticals, Medicals and Aesthetics 15 3.0% 90.8% Biotechnology 14 2.8% 93.6% Various Services 10 2.0% 95.6% Education 8 1.6% 97.2% Entertainment / Tourism 7 1.4% 98.6% Extractive Industries 7 1.4% 100.0% Total 502 100.0%* Various Industries: E.g.: Chemicals, Mechanicals, Electric, Metallurgic, Packaging, Textiles. Sample of 502 companies in 2009.** Various Services: E.g.: Call Center, Consulting.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 13
  • 13. Frequency of Portfolio Companies by Stage 2009 Overview PE - Growth 36.5%VC 47.0% VC - Early Stage 20.9%PE Growth 36.5% Start-up 13.1%PE Later Stage 6.9%Other 10.1% Seed 7.6% PE - Later Stage 6.9% PIPE 6.2% VC - Later stage 5.0% Mezzanine 2.1% Greenfield 1.6% Distressed 0.2% Sample: 436 companies in 2009 .Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 14
  • 14. Closing the Gap: Potential for PE/VC investment in innovative opportunities PE/VC Portfolio Companies Geographic Distribution Incubators and Tech ParksCopyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 15
  • 15. Exits & Divestitures 70 Divestitures 2005 - 2009 (Including Total & Partial) 61 60 2 48 15 50 42 4 3 37 40 3 4 24 12 4 6 Write-off 30 27 8 1 10 Buyback 5 12 20 11 Trade Sale 4 10 6 Secondary 17 19 16 10 Sale 8 IPO 4 0 1 2005 2006 2007 2008 2009NOTE: the sample contains 151 divestitures (107 total & 44 partial) from 2005 to 2008 & 37 divestitures (30 total & 7 partial) in 2009 with information about theexit mechanism.Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 16
  • 16. ContactCopyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 17
  • 17. Thanks for your attentionCopyright @2011. Fundação Getúlio Vargas - GVcepe 18

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